M/s. Paswara Electronics Pvt. Ltd., Ghaziabad V. ITO, New Delhi

ITA 371/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7549 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 23-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 20-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN D GEORGE
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI G.D. AGRAWAL , VICE PRESIDENT AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA NO. 371 /DEL /20 1 4 ASSESSMENT YEAR : 20 0 9 - 1 0 M/S PASWARA ELECTRONICS PVT. LTD VS. THE I.T . O 226, SECTOR 15A, NOIDA G.B. NAGAR WARD 14 (2) NOIDA N EW DELHI PAN : AA DCP 5906 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 23 . 05. 201 6 DATE OF PRONOUNCEMENT : 30 . 05 .201 6 APPELLANT BY : SHRI AKHILESH KUMAR, ADV RESPONDENT BY : MS. SUSAN D. GEORGE, SR. DR ORDER PER CHANDRA MOHAN GARG, JUDICIAL MEMBER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - XVI I , DELHI, DATED 28 / 1 0 /20 1 3 FOR A Y 20 0 9 - 1 0 . 2 . THE ASSESSEE HAS RAISED AS MANY AS FIVE GROUNDS OF APPEAL. HOWEVER, AT THE VERY OUTSET OF THE HEARING OF THE ARGUMENTS, THE LD. AR SUBMITTED THAT THE ISSUE OF EXEMPTION HAD ALREADY BEEN ACCEPTED IN THE EARLIER YEARS AND THERE WAS NO CHANGE IN THE FACTS. THE LD. AR RELIED ON THE DECISIONS IN THE CASE OF CIT VS. DELHI PRESS PATRA PRAKASHAN LTD [2013] 355 ITR 1 [DEL], VELAYUDHASWAMY SPINNING MILLS P. LTD VS. ACIT [2012] 340 ITR 477 [MAD] A N D AMRIT FEES LTD VS. ACIT 344 ITR 187 [CAL]. THE LD. AR FURTHER SUBMITTED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN COMING TO A HASTE AND ARBITRARY CONCLUSION WITHOUT APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CASE 2 ITA NO. 371 /DEL/20 1 4 2 AND THE WRITTEN SUBMISSIONS OF THE ASSESSEE PLACED ON REC ORD. THE LD. AR ALSO SUBMITTED THAT THE CLAIM OF EXEMPTION U/S 80IC OF THE ACT HAS BEEN REJECTED ON THE BASIS OF BALD CONCLUSION AGAINST THE ASSESSEE WITHOUT ANY OBJECTIVE REASONING WHICH IS ALSO AGAINST THE PRINCIPLES OF NATURAL JUSTICE. THE LD. AR CONT ENDED THAT HE HAS NO OBJECTION IF THE MATTER IS RESTORED TO THE FILE OF THE AO FOR FRESH ADJUDICATION. 3 . PER CONTRA, THE LD. DR SUPPORTED THE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT THE LD. CIT(A) WAS QUITE JUSTIFIED IN UPHOLDING THE ORDER OF THE AO. HOWEVER, HE RAISED NO SERIOUS OBJECTION TO THE ASSESSEE S SUBMISSION THAT HE HAS NO OBJECTION IF THE APPEAL IS RESTORED TO THE FILE OF THE AO FOR CONSIDERATION OF CALCULATION OF CLAIM OF EXEMPTION U/S 80IC OF THE ACT. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND CAREFULLY PERUSED THE RELEVANT MATERIAL PLACED ON RECORD BEFORE US. WE FIND FROM THE ORDER OF THE LD. CIT(A) THAT T HE ISSUES UNDER CONSIDERATION HAVE NOT BEEN DECIDED BY THE AO IN A PROPER MANNER AND FACTS HAVE NOT BEEN APPRECIATED IN A JUDI CIOUS MANNER. WE FIND THAT THE THE ISSUE OF EXEMPTION U/S 80IC OF THE ACT HAD ALREADY BEEN ACCEPTED IN THE EARLIER YEARS AND THERE WAS NO CHANGE IN THE FACTS OF THE PRESENT A.Y . WE FURTHER FIND THAT THE LD. CIT(A) HAS PASSED THE ORDER WITHOUT PROVIDING THE ASSESSEE DUE OPPORTUNITY OF BEING HEARD. O N THE BASIS OF FOREGOING DISCUSSION AND CAREFUL PERUSAL OF THE OPERATIVE PART OF THE LD. CIT(A) S CONCLUSION, IT IS AMPLY CLEAR THAT THE LD. CIT(A) HAS DECIDED THE ISSUE IN HASTE BY PAS SING A CRYPTIC ORDER WHICH IS NOT SUSTAINABLE. WE FURTHER NOTE THAT THE LD. CIT(A) HAS ALSO NOT PROPERLY 3 ITA NO. 371 /DEL/20 1 4 3 CONSIDERED THE SUBMISSIONS AND FACTS OF THE CASE AND SIMPLY FOLLOWED THE AO S CONCLUSION AND DISMISSED THE APPEAL OF THE ASSESSEE BY APPLYING THE RATI O OF VARIOUS DECISIONS. WE FURTHER NOTE THAT THE LD. CIT(A) TOO HAS NOT GIVEN DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LD. DR HAS SUPPORTED THE ORDER OF THE LD. CIT(A). HOWEVER, HE RAISED NO SERIOUS OBJECTION IF THE APPEAL IS RESTORED TO THE F ILE OF AO FOR FRESH ADJUDICATION OF FIRST APPEAL. THEREFORE, IN THE INTEREST OF JUSTICE , WE DEEM IT FIT TO RESTORE THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE TO THE FILE OF THE AO FOR FRESH ADJUDICATION. NEEDLESS TO MENTION THAT THE AO SHALL PROVIDE DUE AND PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE , WITHOUT BEING PREJUDICED WITH THE EARLIER IMPUGNED ORDER. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 0 . 05 .201 6 . S D / - S D / - ( G.D. AGRAWA L ) ( C.M. GARG) VICE PRESIDENT JUDICIAL MEMBER DATED: 3 0 T H MAY , 201 6 VL/ COPY FORWARDED TO: 1 . A PPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR ASST. REGISTRAR, ITAT, NEW DELHI