M/s. Carbon Specialities Ltd, Guwahati V. Deputy Commissioner of Income Tax, Circle-2, Guwahati

ITA 84/GTY/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8511 (ITAT-GUWAHATI)
• Duration Of Justice: 3 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 03-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income; Opportunity of being heard; Principle of natural justice; Reasonable cause
• Section: 143(3); 250

Judgement Text

1 ITA No. 84/GTY/2019 M/s. Carbon Specialities Ltd. AY 2014-15 IN THE INCOME TAX APPELLATE TRIBUNAL GAUHATI BENCH, (VIRTUAL HEARING AT KOLKATA) [BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER & SHRI SANJAY SARMA, JUDICIAL MEMBER] I.T.A. No. 84/GTY/2019 Assessment Year: 2014-15 M/s. Carbon Specialities Ltd. Doshi Bhawan, Paltan Bazar, Guwahati, Assam – 781 001. (PAN: AAACC 7924 J) Vs. DCIT, Circle-2, Guwahati. Appellant Respondent Date of Hearing 04.07.2022 Date of Pronouncement 11.07.2022 For the Appellant None For the Respondent Shri N.T. Sherpa, JCIT ORDER PER SONJOY SARMA, JM: This is an appeal filed by the assessee pertaining to the assessment year (in short ‘A.Y.’) 2014-15 is directed against the order of Ld. CIT(A), Guwahati-1 dated 15.11.2018 u/s 143(3) of the Income Tax Act, 1961. The assessee in this appeal has taken the following grounds of appeal: 1. That the ld. CIT(A), Guwahati has erred in law and on facts in passing an ex-parte order without adjudicating on the grounds of appeal. 2. That the ld. CIT(A)-1, Guwahati has erred in law and on facts in passing an ex-parte order dated 15.11.2018 u/s 250 of the Income Tax Act, 1961 without giving an opportunity of being heard to the appellant and without appreciating the fact that the 2 ITA No. 84/GTY/2019 M/s. Carbon Specialities Ltd. AY 2014-15 amount of Rs. 55,93,462/- was earned by the appellant as Long Term Capital Gain and the same was erroneously treated as business income by the ld. AO. 3. That the ld. CIT(a)-1, Guwahati, has erred in law and on facts in sustaining the addition made by the AO amounting to Rs. 55,93,462/- earned by the appellant as Long Term Capital Gain and allegedly treated the same as business income. 4. That the ld. CIT(a)-1, Guwahati, has erred in law and on facts in sustaining the impugned addition made and allegedly treated by the ld. AO on account of business income instead of Long Term Capital Gain, without bringing any cogent material on record. 5. That the impugned order dated 15.11.2018, received by the appellant on ....... Passed u/s 250 of the Income Tax Act, 1961 by the ld. CIT(A)-1, Guwahati is illegal and contrary to the relevant provisions of the Income Tax Act, 1961 and the facts on record. 6. That the ld. CIT(A)-1, Guwahati has erred in law and on facts in sustaining the arbitrary addition made by the AO based on presumptions, surmises and conjectures and is also against the principles of natural justice and equity. 7. That the ld. CIT(A)-1, Guwahati has erred in law and on facts in sustaining the addition made by the AO is too much high and excessive and deserves to be deleted. 8. That any other relief or reliefs as may be deemed fit on the facts on record, be granted.” 3. At the time of hearing none appeared on behalf of the assessee. We after perusing the material available on record and going through the grounds of appeal, the core issue in this appeal raised by the assessee in ground no. 1 & 2 are that the impugned order is an ex-parte and the assessee did not get an opportunity of being heard. Due to the reasons stated above as assessee did not able to file any submission in support of its ground(s) raised before the ld. CIT(A) and therefore, it is necessary to restore the instant appeal to ld. CIT(A) for fresh adjudication. 4. We, therefore, in the interest of justice and being fair enough to both parties restore all the issue raised in the instant appeal to ld. CIT(A) for afresh adjudication after affording assessee reasonable opportunity of being heard. The assessee is also directed to remain 3 ITA No. 84/GTY/2019 M/s. Carbon Specialities Ltd. AY 2014-15 vigilant to the notice of hearing and should not take adjournment unless otherwise required for reasonable cause. 5. In the result, the appeal of assessee is allowed for statistical purpose. Order is pronounced in the open court on 11.07.2022 Sd/- Sd/- (Manish Borad) (Sonjoy Sarma) Accountant Member Judicial Member Dated: 11.07.2022 Biswajit, Sr. PS Copy of the order forwarded to: 1. Appellant– M/s. Carbon Specialities ltd. 2. Respondent – DCIT, Circle-2, Guwahati. 3. CIT(A), 4. CIT , 5. DR, ITAT, Guwahati. True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata