Contis Technologies Pvt. Ltd., Ahmedabad V. The Income Tax Officer, Ward-1(3), Ahmedabad

ITA 3524/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9342 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 16-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTOSH KARNAMI
• Assessee Lawyers: KHANJAN CHHAYA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 27; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ./ ITA.NO.3524/AHD/2015 / ASSTT. YEAR: 2011-2012 CONTIS TECHNOLOGIES P.LTD. HOUSE H, 1 ST AND 2 ND FLOOR MONDEAL RETAIL PARK NR. RAJPATH CLUB S.G. HIGHWAY, BODAKDEV AHMEDABAD 380 015. PAN : AACCR 7065 F VS ITO, WARD-1(3) AHMEDABAD. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI KHANJAN CHHAYA, AR REVENUE BY : SHRI SANTOSH KARNAMI, SR.DR / DATE OF HEARING : 23/02/2016 / DATE OF PRONOUNCEMENT: 23/02/2016 $%/ O R D E R THIS APPEAL OF THE ASSESSEE AROSE FROM ORDER OF THE LD.CIT(A)-I, AHMEDABAD DATED 24.9.2015 FOR THE ASSTT.YEAR 2011-2 012. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. BECAUSE THE HON'BLE CIT(A)-1 ERRED ON FACTS WH ILE OVERRULING THE GROUND OF APPEAL OF THE APPELLANT THAT THE LD A O SERVED PENALTY ORDER UPON THE APPELLANT COMPANY WITHOUT SERVICE OF EFFECTIVE SCN AND WITHOUT PROVIDING AN EFFECTIVE REASONABLE OPPORTUNI TY OF BEING HEARD AND THE ORDER IS ISSUED IN VIOLATION OF PRINCIPLE O F NATURAL JUSTICE AND IN GROSS CONTRAVENTION OF THE PROVISIONS OF SECTION 27 4 OF THE ACT, THE PENALTY ORDER IS VOID-AB-INITIO AND IT IS PRAYED TO QUASH SUCH ILLEGAL ORDER ITA NO.3524/AHD/2014 2 2. BECAUSE THE HON'BLE CIT(A)-1 ERRED IN LAW AS WE LL AS ON FACTS WHILE CONFIRMING THE PENALTY OF RS.2,28,278/- LEVIE D U/S.271(L)(C) OF THE INCOME TAX ACT, 1961 WHEN THE APPELLANT COMPANY MAD E SUO-MOTO DISCLOSURE OF THE INADVERTENT AND BONQFIDE ERROR MA DE IN THE CALCULATION OF THE BOOK PROFITS FURNISHED IN THE RE TURN OF INCOME, CONFIRMING THE GROUND OF THE LD AO OF FURNISHING IN ACCURATE PARTICULARS OF INCOME 3. BECAUSE THE HON'BLE CIT(A)-1 ERRED IN LAW WHILE CONFIRMING PENALTY ON THE PRESUMPTION THAT 'THE ASSESSEE COULD HAVE ENJOYED THE FRUITS OF FILING ALLEGED INACCURATE PARTICULARS OF ITS INCOME WITH REVENUE AND TO CAUSE LOSS TO THE REVENUE' PARTICULARLY WHEN IT WAS A TAX NEUTRAL POSITION FOR THE APPELLANT. 4. THE APPELLANT COMPANY CRAVES LEAVE TO ADD / ALT ER ANY OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING 3. AS REGARDS GROUND NO.1, IT WAS BROUGHT TO NOTICE OF THE LD.AR THAT THE NOTICE FOR HEARING IS DATED 24.3.2014 AND WAS FIXED FOR HEARING ON 10.3.2014. THOUGH IN THE PENALTY ORDER, THE REPLY DATED 13.3.2 014 WAS GIVEN IN RESPONSE TO THE NOTICE OF PENALTY RECEIVED ALONG WITH THE AS SESSMENT ORDER, BUT NO NOTICE THEREAFTER HAS BEEN RECEIVED, AND NO ADEQUAT E OPPORTUNITY OF HEARING TO THE ASSESSEE HAS BEEN GIVEN. 4. THE LD.DR, ON THE OTHER HAND, ARGUED THAT MENTIO NING OF DATE 24.3.2014 IS TYPOGRAPHICAL MISTAKE, AND THEREFORE, CANNOT CHA NGE THE SUBSTANCE OF THE APPEAL. 5. I HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE F ACTS OF THE CASE. THE UNDISPUTED FACTS IN THE PRESENT CASE IS THAT THE SH OW CAUSE NOTICE FOR PROVIDING OPPORTUNITY OF BEING HEARD IN PENALTY PROCEEDING UN DER SECTION 271(1)(C) OF THE INCOME TAX ACT FOR THE IMPUGNED YEAR IS DATED 2 43.2014 AND FIXED FOR HEARING ON 10.3.2014, WHICH SHOWS THAT THE ASSESSEE HAS NOT BEEN PROVIDED ADEQUATE OPPORTUNITY OF BEING HEARD. ACCORDINGLY, IN THE FACTS AND ITA NO.3524/AHD/2014 3 CIRCUMSTANCES OF THE CASE, I SET ASIDE THE MATTER T O THE FILE OF THE AO, WHO WILL PROVIDE SUFFICIENT OPPORTUNITY OF HEARING TO THE AS SESSEE AND DECIDE THE ISSUE DE NOVO . ACCORDINGLY, ALL THE GROUNDS OF THE APPEAL OF TH E ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 23 RD FEBRUARY, 2016 AT AHMEDABAD. SD/- ( B.P. JAIN ) ACCOUNTANT MEMBER AHMEDABAD; DATED 23/02/2016