M/s Dobby Media Pvt. Ltd., Kolkata V. I.T.O.Ward-11(4), Kolkata

ITA 566/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0646 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-09-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 20-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Rule 8D; Set aside
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] I.T.A. NO. 566/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. DOBBY MEDIA PVT. LTD................................................................APPELLANT 18, GIRIBABUY LANE, KOLKATA 700 012. [PAN: AANCS 9313 G] VS ITO, WARD-11(4)KOLKATA..................................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI ABHISHEK BANSAL, FCA APPEARING ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : SEPTEMBER 16, 2019 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 16, 2019 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 4, KOLKATA DATED 29.01.2019 PASSED EX-PARTE WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS MAINLY ENGAGED IN THE BUSINESS OF TRADING AND INVESTMENT IN SHARES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 27.11.2014 DECLARING A TOTAL INCOME OF RS. 25,140/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 25.11.2016, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 12,08,260/- AFTER MAKING AN ADDITION OF RS. 11,83,120/- ON ACCOUNT OF DISALLOWANCE U/S 14A OF THE INCOME TAX ACT, 1961 READ WITH RULE 8D OF INCOME TAX RULES, 1962. 3. THE DISALLOWANCE MADE BY THE AO U/S 14A READ WITH RULE 8D WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. 2 I.T.A. NO. 566/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. DOBBY MEDIA PVT. LTD. CIT(A AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS APPELLATE ORDER DATED 29.01.2019 PASSED EX- PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE, THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT NONE OF THE NOTICES ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING WAS EVER RECEIVED BY THE ASSESSEE AND SUCH NON-RECEIPT OF NOTICES RESULTED INTO NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(A). EVEN THE LD. CIT(A) IN HIS IMPUGNED ORDER HAS CLEARLY MENTIONED THAT THE NOTICE SENT TO THE ASSESSEE WAS RETURNED BACK BY THE POSTAL AUTHORITY WITH COMMENT INSUFFICIENT ADDRESS. AS STATED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE SAME ADDRESS AS FURNISHED BEFORE THE LD. CIT(A) IS FURNISHED BY THE ASSESSEE EVEN IN THE APPEAL MEMO FILED BEFORE THE TRIBUNAL AND THE NOTICE SENT TO THE SAID ADDRESS HAS BEEN DULY RECEIVED BY THE ASSESSEE. KEEPING IN VIEW ALL THESE FACTS OF THE CASE, I AM SATISFIED THAT THERE WAS SUFFICIENT CAUSE FOR THE NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(A) WHEN ITS APPEAL WAS CALLED FOR HEARING. MOREOVER, AS PER THE PROVISIONS OF SUB-SECTION (6) OF SECTION 250, THE LD. CIT(A) WAS REQUIRED TO DISPOSE OF THE APPEAL OF THE ASSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBSERVED THAT THE 3 I.T.A. NO. 566/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. DOBBY MEDIA PVT. LTD. IMPUGNED ORDER PASSED BY THE LD. CIT(A) DOES NOT COMPLY WITH THESE REQUIREMENTS. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENABLE THE LD. CIT(A) TO DISPOSE OF THE APPEAL EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH SEPTEMBER, 2019. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 16/09/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. DOBBY MEDIA PVT. LTD., 18, GIRIBABU LANE, KOLKATA 700 012. 2. ITO, WARD 11(4), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA