Shri Saurin Jagdishbhai Parikh, Kadi V. The ACIT.,Cent.Circle-1(4)., Ahmedabad

ITSSA 417/AHD/2012

• Counselvise Citation: [2016] 122 COUNSELVISE.COM (IT) 1824 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 03-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 27-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIBHA BHALL
• Assessee Lawyers: P M MEHTA
• Keywords: Principle of natural justice
• Section: 143(3); 234B; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH (BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER & SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER) IT(SS)A. NO: 417/AHD/2012 (ASSESSMENT YEAR: 2009-10) SAURIN JAGDISHBHAI PARIKH47, RAJESHWARI SOCIETY, THOL ROAD, KADI V/S ACIT, CENTRAL CIRCLE-1(4), AHMEDABAD (APPELLANT) (RESPONDENT) PAN: ABRPP8740J APPELLANT BY : SHRI P.M. MEHTA, A.R. RESPONDENT BY : SMT. VIBHA BHALL, CIT/DR ( )/ ORDER DATE OF HEARING : 03 -05-201 6 DATE OF PRONOUNCEMENT : 04 -05-2016 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF LD. CIT(A)-I, AHMEDABAD DATED 27.06.2012 PERTAINING TO A.Y. 2009-10. IT(SS)A NO . 417/AHD/2012 . A.Y. 2009-1 0 2 2. THE ASSESSEE HAS RAISED FIVE SUBSTANTIVE GROUNDS OF APPEAL. THE RELEVANT GROUND READS AS UNDER:- 5 . IN THE PECULIAR FACTS AND CIRCUMSTANCES OF THE AP PELLANT'S CASE, THE APPELLANT THEREFORE PRAYS THAT THIS HON'BLE TRIBUNA L MAY BE PLEASED TO HOLD THAT THE ORDER U/S. 154 WAS WITHOUT JURISDICTION, U NWARRANTED AND/OR UNJUSTIFIED AND THAT THE LEVY OF INTEREST U/S. 234A , 234B AND 234C, TO THE EXTENT IT DIRECTLY RESULTED FROM PASSING OF THAT OR DER, WAS REQUIRED TO BE WITHDRAWN. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT IN TH IS CASE THE ASSESSMENT WAS MADE U/S. 143(3) R.W.S. 153B OF THE ACT AND AFT ER ASSESSING THE TOTAL INCOME, THE A.O ALLOWED CREDIT FOR PREPAID TA XES WHICH INTERALIA INCLUDED THE SEIZED CASH AT THE TIME OF SEARCH. 4. VIDE ORDER DATED 27.06.2011 MADE U/S. 154 OF THE AC T, THE ASSESSING OFFICER RECTIFIED THE ASSESSMENT ORDER DATED 30.12. 2010 STATING THAT ON VERIFICATION OF INCOME TAX COMPUTATION FORM ITN S 150, IT IS NOTICED THAT THERE IS A MISTAKE IN GIVING CREDIT FO R THE PREPAID TAXES. 5. THE MISTAKE BEING APPARENT FROM THE RECORD THE SAME IS RECTIFIED U/S. 154 OF THE ACT. 6. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) A ND QUESTIONED THE VALIDITY OF THE ORDER MADE U/S. 154 STATING THAT IT IS BAD IN LAW AND LIABLE TO BE QUASHED AS THE SAME WAS PASSED IN VIOL ATION OF THE PRINCIPLE OF NATURAL JUSTICE BY NOT PROVIDING ANY O PPORTUNITY OF BEING HEARD AS ENVISAGED IN SECTION 154(3) OF THE ACT. 7. THE ASSESSEE HAS ALSO CHALLENGED THE ASSESSMENT ORD ER ON MERITS OF THE CASE. IT(SS)A NO . 417/AHD/2012 . A.Y. 2009-1 0 3 8. THE FIRST APPELLATE AUTHORITY DISMISSED THE APPEAL OF THE ASSESSEE WITHOUT MAKING ANY COMMENT/OBSERVATION/DEC ISION IN SO FAR AS THE DENIAL OF NATURAL JUSTICE IS CONCERNED. 9. BEFORE US, THE LD. COUNSEL REITERATED WHAT HAS BEEN STATED BEFORE THE LOWER AUTHORITIES. WE HAVE GIVEN A THOUG HTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE CAR EFULLY PERUSED THE ORDER MADE U/S. 154 OF THE ACT, THERE IS NO REFEREN CE TO ISSUE AND SERVICE OF ANY NOTICE BEFORE MAKING THE ASSESSMENT ORDER U/S. 154 OF THE ACT. EVEN, THE LD. D.R. COULD NOT BRING ON RECO RD WHETHER ANY OPPORTUNITY WAS ALLOWED TO THE ASSESSEE. 10. THIS CONDUCT OF THE REVENUE AUTHORITY IS IN GROSS V IOLATION OF AUDI ALTERAM PARTEM. SINCE THE RECTIFICATION ORDE R IS IN GROSS VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE, THE SAME CANNOT BE SUSTAINED. THEREFORE, FINDINGS OF THE LD. CIT(A) AR E SET ASIDE AND APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 04 - 05 - 20 16. SD/- SD/- (R.P. TOLANI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE.