M/s Dynamic Finvest Services P. Ltd., New Delhi V. DCIT, Chandigarh

MA 2/CHANDI/2017

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6573 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 12-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURINDER MEENA
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER M.A.NO.1/CHD/2017 IN ITA NO.218/CHD/2016 (ASSESSMENT YEAR : 2009-10) M.A.NOS.2 TO 5/CHD/2017 IN ITA NOS.211 TO 214/CHD/2016 (ASSESSMENT YEARS : 2005-06, 2006-07, 2007-08 & 2010-11) M/S DYNAMIC FINVEST VS. THE D.C.I.T., SERVICES (P) LTD., CENTRAL CIRCLE-I, NEW DELHI. CHANDIGARH. PAN: AAACD3347E M.A.NO.9/CHD/2017 IN ITA NO.357/CHD/2016 (ASSESSMENT YEAR : 2011-12) SUHAIL GOYAL, VS. THE D.C.I.T., H.NO.64, SECTOR-9, CENTRAL CIRCLE-I, CHANDIGARH. CHANDIGARH. PAN: ANDPG6446Q & M.A.NO.10/CHD/2017 IN ITA NO.215/CHD/2016 (ASSESSMENT YEAR : 2005-06) SHRI RAJEEV GOYAL, VS. THE D.C.I.T., H.NO.64, SECTOR-9, CENTRAL CIRCLE-I, CHANDIGARH. CHANDIGARH. PAN: AATPG7232M (APPELLANT) (RESPONDENT) APPLICANT BY : SHRI TEJ MOHAN SINGH, ADV. RESPONDENT BY : SHRI SURINDER MEENA, JCIT DATE OF HEARING : 25.05.2018 DATE OF PRONOUNCEMENT : 29.05.2018 ORDER PER ANNAPURNA GUPTA, AM : ALL THE ABOVE MISCELLANEOUS APPLICATIONS ARE FILED BY THE DIFFERENT ASSESSEES FOR RECALLING OF THE ORDERS OF THE 2 TRIBUNAL DATED 15.9.2016, 14.9.2016, 27.7.2016 AND 15.9.2016 RELATING TO ASSESSMENT YEARS 2009-10, 200 5-06, 2006-07, 2007-08, 2010-11, 2011-12 AND 2005-06 RESPECTIVELY, WHICH WERE DISMISSED EX-PARTE FOR WAN T OF PROSECUTION. 2. IT WAS SUBMITTED BY THE LD. COUNSEL FOR ASSESSEE THAT ALL THE ABOVE MISCELLANEOUS APPLICATIONS PERTAINED TO THE COMPANY M/S DYNAMIC FINVEST SERVICES (P) LTD. AND I TS DIRECTORS SHRI SUHAIL GOYAL AND SHRI RAJEEV GOYAL W HICH WERE DISMISSED FOR NON-PROSECUTION ON DIFFERENT DAT ES VIDE DIFFERENT ORDERS PASSED. THE LD. COUNSEL FOR ASSESS EE CONTENDED THAT SINCE ALL THE ABOVE ASSESSEES WERE INTER- RELATED AND THERE WAS A COMMON REASON FOR NON ATTENDANCE IN ALL THE ABOVE CASES, ALL THE ABOVE MISCELLANEOUS APPLICATIONS COULD BE TAKEN UP TOGETH ER FOR HEARING. 3. THE LD. COUNSEL FOR ASSESSEE SUBMITTED THAT DUE TO ILLNESS (VIRAL FEVER) OF THE DIRECTORS OF THE ASSES SEE COMPANY, WHO ARE ALSO ASSESSEES IN ITA NO.357 & 215/CHD/2016, THE COUNSEL FOR ASSESSEE COULD NOT BE BRIEFED AND THERE WAS NO OTHER STAFF IN THE COMPANY WHO COULD SUBMIT THE ADJOURNMENT LETTER AND, THEREFORE, THE HEARING OF THE CASE WENT UNATTENDED. THE LD. COUNSE L FOR ASSESSEE CONTENDED THAT IT HAD A GOOD AND ARGUABLE CASE AND THE NON-APPEARANCE WAS NOT DELIBERATE. THE APPL ICANT, THEREFORE, REQUESTED RECALL OF THE EARLIER ORDER. T HE APPLICANT PLACED RELIANCE ON THE JUDGMENT OF THE 3 HON'BLE CALCUTTA HIGH COURT IN THE CASE OF KHAITAN PAPER & INDUSTRIES LTD. VS. CIT (2005), 273 ITR 234 IN SU PPORT OF HIS CONTENTION. 4. THE LD. DR DID NOT OBJECT TO THE SAME. 5. WE HAVE GONE THROUGH THE ENTIRE FACTS OF THE CAS E. WE ARE CONVINCED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT REASON FOR NOT APPEARING BEFORE THE TRIB UNAL ON THE APPOINTED DATE OF HEARING TO PROSECUTE THE APPE AL. WE ARE THEREFORE OF THE OPINION THAT TO MEET THE ENDS OF NATURAL JUSTICE, THE ASSESSEE SHOULD BE GIVEN A REA SONABLE OPPORTUNITY OF BEING HEARD. EXERCISING THE POWER OF THE TRIBUNAL PROVIDED IN THE PROVISO TO RULES 24 AND 25 OF THE ITAT RULES 1963, TO SET ASIDE AN EX-PARTE ORDER AND RESTORE THE APPEAL IN CASE WHERE AN ASSESSEE DEMONS TRATES REASONABLE CAUSE FOR NON-APPEARANCE, AND CONSIDERIN G THE ENTIRETY OF FACTS IN THE PRESENT CASE, WE ARE OF TH E VIEW THAT THIS IS A FIT CASE FOR RECALLING THE ORDER FOR FRESH HEARING, WHICH WE HEREBY DO. THE REGISTRY IS DIREC TED TO FIX THE HEARING OF THE APPEAL ON 5.7.2018, WHICH WA S PRONOUNCED IN OPEN COURT. NO SEPARATE NOTICE BE ISS UED TO THE PARTIES. 6. IN THE RESULT, ALL THE MISCELLANEOUS APPLICATIO NS FILED BY THE APPLICANT ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29 TH MAY, 2018 4 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH