Northern Securities P.Ltd, New Delhi V. ITO, Ward-18(4), New Delhi

ITA 517/DEL/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4719 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 24-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Opportunity of being heard; Reasonable cause; Set aside
• Section: 144; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. T. S. KAPOOR , ACCOUNTANT MEMBER ITA NO. 517 /DEL/2019 : ASSTT. YEAR : 2010 - 1 1 NORTHERN SECURITIES P. LTD., 102, GOLF LINKS , NEW DELHI - 110003 VS INCOME TAX OFFICER, WARD - 18 (4), NEW DELHI - 110002 (APPELLANT) (RESPONDENT) PAN NO. A A BCN7193H ASSESSEE BY : SH. VINOD GUPTA, CA REVENUE BY : SH. S. L. ANURAGI , SR. DR DATE OF HEAR ING: 29 . 05 .201 9 DA TE OF PRONOUNCEMENT: 30 .05 .201 9 ORDER THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 6 , NEW DELHI DATED 18.12.2018 . 2. AT THE OUTSET, THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT ASSESSMENT ORDER IN THIS CASE WAS PASSED U/S 144 OF THE ACT AS THE COMPANY HAD BEEN STRUCK OFF FROM THE REGISTRAR OF COMPANIES AND THERE WAS RIFT BETWEEN THE DIRECTORS AND ONE OF THE DIRECTORS DID NOT TAKE ANY INTEREST WHEREAS THE OTHER DIRECTOR SH. RAKES H SANON REMAIN ED ILL AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO PAPER BOOK PAGE 10 TO 12 WHERE THE COPY OF MEDICAL CERTIFICATE S OF THE DIRECTOR WERE PLACED. IT WAS SUBMITTED THAT BEFORE LD. CIT(A) VARIOUS ADJOURNMENTS WERE TAKEN BY THE ASSESSEE AND O N THE FINAL ADJOURNMENT DATED 17.12.2018, THE ASSESSEE WAS UNDER IMPRESSION THAT THE APPEAL WILL BE HEARD IN THE MONTH OF JANUARY 2019 BUT INSTEAD OF FURTHER INTIMATION FOR HEARING OF THE CASE THE ASSESSEE RECEIVED ITA NO . 517 /DEL /201 9 NORTHERN SECURITIES P. LTD. 2 APPELLATE ORDER OF LD. CIT(A) DISMISSING THE APPEAL OF THE ASSESSEE. THE LD. AR SUBMITTED THAT SINCE THE ASSESSEE COULD NOT REPRESENT BEFORE ASSESSING OFFICER AND THE ORDER WAS PASSED U/S 144 OF THE ACT AND THE ASSESSEE HAS ALSO NOT OBTAINED COPY OF REASONS RECORDED, THEREFORE, IT WAS PRAYED THAT MATTER MAY BE SET ASIDE TO ASSESSING OFFICER SO THAT COMPLETE DETAILS COULD BE FILED BEFORE HIM. 3. THE LD. DEPARTMENTAL REPRESENTATIVE HAD NO SERIOUS OBSERVATION R EGARDING THE PROPOSAL OF LD. AR, BUT SUBMITTED THAT THE CASE MAY BE REMITTED BACK TO LD. C IT(A). 4. I HAVE HEARD THE RIVAL PARTIES AND HAVE GONE THROUGH THE MATERIAL PLACED ON RECORD . IT IS A FACT THAT THE ASSESSING OFFICER HAS PASSED THE ORDER U/S 144 OF THE ACT. T HE ASSESSMENT ORDER HAS BEEN PASSED ON 25.12.2017 . F ROM THE COPY OF MEDICAL CE RTIFICATES PLA CED IN PAPER BOOK PAGE 10 TO 12, I FIND THAT ONE OF THE DIRECTOR, SH. RAKESH SANON WAS UNDER TREATMENT IN THE APOLLO HOSPITAL, DELHI. I, FURTHER, FIND THAT THE NAME OF THE COMPANY HAS BEEN STRUCK OFF FROM THE COMPANY MASTER DATA OF REGISTRAR OF COMPANIES WHICH IS EVIDENT FROM PAPER BOOK PAGE 14, T HEREFORE, IT IS NATURAL THAT DIRECTORS OF THE ASSESSEE COMPANY WOULD NOT HAVE TAKEN MUCH INTEREST IN THE INCOME TAX PROCEEDINGS. FURTHER, THE LD. AR STATED THAT BECAUSE OF RIFT BETWEEN THE DIRECTORS , THE PROCEEDINGS COULD NOT BE TAKEN CARE OF BEFORE THE AUTHORITIES BELOW. I FIND THAT BEFORE LD. CIT(A), THE ASSESSEE SOUGHT ADJOURNMENTS ON VARIOUS DATES AND ULTIMATELY LD. CIT(A) PASSED THE ORDER EX - PARTE QUA ASSESSEE. THOUGH ORDINARILY THE EX - PARTE ORDER OF LD. CIT(A) HAS TO GO BACK TO HIM BUT HERE IS A CASE WHERE THE CASE REMAINED UNREPRESENTED BEFORE ASSESSING OFFICER ALSO DUE TO REASONABLE CAUSE, THEREFORE , I DEEM IT APPROPRIATE TO REMIT THE ISSUE BACK TO THE ASSESSING OFFICER WHO SHOULD PASS A FRESH A SSESSMENT ORDER AFTER PROVIDING SUFFICIENT ITA NO . 517 /DEL /201 9 NORTHERN SECURITIES P. LTD. 3 OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE ASSESSING OFFICER AND IS DIRECTED TO NOT TO SEEK UNNECESSARY ADJOURNMENTS. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES . (ORDER PRONOUNCED IN THE COURT ON 30 TH DAY OF MAY , 2019 AT NEW DELHI) SD/ - ( T. S. KAPOOR ) ACCOUNTANT MEMBER DATE D: 30 /0 5 /2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR