Bhatia Coke & Energy L., Indore V. Income Tax officer, Bhopal

ITA 581/Ind/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0111 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-03-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 08-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K.G. GOEL
• Assessee Lawyers: THRIBHUVAN SACHEDEVA
• Keywords: Opportunity of being heard
• Section: 201(1); 195

Judgement Text

BHATIA COKE & ENERGY LTD ITA NO.581/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.581/IND/2017 ASSESSMENT YEAR 2015-16 REVENUE BY S HRI K.G. GOEL , SR.DR ASSESSEE BY SHRI THRIBHUVAN SACHEDEVA, ADV DATE O F HEARING 28 .03 .2019 DATE OF PRONOUNCEMENT 01 .0 4 .2019 O R D E R PER MANISH BORAD. THE ABOVE CAPTIONED APPEAL IS FILED AT THE INSTANC E OF THE ASSESSEE PERTAINING TO ASSESSMENT YEARS 2015-16 A ND IS DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TA X (APPEALS)-13 (IN SHORT LD.CIT(A)], AHMEDABAD DATED 31.05.2017 WHICH IS ARISING OUT OF THE ORDER U/S 201(1) & 201(1)(A) OF THE INCOME TAX ACT M/ S. BHATIA COKE & ENERGY LTD, 8/5, MANORAMAGANJ, BCC HOUSE, NAVRATAN BAGH MAIN ROAD, INDORE VS. DCIT, RANGE - 1(1), INDORE ( REVENUE ) (RESPONDENT ) PAN NO. AA DCB770A BHATIA COKE & ENERGY LTD ITA NO.581/IND/2017 2 1961(IN SHORT THE ACT) DATED 29.09.2015 FRAMED BY ITO, INTL. TAXN & T.P, BHOPAL. 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL; 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE LD. JURISDICTIONAL CIT (A)-13, AHMEDABAD HAS ERRED IN DISMISSING THE APPEAL ON THE GROUND THAT E-FILING OF APPEAL BEFORE CIT (A) IS COMPULSORY W.E.F. MARCH 1, 2016 W ITHOUT APPRECIATING THE FACT THAT THE ASSESSEE HAS FILED MANUAL APPEAL TO CIT (A)-L, INDO RE ON 17/02/2016 MUCH BEFORE THE CBDT NOTIFICATION MANDATING COMPULSORY E-FILING OF APPEAL BEFORE CIT (A). 2. THAT THE ORDER SO PASSED IS BAD IN LAW AND WRONG . 3. THAT THE ASSESSEE CRAVES YOUR HONORS PERMISSION TO ADD ALTER OR DELETE ANY GROUNDS OF APPEAL. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE REFER RING TO THE GROUNDS MENTIONED THAT AS THE LD. CIT(A) HAS NOT PA SSED THE ORDER ON MERITS AND MERELY DISMISSED THE ASSESSEES APPEA L JUST FOR NOT E- FILING THE APPEAL. HE PRAYED THAT LD. CIT(A) MAY B E DIRECTED TO ADMIT THE MANUALLY FILED APPEAL AND ADJUDICATE THE ISSUES RAISED ON MERITS. 4. PER CONTRA DEPARTMENTAL REPRESENTATIVE DID NOT R AISED ANY OBJECTION IF THE DIRECTIONS ARE ISSUED TO LD. CIT(A ) FOR ADMITTING THE MANUAL APPEAL AND ADJUDICATING THE GROUNDS RAISED T HEREIN AFRESH. BHATIA COKE & ENERGY LTD ITA NO.581/IND/2017 3 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. FACTS IN BRIEF ARE THAT THE ASSES SEE IS A PRIVATE LIMITED COMPANY. FOR THE ALLEGED DEFAULT IN DEDUC TING THE TAX AT SOURCE U/S 195 OF THE ACT AN ORDER U/S 201(1)/201(1 A) OF THE ACT WAS FRAMED ON 11.1.2016 RAISING DEMAND OF RS.53,070 /-(INCLUDING INTEREST OF RS.7320/-) FOR DEFAULT IN DEDUCTING TAX AT SOURCE ON AMOUNT OF RS.3,05,000/- REMITTED OUTSIDE INDIA FOR MAKING PAYMENT TO PLATTS MCGRAW HILL FINANCIAL, USA FOR B ENCHMARK PRICE ASSESSMENT FOR THE ENERGY, PETRO CHEMICALS, METALS AND AGRICULTURE MARKET. THIS PAYMENT WAS CLAIMED BY THE ASSESSEE TO HAVE BEEN MADE FOR SUBSCRIPTION FEES FOR UPDATES FROM INTERNA TIONAL COAL MARKETS. 6. AGAINST THE ORDER OF THE LD. A.O, INTERNATIONAL TAXATION & DP, BHOPAL DATED 11.1.2016 ASSESSEE FILED AN APPEAL MAN UALLY IN THE PRESCRIBED FORM ON 17.2.2016 TO LD. CIT(A)-I, INDOR E. THE APPEAL WAS INSTITUTED BEFORE LD. CIT(A)-13, AHMEDABAD ON18 .4.2016 AND HE ON OBSERVING THAT AS PER THE INCOME TAX ACT THIR D AMENDMENT RULES 2016, RULE 45 OF THE INCOME TAX 1962 HAVE BEE N AMENDED BHATIA COKE & ENERGY LTD ITA NO.581/IND/2017 4 THEREBY MANDATING COMPULSORY FILING THE ELECTRONIC RETURNS BEFORE APPELLATE COMMISSIONER W.E.F. 1.3.2016, DISMISSED T HE APPEAL OF THE ASSESSEE BY TREATING THE MANUALLY FILED APPEAL AS INVALID. 7. ON PERUSAL OF THE RECORDS WE FIND THAT THE ASSES SEE FILED THE APPEAL MANUALLY IN FORM-35 ALONG WITH THE GROUNDS A ND OTHER NECESSARY DOCUMENTS ON 17.2.2016 WITH THE OFFICE OF THE COMMISSIONER OF INCOME TAX(APPEALS)-I, INDORE. THE AMENDMENT MANDATING THE FILING OF APPEAL IN E-FORM IS EFFECTI VE FROM 1.3.2017. WE THEREFORE IN THE GIVEN FACTS AND CIRCUMSTANCES O F THE CASE AND IN THE INTEREST OF JUSTICE ARE OF THE OPINION THAT THE ASSESSEES MANUALLY FILED APPEAL SHOULD BE TREATED AS A VALID APPEAL AND ADMITTED ACCORDINGLY. FURTHER LD. CIT(A) IS DIRECT ED TO ADJUDICATE THE GROUNDS RAISED BY THE ASSESSEE IN THE APPEAL FI LED MANUALLY ON 17.2.2016 AND DECIDE THE ISSUES ON MERITS AFTER PRO VIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. BHATIA COKE & ENERGY LTD ITA NO.581/IND/2017 5 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 01.04.201 9. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 1 ST APRIL, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE