Takata India Private Limited, Kancheepuram V. ACIT Corporate Circle 3(1), CHENNAI

ITTPA 17/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6669 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 29 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 17-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 18-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M SRINIVASA RAO
• Assessee Lawyers: T M SHIVAKUMAR
• Keywords: Transfer pricing; Opportunity of being heard; Set aside
• Section: 143(3); 143(2)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . , BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T(TP).A. NO. 17/CHNY/2019 / ASSESSMENT YEAR: 2014-15 M/S. TAKATA INDIA PRIVATE LIMITED, SURVEY NO. 43/4, 215, THENUR VILLAGE, AMMANAMPAKKAM POST, CHENGALPATTU TALUK, KANCHIPURAM 603 002. [PAN:AACCT7200N] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(1), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI T.M. SHIVA KUMAR, ADVOCATE / RESPONDENT BY : SHRI M. SRINIVASA RAO, CIT / DATE OF HEARING : 30.09.2019 /DATE OF PRONOUNCEMENT : 17.10.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 7, CHENNAI, DATED 21.12.2018 RELEVANT TO THE ASSESSMENT YEAR 2014-15. BESIDES CHALLENGING THE ISSUE ON MERITS, THE ASSESSEE HAS MAINLY CHALLENGED THE EX-PARTE ORDER PASSED BY THE LD. CIT(A). 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN FOR THE ASSESSMENT YEAR 2014-15 ON 29.11.2014 DECLARING LOSS OF .21,85,97,159/-. I.T(TP).A. NO. 17/CHNY/19 2 THE RETURN FILED BY THE ASSESSEE WAS TAKEN UP FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] WAS ISSUED. UPON SCRUTINY INCLUDING THE TRANSFER PRICING PROCEEDINGS, THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 92CA(3) OF THE ACT WAS COMPLETED BY ASSESSING THE TOTAL INCOME OF THE ASSESSEE AS NIL BY MAKING TP ADJUSTMENT AT .51,86,27,609/- AS WELL AS UNDER CORPORATE TAX MATTERS, .17,75,801/- WAS DISALLOWED UNDER SECTION 36(1)(VA) OF THE ACT AND BROUGHT TO TAX. ON APPEAL, SINCE THE ASSESSEE COULD NOT RESPOND TO THE NOTICE OF HEARING, THE LD. CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. BY FILING EVIDENCE ON THE LATE RECEIPT OF NOTICE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(A) HAS ERRONEOUSLY DISMISSED THE APPEAL WITHOUT AFFORDING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND PRAYED FOR SETTING ASIDE THE APPELLATE ORDER BY PASSING SUITABLE DIRECTIONS. 5. PER CONTRA, THE LD. DR FAIRLY CONCEDED THAT THE MATTER MAY BE REMITTED TO THE LD. CIT(A) FOR AFFORDING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. AGAINST THE I.T(TP).A. NO. 17/CHNY/19 3 ASSESSMENT ORDER UNDER SECTION 143(3) R.W.S. 92CA(3) OF THE ACT, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A). DURING THE COURSE OF APPELLATE PROCEEDINGS, THE LD. CIT(A) ISSUED NOTICE TO THE ASSESSEE FOR HEARING OF ITS APPEAL ON 19.12.2018. THE LD. CIT(A) TRACKED THE SAID NOTICE VIA SPEED POST TRACKING, WHEREBY IT WAS CONFIRMED THAT THE HEARING NOTICE WAS SERVED. HOWEVER, SINCE THERE WAS NEITHER ANY REPRESENTATION NOR WAS THERE ANY ADJOURNMENT SOUGHT EITHER BY THE ASSESSEE OR BY THE AR, THE LD. CIT(A) PRESUMED THAT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPEAL. SINCE THERE WAS NOTHING AVAILABLE EITHER BY WAY OF EXPLANATORY NOTES OR OTHER DOCUMENTS TO REBUT THE FINDINGS OF THE ASSESSING OFFICER, THE LD. CIT(A) CONFIRMED THE ASSESSMENT AND DISMISSED THE APPEAL OF THE ASSESSEE. 6.1 EVEN THOUGH THE LD. CIT(A) TRACKED THE HEARING NOTICE VIA SPEED POST TRACKING, BUT, THERE WAS NO MENTION AS TO WHEN THE SAID NOTICE OF HEARING WAS DELIVERED/SERVED ON THE ASSESSEE FOR COMPLIANCE. HOWEVER, THE POSTAL AUTHORITIES HAVE CONFIRMED THE DELIVERY OF THE SPEED POST LETTER TO THE ASSESSEE MUCH LATER ON THE DATE OF HEARING FIXED BY THE LD. CIT(A) AND THEREBY, THE ASSESSEE COULD NOT APPEAR OR FILE ANY DOCUMENTARY EVIDENCE TO REBUT THE FINDINGS OF THE ASSESSING OFFICER. UNDER THESE FACTS AND CIRCUMSTANCES, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) TO DECIDE THE ISSUES AFRESH IN ACCORDANCE WITH LAW BY AFFORDING SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE. I.T(TP).A. NO. 17/CHNY/19 4 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 17 TH OCTOBER, 2019 IN CHENNAI. SD/ - SD/ - (INTURI RAMA RAO) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 17.10.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.