BHARAT VIRJI GALA, MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX 17(1), MUMBAI

ITA 6233/MUM/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 7690 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 12-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE HONBLE SHRI SANDEEP GOSAIN, JM & HONBLE SHRI G. MANJUNATHA, AM ./ I.T.A. NO . 6233/MUM/2017 , ( / ASSESSMENT YEAR: 2010 - 11 ) BHARAT VIRAJ GALA, 267/71, N. N. STREET, MUMBAI - 400009 / VS. ACIT 17(1 ) , 1 ST FLOOR, ROOM NO. 135 , AAYAKAR BHAVAN , M. K. ROAD, MUMBAI - 400 020 ./ ./ PAN/GIR NO. A A IPG5312M ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : MS. RUCHI M. RATHOD , AR / RESPONDENTBY : SH. ARVIND KUMAR , DR / DATE OF HEARING : 10/01 /201 9 / DATE OF PRONOUNCEMENT : 15.01.2019 / O R D E R PER SANDEEP GOSAIN, J UDICIAL MEMBER : THE PRESENT APPEAL FILED BY THE ASSESSEE IS CHALLENGING AGAINST THE ORDER OF THE CIT(A) - 28 , MUMBAI DATED 19.06 .17 FOR AY 201 0 - 11. 2 I.T.A. NO. 6233 /MUM/201 7 BHARAT VIRAJ GALA, 2. THE SOLITARY GROUND RAISED BY THE ASSESSEE RELATES TO CHALLENGING THE ORDER OF LD. CIT(A) IN NOT GRANTING PROPER REASONABLE OPPOR TUNITY OF BEING HEARD AND IN CON FIRMING MECHANICALLY INTEREST AMOUNT PAID TO 6 PARTIES OF RS. 5,22,000/ - AS INCOME MADE BY THE RESPONDENT. 3. WE HAVE HEARD THE COUNSELS FOR BOTH THE PARTIES AND WE HAVE ALSO PERUSED THE MATERIAL PLACED ON RECORD WELL AS THE ORDERS PASSED BY THE REVENUE AUTHORITIES. WE FIND FROM THE RECORDS THAT LD. CIT(A) HAD PASSED AN EX - PARTE ORDER AS NOBODY APPEARED ON BEHALF OF THE ASSESSEE AS WELL AS THE DEPARTMENT BEFORE THE CIT(A). ON PERUSAL OF THE ORDER, WE NOTICE THAT INITIALLY THE APPEAL WAS FIXED ON 14.07.14, BUT ON THAT DAY, ADJOURNMENT WAS SOUGHT BY THE ASSESSEE, THEREAFTER THE MATTER WAS ADJOURNED TO 22.07.14, 19.08.14, 14.11.14 AND ON ALL THOSE OCCASIONS, THE ADJOURNMENT WAS AGAIN SOUGHT BY THE ASSESSEE. LD. CIT(A) THEREAFTER FIXED THE MATTER ON 26.11.15, 06.09.16, 15.06.17, BUT ON THOSE DATES NONE APPEARED ON BEHALF OF THE ASSESSEE. I T WAS THE BOUNDED DUTY OF THE PARTIES I.E ASSESSEE AS WELL AS THE DEPARTMENT TO APPEAR BEFOR E T HE LD. CIT(A). SINCE, THIS WAS THE 3 I.T.A. NO. 6233 /MUM/201 7 BHARAT VIRAJ GALA, ASSESSEES APPEAL, THEREFORE IT WAS ALL THE MORE IMPORTANT FOR THE ASSESSEE TO APPEAR BEFORE LD. CIT(A). HOWEVER, THE ASSESSEE HAS NOT ACTED WITH DUE DILIGENCE. NEVERTHELESS, THE PRINCIPLES OF NA TURAL JUSTICE DEMANDS T HAT THE LI S BETWEEN THE PARTIES SHOULD BE DECIDED ON MERIT S AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. 4. BE THAT AS IT MAY, CONSIDERING THE FACTS AND CIR CUMSTANCES OF THE PRESENT CASE AND WHILE CONSIDERING THE REQUEST OF THE ASSESSEE THAT SOME MORE DOCUMENTS ARE REQUIRED TO BE FILED BEFORE AO, THEREFORE WE ARE OF THE CONSIDERED VIEW THAT ENDS OF JUSTICE WOULD BE MET ONLY WHEN WE SET ASIDE THE EX - PARTE ORDER PASSED BY THE LEARNED CIT(A) AND RESTORE BACK THE MATTER TO THE FILE OF THE AO . WE FURTHER DIRECT THAT ASSESSEE WOULD APPEAR BEFORE THE AO WITHIN 30 DAYS FROM THE DATE OF RECEIPT OF THIS ORDER AND WOULD BE AT LIBERTY TO FILE REQUIRED DOCUMENTS BEFORE THE AO, WHICH AO SHALL CONSIDER AFTER DUE VERIFICATION AND THEN DECIDE THE ISSUE AF RESH. 5 . IN THE NET RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS PARTLY A LLOWED FOR STATISTICAL PURPOSES WITH NO ORDER AS TO COST. 4 I.T.A. NO. 6233 /MUM/201 7 BHARAT VIRAJ GALA, ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH JAN, 2019 SD/ - SD/ - (G. MANJUNATHA ) ( SANDEEP GOSAIN) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 15 . 01 .201 9 SR.PS . DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ ASSTT.REGISTRAR) , / ITAT, MUMBAI