M/s Azad Automotive Services Private Limited, Bangalore V. Deputy Commissioner of Income Tax, Bangalore

ITA 584/BANG/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8569 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-01-2020
• Assessment Year: 2009-2010
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K BIJU
• Assessee Lawyers: S V RAVISHANKAR
• Keywords: Principle of natural justice; Reason to believe; Set aside
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 584 /BANG/201 7 (ASSESSMENT YEAR: 2009 - 10 ) M/S. AZAD AUTOMOTIVE SERVICES PVT. LTD., NO.7A, DODDANAKKUNDI INDL. AREA, 2 ND STAGE, MAHADEVAPURA POST, BANGALORE - 560 048 .APPELLANT PAN VS. DY . COMMISSIONER OF INCOME TAX, CIRCLE 11(1), BANGALORE. RESPONDENT. ASSESSEE BY: SHRI S.V. RAVISHANKAR, ADVOCATE. REVENUE BY: SHRI M.K. BIJU, ADDL. CIT (D.R) DATE OF HEARING : 09.01 .20 20 DATE OF PRONOUNCEMENT : 17 .01 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 1, BANGALORE PASSED UNDER SECTION 143(3) AND 147 OF THE INCOME TAX ACT, 1961. 2 ITA NO. 584/BANG/2017 2. AT THE TIME OF HEARING, THE LEARNED AUTHORISE D REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) HAS NOT GIVEN ANY FINDING ON THE VALIDITY OF NOTICE UNDER SECTION 148 AND REFERRED TO GROUND NOS.2 & 3 OF THE GROUNDS OF APPEAL. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS RAISED SIMILAR GROUNDS BEFORE THE CIT(APPEALS) IN GROUND NOS.2 & 3 WHICH ARE AS UNDER : 2. THE ORDER OF ASSESSMENT PASSED BY THE LEARNED ASSESSING OFFICER UNDER SECTION 143(3) READ WITH SECTI O N 147 OF THE ACT IS BAD IN LAW SINCE THE MANDATORY CONDITIONS AS EN VISAGED IN THE ACT TO ASSUME JURISDICTION DID NOT EXIST OR HAVING NOT BEEN COMPLIED WITH AND CONSEQUENTLY, THE REASSESSMENT REQUIRES TO BE CANCELLED UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE ORDER OF REASSESSMENT IS BAD IN LAW AND VOID AB INITIO AS THE LEARNED ASSESSING OFFICER HAD NO REASON TO BELIEVE THAT THE INCOME OF THE APPELLANT HAS ESCAPED ASSESSMENT AND THE SAID REASONS AMOUNTED MERELY REASONS TO SUSPECT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE CONTENTION OF THE LEARNED AUTHORISED REPRESENTATIVE THAT THOUGH THE ASSESSEE HAS MADE SUBMISSIONS BEFORE THE APPELLATE AUTHORITY BUT THERE IS NO FINDING ON THIS ASPECT BY THE CIT(APPEALS). CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE CIT(A PPEALS) AND COULD NOT CONTROVERT THE SUBMISSIONS OF THE LEARNED AUTHORISED REPRESENTATIVE. 4. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. ON HEARING THE SUBMISSIONS OF THE LEARNED AUTHORISED REPRESENTATIVE AND PERUSAL OF THE MA TERIAL ON RECORD, SUBMISSIONS OF THE LEARNED AUTHORISED REPRESENTATIVE ARE REALISTIC AND THE ASSESSEE HAS RAISED THE GROUNDS OF APPEAL BEFORE THE CIT(APPEALS) 3 ITA NO. 584/BANG/2017 BUT THE CIT(APPEALS) HAS NOT GIVEN ANY REASON AND PROPER FINDING. ACCORDINGLY, CONSIDERING THE PRINCIPLE OF NATURAL JUSTICE, WE SET ASIDE THE ORDER OF CIT(APPEALS) AND RESTORE THE ENTIRE DISPUTED ISSUE TO THE FILE OF CIT(APPEALS) TO ADJUDICATE AFRESH AND GIVE A FINDING ON THE LEGAL ISSUE AND IF THE ASSESSEE DOES NOT SUCCEED ON LEGAL ISSUE, THEN GIV E A FINDING ON MERIT. WITH THIS DIRECTION, WE ALLOW THE APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSES. 5. IN THE RESULT THE ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CA PTION PAGE. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 1 7 . 01. 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INC OME - TAX APPELLATE TRIBUNAL BANGALORE