VANGUARD ELECTRICS P. LTD, MUMBAI V. ITO 2(3)(4), MUMBAI

ITA 6270/MUM/2010

• Counselvise Citation: 627019914 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-11-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 20-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P C MAURYA
• Assessee Lawyers: VIJAY MEHTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC , MUMBAI BEFORE SHIRI RAJENDRA SINGH, A.M. ITA NO. : 6270/MUM/2010 ASSESSMENT YEAR : 2007-08 M/S. VANGUARD ELECTRONICS PVT LTD. 449, A-1, SHAH & NAHAR, INDUSTRIAL ESTATE, LOWER PAREL, WEST, MUMBAI-400 013. PAN NO : AAACV 3578 P VS. THE INCOME TAX OFFICER, WARD - 2(3) (4), MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIJAY MEHTA RESPONDENT BY : SHRI P. C. MAURYA DATE OF HEARING : 29 .11.2011 DATE OF PRONOUNCEMENT : 02.12.2011 ORDER PER RAJENDRA SINGH (AM) : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 17.05.2010 OF THE LD. CIT(A)-6 FOR THE ASSESSMENT Y EAR 2006-07. THE ASSESSEE HAS CHALLENGED THE ORDER OF THE CIT(A) ON THE GROUND OF NOT ALLOWING AN OPPORTUNITY OF HEARING BEFORE PASSING T HE ORDER. 2. THE FACTS IN BRIEF ARE THAT THE AO IN THE RELEV ANT YEAR HAD DISALLOWED A SUM OF `. 3,20,366/- BEING THE COMMISSION AND OTHER ITA NO : 6270/MUM/2010 M/S. VANGUARD ELECTRONICS PVT. LTD. 2 EXPENSES, ON THE GROUND OF NO DEDUCTION OF TAX U/S. 40A(IA) OF THE I.T. ACT. THE ASSESSEE DISPUTED THE DECISION OF THE AO BEFORE CIT(A), WHO IN THE APPELLATE ORDER HAS OBSERVED THAT NOBODY APPEARED O N BEHALF OF THE ASSESSEE ON DATES OF HEARING I.E. ON 14.01.2010, 10 .03.2010 AND 22.04.2010. CIT(A), THEREFORE, CONCLUDED THAT THE A SSESSEE WAS NOT INTERESTED IN PROSECUTING THE APPEAL. HE, THEREFORE , DISMISSED THE APPEAL AS NOT ADMITTED AND DID NOT PASS ANY ORDER ON THE M ERIT OF THE CASE. AGGRIEVED BY THE SAID DECISION THE ASSESSEE IS IN A PPEAL BEFORE THE TRIBUNAL. 3. BEFORE ME, THE LD. AR FOR THE ASSESSEE SUBMITTED THAT HE HAD NOT RECEIVED ANY OF THE NOTICES OF HEARING ISSUED BY TH E CIT(A). IT WAS POINTED OUT THAT NOTICES MAY HAVE GONE ON THE OLD ADDRESS A ND THUS WERE NOT RECEIVED. IT WAS SUBMITTED THAT THE ASSESSEE HAD ME NTIONED THE NEW ADDRESS ON THE TOP OF FORM NO.35 AS M/S.VANGUARD EL ECTRONICS PVT. LTD. 449, SHAH & NAHAR IND. ESTATE, LOWER PAREL, BOMBAI- 400 013. IT WAS ALSO ARGUED THAT EVEN IF THERE WAS NO APPEARANCE ON BEHALF OF THE ASSESSEEE, CIT(A) WAS REQUIRED TO DECIDE THE APPEAL ON MERIT WHICH HAD NOT BEEN DONE. IT WAS, ACCORDINGLY, REQUESTED THAT THE MATTER MAY BE SENT BACK TO THE CIT(A) FOR PROPER DISPOSAL OF APPE AL. 4. I HAVE PERUSED THE RECORDS AND CONSIDERED THE MA TTER CAREFULLY. CIT(A) HAS DISMISSED THE APPEAL AS UNADMITTED ON TH E GROUND THAT NO ITA NO : 6270/MUM/2010 M/S. VANGUARD ELECTRONICS PVT. LTD. 3 ONE APPEARED ON DATES OF HEARINGS FIXED BY HIM. THE PERUSAL OF ORDER OF CIT(A), HOWEVER, REVEALS THAT THERE IS NO MENTION O F THE SERVICE OF NOTICES ON THE ASSESSEE. THE ORDER ONLY SAYS THAT THE NOTIC ES HAD BEEN ISSUED. UNDER THESE CIRCUMSTANCES, I FIND SUBSTANCE IN THE CLAIM OF THE LD. AR THAT NOTICES HAD NOT BEEN RECEIVED BY THE ASSESSEE PARTICULARLY WHEN THE ADDRESS HAD CHANGED. SECONDLY, EVEN IN THE EX PARTE ORDER, CIT(A) WAS REQUIRED TO DISPOSE OF THE APPEAL ON MERIT OF THE C ASE. SECTION 250(6) CLEARLY PROVIDES THAT ORDER OF CIT(A) DISPOSING OF THE APPEAL SHALL BE IN WRITING AND SHALL STATE THE POINTS FOR DETERMINATIO N, THE DECISION THERE ON AND THE REASON FOR DECISION. IN THIS CASE, CIT(A) H AS NOT SHOWN ANY DECISION ON THE MERITS OF GROUND OF APPEAL RAISED B EFORE HIM. ON THIS GROUND ALSO, THE ORDER OF THE CIT(A) CANNOT BE SUST AINED. I, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTE R BACK TO THE HIM FOR PASSING A FRESH ORDER ON MERIT OF THE CASE AND AFTE R PROVIDING ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 2 ND DAY OF DECEMBER, 2011. S D/ - ( RAJENDRA SINGH ) ACCOUNTANT MEMBER MUMBAI, DT: 02/12/2011 ITA NO : 6270/MUM/2010 M/S. VANGUARD ELECTRONICS PVT. LTD. 4 COPY FORWARDED TO : 1. THE APPELLANT, 2. THE RESPONDENT, 3. THE C.I.T. 4. CIT (A) 5. THE DR, SMC - BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI ROSHANI