SUPREME REALTY P.LTD, MUMBAI V. ASST CIT 10(1), MUMBAI

ITA 6372/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71936 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 17-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK SURI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 14A

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL E BENC H, MUMBAI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.6372/MUM/2012 ASSESSMENT YEAR:- 2009-10 SUPREME REALTY. PVT. LTD. DHEERAJ ARMA, 4 TH FLOOR, A.K. MARG, STATION ROAD, BANDRA (E) MUMBAI 400 051. VS. ASST. COMMISSIONER OF INCOME TAX 10(1), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI PAN:- AALCS0761J APPELLANT RESPONDENT ASSESSEE BY SHRI VIJAY MEHTA DEPARTMENT BY SHRI ASHOK SURI ORDER PER I.P. BANSAL, JM THIS APPEAL IS FILED BY THE ASSESSEE. IT IS DIRECTE D AGAINST THE ORDER PASSED BY CIT(A) DATED 4 TH JUNE 2012 FOR ASSESSMENT YEAR 2009-10. GROUNDS OF APPEAL READS AS UNDER;- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE HONBLE CIT(A) ERRED IN LAW IN PASSING THE APPELLAT E ORDER WITHOUT GIVING THE LQUOKBZ DH RKJH[K@ DATE OF HEARING 18-12-2013 ?KKS'K.KK DH RKJH[K@ DATE OF PRONOUNCEMENT 19-12-2013 - 2 - APPELLANT AN APPROPRIATE OPPORTUNITY TO BE HEARD PU RSUANT TO THE REQUEST FOR ADJOURNMENT. THE APPELLANT PRAYS THAT THE SAID APP ELLATE ORDER MAY BE QUASHED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE HONBLE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF A SUM OF RS. 2,74,56,810/- U/S 14A OUT OF EXPENSES CLAIMED IN THE PROFIT & LOS S A/C CONSIDERING THEM AS EXPENSES INCURRED FOR EARNING INCOME EXEMPT U/S 10( 2A). THE APPELLANT PRAYS THAT THE SAME MAY KINDLY BE DELETED AS THE SAME IS BAD I N LAW. THE APPELLANT CRAVES LEAVE TO ADD, OMIT, OR LATER G ROUNDS OF APPEAL OR DURING THE HEARING OF THE APPEAL. 2. IT MAY BE MENTIONED HERE THAT THE ORDER PASSED B Y LD. CIT(A) IS AN EX PARTE ORDER. LD. CIT(A) HAS MENTIONED IN PARA 2.1 THAT TH E APPEAL WAS FIXED FOR HEARING ON VARIOUS DATES AND THE ASSESSEE SOUGH T ADJOURNMENTS WHICH WAS FINALLY GIVEN TO THE ASSESSEE FOR 22 ND MAY 2012 AND THE ASSESSEE WAS DIRECTED TO FILE THE WRITTEN SUBMISSIONS. HOWEVER, ON 22 ND MAY 2012, THE ASSESSEE AGAIN FILED APPLICATION FOR ADJOURNMENT WHICH WAS R EJECTED BY LD. CIT(A) AND THE APPEAL HAS BEEN ADJUDICATED BY LD. CIT(A) ON ME RITS AGAINST THE ASSESSEE. 3. AS IT CAN BE SEEN FROM THE GROUNDS OF APPEAL THA T THE MAIN GRIEVANCE OF THE ASSESSEE IS FOR DENIAL OF RULE OF NATURAL JUSTI CE. THIS APPEAL WAS FIXED FOR HEARING ON 18 TH DECEMBER 2013. KEEPING IN VIEW THE OBSERVATION OF LD. CIT(A) IN HIS ORDER, THE ASSESSEE WAS REQUIRED TO S UBMIT THE NOTE AS TO WHY THE REQUEST OF THE ASSESSEE SHOULD BE ADMITTED FOR REST ORATION OF THE PRESENT APPEAL TO THE FILE OF CIT(A) AND THE MATTER WAS ADJOURNED TO 19 TH DECEMBER 2013. IN - 3 - THIS REGARD VIDE LETTER DATED 19 TH DECEMBER 2013 IT HAS BEEN SUBMITTED AS UNDER:- UNDER THE INSTRUCTIONS OF THE ABOVE-MENTIONED ASSES SEE, WE SUBMIT AS UNDER:- 1. WE DRAW YOUR HONORS KIND ATTENTION TO THE HEARI NG HELD IN THE CAPTIONED APPEAL ON 18.12.2013. DURING THE COURSE O F THE HEARING, THE APPELLANT PRAYED THAT THE MATTER MAY BE SET ASIDE T O THE FILE OF THE CIT(A) IN VIEW OF THE EX-PARTE NATURE OF THE CIT(A)S ORDER DATED 04.6.2012. WE HEREBY SUBMIT THE BRIEF FACTS IN RESPECT OF THE SAME. 2. FIRST AND FOREMOST WE SUBMIT THAT THE APPELLANT HAD FILED AND APPEAL BEFORE THE CIT()A-21 ON 03.01.2012. SUBSEQUENTLY WI THIN A PERIOD 20 DAYS OF FILING THE APPEAL I.E. ON 23.01.2012, NOTICE WAS IS SUED TO THE APPELLANT THEREBY FIXING THE FIRST HEARING ON 20.02.2012. 3. IT IS ADMITTED THAT THE APPELLANT WAS UNPREPARED FOR THE PROMPT HEARING IN THE SAID MATTER. IN A ROUTINE MATTER, NO TICE FOR HEARING OF A CIT(A) MATTER GENERALLY COMES UP FOR HEARING WITHIN THE TI ME FRAME OF 9 MONTHS 12 AFTER THE FILING OF THE APPEAL. ACCORDINGLY, THE AP PELLANT SOUGHT ADJOURNMENT FOR THE HEARING AND THE CASE WAS ADJOURNED TO 04.04 .2012. SUBSEQUENTLY, THREE MORE ADJOURNMENTS WERE SOUGHT BY THE ASSESSEE DURIN G THE PERIOD OF APRIL MAY 2012. 4. FURTHER, WE WOULD LIKE TO STATE THAT THE PERIOD OF APRIL-MAY IS GENERALLY A HOLIDAY PERIOD. SOME OF THE SENIOR STAF F MEMBERS OF THE AUTHORIZED REPRESENTATIVES AS WELL AS STAFF OF THE CLIENT SIDE WORKING ON THE SAID APPEAL WERE ON LEAVE ON AND OFF DURING THE SAID PERIOD AND HENCE THE MATTER COULD NOT - 4 - BE PREPARED AND ACCORDINGLY ADJOURNMENTS WERE SOUGH T DURING THE SAID PERIOD. 5. HENCE, IN THIS REGARD WE MOST RESPECTFULLY REQU EST YOUR HONORS TO KINDLY SET ASIDE THE SAID MATTER TO THE FILE OF THE HONBLE CIT(A) AND GRANT THE APPELLANT AN OPPORTUNITY OF BEING HEARD, IN THIS RE GARD IT IS RESPECTFULLY SUBMITTED BEFORE YOUR HONOUR THAT RIGHT TO BE HEARD IS AN IMPORTANT RIGHT UNDER PRINCIPLES OF NATURAL JUSTICE. TO FURTHER THE INTEREST OF JUSTICE, IT IS PRAYED BEFORE YOUR HONOURS THAT AN OPPORTUNITY MAY BE PROVIDED TO THE APPELLANT BY SETTING ASIDE MATTER TO THE FILE OF HO NBLE CIT(A) 6. LASTLY WE ASSURE YOUR HONOURS THAT IF THE MATTE R IS SET ASIDE TO THE FILE OF THE HONBLE CIT(A), THERE WILL BE COMPLETE CO-OPERATION FROM THE APPELLANT SIDE. THE APPEAL WOULD BE DULY ATTENDED A ND THE WRITTEN SUBMISSION AND PAPERBOOK FOR THE SAME WOULD BE PROMPTLY FILED. 7. THUS BASED ON THE ABOVE FACTS AND SUBMISSION, WE REQUEST YOUR HONOURS TO KINDLY TAKE THE ABOVE ON RECORD AND OBL IGE. 4 . IN THIS VIEW OF THE SITUATION, AFTER HEARING BOTH T HE PARTIES, WE ARE OF THE OPINION THAT IT WILL MEET THE INTEREST OF JUSTICE I F THE MATTER IS SET ASIDE TO THE FILE OF CIT(A). THE ASSESSEE HAS ALREADY PROMISED T O EXTEND COMPLETE COOPERATION DURING THE COURSE OF HEARING BEFORE CIT (A). TO ENSURE COMPLIANCE BY THE ASSESSEE, THE ASSESSEE IS DIRECTE D TO APPEAR BEFORE CIT(A) ON 3 RD MARCH 2014. THE DATE WAS DULY NOTED BY THE LD. AR OF THE ASSESSEE. THE LD. CIT(A) WILL RE-ADJUDICATE THE APPEAL FILED BY THE ASSESSEE ON MERITS AFTER GIVING THE ASSESSEE REASONABLE OPPORTUNITY OF HEARING, WE DIRECT ACCORDINGLY. AS WE ARE RESTORING THIS APPEAL TO THE FILE OF LD. CIT(A) WE DO - 5 - NOT EXPRESS ANY OPINION ON THE MERITS OF CASE WHICH IS DIRECTED TO BE RE- ADJUDICATED AS PER LAW. 6. IN THE RESULT, FOR STATISTICAL PURPOSES THE APPE AL FILED BY THE ASSESSEE IS TREATED AS ALLOWED IN THE MANNER AFORESAID. ORDER PRONOUNCED IN THE OPEN COURT ON 19 -12-2 013. SD/- SD/- (N.K. BILLAIYA) (I.P. BANSAL) ACCOUNTANT MEMBER JUDICIAL MEMBER SKS SR. P.S, MUMBAI DATED 19-12-2013 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, E BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI