The Bisra Stone Lime Co. Ltd., Kolkata V. ACIT, CIR-5, KOLKATA, Kolkata

ITA 674/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9407 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2004-2005
• Appeal Filed On: 16-04-2014
• Court: TRIBUNAL
• Assessee Lawyers: T P KAR F
• Keywords: Opportunity of being heard; Principle of natural justice; Bad and doubtful debts
• Section: 143(3)

Judgement Text

I.T.A. NO. 674/KOL./2014 ASSESSMENT YEAR: 2004-2005 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 674/KOL/ 2014 ASSESSMENT YEAR: 2004-2005 THE BISRA STONE LIME CO. LIMITED,.................. .............................APPELLANT AG-104, SOURAV ABASAN, 2 ND FLOOR, SALE LAKE, SECTOR-II, KOLKATA-700 091 [PAN: AABCT 2118 C] -VS.- ASSISTANT COMMISSIONER OF INCOME TAX,.............. ......................RESPONDENT CIRCLE-5, KOLKATA APPEARANCES BY: SHRI T.P. KAR, F.C.A., FOR THE ASSESSEE SHRI SALLONG YADEN, ADDITIONAL CIT (D.R), FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JANUARY 24, 2017 DATE OF PRONOUNCING THE ORDER : FEBRUARY 03, 2017 O R D E R PER SHRI P.M. JAGTAP, A.M. .: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-IV, KOLKATA DA TED 03.02.2014 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF MINING AND SALE OF LIMESTONE AND DO LOMITE. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED B Y IT ON 15.10.2004 DECLARING A LOSS OF RS.47,70,86,527/-. IN THE ASSES SMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 22.12.2006, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICER AT A LOSS OF RS.47,48,08,401/- AFTER MAKING THE FOLLOWING THREE ADDITIONS:- I.T.A. NO. 674/KOL./2014 ASSESSMENT YEAR: 2004-2005 PAGE 2 OF 3 (I) DISALLOWANCE OF PROVISION FOR DOUBTFUL DEBTS RS.4,84,643/ - (II) DISALLOWANCE OF PROVISION FOR NON-MOVING STORES RS.8,28,290/ - (III) DISALLOWANCE OF MISCELLANEOUS EXPENSES WRITTEN OFF RS.9,65,193/ - 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) CHALLENGING ALL THE THREE ADDITIONS MA DE BY THE ASSESSING OFFICER TO ITS TOTAL INCOME. DURING THE COURSE OF A PPELLATE PROCEEDINGS BEFORE THE LD. CIT(APPEALS), THERE WAS NO RESPONSE FROM THE ASSESSEES SIDE TO THE NOTICES ISSUED BY THE LD. CIT(APPEALS) FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME. THE LD. CIT(APPEALS) , THEREFORE, CONCLUDED THAT THE ASSESSEE WAS NOT INTERESTED TO PURSUE ITS APPEAL FILED BEFORE HIM AND PROCEEDED TO DISMISS THE SAME FOR NON-PROSECUTI ON VIDE HIS APPELLATE ORDER DATED 03.02.2014 PASSED EX-PARTE, WHICH IS IM PUGNED BY THE ASSESSEE IN THE PRESENT APPEAL FILED BEFORE THE TRI BUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE, THERE WAS A CHANGE IN THE ADDRESS OF THE ASSESSEE-COMPANY DURING THE RELEVANT PERIOD AND ALTHOUGH THE SAME WA S INFORMED TO THE DEPARTMENT, THE LD. CIT(APPEALS) CONTINUED TO SEND THE NOTICES OF HEARING TO THE OLD ADDRESS APPARENTLY BECAUSE THE CHANGE IN ADDRESS WAS NOT SPECIFICALLY COMMUNICATED TO HIS OFFICE. KEEPING IN VIEW THIS SUBMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE, WE ARE SA TISFIED THAT THE APPEAL OF THE ASSESSEE FILED BEFORE THE LD. CIT(APPEALS) H AS BEEN DISMISSED BY HIM VIDE HIS IMPUGNED ORDER PASSED EX-PARTE WITHOUT GIVING ANY EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THER E IS A CLEAR VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. WE, THEREFORE, SET ASIDE THE SAID ORDER OF THE LD. CIT(APPEALS) AND REMIT THE MATTER BACK TO H IM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT AFTER GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY TH E LD. COUNSEL FOR THE I.T.A. NO. 674/KOL./2014 ASSESSMENT YEAR: 2004-2005 PAGE 3 OF 3 ASSESSEE AT THE TIME OF HEARING BEFORE US, THE ASSE SSEE SHALL MAKE PROPER AND SUFFICIENT COMPLIANCE BEFORE THE LD. CIT(APPEAL S) IN ORDER TO ENABLE HIM TO DISPOSE OF THE APPEAL ON MERIT EXPEDITIOUSLY . 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 03, 2017. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT ME MBER KOLKATA, THE 3 RD DAY OF FEBRUARY, 2017 COPIES TO : (1) THE BISRA STONE LIME CO. LIMITED, AG-104, SOURAV ABASAN, 2 ND FLOOR, SALE LAKE, SECTOR-II, KOLKATA-700 091 (2) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-5, KOLKATA (3) COMMISSIONER OF INCOME TAX(APPEALS-IV, KOLKATA ; (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.