M/S. Howrah Mills Company Limited, Howrah V. D.C.I.T., CIRCLE - 1(1), KOLKATA, Kolkata

ITA 781/KOL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7053 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 23-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C J SINGH
• Assessee Lawyers: RAKESH JAIN
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA [BEFORE SHRI P.M. JAGTAP, VP (KZ) AND SHRI S.S. VISWANETHRA RAVI, JM] I.T.A. NO. 781/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. HOWRAH MILLS COMPANY LIMITED...............................................APPELLANT 135, HOWRAH HOUSE, FORESHORE ROAD, SHIBPUR, HOWRAH 711 102. [PAN: AAACH 7560 D] DCIT, CIRCLE 1(1), KOLKATA...................................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI RAKESH JAIN, FCA APPEARING ON BEHALF OF THE ASSESSEE. SHRI C.J. SINGH, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JULY 01, 2019 DATE OF PRONOUNCING THE ORDER : JULY 31, 2019 ORDER PER P.M. JAGTAP, VICE-PRESIDENT (KZ) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 1, KOLKATA DATED 28.03.2018 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND SALE OF JUTE PRODUCTS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION (AS REVISED) WAS FILED BY IT ON 14.03.2013 DECLARING A TOTAL INCOME OF RS. 31,46,340/-. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 29.03.2015, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS. 4,42,99,650/- AFTER MAKING THE FOLLOWING ADDITIONS / DISALLOWANCES: 1. DISALLOWANCE U/S 14A RS. 19,81,460/- 2. UNDISCLOSED SHORT TERM CAPITAL GAIN RS. 59,29,200/- 3. DISALLOWANCE OF UNREALISED FOREX LOSS RS. 16,99,906/- 4. ADDITION MADE U/S 2(24)(X) READ WITH SECTION 36(1)(VA) RS. 3,15,42,252/- 2 I.T.A. NO. 781/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. HOWRAH MILLS COMPANY LIMITED 3. AGAINST THE ORDER PASSED BY THE AO U/S 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) CHALLENGING VARIOUS ADDITIONS / DISALLOWANCES MADE BY THE AO AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 28.03.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENT OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN GROUND NO 1 OF THIS APPEAL CHALLENGING THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE, THE LEARNED COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THERE WAS A CHANGE IN THE MANAGEMENT OF THE ASSESSEE COMPANY AND THE NOTICES SENT BY THE OFFICE OF THE LD. CIT(A) FIXING THE HEARING OF THE ASSESSEES APPEAL ON THREE DIFFERENT DATES IN THE MONTH OF MARCH, 2018 AND RECEIVED BY THE OLD MANAGEMENT WERE NOT HANDED OVER TO THE NEW MANAGEMENT. HE HAS CONTENDED THAT THE NON-RECEIPT OF THE SAID NOTICES BY THE NEW MANAGEMENT THUS RESULTED IN THE NON-APPEARANCE OF THE ASSESSEE COMPANY BEFORE THE LD. CIT(A). 5. KEEPING IN VIEW THE SUBMISSIONS MADE BY THE LEARNED COUNSEL FOR THE ASSESSEE, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(A) WHEN ITS APPEAL WAS FIXED FOR HEARING AND EVEN THE LEARNED DR HAS NOT DISPUTED THIS POSITION. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING 3 I.T.A. NO. 781/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. HOWRAH MILLS COMPANY LIMITED OF THE APPEAL OF THE ASSESSEE AFRESH AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2019. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER VICE PRESIDENT DATED: 31/07/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. HOWRAH MILLS COMPANY LIMITED, 135, HOWRAH HOUSE, FORESHORE ROAD, SHIBPUR, HOWRAH 711 102. 2. DCIT, CIRCLE 1(1), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR/H.O.O. ITAT, KOLKATA