M/S DAGA GLOBAL CHEMICALS PVT LTD, MUMBAI V. ASST CIT 12 (2)(1), MUMBAI

ITA 7934/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9729 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 24-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: UDOOL RAJ SINGH LD
• Assessee Lawyers: DR K SHIVARAM LD SR
• Keywords: Principle of natural justice; Application of stay
• Section: 271(1)(c); 12; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, VP AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) SA NO. 198/MUM/2020 & ITA NO. 7934/MUM/2019 ( / ASSESSMENT YEAR : 2014-15 ) M/S. DA GA GLOBAL CHEMICALS P. LTD. 101, MEHEK PLAZA MAHARASHTRA NAGAR LANE OFF. L.T.ROAD, BORIVALI (WEST) MUMBAI- 400 092. / VS. A CIT - 1 2 ( 2 ) (1) 1 ST FLOOR, AAYKAR BHAVAN M.K. ROAD MUMBAI- 400 020. !'# ./ ./PAN/GIR NO. AAACD-2233-M ( '& /APPELLANT ) : ( '('& / RESPONDENT ) ASSESSEE BY : DR. K.SHIVARAM- LD. SR. COUNSEL REVENUE BY : SHRI UDOOL RAJ SINGH, LD. DR / DATE OF HEARING : 03/07/2020 / DATE OF PRONOUNCEMENT : 03/07/2020 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. DURING HEARING OF STAY APPLICATION WHICH IS ARIS ING OUT OF ASSESSEES APPEAL FOR AY 2014-15, IT TRANSPIRED THAT THE ASSES SEE HAS BEEN SADDLED WITH PENALTY OF RS.17,39,879/- U/S 271(1)(C) VIDE P ENALTY ORDER DATED 24/01/2019. AGGRIEVED, THE ASSESSEE PREFERRED FURTH ER APPEAL BEFORE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-20, MU MBAI [CIT(A)], 2 WHEREIN THE APPEAL GOT DISMISSED VIDE ORDER DATED 2 5/10/2019. THE ASSESSEE HAS CHALLENGED THE SAME BEFORE TRIBUNAL. B Y WAY OF THIS STAY APPLICATION, THE ASSESSEE SEEK STAY OF PENALTY DEMA ND AS CONFIRMED BY LEARNED FIRST APPELLATE AUTHORITY VIDE IMPUGNED ORD ER DATED 25/10/2019. 2. DURING HEARING, IT WAS NOTED THAT THE ORDER UNDE R CHALLENGE IS AN EX-PARTE ORDER SINCE THE ASSESSEE FAILED TO MAKE EF FECTIVE REPRESENTATION BEFORE LD. CIT(A). IN THE SAID BACKGROUND. LD. SR. COUNSEL APPEARING FOR ASSESSEE, DR. K.SHIVARAM, PLEADED FOR RESTORATION O F APPEAL TO THE LD. CIT(A) TO ENABLE THE ASSESSEE TO DEFEND HIS STAND. ACCORDINGLY, THE APPEAL ITSELF WAS TAKEN UP FOR ADJUDICATION WITH TH E CONSENT OF BOTH THE SIDES. 3. KEEPING IN VIEW THE SUBMISSIONS MADE BY LD. SR. COUNSEL, WE FIND THAT THE ORDER UNDER CHALLENGE IS AN EX-PARTE ORDER SINCE THE ASSESSEE FAILED TO MAKE ANY EFFECTIVE REPRESENTATIVE DESPITE BEING PROVIDED WITH VARIOUS OPPORTUNITIES OF BEING HEARD AS NOTED BY LD . CIT(A) IN PARA 4 OF THE IMPUGNED ORDER. NEVERTHELESS, KEEPING IN VIEW T HE PRINCIPLE OF NATURAL JUSTICE AND IN LINE WITH THE SUBMISSION MAD E BY LD. SR. COUNSEL, THE APPEAL STANDS REMITTED BACK TO THE FILE OF LD. CIT(A) FOR RE- ADJUDICATION AFTER PROVIDING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE, IN TURN, IS DIRECTED TO SUB STANTIATE HIS STAND FORTHWITH FAILING WHICH LD. CIT(A) SHALL BE AT LIBE RTY TO DISPOSE-OFF THE APPEAL ON THE BASIS OF MATERIAL ON RECORD. KEEPING IN VIEW THE QUANTUM INVOLVED, EVERY ENDEAVOR SHOULD BE MADE FOR DISPOSA L OF THE APPEAL WITHIN A PERIOD OF 6 MONTHS, IF POSSIBLE AND PRACTI CABLE. WE ORDER ACCORDINGLY. 3 4. RESULTANTLY, THE APPEAL STANDS ALLOWED FOR STATI STICAL PURPOSES WHEREAS STAY APPLICATION STAND DISMISSED AS BEING INFRUCTUOUS. ORDER PRONOUNCED IN OPEN COURT ON 03 RD JULY, 2020. SD/- SD/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) / VICE PRESIDENT / ACCOUNTANT MEMBER MUMBAI; DATED : 03/07/2020 SR.PS, JAISY VARGHESE !'! / COPY OF THE ORDER FORWARDED TO : 1. '& / THE APPELLANT 2. '('& / THE RESPONDENT 3. $#$#/ ( ) / THE CIT(A) 4. $#$#/ / CIT CONCERNED 5. 01#'*2 , $##2 , / DR, ITAT, MUMBAI 6. 1345 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.