Sri.H.Varadaraju , Bangalore V. The Income Tax Officer Ward-6(2)(2), Bangalore

ITA 424/BANG/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9270 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-08-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 13-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: RAGHAVENDRA CHAKRABORTHY
• Keywords: Principle of natural justice; Set aside
• Section: 143(2); 144

Judgement Text

ITA NO.424/BANG/2018 SHRI H.VARADARAJU, BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENTAND SHRI B.R. BASKARAN, ACCOUTANT MEMBER ITA NOS.424/BANG/2018 ASSESSMENT YEAR: 2012-13 SHRI H. VARADA RAJU PROP: FRIENDS ASSOCIATESNO.41, VENKATAPPA LAYOUT NEAR SHALINI BAR CHAMUNDI NAGAR, R.T. NAGAR BANGALORE-560 032 PAN NO :AEHPV2771G VS. ITO WARD-6(2)(2) BANGALORE APPELLANT RESPONDENT APPELLANT BY : SHRI RAGHAVENDRA CHAKRABORTHY, A.R. RESPONDENT BY : SHRI PRIYADARSHI MISHRA, D.R. DATE OF HEARING : 13.08.2020 DATE OF PRONOUNCEMENT : 14.08.2020 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 13.10.2017 PASSED BY LD. CIT(A)-6, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2012-13. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN CONFIRMING ALL THE ADDITIONS MADE BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER PASSED U/S 144 OF T HE INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT]. 2. THE LD. COUNSEL APPEARING FOR THE ASSESSEE SUBMI TTED THAT HE IS NOT PRESSING GROUND NOS.5 TO 7 RELATING TO ALLEG ED NON-ISSUE OF ITA NO.424/BANG/2018 SHRI H.VARADARAJU, BANGALORE PAGE 2 OF 3 NOTICE U/S 143(2) OF THE ACT. HE FURTHER SUBMITTED THAT THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF DISTRIBUTIO N OF CURRENCY OF A TELECOM COMPANY NAMED M/S. UNITECH WIRELESS PVT. LTD. HAVING BRAND NAME OF UNINOR. HOWEVER, THE BUSINESS OF U NINOR COMPANY WAS CLOSED AND MERGED WITH SOME OTHER COMPANY AND H ENCE THE ASSESSEE WAS CONSTRAINED TO DISCONTINUE HIS BUSINES S. HENCE, THE ASSESSEE COULD NOT APPEAR BEFORE THE A.O. AND HENCE THE A.O. HAS PASSED THE ASSESSMENT ORDER TO THE BEST OF HIS JUDG EMENT U/S 144 OF THE ACT BY MAKING VARIOUS TYPES OF ADDITIONS. BE FORE LD. CIT(A), ASSESSEES THEN AUTHORIZED REPRESENTATIVE FURNISHED CERTAIN DETAILS BUT THE LD. CIT(A) FELT THAT THOSE INFORMATION DO N OT CHALLENGE THE ADDITIONS MADE BY THE A.O. HENCE THE LD CIT(A) CONF IRMED THE ASSESSMENT ORDER. THE LD. A.R. SUBMITTED THAT THE ASSESSEE MAY BE PROVIDED WITH AN OPPORTUNITY TO PRESENT HIS CASE AS HE COULD NOT EFFECTIVELY REPRESENT BEFORE THE TAX AUTHORITIES. 3. WE HEARD LD. D.R. AND PERUSED THE RECORD. WE NO TICE THAT THE A.O. HAS PASSED ASSESSMENT ORDER TO THE BEST OF HIS JUDGEMENT U/S 144 OF THE ACT. WE ALSO NOTICE THAT THE ASSESS EE HAS RETURNED TOTAL INCOME OF RS.6,35,280/-. HOWEVER, THE A.O. H AS COMPUTED THE TOTAL INCOME AT RS.2,34,86,730/- BY MAKING VARIOUS TYPES OF ADDITIONS. ACCORDINGLY, BEFORE LD. CIT(A), THE ASS ESSEE FURNISHED CERTAIN INFORMATION BUT THE LD. CIT(A) DID NOT CONS IDER THEM. THE LD. A.R. NOW SUBMITS THAT THE ASSESSEE WOULD BE IN A POSITION TO FURNISH ALL THE EXPLANATIONS THAT MAY BE CALLED FOR BY A.O. HENCE, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE V IEW THAT THE ASSESSEE MAY BE PROVIDED WITH AN OPPORTUNITY TO REP RESENT BEFORE THE AO. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LD. CIT(A) AND RESTORE ALL THE ISSUES TO THE FILE OF THE A.O. FOR MAKING ITA NO.424/BANG/2018 SHRI H.VARADARAJU, BANGALORE PAGE 3 OF 3 ASSESSMENT AFRESH. THE ASSESSEE IS ALSO DIRECTED T O COOPERATE WITH THE A.O. FOR EXPEDITIOUS COMPLETION OF THE ASSESSME NT PROCEEDING. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14.08.2020 SD/- (N.V. VASUDEVAN) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 14 TH AUG, 2020. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.