Sh. Kanhaiya Lal, Panchkula V. ITO, Panchkula

MA 134/CHANDI/2018

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 5178 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 6 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 29-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA DHAR
• Section: 10

Judgement Text

आयकर य कर , य य “ए एए ए” IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’, CHANDIGARH BEFORE SMT.DIVA SINGH, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER MA No.134/Chd/2018 In आयकर अपील सं./ ITA No.1236/Chd/2016 / Assessment Year : 2007-08 Shri Paras Chaudhary & Shri Shubham Chaudhary, Legal Heirs of Late Shri Kanhaiya Lal, House No.99, Sector 4, Panchkula, Haryana ब म The Income Tax Officer, Ward 2, Panchkula. ./PAN NO: ABXPL6331M /Assessee by : Shri Mukesh Aggarwal, CA / Revenue by : Smt.Priyanka Dhar, Sr.DR ! /Date of Hearing: 10.02.2022 "#$% ! /Date of Pronouncement: 17.02.2022 .2022 (Hearing through Webex) आदेश/ORDER Per Vikram Singh Yadav, Accountant Member: The present Miscellaneous Application is directed against the ex parte order passed by the Coordinate Bench dated 06.04.2018 wherein the appeal of the assessee was dismissed on account of non-prosecution. MA No.134/Chd/2018 A.Y.2007-08 2 2. In his Miscellaneous Application, the assessee has requested for restoration of the appeal. In this regard, it is noted that the assessee had expired on 10.02.2019 and thereafter, an amended/revised Miscellaneous Application has been filed by Mr.Paras Chaudhary and Mr. Shubham Chaudhary, the legal heirs of late Shri Kanhaiya Lal and the contents of the Miscellaneous Application so filed read as under: “1. Our father Sh. Kanhaiya Lai S/o. Sh. Uday Ram, R/o. House No. 99, Sector - 4, Panchkula (Appellant), had expired on dated 10.02.2019 (copy of death certificate attached). 2. We, Paras and Shubham Chaudhary are legal heir of the (Late) Sh. Kanhaiya Lal (Appellant), copy of Registered WILL is attached, further we also had submitted request to Jurisdictional A.O. to registered us as Legal Heir of the appellant, copy of same is attached. 3. The Appellant, our father (Late) Sh. Kanhaiya Lai had appointed CA Sumeer Arora, SCO. 865, First Floor, NAC Manimajra (Chandigarh) as Legal Counsel. 4. The legal Counsel had mentioned his own address i.e. SCO. 865, F.F., NAC Manimajra (Chandigarh) as correspondence address in Form No. 36 (Column No. 10), so we had not received any notice from Hon'ble ITAT, Chandigarh, (copy of Form No. 36 is attached). However our permanent address had been as below; House No. 99, Sector - 4, Panchkula (Haryana) 5. The legal counsel had not appeared on 04.04.2018 date fixed for hearing, hence Appeal had been dismissed. 6. Our father being illiterate had been fully dependent on the counsel. 7. After dismissal of the Appeal by Hon'ble IT AT Chandigarh on dated 04.04.2018, we received a Notice of Demand from the Jurisdiction AO to deposit MA No.134/Chd/2018 A.Y.2007-08 3 amount Rs 62.01 Lacs of outstanding Income Tax on date 10.07.2018 (Copy of Demand Notice attached). 8. On receipt of Demand Notice dated 10.07.2018 to deposit the demand outstanding amounting Rs. 62.01 Lacs, we came to know regarding dismissal of the Appeal, then we contacted our Counsel, but had not received any satisfactory reply from the counsel. There after appellant had field Application for Restoration of appeal. 9. Now, we wish to Appear for hearing personally or through our legal representative and we assure the Hon'ble Member of ITAT Chandigarh that we shall appear in all following hearings, as we are confident to have strong point of view along with Income Tax Provisions favoring our case. 10.We pray to the Hon'ble Member of this court (ITAT Chandigarh) to re-store the Appeal, otherwise we would suffer a huge Income Tax liability, however our income from Interest on Enhanced Compensation was not taxable in the Financial Year 2006-07, further Hon'ble Supreme Court in case of Union of India Vs Hari Singh & Others in Civil Appeal No. 1504 of 2017 and the Jurisdictional ITAT, Chandigarh in its recent decisions in case of Sham Lai & Others vs ITO Ward - 3, Panchkula in ITA No. 364/Chd/2016 dated 18.01.2019 has also decided that the Interest on enhanced compensation is part of enhanced compensation, hence exempted u/s 10 (37) of the Income Tax Act. 11. Otherwise, we shall suffer the liability on income, which otherwise was not taxable in the Financial Year 2006-07. 12. We again pray to restore the appeal.” 3. Per contra, the ld. DR has relied upon the order passed by the Coordinate Bench. 4. After hearing both the parties and perusing the material available on record, we find that the Coordinate Bench has passed an ex-parte order due to non-prosecution on behalf of the assessee and has also given liberty to seek recall of the said order by moving an appropriate prayer. MA No.134/Chd/2018 A.Y.2007-08 4 Therefore, taking into consideration the facts and circumstances of the case where there is non-appearance on part of the Counsel on behalf of the assessee, the assessee who has since expired and the legal heirs have been brought on record and they have undertaken to pursue the present appeal and where the matter has not been decided on merits and it has been contended that the matter is covered by the decision of the Hon’ble Supreme court, we find that it is essential that we hear the parties on merits of the case and therefore, in the interest of substantial justice, the order so passed by the Coordinate Bench is hereby recalled and the Registry is directed to fix the matter in due course for hearing both the parties on merits. Issue notice to both the parties. 5. In the result, the Miscellaneous Application filed on behalf of the deceased assessee through his legal heirs is allowed in the light of aforesaid directions. Order pronounced on 17.02.2022. Sd/- Sd/- (DIVA SINGH) (VIKRAM SINGH YADAV) /Judicial Member /Accountant Member Dated: 17.02.2022 *रती* MA No.134/Chd/2018 A.Y.2007-08 5 # & ' ( ) * ) / Copy of the order forwarded to : 1. +/ The Appellant 2. ', +/ The Respondent 3. - / CIT 4. - ( )/ The CIT(A) 5. ) . / ' 0 , ! 0 , 123 /4/ DR, ITAT, CHANDIGARH 6. / 3 5 / Guard File # & स / By order, सह ंज / Assistant Registrar