NETCOM VISION P. LTD., MUMBAI V. ITO-15(2)(2), MUMBAI

ITA 6026/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2150 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 23-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Reopening of assessment; Principle of natural justice
• Section: 142(1); 148; 144

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC , MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 6026 / / 2019 (%. 2011-12 ) ITA NO.6026/MUM/2019(A.Y 2011-12 ) NETCOM VISION PVT. LTD., A-2/204, SHREERAM KRISHNA NIWAS, SECTOR -45, NERUL(W), NAVI MUMBAI 400 706. PAN:AACCN-7125-N ...... ' / APPELLANT % VS. INCOME TAX OFFICER 15(2)(2), ROOM NO.480, 4 TH FLOOR, AAYKAR BHAVAN, M.K.ROAD, MUMBAI 400 020 ..... ()/ RESPONDENT '*/ APPELLANT BY : NONE ()*/ RESPONDENT BY : SHRI SANJAY J. SETHI %+) / DATE OF HEARING : 23/06/2021 ,-. +) / DATE OF PRONOUNCEMENT : 28/06/2021 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER COMMISSIONER OF INCOME TAX(APPEALS)-24, MUMBAI [IN SHORT 'THE CIT(A)] DATED 03/06/2019 FOR THE ASSESSMENT YEAR 2011-12. 2. SHRI SANJAY J. SETHI REPRESENTING THE DEPARTME NT SUBMITTED THAT THE ASSESSEE HAS NEITHER APPEARED BEFORE THE ASSESSING OFFICER NOR BEFORE THE CIT(A) DESPITE SERVICE OF NOTICE. THE ASSESSMENT O RDER HAS BEEN PASSED UNDER SECTION 144 R.W.S. 147 OF THE INCOME TAX ACT,1961 ( IN SHORT 'THE ACT'). 2 ITA NO.6026/MUM/2019(A.Y 2011-12) THEREAFTER, IN FIRST APPELLATE PROCEEDINGS AGAIN TH E ASSESSEE DID NOT APPEAR DESPITE SERVICE OF NOTICE. 3. SUBMISSIONS MADE BY LD.DEPARTMENTAL REPRESENTATI VE HEARD, ORDERS OF AUTHORITIES BELOW EXAMINED. A PERUSAL OF THE ASSES SMENT ORDER REVEALS THAT THE NOTICE ISSUED TO THE ASSESSEE UNDER SECTION 148 OF THE ACT ON 29/03/2018 WAS RECEIVED BACK UNSERVED FROM THE POSTAL DEPARTME NT. SUBSEQUENTLY, NOTICES WERE ISSUED UNDER SECTION 142(1) OF THE AC T ON 28/06/2018, 24/07/2018 AND FINALLY ON 21/08/2018. THE ASSESSEE DID NOT BOTHER TO RESPOND ANY OF THE ABOVE NOTICES, DESPITE THE FAC T THAT NOTICES ISSUEDUNDER SECTION 142(1) WERE DULY SERVED ON THE ASSESSEE AS PER ACKNOWLEDGEMENT RECEIPT IN THE RECORDS OF DEPARTMENT. THE ASSESSIN G OFFICER WAS CONSTRAINED TO PASS ASSESSMENT ORDER INVOKING PROVISIONS OF SECT ION 144 OF THE ACT. THEREAFTER, THE ASSESSEE FILED APPEAL BEFORE THE CI T(A). THE CIT(A) ISSUED NOTICE ON 01/05/2019 FOR HEARING FIXED ON 08/08/201 9 THROUGH E-MAIL ON EMAIL ID PROVIDED BY THE ASSESSEE IN FORM NO.35. HOWEVE R, THE ASSESSEE FAILED TO RESPOND TO THE NOTICE SERVED THROUGH E-MAIL. THE ASSESSEE IN GROUNDS OF APPEAL, APART FROM CHAL LENGING ADDITION ON MERITS HAS ASSAILED REOPENING OF ASSESSMENT AND VIO LATION OF PRINCIPLES OF NATURAL JUSTICE IN PASSING EX-PARTE ORDER BY ASSESS ING OFFICER AS WELL AS CIT(A). ONE OF THE PRINCIPLE OF NATURAL JUSTICE IS NO PARTY SHOULD BE CONDEMNED UNHEARD. AT THE SAME TIME IT IS INCUMBENT UPON THE PARTIES TO THE LIS TO RESPOND TO THE NOTICE AND APPEAR BEFORE THE AUTHORI TY ISSUING NOTICE AND TO CO-OPERATE IN PROCEEDINGS. AS IS EVIDENT FROM THE ASSESSMENT ORDER THE ASSESSEE DESPITE SERVICE OF NOTICE HAS FAILED TO AP PEAR BEFORE THE ASSESSING OFFICER. TAKING INTO CONSIDERATION ENTIRETY OF FACTS AND IN INTEREST OF NATURAL JUSTICE, AN OPPORTUNITY IS GRANTED TO THE ASSESSEE TO APPEAR BEFORE THE 3 ITA NO.6026/MUM/2019(A.Y 2011-12) ASSESSING OFFICER. THE ASSESSING OFFICER SHALL ISS UE NOTICE, TO THE ASSESSEE AND ON SERVICE OF NOTICE, THE ASSESSEE SHALL APPEAR B EFORE THE ASSESSING OFFICER AND CO-OPERATE IN ASSESSMENT PROCEEDINGS. IN CASE THE ASSESSEE FAILS TO APPEAR BEFORE THE ASSESSING OFFICER DESPITE SERVICE OF NOT ICE, THE ASSESSING OFFICER SHALL BE AT LIBERTY TO PROCEED WITH THE ASSESSMENT, IN ACCORDANCE WITH LAW. THE IMPUGNED ORDER IS SET-ASIDE AND APPEAL OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT, APPEAL BY THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 28 TH DAY OF JUNE, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 28/06/2021 VM , SR. PS (O/S) COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. () / THE RESPONDENT. 3. 1) ( )/ THE CIT(A)- 4. 1) CIT 5. 23()% , . . . , / DR, ITAT, MUMBAI 6. 34567 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI