Source Natural Foods & Herbal Supplements Ltd., Hyd, Hyderabad V. DCIT, Circle-2(2), Hyd, Hyderabad

ITA 837/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6655 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 23-03-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 19-06-2015
• Court: TRIBUNAL
• Department Lawyers: B KURMI NAIDU
• Assessee Lawyers: VIJAY N KALE
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ES B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 837 /H YD /201 5 ASSESSMENT YEAR: 20 07 - 08 SOURCE NATURAL FOODS AND HERBAL SUPPLEMENTS LIMITED, HYDERABAD [PAN: A A A C I4536Q ] VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI VIJAY N. KALE , AR FOR REVENUE : SHRI B. KURMI NAIDU, D R DATE OF HEARING : 2 3 - 0 3 - 201 6 DATE OF PRO NOUNCEMENT : 07 - 0 4 - 201 6 O R D E R PER B. RAMAKOTAIAH, A.M. : TH IS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX ( APPEALS ) - 2, HYDERABAD DATED 13 - 04 - 2015. THE COMPANY WAS ORIGINALLY FORMED AS INWINEX PHARMACEUTICAL S LTD ., AND SUBSEQUENTLY STATED TO HAVE CHANGED THE NAME TO SOURCE NATURAL FOODS AND HERBAL SUPPLEMENTS LIMITED . ASSESSEE HAS RAISED VARIOUS GROUNDS MAINLY CONTESTING THAT LD. CIT(A) HAS NOT FOLLOWED THE PRINCIPLES OF EQUITY AND NATURAL JUS TICE AND HAS PASSED THE ORDER EX - PARTE. IT ALSO CONTESTED THE ADDITIONS MADE BY AO AND CONFIRMED BY THE LD. CIT(A). 2. BRIEFLY STATED, ASSESSEE IS IN THE BUSINESS OF MANUFACTURING PHARMACEUTICALS AND FILED ITS RETURN OF INCOME ADMITTING LOSS OF I.T.A. NO. 837 / HYD / 20 15 SOURCE NATURAL FOODS AND HERBAL SUPPLEMENTS LTD., : - 2 - : RS. 1,76 ,80,920/ - . THE ASSESSMENT HAS BEEN COMPLETED MAKING VARIOUS DISALLOWANCE S, THUS RESTRI CTI NG THE LOSS TO RS. 1,13,92,722/ - . ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE LD. CIT(A ). CIT(A) HAS GIVEN POSTINGS ON SIX DATES AND EX CEPT FILING AN ADJOURNMENT PETITION FOR THE FIRST TWO, REST OF THE NOTICES , AS RECORDED BY THE LD. CIT(A) WENT UN - ATTENDED. CONSEQUENTLY, LD. CIT(A) WAS OF THE OPINION THAT ASSESSEE IS NOT KEEN TO PURSUE ITS APPEAL. RELYING ON VARIOUS CASE LAW, LD. CIT(A ) WAS OF THE OPINION THAT HE HAS THE INHERENT POWERS TO DISMISS THE APPEAL AND ACCORDINGLY, APPEAL WAS DISMISSED. WITH REFERENCE TO MERITS, HE WAS OF THE OPINION THAT THE GROUNDS ARE DEVOID OF ANY MERIT AND THE AOS ORDER I S SELF - EXPLANATORY. CONSEQUENTL Y, HE DISMISSED ASSESSEES GROUNDS. 3. IT WAS SUBMITTED THAT ASSESSEE WAS DIRECTED TO STOP THE BUSINESS BY THE AUTHORITIES AND WAS NOT IN A POSITION TO ATTEND TO VARIOUS MATTERS AND ASSESSEE COULD NOT REPRESENT THE MATTERS BEFORE THE LD. CIT(A) PROPERLY. IT WAS FURTHER SUBMITTED THAT WHENEVER CIT(A) HAS POSTED THE CASES, ASSESSEES AR HAS REPRESENTED THE CASE OR FILED LETTERS WITH CIT(A) AND IN FACT ON 21 - 01 - 2015, IT WAS SUBMITTED THAT ASSESSEE HAS ADDRESSED A LETTER INFORMING THE CHANGE OF NA ME OF THE COMPANY AND ALSO CHANGE OF MANAGEMENT OF ASSESSEE - COMP ANY. IT WAS FURTHER SUBMITTED THAT ASSESSEE PREFERRED AN APPLICATION U/S. 154/155 BEFORE THE AO AND REQUEST WAS MADE TO CIT(A) TO ADJOURN THE CASE TILL COMPLETION OF PROCEEDINGS U/S. 154. IT WAS SUBMITTED THAT ASSESSEE INTENDS TO PURSUE THE APPEAL. 4. CONSIDERING THE AFFIDAVIT FILED BY LD. COUNSEL FOR ASSESSEE A ND ALSO THE ADDITIONAL EVIDENCE , WHICH WAS FILED WITH A PRAYER TO I.T.A. NO. 837 / HYD / 20 15 SOURCE NATURAL FOODS AND HERBAL SUPPLEMENTS LTD., : - 3 - : ADMIT, WE ARE OF THE OPINION THAT ASSESSEE DESERVES ONE MORE OPPOR TUNITY BEFORE THE LD. CIT(A). EVEN THOUGH THERE SEEMS TO BE RESPONSE FROM ASSESSEE, THE ORDERS OF THE CIT(A) DOES NOT MENTION ANY OF THESE . WITHOUT GOING INTO MERITS OF THESE ISSUES, W E ARE OF THE OPINION THAT LD. CIT(A) HAS NO JURISDICTION TO DISMISS THE APPEAL FOR NON - APPEARANCE AS THAT POWERS WERE WITH THE COURTS / TRIBUNALS AS PER THE DECISIONS OF THE VARIOUS HIGH COURTS. CIT(A) CANNOT INVOKE ANY OF THOSE INHERENT POWERS BESTOW ED ON COURTS/TRIBUNALS . LD. CIT(A) SHOULD HAVE EXAMINED THE MERITS OF THE CA SE , IN CASE HE WANTS TO DISPOSE OF THE APPEAL. SINCE CIT(A) HAS DISMISSED APPEAL WITH OUT CONSIDERING THESE ISSUES, WE ARE OF THE OPINIO N THAT THE ORDER OF THE CIT(A) HA S TO BE SET ASIDE AND APPEAL BEFORE HIM IS TO BE RESTORED FOR FRESH ADJUDICATION. AS SESSEE IS DIRECTED TO APPEAR WITHOUT FAILURE AND IN CASE OF NON - APPEARANCE OF ASSESSEE, LD. CIT(A) IS DIRECTED TO DEC IDE THE APPEAL ON MERITS . SINCE WE ARE SETTING ASIDE THE ORDER OF CIT(A) AND RESTORING THE MATTERS TO HIS FILE, THERE IS NO NEED TO ADJUDI CATE THE GROUNDS RAISED ON VARIOUS DISALLOWANCES/ADDITIONS MADE BY THE AO. WITH THESE OBSERVATIONS, THE GROUNDS ARE CONSIDERED ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, ASSESSEES A PPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH APRIL, 2016 SD/ - SD/ - (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 07 TH APRIL , 2016 TNMM I.T.A. NO. 837 / HYD / 20 15 SOURCE NATURAL FOODS AND HERBAL SUPPLEMENTS LTD., : - 4 - : COPY TO : 1. S OURCE NATURAL FOODS AND HERBAL SUPPLEMEN TS LTD., # 22 & 23, SVCIE, BACHUPALLY, QUTHBULLAPUR MANDAL, RANGA REDDY DISTRICT, HYDERABAD. 2 . DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(2), HYDERABAD. 3 . CIT(APPEALS) - 2, HYDERABAD. 4. PR. CIT - 2, HYDERABAD. 5 . D.R. ITAT, HYDERABAD. 6 . GUARD FILE.