M/s. Nestor Pharmaceuticals Ltd., New Delhi V. ACIT, New Delhi

ITA 6527/DEL/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6965 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 05-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SRINIVASA RAO
• Assessee Lawyers: SAURABH GOEL
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-2 NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NO. 6527/DEL/2014 ASSTT. YR: 2009-10 NESTOR PHARMACEUTICALS LTD., VS. ACIT CIRCLE 13(1) , G-1, GROUND FLOOR, ASHOKA ESTATE, NEW DELHI. 24, BARAKHAMBA ROAD, NEW DELHI. PAN: AAACN 1547 Q ( APPELLANT ) (RESPONDENT) APPELLANT BY : SH. SAURABH GOEL CA RESPONDENT BY : SHRI A. SRINIVASA RAO SR. DR DATE OF HEARING : 05/07/2016. DATE OF ORDER : 08/07/2016. O R D E R PER S.V. MEHROTRA, A.M: THIS IS ASSESSEES APPEAL AGAINST THE ORDER DATED 29.08.2014, PASSED BY THE LD. CIT(A)-XVI, DELHI, RELATING TO A.Y. 200 9-10. 2. GROUND OF APPEAL, RAISED BY THE ASSESSEE IN ITS APPEAL, ARE AS UNDER: 2 1. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LAW, THE LD. CIT (A) ERRED IN PASSING EX- PARTE ORDER. 2. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LA W, THE LD. CIT (A) ERRED IN DISMISSING THE APPEAL WITHOUT DECI DING THE APPEAL ON MERIT AND WITHOUT ADJUDICATING THE VARIOU S GROUNDS OF APPEAL RAISED BY THE APPELLANT. 3. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LA W, THE ORDER PASSED BY LD. CIT(A) IS AGAINST THE PRINCIPLES OF N ATURAL JUSTICE AS THE ORDER HAS BEEN PASSED BY CIT(A) WITHOUT PROV IDING PROPER OPPORTUNITY TO THE APPELLANT. 4. ON THE FACTS AND CIRCUMSTANCES OF CASE AND IN LA W, THE DISALLOWANCE / ADDITION OF RS.1143652/- MADE BY A.O . ON ACCOUNT OF LIQUIDATED DAMAGES IS ERRONEOUS AND CIT( A) SHOULD HAVE DELETED THE SAME. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED ITS RETURN OF INCOME DECLARING LOSS OF RS. 40,81,507/-. THE ASSESSMENT W AS COMPLETED AT A TOTAL LOSS OF RS. 28,77,830/-, AFTER MAKING DISALLOWANCE U/S 14A AND LIQUIDATED DAMAGES. THE ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A) WHO DISMISSED THE ASSESSEES APPEAL FOR NON-PROSECUTION. 4. LD. COUNSEL POINTED OUT THAT TWO NOTICES NOTED I N LD. CIT(A)S ORDER WERE NOT SERVED ON ASSESSEE. HE, THEREFORE, REQUEST ED THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD. CIT(A) FOR DECIDI NG THE APPEAL ON MERITS. 5. HAVING HEARD BOTH THE PARTIES, IN ORDER TO IMPAR T SUBSTANTIAL JUSTICE TO THE ASSESSEE, I SET ASIDE THE ORDER OF LD. CIT(A) A ND RESTORE THE MATTER TO THE 3 FILE OF LD. CIT(A) FOR DECIDING THE APPEAL ON MERIT S, AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES.. ORDER PRONOUNCEMENT IN OPEN COURT ON 08 /07/2016. SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 08/07/2016. *MP* COPY OF ORDER TO: 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI.