M/s. The Baganwala Adarsh Coop L/C Society Ltd., Hisar V. ITO, Hisar

ITA 6731/DEL/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6402 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 23-03-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 24-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESH CHAND DUBEY
• Assessee Lawyers: M L KATARIA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH D NEW DELHI BEFORE : SHRI H.S. SIDHU , JUDICIAL MEMBER & SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 6731/DEL./2013 ASSTT. YEAR : 2009 - 10 THE BAGANWALA ADARSH COOP L/C SOCIETY LTD. VS. INCOME - TAX OFFICER, 832, AMARDEEP COLONY, NEAR BOSTAL JAIL, WARD - 1, HISAR. HISAR. (PAN AABTT 2750 R) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. M.L. KATARIA, ADVOCATE RESPONDENT BY : SH. UMESH CHAND DUBEY, SR. DR DATE OF HEARING : 23.03.2017 DATE OF PRONOUNCEMENT : 27 .03.2017 ORDER PER L.P. SAHU, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER PASSED EXPARTE BY LD. CIT(A), ROHTAK DATED 12.11.2013 FOR THE ASSESSMENT YEAR 2009 - 10 ON THE FOLLOWING GROUNDS : 1. THE ORDER PASSED BY THE LD. CIT(A) UNDER SECTION 250 EX - PARTE AS WELL AS THE ORDER PASSED BY THE AO UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 MAY KINDLY BE QUASHED. 2. THE ASSESSEE IS NOT WELL EDUCATED PERSON AND PERMANENT RESIDING AT VILLAGE BAGANWALA DISTT. BHIWANI, HE ALSO FAILED TO INQUIRE ABOUT THE FATE OF APPEAL FILED BEFORE THE LD. CIT(A) AS HE WAS FULLY DEPENDENT UPON HIS COUNSEL. HIS COUNSEL HAS KEPT HIM IN DARK ABOUT THE DATE OF HEARING OF APPEAL BEFORE THE LD. CIT(A). ITA NO. 6731/DEL./2013 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME ON 03.03.2010 DECLARING NIL INCOME. THE CASE WAS SELECTED FOR SCRUTINY AND STATUTORY NOTICES WERE SERVED UPON THE ASSESSEE. THE CASE WAS FIXED FOR HEARING ON DIFFERENT DATES. THE PRESIDENT OF THE SOCIETY SHRI SANDEEP APPEARED ON 18.11.2011 BUT WITHOUT ANY DOCUMENTS AND REQUESTED FOR ADJOURNMENT FOR 24.11.2011. AGAIN ON 24.11.2011, HE REQUE STED FOR ADJOURNMENT ON 30.11.2011 AND AGAIN HE REQUESTED FOR ADJOURNMENT FOR 07.12.2011. ON 07.12.2011, HE ATTENDED THE PROCEEDINGS, BUT HE SUBMITTED ONLY WRITTEN SUBMISSIONS WITHOUT ANY SUPPORTING DOCUMENTS AS REQUIRED BY THE AO. AFTER THAT THE LD. ASSES SING OFFICER CONSIDERING THE FACTS AND CIRCUMSTANCES MADE ASSESSMENT U/S. 144 OF THE IT ACT, 1961 AND APPLYING 8% OF NET PROFIT ON GROSS PAYMENT OF RS.1,61,17,886/ - AND AFTER ALLOWING DEDUCTION U/S. 80 - P(2)(C) OF RS.50,000/ - CALCULATED THE TAXABLE INCOME O F RS.12,39,430/ - . AGGRIEVED BY THIS ASSESSMENT MADE U/S. 144, THE ASSESSEE APPEALED BEFORE THE FIRST APPELLATE AUTHORITY, WHO ISSUED NOTICES MANY A TIMES BUT THE ASSESSEE DID NOT APPEAR BEFORE HIM ALSO . THE LD. CIT(A) AFTER RELYING UPON SOME CASE LAWS DISM ISSED THE APPEAL OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF FIRST APPELLATE AUTHORITY, THE ASSESSEE IS BEFORE THE TRIBUNAL IN APPEAL. ITA NO. 6731/DEL./2013 3 3. DURING THE COURSE OF HEARING THE LD. AR OF THE ASSESSEE REQUESTED BEFORE THE BENCH TO GIVE HIM ONE MORE OPPORTUNITY OF BEING HEARD BEFORE THE AO AND TO PUT UP ITS CASE. HE UNDERTOOK THAT THE ASSESSEE WILL COMPLY WITH ALL THE REQUIREMENTS OF THE ASSESSING OFFICER AND SHALL FULLY COOPERATE WITH THE ASSESSING OFFICER IN COMPLETION OF ASSESSMENT PROCEEDINGS. HE, THEREFORE, PR AYED FOR GIV ING THE ASSESSEE ONE MORE OPPORTUNITY. THE LD. DR DID NOT OBJECT TO THIS REQUEST OF THE LD. AR. 4. WE HAVE HEARD BOTH THE PARTIES AND HAVE PERUSED THE MATERIAL ON RECORD. KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, THAT NO LITIGANT SHOU LD POSSIBLY BE LEFT UNHEARD BEFORE FINALLY DECIDING THE LITIGATION AND ALSO THE FACT THAT THE LD. DR HAS NO OBJECTION TO THE REQUEST MADE ON BEHALF OF THE ASSESSEE, WE THINK IT APPROPRIATE TO ACCEPT THE REQUEST OF THE ASSESSEE. WE, ACCORDINGLY, REMIT THE M ATTER BACK TO THE FILE OF ASSESSING OFFICER FOR PASSING THE ASSESSMENT DE NOVO AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THE ASSESSEE IS DIRECT ED TO FULLY COOPERATE WITH THE AO IN FRESH ASSESSMENT PROCEEDINGS, AS UNDERTOOK BEFORE THE B ENCH. AS REQUESTED BY THE ASSESSEE BEFORE THE BENCH, THE ASSESSING OFFICER MAY CONSIDER TO FIX THE DATE OF HEARING IN FRESH ASSESSMENT PROCEEDINGS ON ITA NO. 6731/DEL./2013 4 03.05.2017. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT , THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27.03.2017 . SD/ - SD/ - ( H.S. SIDHU ) (L.P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : *AKS/ - COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT. REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI