Sh. Ranbir Tangri, Ludhiana V. ITO, W-3(5), Ludhiana

ITA 676/CHANDI/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6518 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 11-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Opportunity of being heard; Set aside; Audi alteram partem
• Section: 143(1); 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES, SMC, CHANDIGARH BEFORE SHRI N.K. SAINI, VICE PRESIDENT ITA NO.676/CHD/2018 ASSESSMENT YEAR: 2014-15 SH. RANBIR TANGRI VS. THE ITO PROP. V.K. THAPAR DYEING WARD-3(5) HOUSE, INDDL. ZONE, DYEING COMPLEX LUDHIANA BAHADUR KE ROAD, LUDHIANA PAN NO. ACNPT8727A (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SMT. CHANDRAKANTA, SR. DR DATE OF HEARING : 26/02/2019 DATE OF PRONOUNCEMENT : 26/02/2019 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT. 09/04/2018 OF LD. CIT(A)-I, LUDHIANA. 2. DURING THE COURSE OF HEARING THE ASSESSEE MOVED AN APPLICATION FOR ADJOURNMENT, EARLIER ALSO THE ASSESSEE SOUGHT ADJOU RNMENT WHEN THE CASE WAS FIXED FOR HEARING THEREFORE HE PROCEEDED EX-PARTE T O DISPOSE OFF THIS APPEAL. 3. FOLLOWING GROUNDS HAS BEEN RAISED IN THIS APPEAL : 1. THAT ON THE FACTS, CIRCUMSTANCES OF THE CASE AND IN LAW, THE WORTHY CIT(A) THROUGH HIS ORDER DATED 09.04.2018 HAS ERRED IN PAS SING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF SECTION 250(6) O F THE INCOME TAX ACT, 1961. 2. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE, T HE WORTHY CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 14, 90,955/- MADE BY THE LD. AO TO THE TOTAL INCOME BY HOLDING THAT THE GROSS PROFIT H AS DECREASED BY 1% AS COMPARED TO IMMEDIATELY PRECEDING YEAR. 3. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE, T HE ORDERS OF BOTH THE LOWER AUTHORITIES DESERVES TO BE QUASHED HAVING BEE N PASSED WITHOUT AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELL ANT. 4. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE, T HE WORTHY CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE IMPUGNED ASSESSMENT FRAMED U/S 144 EVEN WHEN THE CIRCUMSTANCES DID NOT JUSTIFY THE INVOCATION OF PROVISIONS OF S. 144 AND THEREBY THE BEST JUDGEMENT ASSESSMENT FRAMED DESERVES TO BE SET-ASIDE. 5. THAT THE APPELLANT CRAVES LEAVE FOR ANY ADDITION, D ELETION OR AMENDMENT IN THE GROUNDS OF APPEAL ON OR BEFORE THE DISPOSAL OF THE SAME. 2 VIDE GROUND NO. 3 THE MAIN GRIEVANCE OF THE ASSESSE E RELATES TO EX-PARTE ORDER PASSED BY THE AUTHORITIES BELOW. 4. FACT OF THE CASE IN BRIEF ARE THAT THE ASSESSEE E-FILED HIS RETURN OF INCOME ON 28/11/2014 DECLARING AN INCOME OF RS. 2,78,280/- WHICH WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED TO AS ACT). LATER ON THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSING OFFICER ISSUED VARIOUS NOTICES. SINCE THERE WAS NO COMPLIANCE BY T HE ASSESSEE. THE ASSESSING OFFICER FRAMED THE ASSESSMENT AT AN INCOME OF RS. 2 0,69,240/- BY PASSING THE EX- PARTE ORDER UNDER SECTION 143 OF THE ACT. 5. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO SUSTAINED THE ADDITION OF RS. 14,90,955/- AND DELET ED THE ANOTHER ADDITION OF RS.3,00,000/- BY PASSING THE EX-PARTE ORDER. 6. NOW THE ASSESSEE IS IN APPEAL. 7. LD. SR. DR SUPPORTED THE IMPUGNED ORDER PASSED B Y THE LD. CIT(A). 8. I HAVE HEARD THE LD. SR. DR AND PERUSED THE MATE RIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT THE LD. CIT(A) PASSED THE EX-PARTE ORDER AND NOWHERE IT IS MENTIONED THAT ANY NOTICE OF HEARING WAS ISSUED AND SERVED UPON THE ASSESSEE. IT IS WELL SET TLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM . I THEREFORE BY CONSIDERING THE TOTALITY OF THE FACT S, DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 26/02/2019.) SD/- (N.K. SAINI) VICE PRESIDENT PLACE: CHANDIGARH DATED : 26/02/2019 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR