M/s. Valdez Clothing (P) Ltd., New Delhi V. ITO, New Delhi

ITA 4930/DEL/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97908 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 15-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 04-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P CHANDREKAR
• Assessee Lawyers: VINOD BANSAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: H NEW DELHI BEFORE SMT . DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO. - 4930 /DEL/20 11 (ASSESSMENT YEAR - 2007 - 08 ) VALDE Z CLOTHING (P.) LIMITED, C/O - M/S ARORA AND B ANSAL, CA, 1401, VIKRA M TOWER, 16, RAJENDRA PLACE, NEW DELHI - 110008. PAN - AABCV6208M (APPELLANT) VS ITO, WARD - 17(1), NEW DELHI - 110002. (RESPONDENT ) APPELLANT BY SH.VINOD BANSAL, CA RESPONDENT BY SH.J.P.CHANDREKAR, SR. DR ORDER PER DIVA SINGH, JM BY THE PRESENT APPEAL THE ASSESSEE ASSAILS THE CORRECTNESS OF THE ORDER DATED 02 . 12 .20 1 0 OF CIT(A) - XI X , NEW DELHI PERTAINING TO 200 7 - 0 8 ASSESSMENT YEAR ON VARIOUS GROUND. HOWEVER, THE PARTIES WERE HEARD ONLY IN RESPECT OF GROUND NO.1 WHICH READS AS UNDER : - 1. THE LD.CIT(A) HAS ERRED IN LAW AND FACTS OF THE CASE IN DECIDING THE APPEAL OF THE ASSESSEE EX - PART E WITHOUT GIVING SUFFICIENT OPPORTUNITY TO THE ASSESSEE, WHICH IS UNJUSTIFIED, VIOLATIVE OF THE PRINCIPLES OF NATURAL JUSTICE AND BAD IN LAW. 2. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE DECLARED A LOSS OF RS. 11,69,130/ - BY WAY OF FILING ITS RETURN ELECTRONICALLY. THE SAID RETURN WAS SELECTED FOR SCRUTINY UNDER CASS . AFTER ISSUANCE OF NOTICE U/S 143(2) AND SHOW - CAUSING THE ASSESSEE THE ASSESSMENT WAS CONCLUDED AT A POSITI VE INCOME OF RS. 19,170/ - A S A RESULT OF THE FOLLOWING ADDITIONS MADE: - DATE OF HEARING 15 .0 9 .2015 DATE OF PRONOUNCEMENT 09 .1 1 .2015 I.T.A .NO. - 4930/ DEL/20 11 PAGE 2 OF 3 1. OUT OF RENT PAID RS.6,17,500/ - 2. OUT OF PROFESSIONAL CHARGES RS. 98,000/ - 3. OUT OF TOUR & TRAVELLING RS. 90,300/ - 4. U/S 40A(2)(B) RS.3,82,500/ - 3. THE ADDITIONS WERE CHALLENGED IN APPEAL BEFORE THE CIT(A). HOWEVE R, THE EX - PARTE ORDER ON MERIT WAS PASSED AS DESPITE ISSUANCE OF NOTICE THE ASSESSEE REMAINED UNREPRESENTED. LD.AR AT THE TIME OF HEARING IN SUPPORT OF THE GROUND STATED THAT THE ASSESSEE S BUSINESS HAD CLOSED DOWN AND INFACT HAD SHIFTED FR OM THE SAID PREMISES AS A RESULT THEREOF THE ASSESSEE REMAINED UNREPRESENTED AS THE NOTICES WERE NEVER RECEIVED BY THE ASSESSEE. REFERRING TO THE CAUSE LIST WHICH SHOWS THAT THE DEPARTMENTA L APPEAL IN 2008 - 09 ASSESSMENT YEAR IN ITA NO. 320/DEL/2013 IS ALSO LISTED TODAY IT WAS SUBMITTED THAT THEREIN THE CORRECT ADDRESS HAS BEEN SHOWN BY THE AO. THUS IT WAS HIS SUBMISSION THAT THE CHANGE OF ADDRESS WAS KNOWN TO THE DEPARTMENT AS THE NEXT YEAR S RETURN HAD BEEN FILED F ROM THE SAID ADDRESS . A CCORDINGLY IT WA S HIS PRAYER THAT THE IMPUGNED ORDER MAY BE SET ASIDE AND OPPORTUNITY OF BEING HEARD MAY BE GRANTED TO THE ASSESSEE. THE RECORD SHOWS THAT IN ITA NO. 320/DEL/2013 THE ADDRESS O F T H E ASSESSEE SHOWN BY THE REVENUE IS AS UNDER: - M/S VALDEZ CLOTHING PVT.L TD. C/O - SH.J.J.VALAYA, 222, THE GALLERY ON MG MEHRAULI GURGAON ROAD, NEW DELHI - 110030. 4. CONSIDERING THE SAME, THE LD. SR. DR STATED THAT HE HAS NO OBJECTION IF THE ISSUE IS RESTORED TO THE CIT(A) IN ORDER TO AFFORD THE ASSESSEE AN OPPORTUNITY OF BEING HEARD. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. ON A CONSIDERATION OF THE SAME IN THE LIGHT OF THE AFORE - MENTIONED PECULIAR FACTS AND CIRC UMSTANCES OF THE CASE, WE ARE O F THE VIEW THAT IN THE FACTS OF THE PRESENT CASE THE ASSESSEE REMAINED UNREPRESENTED FOR REASONS BEYOND HIS CONTROL AND HOLDING THAT OPPORTUNITY OF BEING HEARD HAS NOT BEEN GRANTED, THE IMPUGNED ORDER IS SET ASIDE AND THE ISS UE IS RESTORED BACK TO THE FILE TO THE CIT(A ) WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIV I NG THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. I.T.A .NO. - 4930/ DEL/20 11 PAGE 3 OF 3 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PU RPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 0 9 T H OF NOVEMBER , 2015. S D / - S D / - (O.P.KANT) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 9 /1 1 /2015 * AMIT KUMAR * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI