AIMS Sanya Developers Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 4412/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7174 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 12-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Opportunity of being heard; Principle of natural justice; Proportionate interest; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES A : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA.NO.4412/DEL./2016 ASSESSMENT YEAR 2011-2012 M/S. AIMS SANYA DEVELOPERS PVT. LTD., D-13, DEFENCE COLONY, NEW DELHI. PAN AAICA4436D VS. THE DCIT, CENTRAL CIRCLE-21, NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : - NONE - FOR REVENUE : SHRI S.L. ANURAGI, SR. D.R. DATE OF HEARING : 04 .0 2 .20 20 DATE OF PRONOUNCEMENT : 0 4 .0 2 .20 20 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XXVI, NEW DELHI, DATED 01.06.2016, FOR THE A.Y. 2011-2012, CHALLENGING THE ADDITION OF RS.1,71,45,776/- ON ACCOUNT OF PROPORTIONATE INTEREST LEADING TO REDUCTION IN WORK-IN-PROGRESS BY THE SAID AMOUNT. 2 ITA.NO.4412/DEL./2016 M/S. AIMS SANYA DEVELOPERS PVT. LTD., NEW DELHI. 2. THE LD. CIT(A) NOTED IN THE IMPUGNED ORDER THAT NOTICE WAS ISSUED ON 02.12.2015 FOR 14.12.2015 WHICH WAS ADJOURNED TO 28.12.2015. NOTICE WAS ISSUED ON 28.12.2015 FOR 11.01.2016. LASTLY, NOTICE WAS ISSUED ON 03.05.2015 AND NO DATE OF HEARING HAS BEEN MENTIONED. THE LD. CIT(A) NOTED THAT NONE ATTENDED ON THAT DAY, THEREFORE, APPEAL WAS DECIDED IN THE ABSENCE OF ASSESSEE. THE APPEAL WAS ACCORDINGLY DISMISSED. 3. THE ASSESSEE IN THE GROUNDS OF APPEAL CHALLENGED THE ADDITION AS WELL AS SUBMITTED THAT THE LD. CIT(A) PASSED THE ORDER DENYING THE PRINCIPLES OF NATURAL JUSTICE. 4. WE HAVE HEARD THE LD. D.R. AND PERUSED THE FINDINGS OF THE LD. CIT(A). THE IMPUGNED ORDER SHOWS THAT ON 03.05.2015 NOTICE WAS ISSUED, BUT, NO DATE IS MENTIONED. THEREAFTER, ON TWO DATES THE APPEAL WAS ADJOURNED AND LAST ADJOURNMENT WAS FOR 11.01.2016. THE IMPUGNED ORDER IS PASSED ON 01.06.2016. WHAT HAS HAPPENED FROM JANUARY, 2016 TO JUNE, 2016 IS NOT CLEAR FROM THE IMPUGNED ORDER AND WHETHER ANY NOTICE OF HEARING HAVE BEEN ISSUED TO THE ASSESSEE THEREAFTER IS ALSO NOT CLEAR. IF THE LD. CIT(A) WANTED 3 ITA.NO.4412/DEL./2016 M/S. AIMS SANYA DEVELOPERS PVT. LTD., NEW DELHI. TO PROCEED EX-PARTE, HE COULD HAVE PROCEEDED EX-PARTE IN JANUARY, 2016 ITSELF. HOWEVER, THE APPEAL WAS KEPT PENDING FOR PASSING THE ORDER TILL 01.06.2016. THUS, THE ASSESSEE RIGHTLY STATED THAT PRINCIPLES OF NATURAL JUSTICE HAVE BEEN DENIED IN THE MATTER. SINCE NOTHING IS CLEAR WHETHER ANY NOTICE HAVE BEEN ISSUED AFTER 11.01.2016 TO THE ASSESSEE FOR HEARING OF THE APPEAL, WE ARE OF THE VIEW THAT MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE LD. CIT(A). IN THIS VIEW OF THE MATTER, WE SET ASIDE THE IMPUGNED ORDER AND RESTORE THE APPEAL OF ASSESSEE TO THE FILE OF LD. CIT(A) WITH A DIRECTION TO RE-DECIDE THE APPEAL OF ASSESSEE ON MERITS, BY GIVING REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THE A.O. APPEAL OF ASSESSEE IS ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF ASSESSEE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (R.K. PANDA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 04 TH FEBRUARY, 2020 VBP/- 4 ITA.NO.4412/DEL./2016 M/S. AIMS SANYA DEVELOPERS PVT. LTD., NEW DELHI. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT A BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.