WORLDLINE INDIA PRIVATE LIMITED (FORMERLY KNOWN AS ATOS WORLDLINE INDIA PRIVATE LIMITED), MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX-CIRCLE-12(1)(1), MUMBAI

ITA 5850/MUM/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1737 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2011-2012
• Appeal Filed On: 13-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATISH RAJORE
• Keywords: Opportunity of being heard
• Section: 37(1)

Judgement Text

1 IN THE INCOME-TAX APPELLATE TRIBUNAL G BENCH MUMB AI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA NO. 5850/MUM/2017 (ASSESSMENT YEAR 2011-12 ) WORLDLINE INDIA PVT. LTD. (FORMERLY KNOWN AS ATOS WORLDLINE INDIA PVT. LTD.), 2 ND FLOOR, TOWER-1, RAIASKARAN TECH PARK, PHASE II, M.V. ROAD, SAKINAKA, ANDHERI (E), MUMBAI-400072. PAN: AAACE2403J VS. DCIT CIRCLE -12(1)(1). MUMBAI. APPELLANT RESPONDE NT APPELLANT BY : SHRI RYAN SALDANHA (C.A.) RESPONDENT BY : SHRI SATISH RAJORE (SR.DR) DATE OF HEARING : 12.06.2019 DATE OF PRONOUNCEMEN T : 12.06.2019 ORDER UNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-20, [THE LD. CIT(A)], MUMBAI D ATED 27.06.2017 FOR ASSESSMENT YEAR 2011-12. THE ASSESSEE HAS RAISED TH E FOLLOWING GROUNDS OF APPEAL: 1. THE LD. CIT(A) ERRED IN DISMISSING THE APPEAL WI THOUT PROPER OPPORTUNITY OF BEING HEARD. THUS, THE ORDER PASSED BY LD. CIT(A) I S BAD-IN-LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS.34,64,475/- IN RESPEC T OF PURCHASES MADE FROM M/S. KRSNA ENTERPRISES WITHOUT PROPERLY APPRECIATIN G THE FACTS OF THE CASE AND LAW APPLICABLE THERETO. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE U/S 37(1) OF RS.49,52,000/- IN RESPECT OF MEMBERSHIP ITA NO. 5850/MUM/2017 WORLDLINE INDIA PVT. LTD. 2 FEES WITHOUT PROPERLY APPRECIATING THE FACTS OF THE CASE AND LAW APPLICABLE THERETO. 4. THE APPELLANT PRAYS THAT THE ABOVE DISALLOWANCES MAY BE DELETED. 2. AT THE OUTSET OF HEARING, THE LD. AUTHORIZED REPRES ENTATIVE (AR) OF THE ASSESSEE SUBMITS THAT THE LD. CIT(A) PASSED HE EX-P ARTE ORDER AND DISMISSED THE APPEAL OF THE ASSESSEE. IT WAS FURTHER SUBMITTE D THAT REPRESENTATIVE OF THE ASSESSEE COULD NOT APPEAR BEFORE THE LD. CIT(A) DUE TO BONAFIDE REASONS WHEN THE APPEAL WAS FIXED FOR HEARING. THE LD. AR O F THE ASSESSEE SUBMITS THAT FIRST NOTICE OF HEARING WAS FIXED BY LD. CIT(A ) ON 22.03.2016. THE ADDRESS OF ASSESSEE WAS CHANGED FROM 2 ND FLOOR, TOWER-1, RAIASKARAN TECH PARK, PHASE II, M.V. ROAD, SAKINAKA, ANDHERI (E). T HEREFORE, NO NOTICE WAS RECEIVED FOR SAID DATE. AGAIN ON 06.10.2016, THE NO TICE WAS ISSUED FOR HEARING ON 24.10.2016, ON 24.10.2016, THE ASSESSEE SOUGHT A DJOURNMENT ON THE GROUND OF COMPILING THE DETAILS. THE HEARING OF APP EAL WAS AGAIN FIXED ON FOR 06.06.2017. THE REPRESENTATIVE OF ASSESSEE WENT TO ATTEND THE PROCEEDING ON 06.06.2017, HOWEVER, THE LD. CIT(A) WAS NOT PRESENT IN OFFICE AND IT WAS INTIMATED THAT FRESH NOTICE WOULD BE ISSUED. ON 08. 06.2017, THE HEARING OF APPEAL WAS AGAIN FIXED FOR HEARING ON 23.06.2017. T HE ASSESSEE HAS NOT RECEIVED ANY NOTICE AS NOTICE WAS ISSUED AT WRONG A DDRESS. THE ASSESSEE HAS ALREADY FURNISHED THE ADDRESS OF THEIR CHARTERED AC COUNTANT ON 06.10.2016. HOWEVER, NO NOTICE WAS RECEIVED ON SUCH ADDRESS. TH E LD. AR OF THE ASSESSEE HAS GOOD CASE ON MERIT AND LIKELY TO SUCCEED IN CAS E THE ASSESSEE IS GRANTED ITA NO. 5850/MUM/2017 WORLDLINE INDIA PVT. LTD. 3 OPPORTUNITY TO CONTEST THE CASE ON MERIT. IT WAS FU RTHER SUBMITTED THAT LD. CIT(A) HAS NOT DECIDED THE APPEAL ON MERIT. 3. ON THE OTHER HAND, THE LD. DEPARTMENTAL REPRESENTAT IVE (DR) FOR THE REVENUE SUPPORTED THE ORDER OF LD. CIT(A). THE LD. DR SUBMI TS THAT ASSESSEE IS MOST NEGLIGENT IN APPEARING BEFORE THE LD. CIT(A). THE L D. CIT(A) FIXED THE HEARING OF APPEAL ON FOUR OCCASIONS, THE REPRESENTA TIVE OF ASSESSEE APPEARED ONLY ONCE. THE LD. DR PRAYED FOR DISMISSAL OF APPEA L. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF THE PAR TIES AND HAVE GONE THROUGH THE ORDER OF LD. CIT(A). WE HAVE NOTED TH AT THE LD AR FOR THE ASSESSEE HAS ELABORATELY EXPLAINED THAT FIRST NOTIC E OF HEARING WAS FIXED BY LD. CIT(A) ON 22.03.2016, THE ADDRESS OF ASSESSEE WAS CHANGED FROM 2 ND FLOOR, TOWER-1, RAIASKARAN TECH PARK, PHASE II, M.V. ROAD, SAKINAKA, ANDHERI (E). THEREFORE, NO NOTICE WAS RECEIVED FOR SAID DATE. AG AIN ON 06.10.2016. THE NOTICE WAS AGAIN ISSUED FOR HEARING ON 24.10.2016, ON 24.10.2016, THE ASSESSEE SOUGHT ADJOURNMENT ON THE GROUND OF COMPIL ING THE DETAILS. THE HEARING OF APPEAL WAS AGAIN FIXED ON FOR 06.06.2017 . IT WAS EXPLAINED THAT THE REPRESENTATIVE OF ASSESSEE WENT TO ATTEND THE P ROCEEDING ON 06.06.2017, HOWEVER, THE LD. CIT(A) WAS NOT PRESENT IN OFFICE A ND IT WAS INTIMATED THAT FRESH NOTICE WOULD BE ISSUED. ON 08.06.2017, THE HE ARING OF APPEAL WAS AGAIN FIXED FOR HEARING ON 23.06.2017. THE ASSESSEE HAS N OT RECEIVED ANY NOTICE AS NOTICE WAS ISSUED AT WRONG ADDRESS. PERUSAL OF IMPU GNED ORDER REVEALS THAT THE LD. CIT(A) HAS NOT RECORDED HIS SATISFACTION WH ETHER THE NOTICE ISSUED ON ITA NO. 5850/MUM/2017 WORLDLINE INDIA PVT. LTD. 4 08.06.2017 FOR FIXING THE DATE OF HEARING ON 23.06. 2017 WAS RECEIVED OR NOT OR ANY ACKNOWLEDGMENT OF NOTICE WAS RECEIVED IN HIS OFFICE. THERE IS NO SATISFACTION OF LD. CIT(A) THAT NOTICE WAS RETURNED UN-SERVED. 5. IN VIEW OF THE ABOVE, THE ASSESSEE HAS SATISFACTORI LY EXPLAINED THE REASONS OF NON-APPEARANCE. WE ARE OF FURTHER VIEW THAT THE ASS ESSEE WOULD NOT GET ANY BENEFIT IN INTENTIONAL AND DELIBERATE ABSENCE IN AT TENDING THE PROCEEDING BEFORE THE FIRST APPELLATE AUTHORITY (FAA). CONSIDE RING THE SUBMISSIONS OF LD. AR OF THE ASSESSEE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS SHOWN SUFFICIENT CAUSE FOR NON-APPEARANCE ON 23.06.2017. THEREFORE, IN OUR VIEW, THE IMPUGNED ORDER IS PASSED WITHOUT GIVING FAIR AN D PROPER OPPORTUNITY TO THE ASSESSEE, THEREFORE, WE ALLOWED THE GROUND NO.1 OF THE APPEAL RAISED BY ASSESSEE AND RESTORE THE APPEAL TO THE FILE OF LD. CIT(A) FOR DECIDING ALL THE GROUNDS OF APPEAL AFRESH. NEEDLESS TO SAY THAT BEFO RE DECIDING THE ISSUE, THE LD. CIT(A) SHALL GRANT ADEQUATE AND SUFFICIENT OPPO RTUNITY TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FULLY CO-OPERATE A ND PROVIDE ALL THE NECESSARY INFORMATION AND DOCUMENTARY EVIDENCES TO LD. CIT(A) AND NOT TO SEEK ADJOURNMENT WITHOUT ANY VALID REASONS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 /06/2019. SD/- SD/- M. BALAGANESH, PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATE: 12.06.2019 SK ITA NO. 5850/MUM/2017 WORLDLINE INDIA PVT. LTD. 5 COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. DR G BENCH, ITAT, MUMBAI 6. GUARD FILE BY ORDER, DY./ASST. REGISTRAR ITAT, MUMBAI