VIKAS A. SHAH, Ahmedabad V. THE ACIT, CENTRAL CIRCLE-1(1), Ahmedabad

ITA 915/AHD/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 8905 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2009
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 14-09-2009
• Assessment Year: 1998-1999
• Appeal Filed On: 24-03-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M C PANDIT
• Assessee Lawyers: G C PIPARA
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD (BEFORE S/SHRI H. L. KARWA, JM AND N. S. SAINI, AM) ITA NO.915/AHD/20009 A. Y.: 1998-99 VIKASH S. SHAH, 210, ANAL TOWER, NR. COMMERCE COLLEGE SIX ROAD, NAVRANGPURA, AHMEDABAD PA NO. APWPS 4465G VS THE A. C. I. T., CENT. CIRCLE-1(1), 3 RD FLOOR, AAYAKAR BHAVAN, ASHRAM ROAD, AHMEDABAD (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI G. C. PIPARA, AR DEPARTMENT BY SHRI M. C. PANDIT, DR O R D E R PER H. L. KARWA: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST ORDER OF THE CIT(A)-IV, AHMEDABAD DATED 13- 03-2007 RELATING TO ASSESSMENT YEARS 1998-99. 2. GROUND NO.1 AND 2 OF THE APPEAL READ AS UNDER: 1. THAT THE LEARNED CIT(A) HAS ERRED IN LAW WHILE APPLYING THE JUDGMENT IN THE CASE OF CIT VS. MULTIPLAN INDIA PVT . LTD. 38 ITD 320 (DEL), IN THE CASE OF APPELLANT, AND PASSIN G THE ORDER EXPARTE, DISMISSING THE APPEAL. IN VIEW OF LEGAL PO SITION, THE LEARNED CIT(A) HAS ERRED IN DISMISSING THE APPEAL. 2. THE LEARNED CIT(A) HAS ALSO ERRED IN LAW WHILE N OT DEALING WITH EACH AND EVERY GROUNDS OF APPEAL RAISED BY THE APPELLANT INCLUDING STATEMENT OF FACTS. THEREFORE, THE ORDER OF THE CIT(A) REQUIRES TO BE QUASHED/SET-ASIDE. ITA NO.915/AHD/2009 VIKSAH S. SHAH 2 3. AT THE OUTSET, SHRI G. C. PIPARA, LEARNED COUNS EL FOR THE ASSESSEE SUBMITTED THAT VIDE IMPUGNED ORDER, THE CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT CONSIDERING THE FACTS AND G ROUNDS RAISED BY THE ASSESSEE. THE CIT(A) PROCEEDED TO DISMISS THE APPEA L FOR NON-PROSECUTION . WHILE DISMISSING THE APPEAL, THE CIT(A) RELIED UP ON THE FOLLOWING DECISIONS: 1. THE MANAGER, S. B. I. , LUDHIANA VS CIT, LUDHIANA I N ITA NO.24/CHANDI/2000 FOR ASSESSMENT YEAR 1998-99 DECID ED BY HONBLE ITAT CHANDAGARH, BENCH B, ON 06.02.200 4. 2. G. S. AUTO INTERNATIONAL LT., LUDHIANA VS JCIT SP. RANGE, LUDIANA IN ITA NO.725/CHANDI/2000 FOR ASSESSMENT YE AR 1995-96 BY HONBLE ITAT CHANDIGARH, BENCH A , ON 27.02.2004 3. CIT VS MULTIPLAN INDIA (P) LTD., 38 ITD 320 (DEL), 4. ESTATE OF TUKOJIRAO HOLKAR VS CWT, 223 ITR 480 (M). 4. AFTER HEARING THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES, WE FIND THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR O F THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF ITAT, AHMEDA BAD C BENCH IN THE CASE OF GUJARAT THEMIS BIOSYN LTD. VS JCIT (200 0) 74 ITD 339 (AHD.). WHILE DECIDING SIMILAR ISSUE, THE TRIBUNAL HELD AS UNDER: THE PROVISIONS OF SECTION 250(6) PROVIDES THAT THE APPELLATE ORDERS OF THE COMMISSIONER (APPEALS) ARE TO STATE T HE POINTS ARISING IN THE APPEAL, THE DECISION OF THE AUTHORITY THEREO N AND THE REASONS FOR SUCH DECISION. THE UNDERLYING RATIONALE OF THE PROVISION IS THAT SUCH ORDERS ARE SUBJECT TO FURTHER APPEAL TO THE AP PELLATE TRIBUNAL. SPEAKING ORDER WOULD OBVIOUSLY ENABLE A PARTY TO KN OW PRECISE POINTS DECIDED IN HIS FAVOUR OR AGAINST HIM. ABSENC E OF THE FORMULATION OF THE POINT FOR DECISION FOR WANT OF C LARITY IN A DECISION UNDOUBTEDLY PUTS A PARTY IN QUANDARY. SECTION 250(6 ) EXPRESSLY EMBODIES THE PRINCIPLES OF NATURAL JUSTICE AND SUCH A PROVISION IS CLEARLY MANDATORY IN NATURE. THE IMPUGNED ORDER PAS SED BY THE COMMISSIONER (APPEALS) IN VIOLATION OF THE PROVISIO NS OF SECTION 250(6) CANNOT, THEREFORE, BE SUSTAINED. ITA NO.915/AHD/2009 VIKSAH S. SHAH 3 THE COMMISSIONER (APPEALS) SHOULD, ACCORDINGLY DISPOSE OF THE ASSESSEES APPEAL AFRESH. 5. RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL (SUPRA), WE SET ASIDE THE ORDER OF THE CIT(A) IN TOTO AND DIREC T THE CIT(A) TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFRESH IN ACCORDANCE WIT H LAW AFTER ALLOWING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN VIEW OF THE ABOVE, WE DO NOT THINK IT NECESSA RY TO DECIDE THE GROUNDS OF APPEAL ON MERITS. 7. FOR STATISTICAL PURPOSES, THE APPEAL IS ALLOWED. THE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 14-9- 09 SD/- SD/- (N. S. SAINI) ACCOUNTANT MEMBER (H. L. KARWA) JUDICIAL MEMBER DATE : 14-09-2009 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD