Rajendra Pal Singh, Hardoi V. Income Tax Officer, Kanpur

ITA 822/LKW/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4808 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 14-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWATI RATNA
• Keywords: Rejection of books of accounts; Opportunity of being heard; Principle of natural justice
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.822/LKW/2014 ASSESSMENT YEAR:2006-07 RAJENDRA PAL SINGH MEHNDI KHEDA SUNASI MALLWAN HARDOI V. INCOME TAX OFFICER RANGE 1(3) KANPUR TAN/PAN:AWCPS1074Q (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. RAKESH GARG, ADVOCATE RESPONDENT BY: SMT. SWATI RATNA, D.R. DATE OF HEARING: 30 12 2015 DATE OF PRONOUNCEMENT: 13 01 2016 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON THE FOLLOWING GROUNDS:- (1) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN PASSING THE ORDER WHICH IS ILLEGAL, IMPROPER AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. (2) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN PASSING THE ORDER WITHOUT GIVING ADEQUATE OPPORTUNITY OF BEING HEARD AND WITHOUT CONSIDERING THE SUBMISSION MADE BEFORE HIM. (3) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE LEARNED :- 2 -: ASSESSING OFFICER REGARDING REJECTION OF BOOKS OF ACCOUNTS U/S 145(3). (4) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.1,69,476/- MADE BY THE LEARNED ASSESSING OFFICER BY APPLYING NET PROFIT RATE OF 10% IN PLACE OF NET PROFIT RATE OF RS 4.5% APPLIED BY THE APPELLANT. (5) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN MAKING ENHANCEMENT RESULTING IN ADDITION OF RS.22,88,000/- U/S 40A(3) [WRONGLY MENTIONED AS 20.88 LACS AT ONE PLACE AND RS.2.88 LACS AT ANOTHER PLACE IN HIS APPELLANT ORDER). 2. DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE FACT THAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL EX-PARTE WITHOUT AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. NOTICES FOR FEW DATES WERE SENT BY THE LD. CIT(A), BUT THERE IS NO FACTUAL RECORDING IN THE ORDER OF THE LD. CIT(A) WITH REGARD TO THE VALID SERVICE OF NOTICE OF HEARING UPON THE ASSESSEE. THE LD. CIT(A) HAS ALSO SUMMARILY DISPOSED OF THE APPEAL DISMISSING THE SAME WITHOUT DEALING WITH THE ISSUES ON MERIT. 3. SINCE THE LD. CIT(A) HAS NOT DISPOSED OF THE APPEAL AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, WE ARE OF THE VIEW THAT LET THIS MATTER BE SENT TO THE LD. CIT(A) FOR ADJUDICATION OF THE ISSUES RAISED BEFORE HIM AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE FOR ADJUDICATION OF THE APPEAL AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. :- 3 -: 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTIONED PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:13 TH JANUARY, 2016 JJ:3012 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR