M/s Lamba Celebrations Resort, Paonta Sahib V. ITO, Nahan

ITA 973/CHANDI/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3794 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 10-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B CHANDIGARH !, ' # $ , $ % & ' ( ) , *+ # BEFORE: SMT. DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, AM ./ ITA NO. 973/CHD/2018 / ASSESSMENT YEAR : 2007-08 M/S LAMBA CELEBRATIONS RESORT, NEAR BATTA BRIDGE, PAONTA SAHIB, DISTT. SIRMOUR (HP). VS THE ITO, NAHAN (HP). ./ PAN NO: AACFL8622R / APPELLANT / RESPONDENT ./ ITA NO. 974,975 & 976/CHD/2018 / A.YS : 2005-06, 2006-07 & 2007-08 SHRI DEVINDER SINGH LAMBA, PROP. M/S MODERN TENT HOUSE, PAONTA SAHIB, DISTT. SIRMOUR (HP). VS THE ITO, NAHAN (HP). ./ PAN NO: AAVPL4082A / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI TEJ MOHAN SINGH # ! ' / REVENUE BY : SHRI PARESH JOHRI, CIT-DR $ % ! &/ DATE OF HEARING : 03.12.2018 '()* ! &/ D ATE OF PRONOUNCEMENT : 29.01. 2019 *,/ ORDER PER DIVA SINGH THESE FOUR PENALTY APPEALS FILED BY THE RESPECTIVE ASSESS EES ARE BEING DECIDED BY A COMMON ORDER AS FACTS, CIRCUMSTANCES AND POSITION OF LAW IN TERMS OF THE PRAYER MADE BY THE PARTIERS BEFORE THE BENCH REMAIN IDENTICAL IN EACH OF THESE APPEALS. THE APPEALS PERT AIN TO 2005- 06, 2006-07 AND 2007-08 AS INDICATED ABOVE IN THE CAUSE TITLE ARISE OUT OF IDENTICAL ORDERS PASSED BY CIT(A), PALAMPUR WHEREIN THE A SSESSEES REMAINED UNREPRESENTED BEFORE THE SAID AUTHORITY ON THE DATE OF HEARING. ACCORDINGLY, THE PARTIES ADVANCED THEIR ARGUMEN TS IN ITA ITA-973 TO 976/CHD/2018 PAGE 2 OF 3 973/CHD/2018 STATING THAT THESE WOULD ADDRESS THE REMAINING AP PEALS ALSO. 2. THE RELEVANT FACTS OF THE CASE AS EVIDENT FROM ITA 97 3/CHD/2018 ARE THAT THE PENALTY ORDER PASSED BY THE AO WAS CHALLE NGED ON VARIOUS GROUNDS BEFORE THE CIT(A) WHO AFTER FIXING VARIOUS DATES OF HEARING NOTICED THAT DESPITE THIS NO ONE WAS PRESENT ON BEHALF O F THE ASSESSEE. ACCORDINGLY, TAKING INTO CONSIDERATION THE ORDER OF THE I TAT PASSED IN THE QUANTUM PROCEEDINGS HE CONFIRMED THE PENALTY IMPOSED BY THE AO. THE LD. AR MR.TEJ MOHAN SINGH ADDRESSING THE NON-REPRE SENTATION BEFORE THE CIT(A) ON THE BASIS OF INSTRUCTIONS CONVEYED B Y THE ASSESSEE SUBMITTED THAT THE ASSESSEE WAS IN PAONTA SAHIB AND TH US, IT TOOK TIME FOR HIM TO CONTACT THE COUNSEL AS THE NOTICES WERE RECE IVED LATE AND THE ASSESSEE COULD NOT PARTICIPATE IN THE PROCEEDINGS BEFORE THE CIT(A). IT WAS ALSO OTHERWISE ARGUED BY HIM THAT LEVY OF PENALTY IS N OT AUTOMATIC AND SIMPLY BECAUSE THE ADDITION STANDS CONFIRMED, PENALTY IS NOT AUTOMATICALLY ATTRACTED. ACCORDINGLY, AN OPPORTUNITY OF B EING HEARD WAS PRAYED FOR. 3. THE SR.DR POSED NO OBJECTION TO THE PRAYER OF REMAN D AND AGREED THAT THE POSITION IN THE CONNECTED CASES QUA THE OPPOR TUNITY OF BEING HEARD REMAINS THE SAME. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ON A PERUSAL OF THE SAME AND IN THE LIGHT OF THE SUBMISSIONS ADVANCED BY THE PARTIES, WE FIND THAT IN THE FACTS OF THE PECULIAR CASE, THE ASSESSEE FOR REASONS BEYOND ITS CONTROL COULD NOT P ARTICIPATE IN THE PROCEEDINGS BEFORE THE CIT(A). ACCORDINGLY, ADMITTEDLY AN E FFECTIVE OPPORTUNITY OF BEING HEARD AS PER WELL ACCEPTED JUDICIAL ST ANDARDS, HAS NOT BEEN MADE AVAILABLE TO THE ASSESSEES. IN VIEW THERE OF, AFTER HEARING LD. SR.DR AND NOTING THAT NO OBJECTION IS POSED TO THE RE MAND OF THE PROCEEDINGS, IT IS DEEMED APPROPRIATE CONSIDERING THE ORDE RS PASSED TO SET ASIDE THE IMPUGNED ORDERS BACK TO THE FILE OF THE CIT (A) WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IN ITS OWN INTEREST IS ADVISED TO PARTICIPATE FULLY AND FAIRLY B EFORE THE CIT(A) AS FAILING WHICH IT IS MADE CLEAR THAT IN THE EVENTUALITY OF ABUSE OF THE TRUST REPOSED, THE CIT(A) WOULD BE AT LIBERTY TO PASS AN ORDE R ON ITA-973 TO 976/CHD/2018 PAGE 3 OF 3 THE BASIS OF MATERIAL AVAILABLE ON RECORD. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 5. IN THE RESULT, THE APPEALS OF THE ASSESSEES ARE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.01. 2019. SD/- SD/- ( % & ' ( ) ) ( ! ) (ANNAPURNA GUPTA) (DIVA SINGH) *+ #/ ACCOUNTANT MEMBER ' #/ JUDICIAL MEMBER & % (+ ! ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ / / CIT 4. $ / ( )/ THE CIT(A) 5. -01 2 , & 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7% / GUARD FILE (+ $ / BY ORDER, 8 # / ASSISTANT REGISTRAR