RAVI SUBBARAO CHAMURTI, Nagpur V. A.C.I.T. CHANDAPIR, Chandrapur

ITA 443/NAG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3108 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 10-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

1 ITA NO. 443/NAG/2014. IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO.4 43 /NAG/201 4 ASSESSMENT YEAR : 2010 - 11. SHRI RAVI SUN BBARAO CHAMURTI, ASSTT. COMMISSIONER OF INCOME - TAX, BALLARPUR. VS. CHANDRAPUR. PAN ADPPC 8273R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MUKESH AGRAWAL. RESPONDENT : SHRI NARENDRA KANE. DATE OF HEARING : 0 3 - 02 - 2016 DATE OF PRONOUNCEMENT : 25 TH FEBRUARY, 2016. O R D E R PER MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FROM THE ORDER OF LEARNED CIT(APPEALS) - II, NAGPUR DATED 19 - 06 - 2014 AND THE GROUNDS RAISED ARE REPRODUCED BELOW : 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED A.O. HAS ERRED IN MAKING ADDITION OF RS.1,36,38,338/ - U/S 68 OF I.T. ACT AND THE LEARNED CIT(APPEALS) HAS FURTHER ERRED IN CONFIRMING THE SAME. THE ADDITION IS UNJUSTIFIED, ARBITRARY AND DESERVES TO BE DELETED. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED A.O. HAS ERRED IN MAKING ADHOC DISALLOWANCE OF 10% OF EXPENSES AT RS.163,000/ - AND THE LEARNED CIT(A) HAS FURTHER ERRED IN CONFIRMING THE SAME. 2 ITA NO. 443/NAG/2014. 3. THAT THE LEARNED CIT(APPEALS) HAS VIDE NOTICE DT . 19.05.2014 FIXED THE DATE OF HEARING ON 10.09.2014 BUT PASSED THE ORDER ON 19.06.2014 WITHOUT GIVING PROPER OPPORTUNITY TO THE APPELLANT, HENCE, VIOLATED PRINCIPLES OF NATURAL JUSTICE. 2. AT THE OUTSET, LEARNED A.R. MR. MUKESH AGRAWAL HAS INFORMED THAT THE LEARNED CIT(APPEALS) HAS PASSED AN EXPARTE ORDER WITHOUT PROVIDING ADEQUATE OPPORTUNITY OF HEARING. LEARNED A.R. HAS FURTHER PLEADED THAT THE ASSESSEE HAS RECEIVED A NOTICE OF HEARING FROM THE OFFICE OF LEARNED CIT(APPEALS) WHICH WAS DATED 19 - 05 - 2014 F IXING THE DATE OF HEARING ON 10 - 09 - 2014. HOWEVER, LEARNED CIT(APPEALS) HAD PASSED THE ORDER ON 19 TH JUNE, 2014. DUE TO THE SAID REASON THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN APPEARING BEFORE THE LEARNED CIT(APPEALS). LEARNED A.R. HAS FURTHER PLE ADED THAT IF AN OPPORTUNITY BE GRANTED THEN HE SHALL APPEAR BEFORE THE FIRST APPELLATE AUTHORITY AND DO HIS BEST TO GET THIS APPEAL DECIDED AT AN EARLY DATE. 3. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE AND SPECIALLY EXPARTE ORD ER OF LEARNED CIT(APPEALS), WE ARE OF THE CONSIDERED OPINION THAT THIS ASSESSEE DESERVES AN OPPORTUNITY BEFORE THE FIRST APPELLATE AUTHORITY TO REPRESENT HIS APPEAL. 4. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE HEREBY DIRECT T HE ASSESSEE TO EITHER PRESENT HIMSELF OR THROUGH THE AUTHORIZED REPRESENTATIVE WITHIN 30 DAYS ON RECEIPT OF THIS ORDER OF THE TRIBUNAL BEFORE THE LEARNED CIT(APPEALS) SUO MOTO WITHOUT WAITING FOR ANY FORMAL NOTICE OF HEARING AND TAKE ALL NECESSARY STEPS TO GET THIS APPEAL FINALIZED AT AN EARLY DATE. HOWEVER, THE REVENUE AUTHORITIES ARE AT LIBERTY TO ADOPT DUE LEGAL RECOURSES AS PRESCRIBED UNDER THE I.T. ACT. HENCE THE APPEAL IS RESTORED BACK TO THE FILE OF THE LEARNED CIT(APPEALS) AS DIRECTED ABOVE. 3 ITA NO. 443/NAG/2014. 5 . IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRODUCED IN THE OPEN COURT ON THIS 25 TH DAY OF FEBRUARY, 2016. SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 25 TH FEBRUARY, 2016. COPY FORWARDED TO : 1. RAVI SUBBARAO CHAMURTI, C/O R.S. BHATTAR & ASSOCIATES, C.AS. 33 CENTRAL BAZAR ROAD, RAMDASPETH, NAGPUR. 2. A.C.I.T., CHANDRAPUR. 3. COMMISSIONER OF INCOME - TAX - ,NAGPUR. 4. CIT(APPEALS) - I I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE.