M/s. Krishna Engineers, Meerut V. ITO, Meerut

ITA 4453/DEL/2014

• Counselvise Citation: 445320114 RSA 2014
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 03-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 13-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUDHIRANJAN SENAPATI
• Assessee Lawyers: V K GOEL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 44AD

Judgement Text

1 IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH SMC - 2 : NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 4453 /DEL/201 4 A.Y. : 20 09 - 1 0 M/S KRISHNA ENGINEERS, VS. ITO, WARD - 1(3), C/O VINOD KUMAR GOEL, NEW DELHI 282, BOUNDARY ROAD, CIVIL LINES, MEERUT (PAN : AAHFK8845Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. V.K. GOEL, ADVOCATE DEPARTMENT BY : SH. SUDHIRANJAN SENAPATI, SR. DR DATE OF HEARING : 0 3 - 8 - 2015 DATE OF ORDER : 2 8 - 9 - 2015 PER H.S. SIDHU: JM O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) , MEERUT DATED 03 . 3 .201 4 PERTAINING TO ASSESSMENT YEAR 20 0 9 - 1 0 . 2. T HE GROUNDS OF APPEAL READ AS UNDER: - 1. THAT THE LD. CIT(A) HAS PASSED THE ORDER WITHOUT PROVIDING AN OPPORTUNITY BEING HEARD AFTER WRITTEN SUBMISSION FILED BY THE ASSESSEE. HENCE, ORDER PASSED BY CIT(A) IS AGAINST THE PRINCIPLE OF NATURAL JUSTICE. 2 2. THAT WITHOUT PREJUDICE TO GROUND NO. 1, LD. AO AS WELL AS CIT(A) IS IN ERROR THAT SECTION 44AD IS APPLICABLE WHEN GROSS TURNOVER IS RS. 99,75,420/ - I.E., OVER AND ABOVE RS. 40,00,000/ - PROVISION OF SECTION 44AD IS APPLICABLE. HENCE, ADDITION MADE BY THE AO AND CONFIRM BY THE CIT(A) @8% BY INVOKING PROVISION OF SECTION 44AD IS BAD AND NOT ACCORDING TO LAW. 3. THAT THE ASSESSEE HAS RIGHT TO ADD, DELETE OR MODIFY ANY GROUNDS DURING THE APPEAL PROCEEDING. 3. THE FACTS NARRATED BY THE REVENUE AUTHORITI ES ARE NOT DISPUTED BY BOTH THE PARTIES, THEREFORE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 4. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS PASSED BY THE REVENUE AUTHORITIES ALONGWITH THE RELEVANT RECORDS AVAILABLE WITH THE APPEAL FIL E D. I FIND THAT THAT IN THE GROUND S OF APPEAL VIDE GROUND NO. 1 ASSESSEE HAS SUBMITTED THAT LD. CIT(A) HAS PASSED THE ORDER WITHOUT PROVIDING ANY OPPORTUNITY BEING HEARD AFTER WRITTEN SUBMISSION FILED BY THE ASSESSEE , HENCE, ORDER PASSED BY CI T(A) IS AGAINST THE PRINCIPLE OF NATURAL JUSTICE. AFTER PERUSING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A), I FIND THAT THE LD. CIT(A HAS FIRST REPRODUCED THE ASSESSMENT ORDER; SECONDLY REPRODUCED THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE BEFORE HIM ; THIRDLY REPRODUCED THE WRITTEN SUBMISSION S FILED BY THE ASSESSEE IN DAK AND THEN PASSED THE IMPUGNED ORDER AND DECIDED THE ISSUE IN DISPUTE AGAINST THE ASSESSEE, WITHOUT GIVING ANY OPPORTUNITY OF HEARING TO THE ASSESSEE . THEREFORE, THE IMPUGNED ORDER IS NOT SUSTAINABLE IN THE EYES OF LAW. THEREFORE, I N THE INTEREST OF JUSTICE AND I N MY CONSIDERED OPINION, LD. CIT(A) HAS 3 ERRED IN THIS REGARD. LD. CIT(A) SHOULD HAVE ADJUDICATED THE ISSUE AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD PERSONAL LY TO THE ASSESSEE OR HIS AUTHORIZED REPRESENTATIVE. IT IS A SETTLED LAW THAT EVEN THE ADMINISTRATIVE ORDERS HAVE TO BE CONSISTENT WITH THE RULES OF NATURAL JUSTICE. HENCE, I AM OF THE VIEW THAT IN THIS CASE THE ISSUES IN DISPUTE NEEDS TO BE REMITTED BACK TO THE FILE OF THE LD. CIT(A) TO DECIDE THE SAME AFRESH, AS PER LAW , AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, LD. CIT(A) IS DIRECTED TO CONSIDER THE ISSUES IN DISPUTE AFRESH AND PASS A PROPER AND SPEAKING ORDER CO NSIDERING THE MERITS OF THE CASE , AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 8 / 9 /201 5 . SD / - [ H.S. SIDHU ] JUDICIAL MEMBER DATE: 2 8 / 9 /201 5 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4.CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 4