LOHA ISPAT LTD, RAIGAD V. DCCC 43, MUMBAI

ITA 5454/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3766 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 27-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK RIPOTE
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I , MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH , JUDICIAL MEMBER IT A NO. 5454 /MUM/20 15 : (A.Y : 20 05 - 06 ) M/S. LOHA ISPAT LTD., VILLAGE : RANSAI KHOPOLI, PEN ROAD, TALUKA KHALAPUR, DIST : RAIGAD, MAHARASHTRA 410 203 ( APPELLANT ) PAN : AAACL1583C VS. DCIT, CENTRAL CIRCLE - 43, MUMBAI (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI DEEPAK RIPOTE DATE OF HEARING : 20 /0 7 /2016 DATE OF PRONOUNCEMENT : 12 /0 8 /2016 O R D E R PER G.S. PANNU , AM : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 48 , MUMBAI DATED 12 . 08 .20 15 , PERTAINING TO THE ASSESSMENT YEAR 20 05 - 06 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER D ATED 30 . 03 .20 13 UNDER SECTION 143(3) R.W.S 147 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. INSPITE OF SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING, THEREFORE, WE PROCEED TO DECIDE THE 2 M/S. LOHA ISPAT LTD. ITA NO. 5454/MUM/2015 APPEAL EX PARTE QUA THE A SSESSEE AFTER HEARING THE LD. DR ON MERIT IN TERMS OF RULE 24 OF THE APPELLATE TRIBUNAL RULES, 1963. 3. IN THIS APPEAL, THE FIRST AND THE FOREMOST PLEA OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN DISPOSING THE APPEAL OF THE ASSESSEE EX PARTE WITHOUT DECIDING ON MERITS OF THE GROUNDS RAISED BEFORE HIM. 4. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSEE IS A COMPANY WHOSE TOTAL INCOME WAS ASSESSED AT RS. 1,34,04,746/ - IN AN ORDER PASSED U/S 143(3) R.W.S. 147 OF THE ACT DATED 27.08.2009. SUBSEQU ENTLY, A SEARCH ACTION WAS CARRIED OUT ON 23.02.2012 CONSEQUENT TO WHICH AN ASSESSMENT WAS FINALISED U/S 143(3) R.W.S. 147 OF THE ACT DATED 30.03.2013, WHEREBY THE INCOME WAS ASSESSED AT RS.3,36,66,470/ - AFTER MAKING VARIOUS ADDITIONS AND DISALLOWANCES . T HE ASSESSEE CHALLENGED THE VARIOUS ADDITIONS MADE IN THE ASSESSMENT ORDER PASSED U/S 143(3) R.W.S. 147 OF THE ACT BEFORE THE CIT(A) , WHO HAS DISMISSED THE APPEAL WITHOUT GOING INTO THE MERITS OF THE CASE AS ACCORDING TO HIM ASSESSEE WAS NOT INTERESTED IN P URSUING THE APPEAL BECAUSE NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF ISSU ANCE OF NOTICE OF HEARING. 5. AT THE TIME OF HEARING, IT WAS POINTED OUT TO THE LD. DR THAT THE CIT(A) HAS DISMISSED THE APPEAL WITHOUT DECIDING ON MERITS THE GROUNDS RA ISED BEFORE HIM, WHICH IS UNSUSTAINABLE. IT WAS THEREFORE POINTED OUT THAT THE MATTER DESERVES TO BE REVISITED BY THE CIT(A) AS PER LAW. 6. HAVING CONSIDERED THE IMPUGNED ORDER AND THE SUBMISSIONS OF THE LD. DR, WE FIND THAT IN THE PRESENT CASE THE APPEA L OF THE ASSESSEE 3 M/S. LOHA ISPAT LTD. ITA NO. 5454/MUM/2015 HAS BEEN DISMISSED BY THE COMMISSIONER (APPEALS) WITHOUT GOING INTO THE MERITS OF THE ISSUES RAISED BEFORE HIM. SEC. 250(6) OF THE ACT PRESCRIBES THAT THE ORDER OF THE COMMISSIONER (APPEALS) DISPOSING OF THE APPEAL SHALL BE IN WRITING AN D SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR SUCH A DECISION. OSTENSIBLY, THE CIT(A) IS OBLIGATED TO DISPOSE OF THE APPEAL IN THE MANNER PRESCRIBED IN SEC. 250(6) OF THE ACT, WHICH REQUIRES THAT THE ISSUES RAISED BE FORE HIM BY WAY OF THE GROUNDS OF APPEAL ARE ADDRESSED, DECISION RENDERED THEREON BY STATING THE REASONS FOR SUCH A DECISION. THE SAID APPROACH IS CONSPICUOUS BY ITS ABSENCE IN THE IMPUGNED ORDER OF THE CIT(A), WHEREIN THE APPEAL HAS BEEN DISMISSED IN LIM INE WITHOUT ADVERTING TO THE MERITS OF THE GROUNDS OF APPEAL RAISED BEFORE HIM. THEREFORE, ON THIS COUNT ITSELF, THE IMPUGNED ORDER OF CIT(A) IS UNSUSTAINABLE. BE THAT AS IT MAY, WE DEEM IT FIT AND PROPER TO SET - ASIDE THE IMPUGNED ORDER OF CIT(A) AND REM AND THE APPEAL BACK TO HIS FILE FOR ADJUDICATION AFRESH AS PER LAW AFTER ALLOWING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED, AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H AUGUST, 2 016. SD/ - SD/ - ( AMARJIT SINGH ) JUDICIAL MEMBER ( G.S. PANNU ) ACCOUNTANT MEMBER MUMBAI, DATE : 1 2 T H AUGUST , 2016 * SSL * 4 M/S. LOHA ISPAT LTD. ITA NO. 5454/MUM/2015 COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, I BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI