Shri Rajnikant N.Shah, Ahmedabad V. The Income tax Officer,Ward-12(1), Ahmedabad

ITA 634/AHD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60318 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2008-2009
• Appeal Filed On: 14-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N SAPORKAR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT ME MBER I.T.A. NO.634/AHD/2012 A. Y. 2008-09 RAJNIKANT N. SHAH PROP. R.N. CORPORATION, B.J. JAMADAR BLOCK NARODA, AHMEDABAD-380 025 APPELLANT VS. ITO, WARD-12(1), AHMEDABAD RESPONDENT DEPARTMENT BY : SHRI VINOD TANWANI, SR. D.R. ASSESSEE BY : SHRI S.N. SAPORKAR, A.R. DATE OF HEARING : 08.05.2012 DATE OF PRONOUNCEMENT : 08.05.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS ASSESSEES APPEAL AGAINST THE EXPARTE ORDER OF LD. CIT(A)-XX, AHMEDABAD DATED 18.01.2012 PASSED IN APPEAL NO.CIT( A)-XX/556/10-11. 2. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APP EAL:- 1. LD. CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMI NG ADDITION MADE BY AO OF RS.14,71,800/- UNDER SECTION 68 OF THE ACT . LD. CIT(A) GROSSLY ERRED IN IGNORING ADJOURNMENT APPLICATION FILED BY THE APPELLANT AND CONFIRMED THE ADDITION WITHOUT AFFORDING OPPORTUNIT Y TO THE APPELLANT TO MAKE SUBMISSIONS. THIS ACTION OF LD. CIT(A) IS IN CLEAR BREACH OF PRINCIPLES OF NATURAL JUSTICE AND THEREFORE DESERVES TO BE QUA SHED. ITA NO.634/AHD/2012 , A.Y. 2008-09 2 2. LD. CIT(A) ERRED IN LAW AND ON FACTS IN NOT APP RECIATING THE FACTS ON RECORD THAT THE APPELLANT DID APPEAR AND FILED D ETAILS BEFORE AO FROM TIME TO TIME. LD. CIT(A) WITHOUT APPRECIATING STAT EMENT OF FACTS THAT NO DETAILS FOR ACCOUNTS SQUARED UP DURING THE YEAR WAS SPECIFICALLY CALLED FOR BY AO, HELD IT TO BE GENERAL AND UNSUBSTANTIATED. THE ORDER OF LD. CIT(A) NOT TAKING INTO CONSIDERATION TOTALITY OF THE FACTS OUGHT TO BE QUASHED. 3. LD. CIT(A) ERRED IN LAW AND ON FACTS CONFIRMING PART DISALLOWANCE OF VARIOUS EXPENSES MADE BY AO HOLDING THEM TO BE P ERSONAL IN NATURE. LD. CIT(A) OUGHT NOT TO HAVE CONFIRMED 10% OF SUCH ADHOC DISALLOWANCE IN ABSENCE OF ANY EVIDENCE OF PERSONAL NATURE BROUG HT ON RECORD BY AO. 4. LEVY OF INTEREST U/S 234A/234B/234C & 234D OF T HE ACT IS NOT JUSTIFIED. 5. INITIATION OF PENALTY U/S 271(1) OF THE ACT IS N OT JUSTIFIED. 3. AT THE TIME OF HEARING, AT THE OUTSET, LD. COUN SEL OF THE ASSESSEE SUBMITTED THAT THE APPEAL OF THE ASSESSEE HAS BEEN DISMISSED BY THE LD. CIT(A) BY PASSING AN EXPARTE ORDER WITHOUT GIVING REASONAB LE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HE THEREFORE, PRAYED THAT T HE MATTER MAY KINDLY BE RESTORED TO THE FILE OF LD. CIT(A) FOR FRESH ADJUDI CATION. HE ALSO GAVE AN UNDERTAKING TO COOPERATE WITH THE APPEAL PROCEEDING S BEFORE LD. CIT(A). LD. D.R. DID NOT OBJECT TO THIS PRAYER OF THE LD. COUNS EL OF THE ASSESSEE. THEREFORE, IN THE INTEREST OF NATURAL JUSTICE AND FAIR PLAY, T HE MATTER IS RESTORED BACK TO THE FILE OF LD. CIT(A) FOR FRESH ADJUDICATION AFTER PRO VIDING SUFFICIENT REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE AS SESSEE IS ALSO DIRECTED TO COOPERATE WITH THE APPEAL PROCEEDINGS BEFORE LD. CI T(A). 4. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER JU DICIAL MEMBER ITA NO.634/AHD/2012 , A.Y. 2008-09 3 TRUE COPY N.K. CHAUDHARY, SR. P.S. - 08/05/2012 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. !' / CONCERNED CIT 4. !' - / CIT (A) 5. #$% , & , / DR, ITAT, AHMEDABAD 6. %'( )* / GUARD FILE. BY ORDER/ , + / , & ,