CRYSTAL SOUND AND MUSIC PRIVATE LIMITED, MUMBAI V. ITO 12(1)-4, MUMBAI

ITA 3421/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5543 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 21-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUM BAI BEFORE SHRI SHAMIM YAHYA, AM AND SHRI PAVAN KUMAR GADALE, JM ITA NO. 3421/MUM/2019 (ASSESSMENT YEAR: 2013-14) CRYSTAL SOUND AND MUSIC PRIVATE LIMITED (NOW MERGED WITH JAGRAN PRAKASHAN LIMITED) JAGRAN BUILDING, 2, SARVODAYA NAGAR, KANPUR VS. INCOME TAX OFFICE 12(1)-4, MUMBAI PAN/GIR NO. AADCC 1155 A ( APPELLANT ) : ( RESPONDENT ) APPELLANT BY : NONE RESPONDENT BY : SHRI MALLIKARJUN UTTURE DATE OF HEARING : 30.09.2020 DATE OF PRONOUNCEMENT : 05.10.2020 O R D E R PER SHAMIM YAHYA, A. M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-20, MUMBAI (L D.CIT(A) FOR SHORT) DATED 22.03.2019 AND PERTAINS TO THE ASSESSMENT YEAR (A.Y .) 2013-14. 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS IN THIS APPEAL. THE FIRST GROUND READS AS UNDER: 1. GROUND 1: DISMISSING THE APPEAL ON TECHNICAL G ROUNDS A) ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. THE ORDER OF THE LEARNED CIT (A) IS DEFECTIVE BOTH IN LAW AND IN FACTS OF TH E CASE. B) ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT (A) HAS ERRED IN DISMISSING THE APPEAL FILED BY THE APPELLA NT SOLELY ON THE TECHNICAL GROUND THAT THE APPEAL IN FORM 35 IS NOT VERIFIED AND DIGITALLY SIGNED AS REQUIRED UNDER RULE 45 OF THE INCOME TAX RULES, 1962 ('RULES'), EVEN THOUGH T HE APPEAL HAS BEEN DULY SIGNED AS REQUIRED UNDER THE ACT/ RULES. 2 ITA NO. 3421/MUM/2019 CRYSTAL SOUND AND MUSIC PRIVATE LIMITED C) ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED CIT (A) OUGHT TO HAVE GIVEN AN OPPORTUNITY TO THE APPELLANT BEFOR E DISMISSING THE APPEAL FILED BY IT. D) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE JPEAL FILED BY THE APPELLANT WITH THE LEARNED CIT (A) OUGHT TO BE REST ORED. 3. THEREAFTER THE ASSESSEE HAS CHALLENGED THAT THE LD. CIT(A) HAS ERRED IN NOT ADJUDICATING UPON THE MERITS OF THE ISSUE RAISED. 4. NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE DESPITE NOTICE SENT. HENCE, WE PROCEEDED TO ADJUDICATE THE ISSUE BY HEARING THE LD . DEPARTMENTAL REPRESENTATIVE (LD. DR FOR SHORT) AND PERUSING THE RECORDS. WE FIND THAT T HE LD. CIT(A) HAS DISMISSED THE ASSESSEES APPEAL ON TECHNICAL GROUND FOR THE FORM NO. 35 NOT BEING DIGITALLY SIGNED BY COMPETENT PERSON. HE OBSERVED THAT AS PER SECTION 1 40 OF THE ACT, IN CASE OF A COMPANY, THE RETURN OF INCOME IS TO BE VERIFIED BY THE MANAG ING DIRECTOR THEREOF, OR WHERE FOR ANY UNAVOIDABLE REASON SUCH MANAGING DIRECTOR IS NOT AB LE TO VERIFY THE RETURN, OR WHERE THERE IS NO MANAGING DIRECTOR, BY ANY DIRECTOR THEREOF. H E NOTED THAT IN THE PRESENT CASE, FORM NO. 35 WAS DIGITALLY SIGNED/VERIFIED BY CRYSTAL SOU ND & MUSIC PVT. LTD., THE ASSESSEE. 5. UPON CAREFUL CONSIDERATION, WE NOTE THAT BEFORE US THERE ARE TWO FORM 35 FILED BEFORE THE LD. CIT(A) AND BOTH ARE OF THE SAME DATE AND SAME ACKNOWLEDGEMENT NUMBER ONE IS SIGNED/VERIFIED BY THE COMPANY AS NOTED BY T HE LD. CIT(A) AND ANOTHER IS SIGNED/VERIFIED BY SHRI RAHUL GUPTA. PRIMA FACIE , IT APPEARS THAT THE SECOND ACKNOWLEDGEMENT OF VER IFICATION HAS ESCAPED THE LD. CIT(A)S ATTENTION. WE NOTE THE ABO VE CALLS FOR A REMOVAL OF THE ISSUE TO THE LD. CIT(A). THE ASSESSEE HAS ALSO CHALLENGED TH AT PROPER OPPORTUNITY HAS NOT BEEN GIVEN. HENCE, IN THE INTEREST OF JUSTICE, WE DIRECT THE LD. CIT(A) TO EXAMINE THE ABOVE SAID 3 ITA NO. 3421/MUM/2019 CRYSTAL SOUND AND MUSIC PRIVATE LIMITED TWO ACKNOWLEDGEMENT AND GIVE THE ASSESSEE PROPER OP PORTUNITY OF BEING HEARD. THEREAFTER, HE SHALL DECIDE AS PER LAW. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED UNDER RULE 34(4) OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1962, BY PLACING THE DETAILS ON THE NOTICE BOARD. SD/- SD/- (PAVAN KUMAR GADALE) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI; DATED : 05.10.2020 ROSHANI , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT - CONCERNED 5. DR, ITAT, MUMBAI 6. GUARD FILE BY ORDER, (DY./ASSTT. REGISTRAR) ITAT, MUMBAI