PRAVIN SATRA, MUMBAI V. DCIT CEN CIR 3, MUMBAI

ITA 6314/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1756 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-12-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 13-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITTALDR
• Keywords: Principle of natural justice
• Section: 142(1)

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, C MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.6314/MUM/2014 ASSESSMENT YEAR: 2010-11 MR. PRAVIN SATRA, 103, THOSAR HOUSE, HANUMAN CROSS ROAD NO.1, VILE PARLE (EAST), MUMBAI-400057 / VS. DCIT, CENTRAL CIRCLE-3 OLD C.G.O. BUILDING, M.K. ROAD, MUMBAI-400020 ( ! ' /ASSESSEE) ( # / REVENUE) PAN. NO. AAVPS3963P #$ % ' & / DATE OF HEARING : 05/12/2016 % ' & / DATE OF ORDER: 05/12/2016 ! ' ! / ASSESSEE BY NONE # ! / REVENUE BY SHRI RAJAT MITTAL-DR ITA NO. 6314/MUM/2014 PRAVIN SATRA 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED EX-PARTE ORDER DATED 25/07/2014 OF THE LD. FIRST APPELLATE AUTHORITY, MUMBAI, ON THE GROUND THAT THE ORDER WAS PASSED WITHOUT AFFORDING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE, WHICH IS IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE AND EQUITY. IT IS ALSO MENTIONED THAT ON 15/07/2014, THE ACCOUNTANT OF THE ASSESSEE APPEARED AND THE MATTER WAS ADJOURNED TO 23/07/2014, WHEN FURTHE R ADJOURNMENT WAS DENIED AND THE ORDER WAS PASSED. 2. THE LD. DR, SHRI RAJAT MITTAL, DEFENDED THE ORD ER BY CONTENDING THAT, ON THE APPOINTED DATE, THE ASSE SSEE DID NOT APPEAR, THEREFORE, THE FIRST APPELLATE AUTHORIT Y, WAS CONSTRAINED TO PASS AN EX-PARTE ORDER. 2.1. WE HAVE PERUSED THE RECORD AND FIND THAT THE ASSESSEE DECLARED INCOME OF RS.11,96,630/- ON 15/10/2010. IN RESPONSE TO NOTICES ISSUED U/S 143( 2) AND 142(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT), THE ASSESSEE FURNISHED THE NECESSARY DETAILS AND RE PLIED TO THE EXPLANATION SOUGHT BY THE ASSESSING OFFICER. T HE LD. ASSESSING OFFICER DISALLOWED THE AMOUNT OF RS.28,38 8/- U/S 40(A)(IA) OF THE ACT AND RS.48,16,981/- OUT OF SUB- CONTRACT (LABOUR) EXPENSES. THE ASSESSEE HAS DEDUCT ED TDS AS PER THE PROVISIONS OF THE ACT. IDENTICALLY, THE AMOUNT OF RS.1,16,715/- WAS DISALLOWED OUT OF LEGAL AND PROFE SSIONAL FEES ON WHICH ALSO TDS WAS DEDUCTED. AN AMOUNT OF R S.10 LAKH WAS DISALLOWED, BEING THE AMOUNT PAID TO KUBER ITA NO. 6314/MUM/2014 PRAVIN SATRA 3 TRADING COMPANY FOR PURCHASE OF MATERIALS IN RESPEC T OF INTERIOR WORK AND FURTHER THE AMOUNT OF RS.9,69,573 /- OUT OF CONSULTANCY FEES. THERE ARE FURTHER CERTAIN DISA LLOWANCES AS ARE EVIDENT FROM ASSESSMENT ORDER DATED 28/03/20 13. 2.2. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEF ORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL). THE AS SESSEE WAS PROVIDED OPPORTUNITIES ON WHICH THE ASSESSEE CO ULD NOT APPEAR. THE STAND OF THE ASSESSEE IS THAT THE R EQUEST OF ADJOURNMENT WAS TURN DOWN BY THE LD. COMMISSIONER O F INCOME TAX (APPEAL) AND THUS THE EX-PARTE ORDER WAS PASSED. ADMITTEDLY, THE ASSESSEE WAS EXPECTED TO AP PEAR BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEAL) ON THE APPOINTED DATE. AT THE SAME TIME, WE ARE OF THE VIE W, THAT NO PERSON SHOULD BE CONDEMNED UNHEARD, THEREFORE, B Y TAKING A LENIENT VIEW AND CONSIDERING THE PRINCIPLE OF NATURAL JUSTICE, WE REMAND THIS FILE TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) FOR FRESH ADJUD ICATION IN ACCORDANCE WITH LAW. THE ASSESSEE BE GIVEN OPPOR TUNITY OF BEING HEARD WITH FURTHER LIBERTY TO FURNISH NECE SSARY EVIDENCE, IF ANY, IN SUPPORT OF HIS CLAIM. THE ASSE SSEE IS ALSO DIRECTED NOT TO ADOPT A CASUAL APPROACH AND SH ALL COOPERATE IN EARLY DISPOSAL OF THE APPEAL. IT IS AL SO WORTH MENTIONING THAT IF THE ASSESSEE STILL CHOOSES TO RE MAIN ABSENT BEFORE THE LD. COMMISSIONER OF INCOME TAX (A PPEAL) ON THE APPOINTED DATE, HE IS FREE TO TAKE A VIEW ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ITA NO. 6314/MUM/2014 PRAVIN SATRA 4 FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN TH E PRESENCE OF THE LD. DR AT THE CONCLUSION OF THE HEA RING ON 05/12/2016. SD/- SD/- ( RAJESH KUMAR ) (JOGINDER SINGH) '!# / ACCOUNTANT MEMBER $!# /JUDICIAL MEMBER $ MUMBAI; ( DATED : 05/12/2016 F{X~{T? P.S / /. .. %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+,- / THE APPELLANT (RESPECTIVE ASSESSEE) 2. ./,- / THE RESPONDENT. 3. 0 0 1' ( *+ ) / THE CIT, MUMBAI. 4. 0 0 1' / CIT(A)- , MUMBAI, 5. 3#4 .' , 0 *+& * 5 , $ / DR, ITAT, MUMBAI 6. 6 7$ / GUARD FILE. ! / BY ORDER, /3+' .' //TRUE COPY// /! (DY./ASSTT. REGISTRAR) , $ / ITAT, MUMBAI