Shri Ratan Kumar Agarwal, Kanpur V. Income Tax Officer-1(3), Kanpur

ITA 342/LKW/2014

• Counselvise Citation: 34223714 RSA 2014
• Duration Of Justice: 1 year(s) 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SWARN SINGH
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.342/LKW/2014 ASSESSMENT YEAR:2007-08 SHRI. RATAN KUMAR AGARWAL KANPUR V. INCOME TAX OFFICER 1(3) KANPUR TAN/PAN:AEFPA8080M (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. SWARN SINGH, C.A. RESPONDENT BY: SHRI. AMIT NIGAM, D.R. DATE OF HEARING: 02 09 2015 DATE OF PRONOUNCEMENT: 16 09 2015 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON THE FOLLOWING GROUNDS:- 1. THAT THE LD. CIT (A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN PASSING AN EX-PARTE ORDER DATED 29.11.2013 WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD TO THE APPELLANT. 2. THAT THE LD. CIT (A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN SUSTAINING THE ADDITIONS MADE BY THE ASSESSING OFFICER VIDE ORDER DATED 29.12.2009 PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961, WITHOUT GIVING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE APPELLANT. 3. THAT THE LD. CIT (A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.66,570/- MADE BY A.O. , BEING INTEREST PAID ON UNSECURED LOANS, IN EXCESS OF 12%. 4. THAT THE LD. CIT (A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.19,400/-MADE BY A.Q., :- 2 -: BEING 20% OF TOTAL FREIGHT EXPENSES OF RS.97,000 DEBITED UNDER THE HEAD 'SUPARI FREIGHT EXPENSES .' 5. THAT THE LD. CIT(A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.4,42,849/- MADE BY A.O. U/S 41(1) OF THE INCOME TAX ACT, 1961 ON ACCOUNT OF REMISSION OF CESSATION OF THE LIABILITY. 6. THAT THE LD. CIT (A)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN SUSTAINING THE FOLLOWING ADDITIONS/DISALLOWANCES MADE BY THE AO:- (I) ADDITION OF RS.66,570/- BEING INTEREST PAID ON UNSECURED LOANS , IN EXCESS OF 12%. (II) ADDITION OF RS. 19,400/-, BEING 20% OF TOTAL FREIGHT EXPENSES OF RS.97,000 DEBITED UNDER THE HEAD 'SUPARI FREIGHT EXPENSES. (III) ADDITION OF RS.4,42,849/-, BEING ADVANCE RECEIVED FROM THE CUSTOMERS OF THE APPELLANT. 7. THAT THE IMPUGNED ORDER PASSED BY LD. CIT (A)-II, KANPUR IS ILLEGAL AND IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND EQUITY, THEREFORE, THE SAME IS LIABLE TO BE QUASHED. 8. THAT ANY OTHER RELIEF OR RELIEFS AS YOUR HONOUR MAY DEEM FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, BE GRANTED. 2. THIS APPEAL WAS LISTED FOR HEARING ON 2.9.2015, BUT THE LD. COUNSEL FOR THE ASSESSEE SOUGHT ADJOURNMENT ON THE GROUND THAT THE PAPER BOOK PRESENTED BEFORE THE COURT COULD NOT BE COMPILED. THIS GROUND FOR ADJOURNMENT DOES NOT APPEAR TO BE REASONABLE AND WE ACCORDINGLY DECLINE TO ADJOURN THE HEARING. ACCORDINGLY THE APPEAL WAS HEARD. 3. ON A CAREFUL PERUSAL OF THE ORDER OF THE LD. CIT(A), WE FIND THAT NONE APPEARED BEFORE THE LD. CIT(A) ON BEHALF OF THE ASSESSEE AND THE LD. CIT(A) HAS ADJUDICATED THE APPEAL EX-PARTE. IT IS ALSO EVIDENT FROM :- 3 -: THE ORDER OF THE LD. CIT(A) THAT THE LD. CIT(A) HAS NOT ADJUDICATED THE ISSUES ON MERIT IN DETAIL AND SIMPLY CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 4. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS, HOWEVER, SUBMITTED THAT THE LD. CIT(A) HAS NOT AFFORDED PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. KEEPING IN VIEW ALL THESE FACTS, WE ARE OF THE VIEW THAT SINCE THE LD. CIT(A) HAS NOT ADJUDICATED THE APPEAL ON MERIT, THE ORDER OF THE LD. CIT(A) BE SET ASIDE AND RESTORED BACK TO HIM FOR ADJUDICATION OF THE ISSUES ON MERIT AFTER AFFORDING FRESH OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE FOR FRESH ADJUDICATION. 5. IN THE RESULT, APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:16 TH SEPTEMBER, 2015 JJ:0209 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR