Atmaram Tantta HUF, Kolkata V. ITO, Ward 43(1), Kolkata, Kolkata

ITA 540/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1692 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 20-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALOK NATH
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : KOLKATA [BEFORE HONBLE SRI N.V.VASUDEVAN, JM & DR.ARJUN LAL SAINI, AM] I.T.A NO. 540/KOL/201 7 ASSESSMENT YEAR : 2013-1 4 ATMARAM TANTIYA (HUF) -VS.- I.T.O., WARD- 43(1) KOLKATA KOLKATA [PAN : AACHA 1629 R] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ANIL KOCHAR, ADVOCATE FOR THE RESPONDENT : SHRI ALOK NATH, JCIT DATE OF HEARING : 31.07.2017. DATE OF PRONOUNCEMENT : 18.08.2017. ORDER PER N.V.VASUDEVAN, JM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 22.08.2016 OF C.I.T(A)- 13, KOLKATA RELATING TO A.Y.2013-14. 2. THE ASSESSEE IS A HUF. IT CARRIES ON BUSINES S AS MANUFACTURER AND TRADER OF HOSIERY GOODS. FOR A.Y.2013-14 THE ASSESSEE FILED R ETURN OF INCOME ON 29.09.2013 DISCLOSING TOTAL INCOME OF RS.12,63,390/-. AN ORDER OF ASSESSMENT WAS PASSED BY THE AO U/S 143(3) OF THE INCOME TAX ACT, 1961 (ACT) DET ERMINING THE TOTAL INCOME OF THE ASSESSEE AT A SUM OF RS.41,93,590/-. AGGRIEVED BY T HE VARIOUS ADDITONS TO THE TOTAL INCOME MADE BY THE AO IN THE ORDER OF ASSESSMENT, T HE ASSESSEE PREFERRED APPEAL BEFORE CIT(A). THE CIT(A) VIDE ORDER DATED 22.08.20 16 CONFIRMED THE ORDER OF AO AND DISMISSED THE APPEAL OF THE ASSESSEE. 3. A PERUSAL OF CIT(A)S ORDER SHOWS THAT HE H AS DECIDED THE APPEAL EX-PARTE. ORDER OF CIT(A) MENTIONS THAT NOTICE U/S 250 OF THE ACT W AS SERVED AND NONE APPEARED ON BEHALF OF THE ASSESSEE. IN PAGE-18 OF THE CIT(A)S ORDER IT HAS BEEN MENTIONED THAT NOTICES DTED 30.05.2016, 05-07.2016, 28.07.2016 AND 10.08.2016 WERE ISSUED. THE ORDER OF CIT(A) ALSO MENTIONS THAT NONE OF THE NOTI CES WERE SERVED ON THE ASSESSEE AND 2 ITA NO.540/KOL/2017 ATMARAM TANTIYA (HUF). A.YR.2013-14 2 NO NEW ADDRESS IS AVAILABLE. THUS IT IS CLEAR THAT NONE OF THE NOTICES OF HEARING WAS SERVED ON THE ASSESSEE. 4. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE F ILED THE FOLLOWING REVISED GROUNDS OF APPEAL :- 1. FOR THAT THE LD. CIT (A) ERRED IN DISMISSING TH E APPEAL OF THE APPELLANT ON THE ALLEGED GROUNDS. 2. FOR THAT THE LD. CIT (A) OUGHT TO HAVE TAKEN INT O CONSIDERATION THE INCOME TAX RECORDS AND ON THE ISSUE OF ADDITIONSL DISALLOWANCE S THE APPELLANT'S SUBMISSIONS AND EVIDENCES FILED IN THE COURSE OF HEARING FOR AS SESSMENT OUGHT TO HAVE BEEN TAKEN INTO CONSIDERATION. 3. FOR THAT THE EXPARTE ORDER OF THE LD. CIT (A) MA Y KINDLY BE REMITTED BACK TO THE A.O. FOR RECONSIDERATION OF THE ISSUES INVOLVED IN THIS APPEAL AND THE APPELLANT SUBMITS THAT IT WOULD MAKE APPEARANCES BEFORE THE A .O. TO EXPLAIN ALL THE RELATED MATTERS FOR FRESH ASSESSMENT. 4. FOR THAT FURTHER GROUNDS OF APPEAL MAY KINDLY BE ALLOWED TO BE TAKEN AT THE TIME OF HEARING OF THE APPEAL. 5. THE ASSESSEE HAS ALSO FILED AN AFFIDAVIT BEFO RE THE TRIBUNAL WHEREIN IT HAS BEEN POINTED OUT THAT THE ASSESSEE HAD SHIFTED HIS BUSIN ESS WHICH WAS EARLIER CARRIED OUT ON 190, JAMUNLAL BAJAJ STREET, KOLKATA TO A NEW PLACE OF BUSINESS NAMELY 18/1A, NILMONI MITRA STREET, KOLKATA-700006 SOME TIME IN THE YEAR 2015 AND DUE TO INADVERTENCE THE CHANGE OF ADDRESS WAS NOT INTIMATED TO CIT(A). 6. WE ARE OF THE VIEW THAT THE ASSESSEE DID NO T HAVE PROPER OPPORTUNITY OF BEING HEARD BEFORE CIT(A) AND EXPARTE PARTE ORDER OF CIT( A) DISMISSING THE APPEAL OF THE ASSESSEE HAS TO BE SET ASIDE. THE LD. COUNSEL FOR T HE ASSESSEE ALSO POINTED OUT THAT ORDER OF CIT(A) MAY BE SET ASIDE AND THE ISSUES RAISED BE FORE CIT(A) BE REMANDED TO THE AO FOR FRESH CONSIDERATION. IT HAS BEEN SUBMITTED THAT AT THE ASSESSMENT STAGE THE ASSESSEE COULD NOT PRODUCE ANY PROPER EVIDENCE REGARDING PAY MENT OF COMMISSION. THEREFORE THE AO DISALLOWED THE COMMISSION EXPENSES. IT HAS A LSO BEEN SUBMITTED THAT THE RECIPIENTS OF THE COMMISSION ARE NOW WILLING TO APP EAR BEFORE AO AND IT WOULD BE IN 3 ITA NO.540/KOL/2017 ATMARAM TANTIYA (HUF). A.YR.2013-14 3 THE INTEREST OF JUSTICE THAT THE MATTER SHOULD BE R EMANDED TO THE AO. THE LD. DR DID NOT OBJECT TO THE PRAYER MADE BY THE LD. COUNSEL FOR T HE ASSESSEE. 7. WE ACCEPT THE PRAYER OF THE ASSESSEE AND SET A SIDE THE ORDER OF CIT(A) AND REMAND THE VARIOUS ISSUES RAISED BY THE ASSESSEE IN THE GR OUNDS OF APPEAL BEFORE CIT(A) FOR FRESH CONSIDERATION BY THE AO WITH A LIBERTY TO THE ASSESSEE TO PROVE HIS CASE BY PRODUCING SUFFICIENT EVIDENCE/MATERIAL TO THE SATIS FACTION OF THE AO. FOR STATISTICAL PURPOSES THE APPEAL OF THE ASSESSEE IS ALLOWED. 8. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 8.08.2017. SD/- SD/- [DR.ARJUN LAL SAINI] [ N.V.VASUDEVA N ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18.08.2017. [RG PS] COPY OF THE ORDER FORWARDED TO: 1. ATMARAM TANTIA (HUF),C/O SHREE MANOJ TEXTILE MIL LS, 18/1A, NILMONI MITRA STREET, KOLKATA-700006. 2. I.T.O., WARD-43(1), KOLKATA. 3. C.I.T.(A)- 13, KOLKATA. 4. C.I.T.- 15, KOLKA TA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O., ITAT KOLKATA BENCHE S 4 ITA NO.540/KOL/2017 ATMARAM TANTIYA (HUF). A.YR.2013-14 4