PROFOUND CONSULTING PVT. LTD., MUMBAI V. ACIT - 15 (2)(2)Q, MUMBAI

ITA 6932/MUM/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0325 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 04-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KUMAR PADMA
• Keywords: Opportunity of being heard; Set aside
• Section: 14A; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 6 932 / MUM . /201 8 ( ASSESSMENT YEAR : 20 13 14 ) PROFOUND CONSULTING PVT. LTD. 410, GALLERIA HIRANANDANI GARDENS POWAI, MUMBAI 400 076 PAN AAFCS3746M . APPELLANT V/S ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 15(2)(2), MUMBAI . RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI KUMAR PADMAPANI BO H RA DATE OF HEARING 1 9 . 12 .2019 DATE OF ORDER 30.12.2019 O R D E R PER SAKTIJIT DEY. J.M. A FORESAID APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 21 ST AUGUST 2018, PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 24, MUMBAI, PERTAINING TO THE ASSESSMENT YEAR 2013 14. 2. WHEN THE APPEAL WAS CALLED FOR HEARING, NO ONE WAS PRESENT ON BEHALF OF THE ASSESSEE TO REPRESENT THE CASE. EVEN, T HERE IS NO 2 PROFOUND CONSULTING PVT. LTD. APPLICATION BY THE ASSESSEE SEEKING ADJOURNMENT EITHER. KEEPING IN VIEW THE AFORESAID FACT S , WE PROCEED TO DISPOSE OFF THE APPEAL EX PARTE QUA THE ASSESSEE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 3. IN GROUND NO.1, THE ASSESSEE HA S CHALLENGED THE DECISION OF LEARNED COMMISSIONER (APPEALS) IN DISMISSING THE APPEAL IN LIMINE IN AN EX PARTE ORDER. 4. BRIEF FACTS ARE, FOR THE ASSESSMENT YEAR UNDER DISPUTE, THE ASSESSEE FILED ITS RETURN OF INCOME ON 30 TH SEPTEMBER 2013, DECLARING TOTAL LOSS OF ` 33,38,410. THE ASSESSMENT IN CASE OF THE ASSESSEE W AS COMPLETED UNDER SECTION 1 43(3 ) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) VIDE ORDER DATED 18 TH MARCH 2016, DETERMINING THE LOSS AT ` 26,09,700, AFTER MAKING DISALLOWANCE UNDER SECTION 14A OF THE ACT. AGAINST THE ASSESSMENT ORDER SO PASSED, THE ASSESSEE PREFERRED APPEAL BEF ORE THE FIRST APPELLATE AUTHORITY. HOWEVER, DUE TO NON APPEARANCE OF THE ASSESSEE ON THE DATE FIXED FOR HEARING, LEARNED COMMISSIONER (APPEALS) IN AN EX PARTE ORDER DISMISSED ASSESSEES APPEAL IN LIMINE WITHOUT DECIDING THE ISSUE ON MERIT. 5. WE HAVE HEARD T HE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED MATERIAL AVAILABLE ON RECORD. AS COULD BE SEEN FROM PARA 2.4 OF LEARNED COMMISSIONER (APPEALS)S ORDER, HE HAS ONLY REFERRED TO THE 3 PROFOUND CONSULTING PVT. LTD. NOTICE DATED 15 TH MARCH 2018, FIXING THE DATE OF HEARING ON 20 TH MARCH 20 18, ALLEGEDLY SERVED ONLINE ON THE ASSESSEE. DUE TO NON APPEARANCE OF THE ASSESSEE ON THE DATE FIXED, LEARNED COMMISSIONER (APPEALS) HAS DISPOSED OFF ASSESSEES APPEAL EX PARTE. WHILE DOING SO, HE HAS NOT DECIDED THE ISSUE ON MERIT AND HAS SIMPLY DISMISSED THE APPEAL IN LIMINE. IN OUR VIEW, THE AFORESAID APPROACH OF THE LEARNED COMMISSIONER (APPE ALS) IS NOT CORRECT. EVEN IF LEARNED COMMISSIONER (APPEALS) PROCEEDED TO DISPOSE OFF THE APPEAL EX PARTE, HE SHOULD HAVE DECIDED THE ISSUES ON MERIT. IN VIEW OF THE AFORESAID, WE ARE INCLINED TO SET ASIDE THE IMPUGNED ORDER PASSED BY LEARNED COMMISSIONER (APPEALS) AND RESTORE THE ISSUES TO HIS FILE FOR DECIDING AFRESH AND ON MERITS AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AT THE SAME TIM E, WE DIRECT THE ASSESSEE TO MAKE EFFECTIVE COMPLIANCE BEFORE LEARNED COMMISSIONER (APPEALS) BY RESPONDING TO THE NOTICE OF HEARING TO BE ISSUED BY HIM. WITH THE AFORESAID OBSERVATIONS, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S. 6. IN THE RESULT, APPEAL STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN C OURT ON 30.12.2019 SD/ - S. RIFAUR RAHMAN ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 30.12.2019 4 PROFOUND CONSULTING PVT. LTD. COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, MUMBAI CITY CONCERNED; (5) THE DR, ITAT, MUMBAI; (6) GUARD FILE . TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY ASSISTANT REGISTRAR ITAT, MUMBAI