M/s. Mahesh Wood Products Pvt. Ltd., Delhi V. ACIT, New Delhi

ITA 6503/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3434 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 20-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVRAJ SINGH
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E , NEW DELHI BEFORE SH. N. K. SAINI, AM AND MS. SUCHITRA KAMBLE , JM ITA NO. 6503 /DEL/201 6 : ASSTT. YEAR : 2012 - 13 M/S MAHESH WOOD PRODUCTS PVT. LTD., 2042, KATRA TOBACCO KHARI BAOLI, DELHI - 110006 VS ASSISTANT C OMMISSIONER OF I NCOME T AX , CENTRAL CIRCLE - 13 , NEW DELHI (APPELLANT) (RESPONDENT) PAN NO. AA A CM0118Q ASSESSEE BY : NONE REVENUE BY : SH. SHIV RAJ SINGH , SR. DR DATE OF HEARING : 21.11 .2017 D ATE OF PRONOUNCEMENT : 22 . 11 .201 7 ORDER PER N. K. SAINI, AM : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 02.11.2016 OF LD. CIT(A) - 28 , NEW DELHI. 2. DURING THE COURSE OF HEARING NOBODY WAS PRESENT ON BEHALF OF THE ASS ESSEE NEITHER ANY ADJOURNMENT WAS SOUGHT. WE, THEREFORE, PROCEEDED EX - PARTE AND THE APPEAL IS DECIDED ON MERIT AFTER HEARING THE LD. DR. 3. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THE LD. CIT(A) HAS ERRED BOTH IN LAW AND ON FACTS OF THE CAS E, IN DISMISSING THE APPEAL OF APPELLANT IN LIMINE WITHOUT PROVIDING SUFFICIENT OPPORTUNITY TO PRESENT THE CASE. 2. THE LD. CIT(A) HAS ERRED BOTH UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND ALSO IN LAW IN CONFORMING THE AD ITA NO . 6503 /DEL /201 6 MAHESH WOOD PRODUCTS PVT. LTD. 2 HOC DISALLOWANCE OF RS.3,03,392/ - @ 10% OF THE EXPENSES DEBITED TO THE P & L ACCOUNT FOR NON PRODUCTION BEFORE THE AO OF BILLS/VOUCHERS IN SUPPORT OF THESE EXPENSES. 3. THE APPELLANT CRAVES LEAVE TO ADD, DELETE, MODIFY/AMEND THE ABOVE GROUNDS OF APPEAL WITH THE PERMISSION O F THE HON BLE APPELLATE AUTHORITY. 4. VIDE GROUND NO. 1, THE GRIEVANCE OF THE ASSESSEE RELATES TO THE DISMISSAL OF APPEAL IN LIMINE WITHOUT PROVIDING SUFFICIENT OPPORTUNITY TO PRESENT THE CASE. 5. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 29.03.2013 DECLARING AN INCOME OF RS.1,06,89,610/ - . LATER ON, THE CASE WAS SELECTED FOR SCRUTINY. THE AO MADE THE ADDITION OF RS.3, 03,392/ - BEING 10% OF THE EXPENDITURE BY OBSERVING THAT THE ASSESSEE HAD DEBITED VARIOUS EXPENSES AM OUNTING TO RS.30,33,923/ - BUT NO BILLS/VOUCHERS HAD BEEN FURNISHED IN SUPPORT OF THE SAME. 6. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO PASSED THE EX - PARTE ORDER AND CONFIRMED THE ADDITION MADE BY THE AO. 7. NOW THE ASSESSEE IS IN APPEAL. THE LD. DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. ITA NO . 6503 /DEL /201 6 MAHESH WOOD PRODUCTS PVT. LTD. 3 8. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LD. CIT(A) DECI DED THE APPEAL EX - PARTE. HE MENTIONED THAT THE FINAL OPPORTUNITY WAS GIVEN VIDE NOTICE DATED 14.10.2016 AND THE CASE WAS FIXED FOR 14.10.2016 ITSELF , WHICH SHOWS THAT A DUE AND REASONABLE OPPORTUNITY OF BEING HEARD W AS NOT PROVIDED TO THE ASSESSEE, P ARTICU LARLY WHEN, IT IS NOWHERE MENTIONED IN THE IMPUGNED ORDER THAT THE NOTICE OF HEARING WAS SERVED UPON THE ASSESSEE. WE, THEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND THE MATTER IS REMANDED BACK TO THE FILE OF THE LD. CIT(A) TO BE ADJUDI CATED AFRESH , IN ACCORDANCE WITH LAW , AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED IN THE COURT ON 22 /11 /2017 ) SD/ - SD/ - ( SUCHITRA KAMBLE ) (N. K. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DAT ED: 22 /11 /2017 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTR AR