M/s Himachal Salt Suppliers, Manimajra V. ITO, W-3(4), Chandigarh

ITA 48/CHANDI/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1236 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 15-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GE E TINDERMANN
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHES A, CHANDIGARH BEFORE MS. DIVA SINGH, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA,ACCOUNTANT MEMBER ITA NO. 48/CHD/2018 ASSESSMENT YEAR: 2011-12 M/S HIMACHAL SALT SUPPLIERS, V THE ITO, SCF NO. 427, 2 ND FLOOR, WARD 3(4), MOTOR MARKET, CHANDIGARH. MANI MAJRA. PAN : AAAFH4968E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINEET KRISHAN RESPONDENT BY : SHRI GEETINDER MANN, JCIT DATE OF HEARING : 06.08.2018 DATE OF PRONOUNCEMENT : 04.09.2018 ORDER PER DIVA SINGH THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASS AILING THE CORRECTNESS OF THE ORDER DATED 26.10.2017 OF CIT(A)-2 A MRITSAR CAMP AT CHANDIGARH PERTAINING TO THE 2011-12 ASSESSMENT YEAR O N VARIOUS GROUNDS ON MERIT, HOWEVER, PARTIES WERE HEARD ONLY ON GROUND NO S. 1 TO 4 IN THE PRESENT APPEAL WHICH READ AS UNDER : 1. THAT THE HON'BLE COMMISSIONER OF INCOME TAX (APPEAL S) GRAVELLY ERRED IN DECIDING THE APPEAL EXPARTE WITHOUT OFFERING ANY OPPORTUNITY OF BEING HEARD TO THE APPELLANT. NO NOTICE OF HEARING WAS SERVED ON THE A PPELLANT WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 2. THAT THE PERMANENT ACCOUNT NUMBER OF THE APPELLANT IS MENTIONED IN FORM NO. 35 AND THE RETURNS ARE BEING FILED USING THE SAME PERM ANENT ACCOUNT NUMBER WITH THE ADDRESS OF THE APPELLANT WHICH IS SCF NO. 427, 2 ND FLOOR, MOTOR MARKET, MANIMAJRA .NO EFFORT WAS MADE TO SERVE THE NOTICE O F HEARING ON THE APPELLANT AT THAT ADDRESS. 3. THAT THE HON'BLE COMMISSIONER OF INCOME TAX (APPEAL S), HAS DECIDED THE APPEAL EXPARTE FOR NON-PROSECUTION OF APPEAL BY THE APPELL ANT WHICH IS BEYOND THE SCOPE AND POWERS OF HON'BLE COMMISSIONER OF INCOME TAX (A PPEALS). 4. THAT THE HON'BLE COMMISSIONER OF INCOME TAX (APP EALS) HAS DISMISSED THE APPEAL EXPARTE WITHOUT GOING INTO THE MERITS OF THE CASE. THE ORDER OF THE HON'BLE COMMISSIONER OF INCOME TAX (APPEALS) NEEDS TO BE SE T ASIDE AND APPEAL RESTORED BACK TO THE FILE OF THE HON'BLE COMMISSIONER OF INCOME T AX (APPEALS) FOR DECISION ON MERITS. ITA 48/CHD/2018 A.Y.2011-12 PAGE 2 OF 2 2. THE LD. AR SUBMITTED THAT NONE OF THE NOTICES STATED TO HAVE BEEN SENT BY THE CIT(A) WERE RECEIVED BY THE ASSESSEE. IT W AS HIS SUBMISSION THAT THE ADDRESS CONTINUES TO REMAIN THE SAME AND THE NOTICE FROM THE ITAT HAS BEEN RECEIVED BY THE ASSESSEE. ACCORDINGLY, IT WAS HIS PRAYER THAT THE IMPUGNED ORDER MAY BE SET ASIDE TO THE FILE OF T HE CIT(A) ACCEPTING HIS ORAL UNDERTAKING THAT THE ASSESSEE SHALL PA RTICIPATE IN THE PROCEEDINGS BEFORE THE CIT(A). 3. THE LD. DR THOUGH POSED NO OBJECTION TO THE REMAND, HOWEVER SUBMITTED THAT THE NOTICES HAVE BEEN SENT AND THE ASS ESSEE HAS FAILED TO APPEAR. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IT IS SEEN THAT THE IMPUGNED ORDER HAS BEEN P ASSED DISMISSING THE APPEAL OF THE ASSESSEE IN LIMINE ON THE GROUNDS OF NON -PROSECUTION. WE FIND THAT THE DISPOSAL OF ASSESSEE'S APPEAL IN THE AFOR EMENTIONED MANNER IS NOT IN TERMS OF THE STATUTORY REQUIREMENTS. S UB-SECTION 6) OF SECTION 250 OF THE INCOME TAX ACT,1961 MANDATES THAT T HE COMMISSIONER(APPEALS) WHILE DECIDING THE APPEAL IS REQUIRED TO DISPOSE THE APPEAL STATING POINTS FOR DETERMINATION; THE DECIS ION THEREON AND THE REASON FOR THE DECISION. WE FIND THAT THE CIT(A) HAS NOT FOLLOWED THE SAID STATUTORY MANDATE. ACCORDINGLY, ACCEPTING THE ORAL UND ERTAKING GIVEN BY THE LD. AR, THE IMPUGNED ORDER IS SET ASIDE BACK TO THE FILE OF THE CIT(A) WITH A DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW. NEEDLESS TO SAY THAT ASSESSEE SHALL BE AFFORDED A REASO NABLE OPPORTUNITY OF BEING HEARD. IT IS ALSO MADE CLEAR THAT IN THE EVENTUA LITY, THE ASSESSEE ABUSES THE TRUST REPOSED, THE LD. CIT(A) WOULD BE AT LIBERT Y TO PASS AN ORDER ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD. S AID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04.09. 2018. SD/- SD/- (ANNAPURNA GUPTA) ( DIVA S INGH) ACCOUNTANT MEMBER JUDICIAL MEMBER POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR ASSTT. REGISTRAR ITAT,CHANDIGARH.