Sh. Gurpreet Singh, Mandi Gobindgarh V. ITO, Mandi Gobindgarh

ITA 719/CHANDI/2011

• Counselvise Citation: 71921514 RSA 2011
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 05-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Assessee Lawyers: SUDHIR SEHGAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE MS SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 719/CHD/2011 ASSESSMENT YEAR: 2007-08 SHRI GURPREET SINGH, VS. THE ITO, WARD-2, PROP. M/S ISHDEEP ENTERPRISES, MANDI GOBINDGARH MANDI GOBINDGARH PAN NO. AMGPS4742M (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI N.K.SAINI DATE OF HEARING : 23.8.2011 DATE OF PRONOUNCEMENT : 26.08.2011 ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE IS AGAINST THE ORDER OF CIT(A), P ATIALA DATED 28.2.2011 RELATING TO ASSESSMENT YEAR 2007-08 AGAIN ST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. CIT(A) HAS ERRED IN DISMISSING THE APPEAL BY PASSING EX.PARTE ORDER. 2. THAT THE LD. CIT(A) HAS ERRED TO CONSIDER THAT APPELLANT WAS PRESENTED BY SUFFICIENT CAUSE HE COULD NOT ATTEND TO THE HEARING. 3. THAT NOTWITHSTANDING THE GROUND OF APPEAL NO.2, THE LD. CIT(A) HAS NOT PASSED THE ORDER ON MERITS BY CONSIDERING THE GROUNDS OF APPEAL 2 AND FACTS OF THE CASE AS MENTIONED IN THE ASSESSMENT ORDER. 3. THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE VID E ABOVE GROUNDS ARE AGAINST THE EX-PARTE ORDER PASSED BY THE LD. CI T(A) WITHOUT TAKING INTO CONSIDERATION THAT ASSESSEE WAS PREVENTED BY A SUFFICIENT CAUSE AND COULD NOT ATTEND THE HEARING. FURTHER, THE CIT(A) HAS NOT PASSED THE ORDER ON THE MERITS BY CONSIDERING THE GROUNDS OF APPEAL AND FACTS OF THE CASE AS MENTIONED IN THE ASSESSMENT ORDER. 4. SHRI SUDHIR SEHGAL APPEARED FOR THE ASSESSEE AND SHRI N.K. SAINI APPEARED FOR THE REVENUE AND PUT FORWARD THEIR CONT ENTIONS. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST THE P ASSING OF AN EX.PARTE ORDER BY THE LD. CIT(A) DUE TO THE NON ATTENDANCE O F THE ASSESSEE ON THE DATE OF HEARING BEFORE THE CIT(A). THE ASSESSEE HAS RAISED THE ISSUE THAT THE CIT(A) HAS WRONGLY DISMISSED THE APPEAL FOR WAN T OF PROSECUTION AND ALSO ERRED BY NOT DECIDING THE ISSUES ON MERIT WITH OUT APPRECIATING THE FACT THAT ALL ADDITIONS HAVE BEEN MADE BY ASSESSING OFFICER WITHOUT ANY EVIDENCE OR MATERIAL ON RECORD. THE GRIEVANCE OF T HE ASSESSEE IS THAT NO PROPER OPPORTUNITY WAS AFFORDED. THE ORDER PASSED BY CIT(A) IS A NON- SPEAKING ORDER. 6. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORDER OF CIT(A). THE PRINCIPLE OF NATURAL JUSTICE REQUIRES A REASONA BLE OPPORTUNITY OF HEARING TO BE ALLOWED TO THE ASSESSEE BEFORE PASSIN G AN ORDER. WE FIND THAT CIT(A) HAS NOT PASSED A SPEAKING ORDER IN THE CASE. UNDER THE 3 PROVISIONS OF SECTION 250(6) OF THE INCOME TAX ACT, THE CIT(A) HAS TO PASS A SPEAKING ORDER IN RESPECT OF THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE AFTER HEARING THE ASSESSEE. WE FIND THAT CIT(A) IN THE PRESENT CASE HAS FAILED TO FOLLOW THE PROCEDURE IN APPEAL P ROCEEDINGS AS LAID DOWN IN SECTION 250 OF THE INCOME TAX ACT. IN THE INTER EST OF JUSTICE, WE DEEM IT FIT TO RESTORE THE ISSUE BACK TO THE FILE OF CIT (A) TO DECIDE THE ISSUE RAISED BY THE ASSESSEE VIDE SPEAKING ORDER. A REA SONABLE OPPORTUNITY OF HEARING SHALL BE AFFORDED TO THE ASSESSEE. THE GRO UNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS ALLOWED FOR STATISTICAL PU RPOSES. WE ARE NOT ADDRESSING THE ISSUE ON MERITS IN VIEW OF OUR SETTI NG ASIDE THE ISSUE TO THE FILE OF CIT(A). 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF AUGUST, 2011. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : AUGUST, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4