Genpure Zheng Filters P.Ltd, Delhi V. ITO, Ward-11(3), New Delhi

ITA 4472/DEL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1901 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 12-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: A K TANEJA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A .NO.-4472/DEL/2018 (ASSESSMENT YEAR-2014-15) GENPURE ZHENG FILTERS P. LTD. KU-155, PITAM PURA, DELHI. PAN NO. AACCG5324N (APPELLANT) VS ITO WARD 11(3), NEW DELHI. (RESPONDENT) APPELLANT BY SHRI A.K. TANEJA, ADVOCATE RESPONDENT BY SHRI S.L. ANURAGI, SR. DR ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 19.04.2018 OF THE LD. CIT(A), NEW DELHI RELEV ANT TO ASSESSMENT YEAR 2014-15 ON THE FOLLOWING GROUNDS: - 1. THAT LD. CIT(A)-IV ERRED IN RESTRICTING THE DISALL OWANCE OF DEDUCTION CLAIMED U/S 80IC TO RS. 49,56,630/- WITHOU T APPRECIATING THE FACTS AND CIRCUMSTANCES OF THE CAS E. 2. THAT THE LD. CIT(A)-IV HAS GROSSLY ERRED IN MISUNDE RSTANDING AND WRONGLY APPLYING THE PROVISIONS OF LAW FOR THE PURP OSES OF SECTION 80-IC OF THE INCOME TAX ACT MADE BY THE APPELLANT; 3. THE LD. CIT(A)-IV IS NOT JUSTIFIED IN LAW AND FACTS AND CIRCUMSTANCES OF THE CASE IN DISALLOWING THE DEDUCT ION U/S 80IC OF THE INCOME TAX ACT, 1961. 4. THE LD. CIT(A)-IV WITHOUT APPRECIATING THE CORRECT FACTS OF THE CASE IS NOT JUSTIFIED IN LAW AND FACTS AND CIRCUMST ANCES OF THE CASE IN MAKING THE ALLEGATION UPON THE APPELLANT TH AT APPELLANT IS NOT DOING ANY MANUFACTURING ACTIVITIES. DATE OF HEARING 19/11/2018 DATE OF PRONOUNCEMENT 19/11/2018 ITA NOS. 4472/D/2018 A.Y. 2014-15 GENPURE ZHENG FILTERS P. LTD. 2 5. THAT THE LD.CIT(A)-IV HAS DISMISSED THE APPEAL WITH OUT AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE. THAT THE ASSES SEE HAS NOT RECEIVED ANY NOTICE BY POST OR BY HAND. 6. THAT LD. CIT(A) IV HAS PASSED ORDER WITHOUT SERVIN G ANY STATUTORY NOTICE IS BAD IN LAW AND AGAINST THE PRIN CIPLE OF NATURAL JUSTICE AND SHOULD BE QUASHED AB-INITIO. 7. ASSESSEE HAS EVERY RIGHT TO MAKE, ADD, DELETE, MODI FY OR ALTER ANY GROUND OF APPEAL AT THE TIME OF HEARING. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE N OT REPEATED HERE FOR THE SAKE OF BREVITY. 3. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) HAS PASSED THE EXPARTE ORDER WITHOUT AFFORDI NG PROPER OPPORTUNITY TO THE ASSESSEE, DESPITE THE FACT THAT THE ASSESSEE HAS NOT RECEIVED ANY NOTICE BY POST OR BY HAND. HE FURTHER SUBMITTED THAT LD. CIT(A) HAS PASSED A ORDER WITHOU T SERVING ANY STATUTORY NOTICE WHICH IS AGAINST THE PRINCIPLE OF NATURAL JUSTICE AND SHOULD BE QUASHED AB-INITIO. 4. LD. DR RELIED UPON THE ORDER OF THE AUTHORITIES BELOW. 5. