THE EMICO KCP LTD, CHENNAI V. ITO, CORP WARD 3(3), CHENNAI

ITA 3551/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5038 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 31-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C YAMUNA
• Assessee Lawyers: MOHAN RAAJAN
• Keywords: Opportunity of being heard; Bad and doubtful debts
• Section: 143(3); 14A; 250

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A. NOS.3551 & 3552/CHNY/2018 / ASSESSMENT YEARS: 2014-15 & 2015-16 THE EMICO KCP LIMITED, NEW NO. 239, OLD NO. 185, RAMAKRISHNA BUILDING, MOUNT ROAD, CHENNAI 600 006. [PAN:AAACT2962M] VS. THE INCOME TAX OFFICER, CORPORATE WARD 3(3), CHENNAI 600 034. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI MOHAN RAAJAN, C.A. / RESPONDENT BY : MS. C. YAMUNA, JCIT / DATE OF HEARING : 30.04.2019 /DATE OF PRONOUNCEMENT : 21.05.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: BOTH THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 7, CHENNAI, BOTH DATED 28.09.2018 RELEVANT TO THE ASSESSMENT YEARS 2014-15 AND 2015-16. THE GROUNDS RAISED BY THE ASSESSEE ARE REPRODUCED HEREUNDER: 1. THE ORDER OF THE C.I.T. (APPEALS) IS CONTRARY TO LAW AND FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE LEARNED C.I.T. (APPEALS) ERRED IN ABDICATING HIS JUDICIAL POSERS BY NOT PASSING THE SPEAKING ORDER AND MAKING ENQUIRY ON VARIOUS ISSUES CONCERNED WITH THE DETERMINATION OF INCOME VIZ., I.T.A. NOS. 3551 & 3552/CHNY/18 2 A. DISALLOWANCE UNDER SECTION 14A. B. DISALLOWANCE OF BAD DEBTS. 3. THE LEARNED C.I.T. (APPEALS) ERRED IN ABDICATING HIS JUDICIAL POWERS BY NOT PROVIDING OPPORTUNITY OF BEING HEARD. WE HAVE NOT RECEIVED ANY HEARING NOTICE FROM THE CIT APPEALS. THE APPELLANT CRAVES LEAVE TO FILE ADDITIONAL GROUNDS. SIMILAR GROUNDS WERE RAISED FOR THE ASSESSMENT YEAR 2015-16 AS WELL. 2. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. UPON CONSIDERING THE DETAILS FURNISHED BY THE ASSESSEE, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] BY MAKING DISALLOWANCE OF BAD DEBT AS WELL AS DISALLOWANCE UNDER SECTION 14A OF THE ACT FOR BOTH THE ASSESSMENT YEARS. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). ON PERUSAL OF THE APPELLATE ORDER, WE FIND THAT UPON FILING THE APPEALS, THE LD. CIT(A) HAS NOT ISSUED ANY NOTICE OF HEARING TO THE ASSESSEE TO PRESENT ITS CASE NOR CALLED FOR ANY DETAILS. THE PROVISIONS OF SECTION 250 OF THE ACT CLEAR SPEAKS ABOUT THE PROCEDURE TO BE ADOPTED ON THE APPEALS FILED BY THE ASSESSEE BEFORE THE LD. CIT(A). WHAT IS CONTEMPLATED BY SUB-SECTION 1 OF SECTION 250 OF THE ACT IS AN OPPORTUNITY OF HEARING TO BE AFFORDED TO THE ASSESSEE. IN VIEW OF THE ABOVE PROVISIONS, WE DIRECT THE LD. CIT(A) TO ADJUDICATE THE GROUNDS RAISED IN BOTH THE APPEAL AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO PRESENT I.T.A. NOS. 3551 & 3552/CHNY/18 3 ITS CASE BEFORE HIM AND DECIDE THE ISSUES IN ACCORDANCE WITH LAW. THUS, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 21 ST MAY, 2019 IN CHENNAI. SD/- SD/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 21.05.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.