PANKAJ BHANWARLAL DHADDHA, MUMBAI V. ITO 19 (2)(5), MUMBAI

ITA 346/MUM/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6797 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 13-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT PRATAP SINGH
• Keywords: Reopening of assessment; Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (V I RTUAL COURT) , C BENCH MUMBAI BEFORE SHRI M.BALAGANESH, AM & SHRI PAVAN KUMAR GADALE , JM ITA NO. 346 /MUM/ 20 20 ( ASSESSMENT YEAR : 2010 - 11 ) SHRI PANKAJ BHANWARLAL DHADDHA MATRU MANDIR BUILDI NG, 2 ND FLOOR, NANA CHOWK, BHATIA HOSPITAL LANE, JAVJI DADAJI MARG, GRANT ROAD WEST MUMBAI,MAHARASHTRA - 400007 VS. INCOME TAX OFFICER 19(2)(5) - MUMBAI PAN/GIR NO. AGPPD5773L (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI BHARAT KUMAR REVENUE BY SHRI AMIT PRATAP SINGH DATE OF HEARING 09 / 09 /2020 DATE OF PRONOUNCEMENT 09 / 09 /2020 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 346/MUM/2019 FOR A.Y. 2010 - 11 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 30 IN APPEAL NO. CIT(A) - 30/19(2)(5)/10903/2016 - 17 DATED 30/03/2016 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED ITA NO . 346/MUM/20 20 SHRI PANKAJ BHANWARLAL DHADDHA 2 29/02/2016 BY THE LD. INCOME T AX OFFICER 19(2)(5), MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) IS AN EX PARTE WITHOUT AFFORDING PROPER OPPORTUNITY OF HEARING TO THE ASSES SEE. ASSESSEE ALSO URGED BEFORE THE BENCH TO SET ASIDE THIS ORDER OF LD. CIT(A) TO PASS A REASONED AND SPEAKING ORDER AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. LD. DR RELIED ON THE ORDER OF THE LD. CIT(A). 3. WE FIND THAT THE ASSESSEE HAD RAISED VARIOUS GROUNDS BEFORE US INCLUDING CHALLENGING THE VALIDITY OF REOPENING OF ASSESSMENT IN THE INSTANT CASE. WE FIND THAT THE LD. AO HAD MADE DISALLOWANCE AT THE RATE OF 12.5% ON ACCOUNT OF UNVERIFIABLE PURCHASES MADE FROM CERTAIN PARTI ES BY THE ASSESSEE IN VIEW OF THE FACT THAT THE SALES MADE BY THE ASSESSEE WERE NOT DOUBTED BY THE LD. AO. WE FIND THAT THE LD. CIT(A) HAD ENHANCED THE SAID DISALLOWANCE TO 100% OF THE VALUE OF PURCHASES AFTER ISSUING ENHANCEMENT NOTICE TO THE ASSESSEE. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE ORDER OF LD. CIT(A). WE FIND THAT THE LD. CIT(A) HAS PASSED A N EX PARTE ORDER WITHOUT SECURING THE PRESENCE OF THE ASSESSEE OR HIS WRITTEN SUBMISSIONS ON RECORD . THEREFORE, WE DEEM IT FIT AND APPRO PRIATE TO SET ASIDE TH IS APPEAL TO THE FILE OF LD. CIT(A) T O ADJUDICATE THE MATTER AFRESH AND PASS A SPEAKING ORDER AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH LAW. WE ALSO DIRECT THE ASSESSEE TO APPEAR BEFORE T HE LD. CIT(A) DILIGENTLY AND PARTICIPATE IN THE APPELLATE PROCEEDINGS AND CO - OPERATE IN EXPEDITIOUS DISPOSAL OF THE APPEAL BEFORE HIM AND NOT TO SEEK ADJOURNMENTS , IF ANY, EXCEPT DUE TO BONAFIDE OR ITA NO . 346/MUM/20 20 SHRI PANKAJ BHANWARLAL DHADDHA 3 EXCEPTIONAL REASONS. HENCE ALL THE ISSUES RAISED BY THE A SSESSEE ARE LEFT OPEN. THE ASSESSEE IS ALSO GIVEN LIBERTY TO RAISE ADDITIONAL GROUNDS, IF ANY, BEFORE THE LD. CIT(A). THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . O RDER PRONOUNCED IN OPEN COURT ON 0 9 /09/2020. SD/ - ( PAWAN KUMAR GADALE ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 09 / 09 / 2020 KARUNA , SR.PS C OPY OF THE ORDE R FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//