M/s. STANDARD ASSURANCE BROKING PVT. LTD., Bhopal V. THE ACIT 3(1), Bhopal

ITA 671/IND/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99160 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 30-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Keywords: Principle of natural justice
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 671/IND/2014 A.Y. : 2007-08 M/S. STANDARD ASSURANCE BROKING PRIVATE LIMITED, ACIT, 3(1) BHOPAL VS. BHOPAL APPELLANT RESPONDENT PAN NO. AAFCS3503C A PPELLANT BY : SHRI SUMIT NEMA AND SHRI AMIT JAIN, ADV. RESPONDENT BY : SHRI R.A.VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A)-II, BHOPAL, DATED 01.08.2014 FOR THE ASSE SSMENT YEAR 2007-08. 2. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS :- DATE OF HEARING : 1 5 .12. 2015 . DATE OF PRONOUNCEMENT : 15 . 1 2 .2015 M/S. STANDARD ASSURANCE BROKING PRIVATE LIMITED, BHOPAL VS. ACIT, 3(1),, BHOPAL, I.T.A.NO. 671/IND/2014 A.Y.2007-08 2 2 1. THAT THE LOWER AUTHORITIES ERRED AND WERE NOT JUSTIFIED IN NOT ALLOWING PROPER OPPORTUNITY OF BEI NG HEARD AND IN PASSING ORDER U/S 144 OF THE ACT. 2. THAT THE LD. AO ERRED AND WAS NOT JUSTIFIED IN MAKING AN ADDITION OF RS. 12,47,139/- AND THE LD. CIT(A)-II, BHOPAL, IN CONFIRMING THE SAME. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF INSURANCE. IT HAS FILED RETURN ON 19.10.2007 DECLARING NET PROFIT OF RS. 78 ,750/-, FROM TURNOVER OF RS. 12,54,385/-. THE AO HAS COMPLE TED THE ASSESSMENT EX-PARTE IN ABSENCE OF ANY DETAILS FROM THE ASSESSEE IN SUPPORT OF VARIOUS EXPENSES CLAIMED BY IT AS PER ITS PROFIT AND LOSS ACCOUNT. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. C IT(A) HAS CONFIRMED THE ADDITION. 5. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT NO PROPER OPPORTUNITY WAS GIVEN TO THE ASSESSEE AND TH E MATTER MAY BE RESTORED BACK TO THE FILE OF A.O. 6. THE LD. D.R. DID NOT OBJECT TO IT. M/S. STANDARD ASSURANCE BROKING PRIVATE LIMITED, BHOPAL VS. ACIT, 3(1),, BHOPAL, I.T.A.NO. 671/IND/2014 A.Y.2007-08 3 3 7. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PART IES. THE PRINCIPLE OF AUDI ALTERAM PARTEM IS THE BASIC CONCEPT OF NATURAL JUSTICE. THE EXPRESSION AUDI ALTERAM PARTEM IMPLIES THAT A PERSON MUST BE GIVEN OPPORTUNITY TO DEFEND H IMSELF. THIS PRINCIPLE IS SINE QUA NON OF EVERY CIVILIZED SOCIETY. THE RIGHT TO NOTICE, RIGHT TO PRESENT CASE AND EVIDENCE , RIGHT TO REBUT ADVERSE EVIDENCE, RIGHT TO CROSS EXAMINATION, RIGHT TO LEGAL REPRESENTATION , DISCLOSURE OF EVIDENCE TO PA RTY, REPORT OF ENQUIRY TO BE SHOWN TO THE OTHER PARTY AND REASONED DECISIONS OR SPEAKING ORDERS. I FIND THAT THE RIGHT OF HEARIN G IS DECIDED BY THE HON'BLE SUPREME COURT IN THE CASE OF MANEKA GANDHI VS. UNION OF INDIA, WHEREIN HON'BLE SUPREME COURT H AS HELD THAT RULE OF FAIR HEARING IS NECESSARY BEFORE PASSI NG ANY ORDER. I FIND THAT IT IS PRE-DECISION HEARING STANDARD OF NORM OF RULE OF AUDI ALTERM PARTEM. I FIND THAT IN THIS INSTANT CASE, THE ASSESSEE WAS NOT GIVEN PROPER HEARING. THEREFORE, I AM OF THE VIEW THAT THE ASSESSEE MUST BE GIVEN ONE MORE OPPOR TUNITY OF HEARING AND TO REPRESENT HIS CASE. THEREFORE, I ALL OW THIS APPEAL. THE ASSESSEE IS DIRECTED TO REMAIN PRESENT BEFORE THE LD. A.O. WITHIN 2 MONTHS AFTER THE RECEIPT OF THIS ORDER. THE LD. M/S. STANDARD ASSURANCE BROKING PRIVATE LIMITED, BHOPAL VS. ACIT, 3(1),, BHOPAL, I.T.A.NO. 671/IND/2014 A.Y.2007-08 4 4 A.O. SHOULD DECIDE THE APPEAL AFTER GIVING DUE OPPO RTUNITY OF HEARING TO THE ASSESSEE AS PER LAW. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. 9. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OP EN COURT ON 15 TH DECEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 15 TH DECEMBER, 2015. CPU*