M/s. Fair Food Overseas Private Limited, Katni V. Deputy Commissioner Of Income Tax (Central), Jabalpur

ITSSA 10/JAB/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3716 (ITAT-JABALPUR)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 19-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRAVAN KUMAR
• Keywords: Opportunity of being heard; Set aside
• Section: 132; 143(3); 153A

Judgement Text

1 | P a g e IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR (Through web-based video conferencing platform) BEFORE SHRI SANJAY ARORA, HON’BLE ACCOUNTANT MEMBER & SHRI MANOMOHAN DAS, HON'BLE JUDICIAL MEMBER I.T. (SS) A. Nos. 07 to 10/JAB/2021 (Asst. Year : 2009-10, 2011-12, 2016-17 & 2018-19) Appellant by : Shri Dhiraj Ghai, FCA Respondent by : Shri Shravan Kumar, CIT-DR Date of hearing : 28/06/2022 Date of pronouncement : 30/06/2022 O R D E R Per Bench: These are Appeals by the Assessee directed against the Order dated 09/07/2021 by the Commissioner of Income Tax (Appeals)-3, Bhopal (‘CIT(A)’, for short), dismissing the assessee’s appeals contesting it’s assessment u/s. 153A read with section 143(3) of the Income Tax Act, 1961 (‘the Act’ hereinafter), dated 23/12/2019, for the relevant years, save for Assessment Year (AY) 2018-19, for which it is u/s. 143(3). 2. At the very outset, it was submitted by Shri Ghai, the ld. counsel for the assessee, that the impugned order, though on merits, is an ex-parte order, which may need to be, for that reason, set aside. Explaining the background facts of the case, he would submit that the assessee is a Katni-based company, and the Fair Food Overseas Pvt. Ltd., NH-7, Jabalpur Road, 255, Padva Katni (MP) [PAN : AAACF 9709 N] vs. Dy. CIT (Central), Jabalpur. (Appellant) (Respondent) IT (SS) A Nos. 07-10/JAB/2021 (A.Y. 2009-10, 2011-12, 2016-17 & 2018-19) Fair Food Overseas Pvt. Ltd. v. Dy. CIT 2 | P a g e impugned assessment is an assessment pursuant to a search u/s. 132 of the Act, appeals against which assessments are still being heard physically, with the office of the first appellate authority being at Bhopal. The entire appellate proceedings were on during the course of Corona pandemic. He would, then, for each of the five dates mentioned at para 4.3 (page 28) of the impugned order, on which the ld. CIT(A) states of opportunity having been granted to the assessee, explain both the peculiar circumstances as well as environmental issues obtaining that prevented the assessee to avail the said opportunities, beginning 17/03/2020 to 09/07/2021. Shri Davendra Mehani, one of the five brothers of the family owning and managing the assessee-company, as well as the person looking after it’s financial affairs and tax matters, expired on 26/07/2019, i.e., during the course of the assessment proceedings itself. He would then take us through different pages of the assessee’s paper-book, being APB pgs. 143-146. The same pertain to, inter alia, a news item dated 19/10/2020 (one of the dates for which the notice of hearing was issued), stating of an observed increase in corona virus cases; hospitalization of Sh. Doulat Ram Mehani, the eldest brother and Director in the company, during period 06/07/2021 to 10/07/2021, for treatment for Covid 19. There was, he explained, a complete break-down of communication at the time, on being asked as to why could an adjournment, stating the reason/s, be not sought, so that his office itself could not be contacted by the clients for the purpose. In fact, there were serious technical issues in the portal of the Revenue since 01/06/2021, which prevented the assessee from communicating even through the virtual mode. Multiple dates were being reflected in respect of a single notice, which led to the assessee replying on 10/07/2021 – explaining that the Accountant had suffered Covid and was on medical leave, seeking time till the last week of August, 2021, in respect of a hearing date for 21/07/2021, even as, as per the impugned order, the hearing closed on 09/7/2021 (APB pg. 19). The question of preparing the case under the circumstances did not arise. IT (SS) A Nos. 07-10/JAB/2021 (A.Y. 2009-10, 2011-12, 2016-17 & 2018-19) Fair Food Overseas Pvt. Ltd. v. Dy. CIT 3 | P a g e 3. We have heard the parties. In view of the fore-going assertions by Shri Ghai, which are, to the extent possible, substantiated, and remain un-rebutted, we only consider it fit and proper that the matter is, in the interest of justice, setting aside the impugned order, restored back to the file of the first appellate authority for an adjudication afresh on merits and in accordance with law after allowing the assessee a reasonable opportunity of being heard. The assessee, who was informed by Shri Ghai as now no longer constrained to join the proceedings and properly represent it’s case before the first appellate authority, shall cooperate in the ensuing proceedings. We decide accordingly. 4. In the result, the assessee’s appeals are allowed for statistical purposes. Order pronounced in open Court on June 30, 2022 Sd/- Sd/- (Manomohan Das) (Sanjay Arora) Judicial Member Accountant Member Dated:30/06/2022 vr/- Copy to: 1. The Appellant: Fair Food Overseas Pvt. Ltd., NH-7, Jabalpur Road, 255, Padva Katni (MP). 2. The Respondent: Dy. CIT (Central), Jabalpur. 3. The Principal CI T, Central, Bhopal. 4. The CI T( Appeals)-3, Bhopal (MP) 5. The CI T-D.R., I TAT, Jabalpur. 6. Guard File. By order (VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Jabalpur.