Kamdhenu Gems Pvt. Ltd, Surat V. ITO, Ward-1(1)(3), Surat

ITA 755/SRT/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6484 (ITAT-SURAT)
• Duration Of Justice: 2 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURATBENCH BEFORE SHRI PAWAN SINGH, JM & DR. A.L.SAINI, AM ITA NO.755/SRT/2018 (A.Y: 2010-11) KAMDHENU GEMS PVT. LTD., 402, GHANSHYAM BUILDING, HOUSE NO.6/2005, HAT FALIA HARIPURA, SURAT-395003. VS. THE ITO, WARD-1(1)(3), SURAT. ./ ./PAN/GIR NO.: AADCK3944K ( /APPELLANT ) .. ( / RESPONDENT ) APPELLANT BY : NONE REVENUE BY : RITESH MISHRA, CIT-DR DATE OF HEARING : 03/09/2021 DATE OF PRONOUNCEMENT : 03/09/2021 / O R D E R PER DR. A. L. SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PERTAINING TO ASSESSMENT YEAR 2010-11, IS DIRECTED AGAINST THE ORDER PASSED BY LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, SURAT, IN APPEAL NO. CIT(A) SURAT-1/11021/2017-18, DATED 27.09.2018, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 144 R.W.S 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 2. AT THE OUTSET ITSELF, WE NOTE THAT IMPUGNED ORDER PASSED BY THE LD CIT(A) IS AN EX-PARTE ORDER AND ASSESSEE COULD NOT REPRESENT HIS CASE BEFORE LD. CIT(A) THEREFORE, WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE, ANOTHER OPPORTUNITY TO CONTEST THE APPEAL BEFORE THE LD. FIRST APPELLATE AUTHORITY MAY BE GRANTED TO THE ASSESSEE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF ISSUANCE OF NOTICE OF HEARING. WE HAVE HEARD LD DR FOR THE REVENUE AND OBSERVED THAT ORDER PASSED BY THE LD CIT(A) IS AN EX PARTE ORDER, NON-SPEAKING ORDER, HENCE LD DR FOR THE REVENUE HAS FAIRLY AGREED THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO PLEAD HIS CASE BEFORE THE LD. CIT(A). ITA NO.755/SRT/2018 ASSESSMENT YEAR.2010-11 KAMDHENU GEMS PVT. LTD. 2 4. WE NOTE THAT ORDER PASSED BY THE LD CIT(A) IS NOT IN ACCORDANCE WITH THE MANDATE OF THE PROVISIONS OF SECTION 250(6) OF THE ACT. WE NOTE THAT IN THE ASSESSEES CASE UNDER CONSIDERATION, THE ASSESSMENT WAS CARRIED OUT U/S 144 R.W.S 147 OF THE ACT AND THE IMPUGNED ORDER PASSED BY THE LD. CIT(A), IS AN EX PARTE ORDER AND NON-SPEAKING ORDER, THEREFORE, WE DO NOT WISH TO MAKE ANY COMMENTS ON THE MERITS OF THE GROUNDS RAISED BY THE ASSESSEE. CONSIDERING THE ABOVE FACTS, WE NOTE THAT ASSESSEE COULD NOT PLEAD HIS CASE SUCCESSFULLY BEFORE THE LD. CIT(A). WE NOTE THAT THE LD. CIT(A) DID NOT DISCUSS THE ASSESSEES CASE ON MERITS BASED ON THE MATERIAL AVAILABLE BEFORE HIM HENCE IT IS A VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. THEREFORE, WITHOUT DELVING MUCH DEEPER INTO THE MERITS OF THE CASE, IN THE INTEREST OF JUSTICE, WE RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(A) FOR DE NOVO ADJUDICATION AND PASS A SPEAKING ORDER AFTER AFFORDING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, WHO IN TURN, IS ALSO DIRECTED TO CONTEST HIS STAND FORTHWITH. THEREFORE, WE DEEM IT FIT AND PROPER TO SET ASIDE THE ORDER OF THE LD CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE LD CIT(A) TO ADJUDICATE THE ISSUE AFRESH ON MERITS. FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED AT THE TIME OF HEARING OF APPEAL ON 03/09/2021 IN THE VIRTUAL COURT OF HEARING. SD/- SD/- (PAWAN SINGH) (DR. A. L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER SURAT, DATED: 03/09/2021 ** SAMANTA** COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. PR. CIT 5. DR 6. GUARD FILE /TRUE COPY/ BY ORDER // TRUE COPY // ASSISTANT REGISTRAR/SR. PS/PS ITAT, SURAT