NARALIWADI MOSQUE & KABIRSTAN TRUST, MUMBAI V. ITO (E), WARD - 2 (1), MUMBAI

ITA 3933/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1168 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 03-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY J SETHI
• Keywords: Additional evidence
• Section: 143(3); 12A; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI , ! BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 3933 / / 2019 (%. .2013-14 ) ITA NO. 3933/MUM/2019 (A.Y.2013-14) NARAILWADI MOSQUE & KABRISTAN TRUST, GROUND FLOOR, 69, SANT SAVITA MARG, LOW LEVEL, MAZGAON, MUMBAI 400 010 PAN: AAATN2257N / VS. : / APPELLANT INCOME TAX OFFICER(EXEMPTION),WARD-2(1), PIRAMAL CHAMBERS, LALBAUG, MUMBAI 400 012 : / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI SANJAY J. SETHI / DATE OF HEARING : 02/12/2020 / DATE OF PRONOUNCEMENT : 14/12/2020 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-1, MUMBAI ( IN SHORT THE CIT(A)) DATED 14/05/2019 FOR THE ASSESSMENT YEAR 2013-14. 2. THE BRIEF FACTS OF THE CASE AS EMANATING FROM R ECORDS ARE: THE ASSESSEE IS A TRUST ENJOYING THE BENEFITS OF REGISTRATION U NDER SECTION 12A OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT). THE ASSESSEE FILED ITS RETURN OF INCOME FOR 2 ITA NO. 3933/MUM/2019 (A.Y.2013-14) ASSESSMENT YEAR 2013-14 ON 24/09/2013 DECLARING TOT AL INCOME AS NIL. IN SCRUTINY ASSESSMENT PROCEEDINGS THE ASSESSING OFFIC ER MADE ADDITION OF RS.58,170/-. THEREAFTER, THE ASSESSING OFFICER INV OKED THE PROVISIONS OF SECTION 154 OF THE ACT AND MADE FURTHER ADDITION/DISALLOWAN CES OF RS.6,60,401/-. IN PROCEEDINGS UNDER SECTION 154 THE ASSESSEE DID NOT PARTICIPATE DESPITE SERVICE OF NOTICES . AGGRIEVED BY THE ORDER DATED 12/09/201 7 PASSED UNDER SECTION 154 OF THE ACT, THE ASSESSEE FILED APPEAL BEFORE TH E CIT(A) CHALLENGING ASSESSING OFFICERS JURISDICTION INVOKING THE PROV ISIONS SECTION 154 OF THE ACT TO MAKE THE ADDITIONS, AS WELL AS ASSAILED THE ADD ITIONS/DISALLOWANCES ON MERITS. THE CIT(A) WITHOUT ADJUDICATING THE GROUNDS RAISED IN FIRST APPEAL BY THE ASSESSEE, DISMISSED THE APPEAL SOLELY ON THE GROUND THAT THE ASSESSEE WITHOUT ANY BONAFIDE REASONS HAS FAILED TO APPEAR B EFORE THE ASSESSING OFFICER IN RESPONSE TO NOTICE ISSUED UNDER SECTION 154/155 OF THE ACT. HENCE, THE PRESENT APPEAL BY THE ASSESSEE. 3. SHRI SANJAY J. SETHI, REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDING THE IMPUGNED ORDER SUBMITTED THAT THERE WAS AN APPA RENT MISTAKE IN THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT, THEREFORE, THE ASSESSING OFFICER INVOKED THE PROVISIONS OF SECTION 154 OF THE ACT TO DISALLOW DEDUCTIONS CLAIMED BY THE ASSESSEE IN THE RETURN OF INCOME. THE LD.DEPARTMENTAL REPRESENTATIVE FURTHER SUBMITTED TH AT THE ASSESSING OFFICER HAD ISSUED NOTICES UNDER SECTION 154/155 OF THE ACT TO THE ASSESSEE ON 06/03/2017 AND 24/07/2017, THE SAME WERE DULY SER VED. THE ASSESSEE FAILED TO RESPOND TO SAID NOTICES. THE ASSESSING OFFICER HAD GIVEN AMPLE OPPORTUNITY TO THE ASSESSEE TO FILE OBJECTIONS AGAINST INVOKI NG OF PROVISIONS UNDER SECTION 154 OF THE ACT AND THE PROPOSED ADDITIONS/DISALLOWA NCES. THE ASSESSEE 3 ITA NO. 3933/MUM/2019 (A.Y.2013-14) CHOOSE NOT TO REPLY TO THE NOTICES. NEITHER THE AS SESSEE APPEARED THROUGH LD.AUTHORIZED REPRESENTATIVE NOR ANY WRITTEN SUBMI SSIONS WERE FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER. THE LD. DEPA RTMENTAL REPRESENTATIVE PRAYED FOR DISMISSING THE APPEAL OF ASSESSEE. 4. THE SUBMISSIONS MADE BY LD. DEPARTMENTAL REPRESE NTATIVE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. A PERUSAL OF THE OR DER UNDER SECTION 154 OF THE ACT REVEAL THAT THE ASSESSING OFFICER HAD ISSUED NO TICES UNDER SECTION 154/155 OF THE ACT ON TWO OCCASIONS TO THE ASSESSEE. THE A SSESSEE FAILED TO RESPOND TO THOSE NOTICES. IN FIRST APPELLATE PROCEEDINGS THE ASSESSEE HAS CHALLENGED THE ACTION OF ASSESSING OFFICER IN INVOKING THE PROVISI ONS OF SECTION 154 OF THE ACT, AS WELL AS THE ADDITIONS/DISALLOWANCES MADE IN PROC EEDINGS UNDER SECTION 154 OF THE ACT. OSTENSIBLY, THE ASSESSEE FILED SOME SU BMISSIONS/ADDITIONAL EVIDENCES BEFORE THE CIT(A) TO SUBSTANTIATE ITS CO NTENTIONS. HOWEVER, THE CIT(A) OUT RIGHTLY REJECTED THE APPEAL OF ASSES SEE ON TECHNICAL GROUND THAT THE ASSESSEE HAS FAILED TO APPEAR BEFORE THE ASSESS ING OFFICER. THE CIT(A) SIMPLY BRUSHED ASIDE THE SUBMISSIONS OF THE ASSESSE E ON JURISDICTIONAL ISSUE AS WELL MERITS OF THE ADDITION. THE CIT(A) FURTHER RE CORDED THAT ........ SUBMISSIONS MADE BY THE ASSESSEE WHICH DISPUTE THE FACTUAL ASPECTS OF THE ACTION OF THE ASSESSING OFFICER IN THE IMPUGNED ORD ER CANNOT BE ACCEPTED BEHIND THE BACK OF THE ASSESSING OFFICER FOR GRANTI NG ANY RELIEF TO THE APPELLANT . THE ABOVE OBSERVATIONS MADE BY CIT(A) ARE ABSOLU TELY UNWARRANTED IN THE LIGHT OF FACT THAT THE CIT(A) HAS CO-TERMINUS POWERS TO EXAMINE THE DOCUMENTS FURNISHED BY THE ASSESSEE OR THE CIT(A) COULD HAVE UNDER RULE 46A OF THE INCOME TAX RULES SOUGHT REP ORT FROM THE ASSESSING OFFICER ON THE SUBMISSIONS MADE/DOCUMENTS FIELD BY THE ASSESSEE DURING FIRST 4 ITA NO. 3933/MUM/2019 (A.Y.2013-14) APPELLATE PROCEEDINGS. THE REASONS FOR REJECTING T HE APPEAL OF THE ASSESSEE BY TAKING A PEDANTIC VIEW IS UNSUSTAINABLE. THE IMPU GNED ORDER IS QUASHED. 5. THE APPEAL IS RESTORED TO THE FILE OF CIT(A) FO R DECIDING THE SAME AFRESH ON MERITS OF THE GROUNDS RAISED BY THE ASSESSEE/APP ELLANT IN APPEAL. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE CIT(A) AN D CO-OPERATE IN THE PROCEEDINGS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY THE 14 TH DAY OF DECEMBER, 2020. SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, (%/ DATED: 14/12/2020 VM , SR. PS(O/S) COPY OF THE ORDER FORWARDED TO : 1. ) / THE APPELLANT , 2. *+ / THE RESPONDENT. 3. ,+ ( )/ THE CIT(A)- 4. ,+ CIT 5. -.*+% , . . . , / DR, ITAT, MUMBAI 6. ./012 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI