M/s Profile India, Ambala City V. DCIT, Ambala

ITA 737/CHANDI/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1490 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 13-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Rejection of books of accounts; Principle of natural justice; TDS; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, SMC, CHANDIGARH , BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 737/CHD/2019 / ASSESSMENT YEAR : 2013-14 M/S PROFILE INDIA, B-2, SECTOR 58, C.B. NAGAR, NOIDA (U.P) ADMN OFF: 224, MODEL TOWN, AMBALA CITY VS. THE DCIT, CIRCLE, AMBALA ./PAN NO. AADFP8697B / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SH. MANJIT SINGH, CIT DR # $ % /DATE OF HEARING : 07.11.2019 &'() % / DATE OF PRONOUNCEMENT : 07.11.2019 / ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 29.03.2019 OF THE COMMISSIONER OF INCO ME TAX (APPEALS)- 4, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AS WELL AS ON FACTS IN DISMISSING THE APPEAL EX-PARTE WITHOUT AFFORDING A PROPER OPPORTUNITY AND DISCUSSING THE ADDITIONS ON MERITS WHICH IS AGAINST THE ITA NO. 737-CHD-2019- M/S PROFILE INDIA, AMABALA CITY 2 PRINCIPLES OF NATURAL JUSTICE AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. WITHOUT PREJUDICE TO THE ABOVE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW IN UPHOLDING THE REJECTION OF BOOKS OF ACCOUNTS WHICH IS ARBITRARY AND UNJUSTIFIED. 3. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HAS FURTHER ERRED IN UPHOLDING THE ADDITION OF RS.28,74,521/- MADE BY APPLYING THE GP RATE OF 13.81% AS AGAINST 10.51% DECLARED BY THE ASSESSEE WHICH IS ARBITRARY AND UNJUSTIFIED. 4. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HAS FURTHER ERRED IN UPHOLDING THE ADDITION OF RS. 1,20,000/- MADE BY ASSESSING OFFICER APPLYING THE PROVISIONS OF SECTION 40(A)/(IA) FOR NON DEDUCTION OF TDS ON RENT PAID WHICH IS ARBITRARY AND UNJUSTIFIED. 5. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(A) TO SU BMIT THAT THE SAME IS EX-PARTE ORDER PASSED BY THE LD. CIT(A). THE LD. CO UNSEL FOR THE ASSESSEE HAS ALSO SUBMITTED THAT THOUGH THE COUNSEL FOR THE ASSESSEE HAD SOUGHT AN ADJOURNMENT ON THE LAST DATE OF HEARING B UT THE CIT(A) REJECTED THE ADJOURNMENT REQUEST AND PASSED THE IMP UGNED ORDER EX- PARTE OF THE ASSESSEE. ITA NO. 737-CHD-2019- M/S PROFILE INDIA, AMABALA CITY 3 4. THE LD. DR, ON THE OTHER HAND, HAS DRAWN OUR ATT ENTION TO THE CHART REPRODUCED IN THE ORDER OF THE CIT(A) TO SUBM IT THAT THE LD. CIT(A) HAD GIVEN NUMBER OF OPPORTUNITIES TO THE A SSESSEE TO APPEAR AND PRESENT ITS CASE, BUT EVERY TIME THE COUNSEL F OR THE ASSESSEE SOUGHT ADJOURNMENT FOR ONE REASON OR THE OTHER. THE LD. C IT(A) WAS THEN LEFT WITH NO ALTERNATIVE BUT TO PASS THE IMPUGNED ORDER EX-PARTE OF THE ASSESSEE. HOWEVER, LD. COUNSEL FOR THE ASSESSEE HAS FURNISHED AN AFFIDAVIT OF THE ASSESSEE SHRI VIVEK JOLLY, PARTNER OF THE ASSESSEE FIRM TO SUBMIT THAT THOUGH ADJOURNMENT REQUESTS WERE MADE T O THE CIT(A) BECAUSE THE FIRM OF THE ASSESSEE HAD BEEN CLOSED D OWN, THE REQUIRED DETAILS, INFORMATION AND EVIDENCES WERE NOT READIL Y AVAILABLE WITH THE ASSESSEE AS THE KEY PERSON OF THE FIRM SHRI SEBAST IAN V.M . HAD LEFT THE JOB. THAT NOW THE REQUIRED DOCUMENTS HAVE BEEN OB TAINED AND THAT THE ASSESSEE MAY BE GIVEN ATLEAST ONE OPPORTUNITY TO PR OPERLY PRESENT ITS CASE BEFORE THE LD. CIT(A). THOUGH, IT HAS COME FR OM THE RECORD THAT THE ASSESSEE HAS SOUGHT TIME AND AGAIN ADJOURNMENTS BEFORE THE LD. CIT(A), HOWEVER, CONSIDERING THE PRINCIPLE OF NATUR AL JUSTICE, ONE OPPORTUNITY, IN MY VIEW, IS REQUIRED TO BE GIVEN T O THE ASSESSEE TO PRESENT ITS CASE BEFORE THE LD. CIT(A). 5. IN VIEW OF THIS, THE IMPUGNED ORDER OF THE CIT(A ) IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE CIT(A) FO R ADJUDICATION AFRESH. IT IS MADE CLEAR THAT THE ASSESSEE WILL PROMPTLY APPEA R BEFORE THE LD. CIT(A), AS AND WHEN CALLED, FAILING WHICH THE CIT( A) WILL BE AT LIBERTY TO PASS THE ORDER EX-PARTE OF THE ASSESSEE. ITA NO. 737-CHD-2019- M/S PROFILE INDIA, AMABALA CITY 4 WITH THE ABOVE OBSERVATIONS, THE APPEAL OF THE ASSE SSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 07.11.2019 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR