M/s Everglow Equity Leasing Pvt. Ltd., Kolkata V. I.T.O.,Ward-11(4), Kolkata

ITA 568/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0645 (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
• Department Lawyers: JAYANTA KHANRA
• 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. 568/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. EVERGLOW EQUITY LEASING PVT. LTD.........................................APPELLANT 32, EZRA STREET, SOUTH BLOCK, 6 TH FLOOR, KOLKATA 700 001. [PAN: AAACW 9366 N] 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 30.01.2019 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 10.09.2014 DECLARING A TOTAL INCOME OF RS. 36,310/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 24.06.2016, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 12,24,900/- AFTER MAKING AN ADDITION OF RS. 11,88,589/- 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. 568/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. EVERGLOW EQUITY LEASING 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 30.01.2019 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. THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE NOTICES ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING ON THREE DIFFERENT DATES WERE NEVER RECEIVED BY THE ASSESSEE AS THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE AND THE SAID NOTICES WERE SENT BY THE LD. CIT(A) TO THE OLD ADDRESS. HE HAS CONTENDED THAT THE ASSESSEE THUS COULD NOT APPEAR BEFORE THE LD. CIT(A) FOR HEARING DUE TO NON-RECEIPT OF THE NOTICES AND URGED THAT THE MATTER MAY BE SENT BACK TO THE LD. CIT(A) FOR GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. KEEPING IN VIEW THE SUBMISSIONS MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE, I AM SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON- APPEARANCE OF THE ASSESSEE WHEN ITS APPEAL WAS CALLED FOR HEARING BEFORE THE LD. CIT(A). EVEN THE LEARNED DR HAS NOT DISPUTED THIS POSITION. 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 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 3 I.T.A. NO. 568/KOL/2019 ASSESSMENT YEAR: 2014-15 M/S. EVERGLOW EQUITY LEASING PVT. LTD. 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 FURNISH ITS NEW ADDRESS TO THE OFFICE OF THE LD. CIT(A) SO THAT THE NOTICE OF HEARING CAN BE SENT TO THE SAID ADDRESS AND SHALL ALSO MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) SO AS TO ENABLE HIM 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. EVERGLOW EQUITY LEASING PVT. LTD., 32, EZRA STREET, SOUTH BLOCK, 6 TH FLOOR, KOLKATA 700 001. 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