SONA ORGANIC FARMS P.LTD, MUMBAI V. ITO 13(2)(2), MUMBAI

ITA 7409/MUM/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4062 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Assessment Year: 2009-2010
• Appeal Filed On: 16-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHARY ARUN KUMAR SINGH
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 147; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHR I N.K. PRADHAN, , ACCOUNTANT MEMBER ITA NO. 7409 / MUM . /201 6 ( ASSESSMENT YEAR : 20 09 10 ) SONA ORGANIC FARMS PVT. LTD. A/752, D.E. JOSS, ICE FACTORY ROAD OFF HILL ROAD, BANDRA WEST MUMBAI 400 050 AAICS9890F . APPELLANT V/S INCOME TAX OFFICER WARD 13(2)(2), MUMBAI . RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI CHAUDHARY ARUNKUMAR SINGH DATE OF HEARING 01.08.2019 DATE OF ORDER 16.08.2019 O R D E R PER SAKTIJIT DEY. J.M. CAP TIONED APPEAL BY THE ASSESSEE ARISES OUT OF ORDER DATED 10 TH OCTOBER 2016, PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 21 , MUMBAI, FOR THE ASSESSMENT YEAR 20 09 10 . 2 . IN GROUND NO.1, THE ASSESSEE HAS CHALLENGED THE VALIDITY OF THE EX PARTE ORDER PASSED BY THE LEARNED COMMISSIONER (APPEALS). 2 SONA ORGANIC FARMS PVT. LTD. WHEREAS , GROUNDS NO.2 AND 3 ARE ON THE MERITS OF THE ADDITION MADE BY THE ASSESSING OFFICER. 3 . BRIEF FACTS ARE, FOR THE ASSESSMENT YEAR UNDER DISPUTE, THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME ON 30 TH SEPTEMBER 2009, DECLARING TOTAL INCOME OF ` 2,75,397. ORIGINALLY, THE ASSESSMENT IN ASSESSEES CASE WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT 'THE ACT' ) VIDE O RDER DATED 21 ST DECEMBER 2011, DETERMINING THE TOTAL INCOME AT ` 6,65,800. SUBSEQUENTLY, THE ASSESSMENT WAS RE OPENED UNDER SECTION 147 OF THE ACT AND AN ORDER UNDER SECTION 143(3) R/W SECTION 147 OF THE ACT WAS PASSED ON 26 TH MARCH 2015, DETERMINI NG THE T OTAL INCOME AT ` 3,41,21,820. THE VARIATION OF TOTAL INCOME WAS DUE TO THE ADDITION OF ` 3,38,46,425, MADE UNDER SECTION 68 OF THE ACT. AGAINST THE ASSESSMENT ORDER SO PASSED, THE ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. THE APPEAL F ILED BY THE ASSESSEE WAS DISPOSED OF EX PARTE BY LEARNED COMMISSIONER (A PPEALS) SUSTAINING THE ADDITION MADE BY THE ASSESSING OFFICER . 4 . WHEN THE APPEAL WAS CALLED FOR HEARING, NO ONE WAS PRESENT FOR THE ASSESSEE IN SPITE OF ISSUANCE OF NOTICE THROUGH REGIS TERED POST WITH A/D. IN VIEW OF THE AFOR ESAID, WE PROCEED TO DISPOSE OF THE APPEAL EX 3 SONA ORGANIC FARMS PVT. LTD. PARTE QUA THE ASSESSEE AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE AND ON THE BASIS OF MATERIAL ON RECORD. 5 . WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATI VE AND PERUSED THE MATERIAL ON RECORD. AS COULD BE SEEN FROM THE IMPUGNED ORDER OF LEARNED COMMISSIONER (APPEALS) ON THE LAST DATE OF HEARING I.E., 26 TH SEPTEMBER 2016, ASSESSEES AUTHORISED REPRESENTATIVE FILED A LETTER SEEKING ADJOURNMENT FOR SEVEN DAYS DUE TO A DEATH IN THE FAMILY OF THE ARGUING COUNSEL. HOWEVER, LEARNED COMMISSIONER (APPEALS) REJECTING THE REQUEST OF THE AUTHORISED REPRESE NTATIVE PROCEEDED TO DISPOSE OF THE APPEAL EX PARTE. IN OUR VIEW, WHEN THE AUTHORISED REPRESENTATIVE OF THE ASSESSEE WAS SEEKING A SHORT ADJOURNMENT OF SEVEN DAYS DUE TO A DEATH IN THE FAMILY, LEARNED COMMISSIONER (APPEALS) SHOULD HAVE ACCEPTED HIS REQUEST INSTEAD OF DISPOSING OF THE APPEAL EX PARTE. THEREFORE, IN THE INTEREST OF FAIR PLAY AND JUSTICE, WE ARE INCLINED T O SET ASIDE THE IMPUGNED ORDER OF LEARNED COMMISSIONER (APPEALS) AND RESTORE ALL THE ISSUES RAISED BY THE ASSESSEE I N THE PRESENT APPEAL BACK TO HIS FILE FOR ADJUDICATION ON MERIT AFTER DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. FURTHER, WE ALSO DIREC T THE ASSESSEE TO CO OPERATE WITH THE LEARNED COMMISSIONER (APPEALS) IN FINALISING THE PROCEEDINGS. GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 4 SONA ORGANIC FARMS PVT. LTD. 6 . IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN C OURT ON 16.08.2019 SD/ - N.K. PRADHAN ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER MUMBAI, DATED: 16.08.2019 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