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE CORDS. I HAVE ALSO GONE THROUGH THE EXPARTE ORDER PASSED BY THE LD. CIT(A). I FIND THAT LD. CIT(A) HAS PASSED THE EXPA RTE ORDER BY HOLDING AS UNDER:- I HAVE CAREFULLY PERUSED THE ASSESSMENT ORDER AND FIND THAT THE AO HAS DENIED DEDUCTION U/S. 80IC TO THE APPELLANT BY PASSING A SPEAKING ORDER. AS DISCUSSED ABOVE, THE APPELLANT HAS NOT ATTENDED THE PROCEEDING AND HAS NOT SUBMITTED ANY EVIDENCE EVEN DURING THE APPELLATE PROCEEDING TO PROVE THAT ITA NOS. 4472/D/2018 A.Y. 2014-15 GENPURE ZHENG FILTERS P. LTD. 3 IT WAS ENGAGED IN ANY MANUFACTURING ACTIVITY DURING THE YEAR UNDER CONSIDERATION. IT IS HELD THA T AO IS FULLY JUSTIFIED IN DENYING DEDUCTION TO THE APPELLANT COMPANY U/S. 80IC OF THE ACT. THE ORDER OF THE AO IS UPHELD. THE GROUNDS OF APPEAL ARE DISMISSED. 5.1 AFTER PERUSING THE AFORESAID FINDING OF THE LD. CIT(A) IN HIS IMPUGNED ORDER, I AM OF THE VIEW THAT THERE IS NO DOUBT ASSESSEE REMAINED NON-COOPERATIVE BEFORE THE LD. CI T(A) AND THE LD. CIT(A) HAS PASSED THE EXPARTE ORDER AND CO NFIRMED THE ACTION OF THE AO IN A ROUTINE MANNER, WITHOUT DISCU SSING IN DETAIL THE FACTS AND CIRCUMSTANCE OF THE CASE AND ALSO DID NOT DEAL THE ISSUE ON MERIT AND PASSED A NON-SPEAKING O RDER, WHICH IN MY OPINION, IS NOT IN ACCORDANCE WITH THE PRINC IPLES OF NATURAL JUSTICE AND IT IS AN ERRONEOUS APPROACH. IT IS A SETTLED LAW THAT EVEN AN ADMINISTRATIVE ORDER HAS TO BE SPE AKING ONE. 6. IN THIS REGARD I DRAW SUPPORT FROM HONBLE APE X COURT IN THE CASE M/S SAHARA INDIA (FARMS) VS. CIT & ANR. IN [2008] 300 ITR 403 HAS HELD THAT EVEN AN ADMINISTRATIVE O RDER HAS TO BE CONSISTENT WITH THE RULES OF NATURAL JUSTICE. 7. IN THE BACKGROUND OF THE AFORESAID DISCUSSIONS AND RESPECTFULLY FOLLOWING THE PRECEDENT, I REMIT BACK THE ISSUES IN DISPUTE TO THE FILES OF THE LD. COMMISSIONER OF IN COME TAX ITA NOS. 4472/D/2018 A.Y. 2014-15 GENPURE ZHENG FILTERS P. LTD. 4 (APPEALS) FOR HEARING ON 08.01.2019 AT 10.00 AM WIT H THE DIRECTIONS TO CONSIDER EACH AND EVERY ASPECTS OF THE ISSUES INVOLVED IN THE APPEAL AND DECIDE THE SAME AFRESH, AFTER PASSING A SPEAKING ORDER AND CONSIDERED ALL THE EVIDENCES/DOCUMENTS. NEEDLESS TO ADD THAT THE ASS ESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD . ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE LD. CIT(A) ON THE SCHEDULED DATE OF HEARING, AS AFORESAID AND FILE A LL THE EVIDENCES / DOCUMENTS BEFORE HIM TO SUBSTANTIATE I TS CASE AND DID NOT TAKE ANY UNNECESSARY ADJOURNMENT. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 19.11.2018. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 19/11/2018 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA NOS. 4472/D/2018 A.Y. 2014-15 GENPURE ZHENG FILTERS P. LTD. 5