M/s Sukhsagar Food Pvt.Ltd., Katni V. Deputy Commissioner of Income Tax Central Circle, Jabalpur

ITSSA 6/JAB/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3443 (ITAT-JABALPUR)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 21-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-07-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 18-08-2021
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: 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. No. 06/JAB/2021 (Asst. Year: 2010-11) Appellant by : Shri Dhiraj Ghai, FCA Respondent by : Smt. Neeraja Pradhan, CIT-DR Date of hearing : 22/07/2022 Date of pronouncement : 22/07/2022 O R D E R Per Sanjay Arora, AM: This Appeal by the Assessee directed against the Order dated 22/06/2021 by the Commissioner of Income Tax (Appeals)-3, Bhopal (‘CIT(A)’, for short), dismissing the assessee’s appeal 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 Assessment Year (AY) 2010-11. 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 Sukhsagar Food Pvt. Ltd., Doulat Ram Takhatmal, Nr. MPEB Power House, NH-7, Shanti Nagar, Katni. [PAN : AAKCS 0337 F] vs. Deputy Commissioner of Income Tax, Central Circle, Jabalpur. (Appellant) (Respondent) IT(SS)A No. 06/JAB/2021 (A.Y. 2010-11) Sukhsagar Food 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, appeal against which assessment is 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 2 (page 5) 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 16/03/2020 to 18/06/2021 (wrongly mentioned as 18/11/2021 in the impugned order). 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. 13-15, 60-61. The same pertain to, inter alia, news items dated 29/09/2020 & 19/10/2020 (two of the five dates for which the notices of hearing were issued), stating of an observed increase in corona virus cases; hospitalization of Sh. Bhojraj Mehani, one of the brothers and Director in the company, during period 04/5/2021 to 10/5/2021, 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 led to a date being fixed for 21/07/2021 vide notice dated 14/06/2021 (PB pg.-1), i.e., on a failure in delivery of notice of hearing for 18/06/2021, even as the impugned order stands framed on 22/06/2021. 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 IT(SS)A No. 06/JAB/2021 (A.Y. 2010-11) Sukhsagar Food Pvt. Ltd. v. Dy. CIT 3 | P a g e 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. Why, the fixing of the date of hearing on 21/07/2021 (vide notice dated 14/06/2021), even as the impugned order is passed on 22/6/2021, is by itself sufficient to set-aside the impugned order inasmuch as denial of opportunity is established, which becomes all the more pertinent in view of the complete absence of any representation prior thereto. The assessee is informed by Shri Ghai as now no longer constrained to join the proceedings and properly represent it’s case before the first appellate authority, and, as assured by him, shall cooperate in the ensuing proceedings. We decide accordingly. 4. In the result, the assessee’s appeal is allowed for statistical purposes. Order pronounced in open Court on July 22, 2022 Sd/- Sd/- (Manomohan Das) (Sanjay Arora) Judicial Member Accountant Member Dated: 22/07/2022 vr/- Copy to: 1. The Appellant: Sukhsagar Food Pvt. Ltd., Doulat Ram Takhatmal, Nr. MPEB Power House, NH-7, Shanti Nagar, Katni. 2. The Respondent: DCI T, Central Cir cle, Jabalpur. 3. The Principal CI T, Central, Bhopal 4. The CI T( A)-3, Bh opal (MP) 5. The CI T-D.R., I TAT, Jabalpur. 6. Guard File. By order (VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Jabalpur.