M/s. Orion Automobiles (Delhi) Pvt. Ltd., Delhi V. ITO, New Delhi

ITA 4648/DEL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53374 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 22-12-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 21-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S NEGI SENIOR
• Assessee Lawyers: D V TANEJA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3); 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.4648/DEL./2011 (ASSESSMENT YEAR : 2005-06) M/S. ORION AUTOMOBILES (DELHI) PVT. LTD., VS. ITO, WARD 13 (4), C/O DHARAM TANEJA ASSOCIATES, NEW DELHI. 13 / 17, PUNJABI BAGH EXTENSION, NEW DELHI. (PAN : AAACO3793K) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI D.V. TANEJA, FCA REVENUE BY : SHRI R.S. NEGI, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDE R OF CIT (APPEALS)-XVI, NEW DELHI DATED 04.07.2011 FOR THE ASSESSMENT YEAR 2005 -06. 2. THE ASSESSMENT UNDER SECTION 143(3) WAS COMPLETE D AT RS.15,02,680/-. THE ASSESSING OFFICER ISSUED NOTICE U/S 154 AND AN ADDI TION OF RS.10,39,093/- WAS MADE UNDER SECTION 40(A)(IA) OF THE INCOME-TAX ACT. THE ASSES SEE FILED THE APPEAL. THE CIT (A) CONFIRMED THE ADDITION FOR NON-APPEARANCE. 3. THE GROUNDS OF APPEAL READ AS UNDER :- 1. LD. CIT (A) HAS ERRED IN FACTS AND IN LAW IN CO NFIRMING THE DISALLOWANCE U/S 40(A)(1A) MADE BY LD.A.O. U/S 154. ITA NO.4648/DEL./2011 2 2. LD. CIT (A) DISMISSED APPEAL FOR NON APPEARANCE EON ONE DATE WHICH COUNSEL WHO WAS UNWELL SOUGHT TIME AND TIME W AS REFUSED AND APPEAL WAS DISMISSED. 3. THAT TDS WAS DULY DEDUCTED AND PAID WITHIN STATU TORY TIME ALLOWED AND THERE WAS NO DEFAULT AS ALLEGED AND CONFIRMATIO N OF DISALLOWANCE BY LD. CIT (A) OF COMMISSION, PROFESSIONAL FEE AND CON TRACT FEES AT RS.10,39,093/- U/S 154 ARE BAD IN LAW. 4. THAT ACTION OF LD. A.O. U/S 154 AND CONFIRMATION BY LD. CIT (A) IS BAD IN LAW. 4. AT THE OUTSET OF THE HEARING, THE LEARNED AR SUB MITTED THAT CIT (A) HAS PASSED EX- PARTE ORDER WHICH IS EVIDENT FROM THE FIRST PAGE OF THE CIT (A)S ORDER. CIT (A) DISMISSED APPEAL FOR NON-APPEARANCE EVEN WHEN COUNSEL FOR ASS ESSEE WAS UNWELL AND ADJOURNMENT SOUGHT WHICH WAS REFUSED. ASSESSEE SHOULD HAVE BEE N GIVEN A FAIR CHANCE TO REPRESENT ITS APPEAL IN VIEW OF THE PRINCIPLES OF NATURAL JUSTICE . HE PRAYED THAT THE APPEAL MAY BE RESTORED TO THE FILE OF THE CIT (A) TO BE DECIDED O N MERITS AFTER HEARING THE ASSESSEE. THE LEARNED DR WAS ALSO NOT HAVING ANY OBJECTION TO THI S PROPOSITION. 5. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE FACTS OF THE CASE, WE SET ASIDE THE ORDER OF THE CIT (A) AND RESTORE THE MATTER TO THE FILE OF THE CIT (A) TO BE DECIDED AFRESH AFTER PROVIDING AN OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 22 ND DAY OF DECEMBER, 2011 AFTER THE CONCLUSION OF THE HEARING. SD/- SD/- (RAJPAL YADAV) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 22 ND DAY OF DECEMBER, 2011 TS ITA NO.4648/DEL./2011 3 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XVI, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.