Tulsa Mercantiles (P) Ltd., Siliguri V. D.C.I.T.,Circle-2, Siliguri

ITA 479/KOL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7317 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 13-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA CIT SR DR RE
• Assessee Lawyers: SUBASH KUMAR AGARWAL
• Keywords: Business expenditure; Opportunity of being heard; Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (B), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ) & SHRI A.T. VARKEY, JM] I.T.A. NO. 479/KOL/2019 ASSESSMENT YEAR: 2014-15 TULSA MERCANTILES (P) LTD..................................................................APPELLANT SEVOKE ROAD, SHANTI SQUARE BUILDING, SILIGURI 734 001. [PAN: AAACT 8444 J] VS DCIT, CIRCLE 2 SILIGURI.................................................................................................RESPONDENT AAYAKAR BHAWAN, B WING, MATIGARA, SILIGURI 734 010. APPEARANCES BY: SHRI SUBASH KUMAR AGARWAL, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, ADDL. CIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : OCTOBER 18, 2019 DATE OF PRONOUNCING THE ORDER : OCTOBER 18, 2019 ORDER PER P.M. JAGTP, VICE-PRESIDENT (KZ) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) SILIGURI, DATED 15.01.2019 PASSED EX-PARTE WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 29.09.2014 DECLARING A TOTAL INCOME OF RS. 16,47,500/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 15.12.2016, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 26,33,989/- AFTER MAKING AN ADDITION OF RS. 9,68,489/- ON ACCOUNT OF DISALLOWANCE OF VARIOUS BUSINESS EXPENSES CLAIMED BY THE ASSESSEE. 3. AGAINST THE ASSESSMENT MADE BY THE AO U/S 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE 2 I.T.A. NO. 479/KOL/2019 ASSESSMENT YEAR: 2014-15 TULSA MERCANTILES (P) LTD. WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON- PROSECUTION VIDE HIS APPELLATE ORDER DATED 15.01.2019 PASSED EX- PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A), THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT NONE OF THE NOTICES STATED TO BE ISSUED BY THE LD. CIT(A) WAS EVER RECEIVED BY THE ASSESSEE AND SUCH NON-RECEIPT OF THE SAID NOTICES RESULTED INTO NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(A). SINCE THIS SUBMISSION MADE BY THE ASSESSEE IS DULY SUPPORTED BY AN AFFIDAVIT FILED BY THE DIRECTOR OF THE ASSESSEE COMPANY AFFIRMING THE RELEVANT FACT ON OATH, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-APPEARANCE OF THE ASSESSEE WHEN ITS APPEAL WAS CALLED FOR HEARING BEFORE THE LD. CIT(A). EVEN THE LEARNED DR HAS NOT DISPUTED THIS POSITION. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) AND SHALL EXTEND ALL THE COOPERATION IN ORDER TO ENABLE THE LD. CIT(A) TO DISPOSE OF THE APPEAL EXPEDITIOUSLY. 3 I.T.A. NO. 479/KOL/2019 ASSESSMENT YEAR: 2014-15 TULSA MERCANTILES (P) LTD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH OCTOBER, 2019. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT DATED: 18/10/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. TULSA MERCANTILES (P) LTD., SEVOKE ROAD, SHANTI SQUARE BUILDING, SILIGURI 734 001. 2. DCIT, CIRCLE 2, SILIGURI. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA