Arora Fabrics Pvt. Ltd., Ludhiana V. ACIT, Ludhiana

ITSSA 1/CHANDI/2014

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 0372 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-11-2014
• Assessment Year: misc
• Appeal Filed On: 27-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Assessee Lawyers: KULDEEP SINGHIRS RETD
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER IT(SS)A NO. 1/CHD/2014 BLOCK PERIOD : 1.4.1996 TO 5.2.2002 ARORA FABRICS PVT. LTD., VS. THE A.C.I.T., SARDAR NAGAR, ROHAN ROAD, CENTRAL CIRCLE III, LUDHIANA. LUDHIANA. PAN: AABCA5335J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KULDEEP SINGH,(IRS RETD.) RESPONDENT BY : SMT.JYOTI KUMARI, DR DATE OF HEARING : 03.11.2014 DATE OF PRONOUNCEMENT : 07.11.2014 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEAL S)-II, LUDHIANA DATED 25.4.2014 FOR THE ABOVE BLOCK PERIOD , CHALLENGING THE PENALTY UNDER SECTION 221(1) OF THE INCOME TAX ACT. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT EARLIER THE APPEAL OF THE ASSESSEE WAS DISMISSED BY THE LEARNED CIT (APPE ALS). THE ASSESSEE FILED THE APPEAL BEFORE THE TRIBUNAL, WHO VIDE ORDER DATED 25.10.2013 DIRECTED THE LEARNED CIT (AP PEALS) TO PASS A SPEAKING ORDER AND RESTORED THE APPEAL OF TH E ASSESSEE TO HIS FILE WITH DIRECTION TO DECIDE THE APPEAL OF THE ASSESSEE ON MERITS. THE ASSESSEE SUBMITTED BEFORE THE TRIB UNAL THAT 2 THE ADDITION MADE BY THE ASSESSING OFFICER HAS BEEN DELETED BY THE LEARNED CIT (APPEALS) AND CONFIRMED BY THE T RIBUNAL, THEREFORE, THE LEVY OF PENALTY UNDER SECTION 221(1) OF THE INCOME TAX ACT HAS NO MERIT. THE LEARNED CIT (APP EALS) WAS ACCORDINGLY DIRECTED TO VERIFY THE SAME AFTER GIVIN G REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE A SSESSEE WAS ALSO DIRECTED TO APPEAR BEFORE THE LEARNED CIT (APP EALS) AND TO PLACE ON RECORD ALL THE RELEVANT ORDERS AGAINST THE QUANTUM ADDITION. THE LEARNED CIT (APPEALS) ISSUED SEVERA L NOTICES TO THE ASSESSEE FOR FINALIZATION OF THE APPEAL BUT NO STATUTORY NOTICE HAS BEEN ATTENDED TO BY THE ASSESSEE. IN T HE ABSENCE OF ANY REPRESENTATION FROM THE SIDE OF THE ASSESSEE AND IN THE ABSENCE OF ANY MATERIAL ON RECORD, THE LEARNED CIT (APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE. 3. ON CONSIDERATION OF THE RIVAL CONTENTIONS, WE AR E OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT TH E LEVEL OF THE LEARNED CIT (APPEALS). THE EARLIER ORDER OF T HE TRIBUNAL DATED 25.10.2013, AS NOTED ABOVE, HAS NOT BEEN COMP LIED WITH BY THE CIT (APPEALS) AS WELL BY THE ASSESSEE. THE LEARNED CIT (APPEALS) COULD HAVE VERIFIED THE FACTS OF PASSING OF DIFFERENT ORDERS IN THE CASE OF THE ASSESSEE FROM THE RECORD AND SIMILARLY THE ASSESSEE SHOULD HAVE PLACED ON RECORD ALL THE RELEVANT ORDERS OF QUANTUM ADDITION BEFORE THE LEAR NED CIT (APPEALS) FOR FINALIZATION OF THE MATTER. HOWEVER , NEITHER THE ASSESSEE, NOR THE LEARNED CIT (APPEALS) HAVE TAKEN CARE TO COMPLY WITH EARLIER ORDER OF THE TRIBUNAL. THE LE ARNED CIT (APPEALS) IS BOUND TO DECIDE THE APPEAL OF THE ASSE SSEE ON MERITS GIVING THE REASONS FOR DECISION IN THE APPEL LATE ORDER 3 ACCORDING TO SECTION 250(6) OF THE INCOME TAX ACT. THUS THE ORDER OF THE LEARNED CIT (APPEALS) CANNOT BE SUSTAI NED IN LAW. 4. WE ACCORDINGLY SET ASIDE THE IMPUGNED ORDER OF T HE LEARNED CIT (APPEALS) AND RESTORE THE APPEAL OF THE ASSESSEE TO HIS FILE WITH DIRECTION TO REDECIDE THE APPEAL O F THE ASSESSEE ON MERITS AS IS EARLIER DIRECTED BY THE TRIBUNAL. 5, IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 7 TH DAY OF NOVEMBER, 2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 7 TH NOVEMBER, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4