FIROZ A. NADIADWALA, MUMBAI V. ITO WD 16(1)(2), MUMBAI

ITA 3900/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8893 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 29-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 3900 /MUM/ 2017 (ASSESSMENT YEAR 20 12 - 13 ) MR. FIROZ A. NADIADWALA BARKAT, PLOT NO. 20 GULMOHAR, CROSS ROAD NO. 5, JVPD MUMBAI - 400 049. PAN : AADPN1426C V S . ITO WARD 16(1)(2) 444, 4 TH FLOOR AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 20. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY NONE DEPARTMENT BY MS. N. HEMALATHA DATE OF HEARING 1 .1 1 . 201 7 DATE OF PRONOUNCEMENT 1 . 11 . 201 7 O R D E R THE APPEAL FILE D BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 03 - 02 - 2017 PASSED BY LD CIT(A) - 4, MUMBAI AND IT RELATES TO THE ASSESSMENT YEAR 2012 - 13. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE DISALLOWANCE MADE U/S 36(1)(III) OF THE A CT. IT IS ALSO CONTENDED THAT THE LD CIT(A) HAS PASSED THE ORDER WITHOUT GIVING SUFFICIENT OPPORTUNITY OF BEING HEARD. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE, EVEN THOUGH THE NOTICE WAS ISSUED BY REGISTERED POST. HENCE I PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 3. I NOTICE THAT THE LD CIT(A) WAS CONSTRAINED TO PASS THE ORDER EX - PARTE, SINCE THE ASSESSEE DID NOT RESPOND TO THE NOTICE WHICH WAS SERVED BY REGISTERED POST. THE LD CIT(A) FURTHER NOTICED TH AT THE ASSESSEE HAS PAID INTEREST ON LOAN TAKEN BY HIM, BUT DID NOT COLLECT INTEREST FROM THE PARTIES TO WHOM ADVANCES WERE MADE. IN THE ABSENCE OF PROPER EXPLANATIONS, THE AO HAD DISALLOWED THE INTEREST EXPENDITURE AND IT WAS ALSO CONFIRMED BY LD CIT(A). MR. FIROZ A. NADIADWALA 2 4. I AM OF THE VIEW THAT, IN THE INTEREST OF NATURAL JUSTICE, THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY. BUT IT SHOULD BE ON TERMS. ACCORDINGLY I IMPOSE A COST OF RS.2000/ - ON THE ASSESSEE, WHICH SHALL BE PAID TO THE CREDIT OF INCOME TAX DEPA RTMENT AS OTHER FEES. SUBJECT TO THE PAYMENT OF THE SAME, I SET ASIDE THE ORDER PASSED BY LD CIT(A) AND RESTORE ALL THE ISSUES TO HIS FILE WITH THE DIRECTION TO ADJUDICATE THE GROUNDS AFRESH BY AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO CO - OPERATE WITH LD CIT(A) FOR EXPEDITIOUS DISPOSAL OF THE APPEAL. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 1 .11 . 201 7. SD/ - (B .R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 1 / 11 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( ASSTT. REGISTRAR /SENIOR PS ) PS ITAT, MUMBAI