G&T Oilfield And Offshore Services Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 5261/DEL/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6606 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 29-11-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 06-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMANJANEYULU
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SM C - I , NEW DELHI BEFORE SH. N. K. SAINI, A CCOUNTANT M EMBER ITA NO. 5261 /DEL/2016 : ASSTT. YEAR : 2012 - 1 3 G&T OILFIELD AND OFFSHORE SERVICES PVT. LTD., F - 04 & 05, TRIVENI COMPLEX, SHEIKH SARAI, PHASE - 1, NEW DELHI - 110017 VS INCOME TAX OFFICER, WARD - 10 ( 4 ) , NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. A ABCG5076G ASSESSEE BY : NONE REVENUE BY : SH. RAMANJANEYULU , SR. DR DATE OF HEARING : 29 .11 .201 6 DATE OF PRONOUNCEMENT : 30 . 11 .201 6 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 11.08.2016 OF LD. CIT(A) - 35, NEW DELHI. 2. DURING THE COURSE OF HEARING NOBODY WAS PRESENT ON BEHALF OF THE ASSESSEE NEITH ER ANY ADJOURNMENT WAS SOUGHT. THEREFORE, THE APPEAL IS DECIDED EX - PARTE AFTER HEARING THE LD. DR ON MERIT. 3. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO THE CONFIRMATION OF ADDITION OF RS.4,25,444/ - MADE BY THE AO ON ACCOUNT OF DISALLOW ANCE U/S 14A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 29.09.2012 DECLARING AN INCOME OF RS.42,12,889/ - WHICH WAS PROCESSED U/S 143(1) OF THE ACT. LA TER ON, THE CASE WAS SELECTED FOR ITA NO. 5261 /DEL /201 6 G&T OILFIELD AND OFFSHORE SERVICES 2 SCRUTINY. THE AO FRAMED THE ASSESSMENT AT AN INCOME OF RS.46,71,423/ - BY MAKING THE ADDITIONS OF RS.4,25,444/ - ON ACCOUNT OF DISALLOWANCE U/S 14A OF THE ACT AND RS.33,090/ - ON ACCOUNT OF DISALLOWANCE OUT OF BUSINESS PROMOT ION EXPENSES, CONSIDERING THE SAME AS PERSONAL IN NATURE. 5. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. THE LD. CIT(A) PASSED THE EX - PARTE ORDER AND OBSERVED THAT HE ASKED THE AO TO CON FIRM THE STATUTORY VALIDITY OF THE APPEAL. HOWEVER, NO REPLY HAD BEEN RECEIVED FROM THE AO AND THAT THE APPEAL OF THE ASSESSEE WAS ADJOURNED ON 04.08.2016 AND THEN 10.08.2016. HOWEVER, THERE WAS NO COMPLIANCE ON 10.08.2016. THE LD. CIT(A) CONFIRMED THE ADD ITION MADE BY THE AO U/S 14A OF THE ACT READ WITH RULE 8D OF THE INCOME TAX RULES, 1962. THE ANOTHER ADDITION OF RS.33,090 / - WAS DELETED. NOW THE ASSESSEE IS IN APPEAL. 6. THE LD. DR SUBMITTED THAT THE LD. CIT(A) HAS DISPOSED OFF THE APPEAL ON MERIT IN SP ITE OF THE FACT THAT THE ASSESSEE DID NOT COOPERATE AND THAT A PART - RELIEF HAS BEEN GRANTED TO THE ASSESSEE. THEREFORE, THE LD. CIT(A) WAS JUSTIFIED IN DECIDING THE APPEAL EX - PARTE BY CONSIDERING THE NON - COOPERATIVE ATTITUDE OF THE ASSESSEE. 7. I HAVE CON SIDERED THE SUBMISSIONS OF THE LD. DR AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, THE ASSESSEE STATED ITA NO. 5261 /DEL /201 6 G&T OILFIELD AND OFFSHORE SERVICES 3 IN GROUND NO. 1 OF THE APPEAL THAT THE ASSESSEE APPLIED FOR ADJOURNMENT A DAY IN ADVANCE ON 09.08.2016 AND IT WAS INFORMED BY T HE OFFICE OF THE LD. CIT(A) THAT THE CASE STOOD ADJOURNED TO 17.08.2016 AND THAT WHEN THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED ALO NGWITH SUBMISSION ON 17.08.2016, I T WAS INFORMED THAT THE CASE HAD ALREADY BEEN DECIDED EX - PARTE. FROM THE AFORE SAID NARRATED FACTS, IT APPEARS THAT A DUE AND REASONABLE OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED TO THE ASSESSEE. IT IS WELL SETTLED THAT NOBODY SHOULD CONDEMNED UNHEARD AS PER MAXIM AUDI ALTERAM PARTEM . I, THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS, DEEM IT APPROPRIATE TO SET ASIDE THE ISSUE BACK TO THE FILE OF THE LD. CIT(A) TO BE DECIDED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES . (ORDER PRON OUNCED IN THE CO URT ON 30 /11 /2016) SD/ - (N. K. SAINI) ACCOUN TANT MEMBER DAT ED: 30 /11 /2016 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR