BREAKTHROUGH MANAGEMENT GROUP INDIA P.LTD, MUMBAI V. ITO 3(1)(2), MUMBAI

ITA 4080/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3742 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 30-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK RIPOTE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I , MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH , JUDICIAL MEMBER IT A NO. 4080 /MUM/20 15 : (A.Y : 20 10 - 11 ) M/S. BREAKTHROUGH MANAGEMENT GROUP INDIA PVT. LTD., 905/906, RAHEJA CHAMBERS, 213 NARIMAN POINT, MUMBAI 400 021. PAN : AAACQ0197R ( APPELLANT ) VS. ITO - 3(1)(2), MUMBAI (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI DEEPAK RIPOTE DATE OF HEARING : 20 /0 7 /2016 DATE OF PRONOUNCEMENT : 12 /0 8 /2016 O R D E R PER G.S. PANNU , AM : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 8 , MUMBAI DATED 26 . 03 .20 15 , PERTAINING TO THE ASSESSMENT YEAR 20 10 - 11 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER DATED 18 . 09 .20 13 UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. INSPITE OF SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING, THEREFORE, WE PROCEED TO DECIDE THE APPEAL EX PARTE QUA THE ASSESSEE AFTER HEARING THE LD. DR. 2 M/S. BREAKTHROUGH MANAGEMENT GROUP INDIA PVT. LTD. ITA NO. 4080 /MUM/2015 3. IN THIS APPEAL, THE FIRST AND THE FOREMOST PLEA OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN DISPOSING THE APPEAL OF THE ASSESSEE EX PARTE WITHOUT DECIDING ON MERITS OF THE GROUNDS RAISED BEFORE HIM. 4. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSEE IS A COMPANY WHOSE RETURN OF INCOME FOR ASSESSMENT YEAR 201 0 - 1 1 WAS SUBJECT TO SCRUTINY ASSESSMENT WHEREBY THE TOTAL INCOME WAS ASSESSED AT RS. 85,82,130/ - AS AGAINST THE RETURNED INCOME OF RS. 22,33,610 / - . IN THE SCRUTINY ASSESSMENT, VARI OUS ADDITIONS WERE MADE TO THE RETURNED INCOME AND PENALTY PROCEEDINGS WERE INITIATED U/S 271(1)(C). SUBSEQUENTLY, THE ASSESSING OFFICER LEVIED A PENALTY OF RS.18,56,000/ - U/S 271(1)(C) OF THE ACT. THE ASSESSEE CHALLENGED THE LEVY OF PENALTY BEFORE THE C IT(A). CIT(A) HAS DISMISSED THE APPEAL WITHOUT GOING INTO THE MERITS OF THE CASE AS ACCORDING TO HIM ASSESSEE WAS NOT INTERESTED IN PURSUING THE APPEAL. AS PER CIT(A) NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF ISSUING OF NOTICE OF HEARING. 5 . AT THE TIME OF HEARING, IT WAS POINTED OUT TO THE LD. DR THAT THE CIT(A) HAS DISMISSED THE APPEAL WITHOUT DECIDING ON MERITS THE GROUNDS RAISED BEFORE HIM , WHICH IS UNSUSTAINABLE . IT WAS THEREFORE POINTED OUT THAT THE MATTER DESERVES TO BE REVISITED BY THE CIT(A) AS PER LAW. 6 . HAVING CONSIDERED THE IMPUGNED ORDER AND THE SUBMISSIONS OF THE LD. DR, WE FIND THAT IN THE PRESENT CASE THE APPEAL OF THE ASSESSEE HAS BEEN DISMISSED BY THE COMMISSIONER (APPEALS) WITHOUT GOING INTO THE MERITS OF THE ISSUES RAIS ED BEFORE HIM. SEC. 250(6) OF THE ACT 3 M/S. BREAKTHROUGH MANAGEMENT GROUP INDIA PVT. LTD. ITA NO. 4080 /MUM/2015 PRESCRIBES THAT THE ORDER OF THE COMMISSIONER (APPEALS) DISPOSING OF THE APPEAL SHALL BE IN WRITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR SUCH A DECISION. OSTENSIBLY, THE CIT(A) IS OBLIGATED TO DISPOSE OF THE APPEAL IN THE MANNER PRESCRIBED IN SEC. 250(6) OF THE ACT , WHICH REQUIRE S THAT THE ISSUES RAISED BEFORE HIM BY WAY OF THE GROUNDS OF APPEAL ARE ADDRESSED , DECISION RENDERED THEREON BY STATING THE REASONS FOR SUCH A DECISION. THE SAID APPROACH IS CONSPICUOUS BY ITS ABSENCE IN THE IMPUGNED ORDER OF THE CIT(A), WHEREIN THE APPEAL HAS BEEN DISMISSED IN LIMINE WITHOUT ADVERTING TO THE MERITS OF THE GROUNDS OF APPEAL RAISED BEFORE HIM. THEREFORE, ON THIS COUNT ITSELF, T HE IMPUGNED ORDER OF CIT(A) IS UNSUSTAINABLE. BE THAT AS IT MAY, WE DEEM IT FIT AND PROPER TO SET - ASIDE THE IMPUGNED ORDER OF CIT(A) AND REMAND THE APPEAL BACK TO HIS FILE FOR ADJUDICATION AFRESH AS PER LAW AFTER ALLOWING THE ASSESSEE A REASONABLE OPPORTU NITY OF BEING HEARD. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED, AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H AUGUST, 2016. SD/ - SD/ - ( AMARJIT SINGH ) JUDICIAL MEMBER ( G.S. PANNU ) ACCOUNTANT MEMBER MUMBAI, DATE : 1 2 T H AUGUST , 2016 * SSL * COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4 M/S. BREAKTHROUGH MANAGEMENT GROUP INDIA PVT. LTD. ITA NO. 4080 /MUM/2015 4) THE CIT CONCERNED 5) THE D.R, I BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI