M/S INDOWORTH INDIA LTD., Nagpur V. ACIT, CIRCLE-7, Nagpur

ITA 512/NAG/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2213 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-04-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 09-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D RAVI KUMAR
• Keywords: Principle of natural justice

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH: NAGPUR BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 512 /NAG/20 1 4 ASSESSMENT YEAR: 20 1 0 - 11 M/S. INDOWORTH INDIA LTD., B - 130, MIDC, BUTIBORI, NAGPUR PAN:A ABC10704R VS ASST. COMMISSIONER OF INCOME TAX CIRCLE - 7, MECL BUILDINGS, SEMI N ARY HILLS, NAGPUR - 44000 6 (APPELLANT) (RESPONDENT) APPELLANT BY SHRI M UKESH AGRAWAL , A.R. RESPONDENT BY SHRI D.RAVIKUMAR, D.R. DATE OF HEARING: 0 5 - 0 5 - 201 6 DATE OF P RONOUNCEMENT: - 31/05 /2016 O R D E R PER MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FROM THE ORDER OF LD. CIT - (II),NAGPUR DATED 11 .09.2014. THE GROUNDS RAISED ARE REPRODUCED BELOW: - 1. THE LEARNED ASSESSING OFFICER ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN CONCLUDING THAT APPELLANT HAS FILED INACCURATE PARTICULARS OF INCOME OR HAS CONCEALED INCOME. 2. THE PENALTY IMPOSED U /S. 271(1)(C) FOR AN AMOUNT OF RS.1,09,91,495/ - IS BAD IN LAW AND ILLEGAL. 3. THE ORDER PASSED BY LEARNED A.O. IS AGAINST THE PRINCIPAL OF NATURAL JUSTICE. 2. AT THE OUTSET, T HE LD. A.R. MR.MUKESH AGRAWAL HAS PLEADED THAT THE NOTICE S HAVE NOT BEEN PROPERLY COMMUNICATED AND EX - PARTY ORDER WAS PASSED BY LD.CIT(A). HE HAS ALSO PLEADED THAT WITHOUT DISCUS SING THE MERITS OF THE CASE PROPERLY THE LD. CIT(A) HAS HELD THAT IN CASE OF DEFAULT OF NON - APPEARANCE HE HAD INHERENT POWER TO DISMISS AN APPEAL. THE LD.CIT(A) HAS SIMPLY HELD THAT IN SPITE OF SEVERAL OPPORTUNITIES GIVEN, THE APPELLANT COULD NOT BRING ON RECORD EVIDENCES TO ESTABLISH THAT THE EXPENDITURE WAS AN ASCERTAIN LIABILITY . THE CONTENTION OF THE LD. AR IS THAT IF A N OPPORTUNITY BE GRANTED THEN HE IS HOPEFUL TO GET RELIEF. - 2 - ITA NO. 512 /NAG/201 4 3. ON THE OTHER HAND, THE LD. DR. MR.D.RAVIKUMAR HAS ARGUED THAT NUMBER OF AD JOURNMENT S WERE SOUGHT DURING THE HEARING AND THEREAFTER THE APPELLANT HAD DELIBERATELY AVOIDED THE PROCEEDINGS BEFORE LD. CIT(A) WHICH RESULTED INTO THE DISMISSAL OF APPEAL. THE DEFAULT OF NON - APPEARANCE WAS ON THE PART OF ASSESSEE, HENCE DESERVES NO SYMP ATHY. 4. HAVING HEARD THE SUBMISSIONS OF BOTH THE SIDES AND AFTER CONSIDERING THE RECORDS OF THE CASE, WE ARE OF THE VIEW THAT THIS ASSESSEE DESERVES AN OPPORTUNITY OF HEARING BEFORE THE LEARNED CIT(APPEALS). THE ADMITTED FACTUAL POSITION IS THAT THE LEARNE D CIT(APPEALS) HAS NOT DECIDED THIS APPEAL ELABORATELY ON MERITS. IN OUR CONSIDERED OPINION, AS PER THE PROVISIONS OF SECTION 250(6) THE ORDER OF THE CIT(APPEALS) DISPOSING OF THE APPEAL SHALL IN WRITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE D ECISION THEREON AND THE REASON FOR THE DECISION. SINCE THIS ORDER IS SILENT ON THE MERITS OF THE CASE, HENCE WE DEEM IT PROPER AS ALSO JUSTIFIABLE TO RESTORE THE ISSUE BACK TO THE FILE OF LEARNED CIT(APPEALS) TO BE DECIDED ON MERITS IN TERMS OF THE PROVIS IONS AS REFERRED HEREIN ABOVE. THEREFORE, WE HEREBY DIRECT THIS ASSESSEE TO EITHER PRESENT HIMSELF/ ITSELF OR THROUGH THE AUTHORIZED REPRESENTATIVE WITHIN 30 DAYS ON RECEIPT OF THIS ORDER OF THE TRIBUNAL BEFORE THE LEARNED CIT(APPEALS) SUO MOTO WITHOUT WAI TING FOR ANY FORMAL NOTICE OF HEARING AND TAKE ALL NECESSARY STEPS TO GET THIS APPEAL FINALIZED AT AN EARLY DATE. HOWEVER, THE REVENUE AUTHORITIES ARE AT LIBERTY TO ADOPT DUE LEGAL RECOURSE AS PRESCRIBED UNDER THE I.T. ACT. 5. IN THE RESULT, THIS APPEAL FILE D BY THE ASSESSEE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOU NCED IN THE OPEN COURT ON THIS 31 ST DAY OF MAY , 2016 SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: - 31 / 05 /2016 MANGESH BODKHE/ PS - 3 - ITA NO. 512 /NAG/201 4 COPY FORWARDE D TO : 1. M/S. INDOWORTH INDIA LTD., B - 130, MIDC, BUTIBORI, NAGPUR 2. ACIT, CIRCLE - 7, NAGPUR 3. C.I.T. - IV, NAGPUR 4. CIT ( APPEALS) - I I , NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR MANGESH BODKHE/ PS