M/s Green Valley Fashions (P) Ltd., New Delhi V. ACIT, New Delhi

ITA 4641/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5684 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 09-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P N KAR
• Assessee Lawyers: R P MALL
• Keywords: Opportunity of being heard; Principle of natural justice; Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH C DELHI ] BEFORE SHRI D. R. SINGH, JM SHRI K. D. RAN JAN, AM I. T. APPEAL NO. 4641 (DEL) OF 2009. BLOCK ASSESSMENT PERIOD : 1987-88 TO 1997-98 M/S. GREEN VALLEY FASHIONS PVT. LTD., ASSTT. COMMISSIONER OF INCOME-TAX, H-1, ZAMRUDPUR COMMUNITY CENTRE, V S. CENTRAL CIRCLE : 12 (1), KAILASH COLONY, N E W D E L H I. N E W D E L H I. P A N / G I R NO. AAA CG 4526 C. ( APPELLANT ) ( RES PONDENT ) ASSESSEE BY : SHRI R. P. MALL, ADV.; DEPARTMENT BY : SHRI P. N. KAR [CIT] - D.R.; O R D E R. PER K. D. RANJAN, AM : THIS APPEAL BY THE ASSESSEE FOR BLOCK ASSESSMENT P ERIOD 1987-88 TO 1997-98 ARISES OUT OF THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-X, NEW DELHI. 2. THE ONLY ISSUE FOR CONSIDERATION RELATES TO CONF IRMING THE PENALTY UNDER SECTION 221(1) OF THE I. T. ACT, 1961 AMOUNTING TO RS.74,47 ,414/-. IN THE GROUNDS OF APPEAL THE ASSESSEE HAS RAISED ONE OF THE GROUND, WHICH IS REP RODUCED BELOW AND IT HAS BEEN STATED THEREIN THAT PROPER OPPORTUNITY WAS NOT PROVIDED TO THE ASSESSEE BY THE LD. CIT (APPEALS) 2 I. T. APPEAL NO. 4641 (DEL) OF 2009. BEFORE PASSING THE ORDER. THEREFORE, THE ORDER PAS SED BY THE LD. CIT (APPEALS) IS CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE:- ' 3. THAT THE LEARNED COMMISSIONER OF INCOME-TAX ( APPEALS) HAS THUS CONFIRMED THE PENALTY WITHOUT PROVIDING ANY OPPORTU NITY TO THE ASSESSEE MUCH LESS FAIR, REASONABLE AND MEANINGFUL OPPORTUNITY AN D AS SUCH THE ORDER PASSED IS CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE AN D, THEREFORE A NULLITY. ' 3. THE FACTS OF THE CASE STATED IN BRIEF ARE THAT T HE ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 221(1) OF THE ACT FIXING THE CASE FOR HEARI NG ON 18/07/2003 AND 11/09/2003. THESE NOTICES WERE RECEIVED BACK UN-SERVED. THE AO MADE THE SERVICE OF NOTICE UNDER SECTION 221(1) OF THE ACT BY AFFIXTURE ON 13/11/2003 FIXING THE CASE FOR HEARING ON 17/10/2003. SINCE THERE WAS NO RESPONSE FROM THE ASSESSEE THE A O AFTER ISSUE OF SHOW CAUSE NOTICE IMPOSED PENALTY OF RS.74,47,414/- UNDER SECTION 221 (1) OF THE ACT. 4. ON APPEAL NONE ATTENDED ON BEHALF OF THE ASSESSE E AND ACCORDINGLY THE LD. CIT (A) UPHELD THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT. 5. BEFORE US IT HAS BEEN PLEADED THAT PROPERTY OPPO RTUNITY TO THE ASSESSEE WAS NOT PROVIDED AND, THEREFORE, THE ORDER PASSED BY THE LD . CIT (A) CONFIRMING THE PENALTY IS BAD IN LAW. ON THE OTHER HAND, THE LD. SR. DR SUPPORTED T HE ORDER OF THE LD. CIT (A). 6. WE HAVE HEARD BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. FROM THE ORDER OF THE LD. CIT (A) WE FIND THAT THE ASSESSEE HAS NOT APPEARED BEFORE HIM THOUGH THE CASE WAS FIXED FOR HEARING ON 22/09/2009 , 24/09/2009 AND 16/10/2009. SINCE THE LD. CIT (A) HAS NOT DISPOSED OFF THE APPEAL ON MERI TS AND HAD PASSED EX-PARTE ORDER, IN OUR CONSIDERED OPINION, THE MATTER SHOULD BE RESTORED T O THE FILE OF THE LD. CIT (A) WITH THE DIRECTIONS TO PASS ORDER ON MERITS, AFTER PROVIDING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO APPE AR BEFORE THE LD. CIT (A) WHENEVER THE CASE IS FIXED FOR HEARING. SINCE WE HAVE SET ASIDE THE MATTER TO THE FILE OF THE LD. CIT (A) ON THE 3 I. T. APPEAL NO. 4641 (DEL) OF 2009. GROUND OF PRINCIPLES OF NATURAL JUSTICE, THE OTHER ISSUES ARE NOT DECIDED AND THE LD. CIT (A) WILL BE PASSING THE ORDER ON MERITS, AFTER HEARING THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED, FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 09TH FEBRUARY, 2010. SD/- SD/- [ D. R. SINGH ] [ K. D. RANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 09TH FEBRUARY, 2010. *MEHTA * COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT. 2. RESPONDENT. 3. CIT, 4. CIT (APPEALS), 5. DR, ITAT, NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR, ITAT. 4 I. T. APPEAL NO. 4641 (DEL) OF 2009.