Unicorn Sales Agencies Pvt.Ltd., Banaskantha V. The ACIT.,BK Circle, Palanpur

ITA 617/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60323 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 12-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice
• Section: 143(3); 14A

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , . .!'#$, % & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ./ I.T.A. NO.617/AHD/2012 ( ( ) ( ) ( ) ( ) / / / / ASSESSMENT YEAR : 2008-09) UNICORN SALES AGENCIES PVT.LTD. 105, NASIR ROAD, KANODAR-385 520 TALUKA PALANPUR, DIST.BANASKANTHA ( ( ( ( / VS. THE ACIT BOOKS OF ACCOUNT CIRCLE PALANPUR * % ./+, ./ PAN/GIR NO. : AAACU 2590 A ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPELLANT BY : SHRI S.N.DIVATIA ./*- 1 0 / RESPONDENT BY : SHRI SAMIR TEKRIWAL, SR.D.R. (2 1 3% / / / / DATE OF HEARING : 07/05/2012 4') 1 3% / DATE OF PRONOUNCEMENT : 11/5/2012 5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-XX, AHMEDABAD DATED 23/01/2012 PASSED FOR ASST.YEAR 2008- 09. THE FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESSEE IN ITS APPEAL:- 1.1. THE ORDER PASSED U/S.250 ON 23.01.2012 FOR A.Y. 200 8-09 BY CIT(A)-XX, ABAD UPHOLDING THE DISALLOWANCES MADE BY AO ITA NO.617/AHD/ 2012 UNICORN SALES AGENCIES P.LTD. VS. ACIT ASST.YEAR 2008-09 - 2 - IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIP LES OF NATURAL JUSTICE. 1.2. THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR O N FACTS IN NOT ALLOWING REASONABLE OPPORTUNITY TO THE APPEL LANT. THOUGH THE ADJOURNMENT APPLICATION IN RESPECT OF HE ARING FIXED ON 11.01.2012 WAS FILED IN DISPATCH, NO FURTH ER OPPORTUNITY NOR REJECTION OF THE SAME WAS COMMUNICA TED TO THE APPELLANT AND THE EX-PARTE ORDER WAS PASSED BY CIT(A). 2.1. THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FA CTS IN CONFIRMING THE FOLLOWING DISALLOWANCES: A) DISALLOWANCE UNDER RULE 8D - RS. 34,256 B) DISALLOWANCE OF PROF.CHARGES - RS.1,16,570 C) EXCESSIVE INTEREST - RS.1,34,230 2. THIS IS AN APPEAL WHERE AN ORDER WAS PASSED U/S. 143(3) DATED 21/12/2010 WHEREIN AN ADDITION WAS MADE BY INVOKING THE PROVISIONS OF SECTION 14A OF IT ACT. CERTAIN OTHER ADDITIONS H AVE ALSO BEEN MADE AND THAT ORDER WAS CONTESTED BEFORE LD.CIT(A). HOWEVER , LD.CIT(A) HAS DECIDED AN EX-PARTE ORDER CONFIRMING THE ADDITIONS MADE BY THE AO BY DISMISSING THE GROUNDS OF APPEAL DUE TO NON-APPEARA NCE ON THE PART OF THE ASSESSEE. LD.CIT(A) HAS NOTED FEW DATES OF HE ARING AS FOLLOWS:- SR.NO. DT.OF ISSUE OF NOTICE DT.OF HEARING FIXED REMARKS 1. 16-3-2011 27-4-2011 NO COMPLIANCE 2. 9-09-2011 13-10-2011 SOUGHT ADJOURNMENT 3. 22-12-2011 11-01-2012 SOUGHT ADJOURNMENT 3. FROM THE SIDE OF THE APPELLANT, LD.AR MR.S.N.DI VATIA APPEARED AND CONTESTED THAT THE ASSESSEE HAD IN FACT SOUGHT ADJ OURNMENT BEFORE ITA NO.617/AHD/ 2012 UNICORN SALES AGENCIES P.LTD. VS. ACIT ASST.YEAR 2008-09 - 3 - LD.CIT(A) BUT INSTEAD OF GRANTING AN OPPORTUNITY T HE LD.CIT(A) PROCEEDED EX-PARTE . LD.AR HAS ALSO MADE A STATEMENT THAT IF AN OPPORTUNITY NOW BEEN GRANTED, THEN THERE SHALL BE P ROPER COMPLIANCE OF THE NOTICES OF LD.CIT(A) AND THE ASSESSEE SHALL FUL LY CO-OPERATE TO GET THIS APPEAL DECIDED AT AN EARLY DATE. HAVING HEARD BOT H THE SIDES, WE ARE OF THE CONSIDERED VIEW THAT THIS ASSESSEE DESERVES AN OPPORTUNITY OF HEARING BEFORE LD.CIT(A). NATURAL JUSTICE ALSO DEMANDS TO DECIDE AN ISSUE AFTER GRANTING A REASONABLE AND PROPER OPPORTUNITY OF HEA RING TO THE CONCERNED PARTIES. IN A REPORTED DECISION OF GUJARAT THEMIS BIOSYN LTD. 74 ITD 339(AHD.), A VIEW WAS TAKEN THAT THE PROVISIONS OF SECTION 250(6) PRESCRIBES THAT AN APPELLATE ORDER IS TO STATE THE POINTS ARISING IN THE APPEAL, THE DECISION OF THE AUTHORITY THEREON AND T HE REASONS FOR SUCH DECISION SO THAT THROUGH A SPEAKING ORDER THE ASSES SEE IS ABLE TO PRECISELY KNOW THE POINTS OF ISSUE EITHER DECIDED IN FAVOUR O R AGAINST. FOLLOWING THE ABOVE PRECEDENCE, WE HEREBY REMIT THE MATTER BA CK TO LD.CIT(A) WITH THE DIRECTION TO DECIDE DE NOVO ON MERITS, NEEDLESS TO SAY AFTER PROVIDING AN ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE THAT INSTEAD OF WAITING FOR ANY NOTICE OF HEARING FROM THE SIDE OF THE REVENUE DEPARTMENT, THE AUTHORIZED REPRESENTATIVE OF THE COMPANY SHOULD WITHIN 30 DAYS ON RECEIPT OF THIS OR DER OF THE TRIBUNAL CONTACT THE OFFICE OF LD.CIT(A) AND SUO MOTU ASK FOR A CONVENIENT DATE OF HEARING, SO THAT THIS APPEAL CAN BE DECIDED AT A N EARLY DATE WITHOUT WASTING FURTHER TIME FOR THE SERVICE OF NOTICE AND OTHER LIKE NATURE PROCEDURES. WITH THESE DIRECTIONS, THIS APPEAL MA Y BE TREATED AS ALLOWED ONLY FOR STATISTICAL PURPOSES. ITA NO.617/AHD/ 2012 UNICORN SALES AGENCIES P.LTD. VS. ACIT ASST.YEAR 2008-09 - 4 - 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TR EATED AS ALLOWED BUT FOR STATISTICAL PURPOSES. SD/- SD/- ( . .!'#$ ) ( ) % ( A.K. GARODIA ) ( M UKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 11 / 05 /2012 63..(, .(../ T.C. NAIR, SR. PS 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-XX, AHMEDABAD 5. 7 >> >/ // / + + + + ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION..9.5.12 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 9.5.12 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S11.5.12 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 11.5.12 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER