SHREEJI TRANSLOGISTICS LTD, MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX 15(3)(2), MUMBAI

ITA 5300/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0179 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURBINDER SINGH
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3); 201; 251; 2

Judgement Text

1 ITA NO. 5300 /MUM/2019 IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI S.R IFAUR RAHMAN (ACCOUNTANT MEMBER) I.T.A. NO. 5300 /MUM/201 9 (ASSESSMENT YEAR : 201 3 - 1 4 ) SHREEJI TRANSLOGISTICS LTD PLOT NO.107, SHREEJI KRUPA SECTOR 19 - C, PHASE - II, VASHI NAVI MUMBAI - 400 705 PAN : AA ECS3602B VS DCIT 15(2)(2), MUMBAI APPELLANT RESPONDENT APPELLANT BY SHRI SANJAY C SHAH , AR RESPONDENT BY SHRI GURBINDER SINGH , DR DATE OF HEARING 18 - 02 - 2021 DATE OF PRONOUNCEMENT 1 1 - 0 3 - 2021 O R D E R PER SAKTIJIT DEY (JM) THIS IS AN APPEAL BY THE ASSESSEE AGAINST ORDER DATED 17 - 0 6 - 2019 OF LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) - 24 , MUMBAI FOR THE ASSESSMENT YEAR 201 3 - 1 4 . 2. THE BASIC GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS AGAINST EX PARTE DISPOSAL OF ITS APPEAL BY LEARNED COMMISSIONER (APPEALS), THAT TOO, WITHOUT DECIDING THE ISSUES ON MERIT S . 2 ITA NO. 5300 /MUM/2019 3. BRIEFLY THE FACTS ARE, THE ASSESSEE , A RESIDENT COMPANY , IS ENGAGED IN THE BUSINESS OF CIVIL CONTRACTOR. FOR THE ASSESSMENT YEAR UNDER DISPUTE, ASSESSEE FILED ITS RETURN OF INCOME ON 24 - 09 - 2013 DECLARING TOTAL INCOME AT RS.1,76,76,962/ - . ASSESSMENT IN CASE OF THE ASSESSEE WAS COMPLETED U NDER SECTION 143(3) OF THE ACT VIDE ORDER DATED 30 - 12 - 2015 DETERMINING THE TOTAL INCOME AT RS.1,95,18,433/ - AFTER MAKING CERTAIN ADDITIONS. AGAINST ASSESSMENT ORDER SO PASSED, ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. HOWEVER, BY THE IMPUGNED ORDER, LEARNE D COMMISSIONER (APPEALS) HAS DISMISSED ASSESSEES APPEAL. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED MATERIALS ON RECORD. AS COULD BE SEEN FROM THE IMPUGNED ORDER OF LEARNED COMMISSIONER (APPEALS), THE APPEAL WAS FIXED FOR HEARING BEFORE LEARNED COMMISSIONER (APPEALS) ON A COUPLE OF OCCASIONS AND ON BOTH THE OCCASIONS, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SOUGHT ADJOURNMENT. CONSIDERING THE ABOVE, LEARNED COMMISSIONER (APPEALS) CONCLUDED THAT THE ASSESSEE WAS NOT SERIOUS IN PROSECUTING IT S APPEAL AND ACCORDINGLY PROCEEDED TO DISPOSE OF THE APPEAL EX PARTE. HOWEVER, WHILE DOING SO, MANIFESTLY, LEARNED COMMISSIONER (APPEALS) HAS NOT DECIDED THE ISSUES RAISED IN THE APPEAL ON MERIT S, BUT , HAS SIMPLY DISMISSED THE APPEAL IN LIMINE DUE TO NON - A PPEARANCE OF THE ASSESSEE. THIS, IN OUR VIEW, IS NOT IN ACCORDANCE WITH THE MANDATE OF SECTION 251 OF THE ACT. FURTHERMORE, THE IMPUGNED ORDER OF LEARNED COMMISSIONER (APPEALS) IS IN GROSS VIOLATION OF RULES OF NATURAL JUSTICE, AS , HE HAS NOT AFFORDED A RE ASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THEREFORE, WE ARE INCLINED TO SET ASIDE THE IMPUGNED ORDER OF LEARNED COMMISSIONER (APPEALS) AND RESTORE TH E ISSUE S BACK TO HIS FILE FOR FRESH ADJUDICATION, AFTER DUE OPPORTUNITY OF BEING HEARD TO THE A SSESSEE. WE MUST OBSERVE, LEARNED COMMISSIONER (APPEALS) WHILE DISPOS ING OF THE APPEAL HAS TO 3 ITA NO. 5300 /MUM/2019 DECIDE ALL THE ISSUES RAISED BY THE ASSESSEE ON MERIT S WITH A SPEAKING ORDER. GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE S . 5. IN THE RESULT, APPEAL IS ALLOWED F OR STATISTICAL PURPOSE S . ORDER PRONOUNCED ON 1 1 / 0 3 /2021. S D / - S D / - ( S. R IFAUR RAHMAN ) ( SAKTIJIT DEY ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DT : 1 1 /0 3 /2021 PAVANAN COPY TO : 1. APPELLANT 2. RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) 5. THE DR, ITAT, MUMBAI 6. GUARD FILE BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI