TRANCEFX STUDIOS P.LTD, MUMBAI V. ITO 7(3)(2), MUMBAI

MA 27/MUM/2021

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0630 (ITAT-MUMBAI)
• Duration Of Justice: 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2003-2004
• Appeal Filed On: 01-02-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURUBINDER SINGHLD
• Assessee Lawyers: PRAKASH JHUNJHUNWALA LD
• Section: 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI , , BEFORE HONBLE SHRI VIKAS AWASTHY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM (HEARING THROUGH VIDEO CONFERENCING MODE) MISCELLANEOUS APPLICATION NO.27/MUM/2021 (ARISING OUT OF ITA NO.6933/MUM/2013) ( / ASSESSMENT YEAR: 2003-04) M/S. TRANCEFX STUDIOS PVT.LTD. D.Y.PATIL BLDG. OPP. MIG COLONY ADARSH NAGAR, WORLI MUMBAI - 400 025 / VS. INCOME TAX OFFICER-7(3)(2) MUMBAI ./ ./PAN/GIR NO. AABCT-3875-E ( /APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI PRAKASH JHUNJHUNWALA-LD. AR / RESPONDENT BY : SHRI GURUBINDER SINGH-LD.DR / DATE OF HEARING : 19/02/2021 !' / DATE OF PRONOUNCEMENT : 19/02/2021 / O R D E R MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER):- 1. BY WAY OF THIS MISCELLANEOUS APPLICATION FOR ASS ESSMENT YEAR [AY] 2003-04, THE ASSESSEE SEEKS RECALL OF EX-PARTE ORDER PASSED BY THE 2 TRIBUNAL IN CAPTIONED APPEAL ON 07/05/2018. THE BEN CH, IN ITS ORDER, HAS CONFIRMED THE ORDER OF LEARNED FIRST APPELLATE AUTH ORITY AND DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE LEARNED COUNSEL, DRAWING ATTENTION TO THE PE TITION, SUBMITTED THAT NON-APPEARANCE ON THE DATE OF HEARING HAD OCCURRED DUE TO BONA-FIDE REASONS AND COMPELLING CIRCUMSTANCES BEYOND CONTROL OF THE ASSESSEE. IT WAS SUBMITTED THAT APPEAL COULD NOT BE ATTENDED TO DUE TO CHANGE IN COUNSEL. THE REGULAR REPRESENTATIVE CA. PUNEET SING HVI HAD APPOINTED A SENIOR ADVOCATE TO ATTEND THE HEARING. HOWEVER, DUE TO CLOSURE OF THE BUSINESS, THE ASSESSEE COULD NOT PAY THE PROFESSION AL FEES DUE TO WHICH THE APPEAL COULD NOT BE ARGUED. THEREFORE ADJOURNME NTS WERE SOUGHT ON VARIOUS DATES OF HEARING. THEREAFTER, THE ASSESSEE APPOINTED ANOTHER COUNSEL, HOWEVER, THE ORIGINAL DOCUMENTS AND NO OB JECTION CERTIFICATE (NOC) WERE NOT HANDED OVER TO HIM DUE TO WHICH THE APPEAL COULD NOT BE ARGUED BY NEW COUNSEL. FURTHER, THE NEWLY APPOINTED COUNSEL WAS NOT AWARE OF THE DATE OF HEARING AS A RESULT OF WHICH T HE APPEAL WAS DISMISSED EX-PARTE. THE LD. AR FURTHER SUBMITTED THAT BUSINES S WAS CLOSED DOWN FOR SUBSTANTIAL PERIOD TILL 31/03/2016 AND THE DIRECTOR S WERE RESIDING AT PUNE AND WERE NOT ABLE TO COORDINATE WITH THE ATTENDING COUNSEL DUE TO WHICH THE APPEAL COULD NOT BE REPRESENTED. FURTHER, THE ACCOU NTANT HANDLING THE ACCOUNTS AND TAXATION MATTERS HAD LEFT THE JOB AND THERE WAS NO OTHER COMPETENT STAFF TO COMPILE THE DETAILS AND COORDINA TE WITH THE CONSULTANT TO REPRESENT THE APPEAL. LASTLY, THE LEARNED COUNSEL S UBMITTED THAT ON THE FACTS OF THE CASE, THE ASSESSEE WHISHES TO SETTLE T HE DISPUTE UNDER DIRECT TAX VIVAD SE VISHWAS SCHEME, 2020. ON THE BASIS OF AFORESAID 3 SUBMISSIONS, LD. AR PLEADED FOR RECALL OF EX-PARTE ORDER. IN SUPPORT, AN AFFIDAVIT OF DIRECTOR OF ASSESSEE-COMPANY AFFIRMING THE AFORESAID SUBMISSIONS HAS ALSO BEEN PLACED ON RECORD. THE LD. DR, SHRI GURBINDER SINGH, ON THE OTHER HAND , SUBMITTED THAT THE ORIGINAL ASSESSMENT WAS FRAMED U/S 144 AND THE ASSE SSEE REMAINED NEGLIGENT IN ATTENDING THE PROCEEDINGS EVEN BEFORE TRIBUNAL. 3. KEEPING IN VIEW THE AFORESAID SUBMISSIONS AND M ATERIAL ON RECORD, THE BENCH FORMED AN OPINION THAT THE ASSESSEE WAS SUCCE SSFUL IN ESTABLISHING SUFFICIENT CAUSE FOR RECALL OF EX-PARTE ORDER. THER EFORE, WE ARE INCLINED TO RECALL THE ORDER UNDER CONSIDERATION. THE REGISTRY IS DIRECTED TO FIX THE APPEAL FOR FRESH HEARING IN REGULAR COURSE BEFORE R EGULAR BENCH AFTER DUE INTIMATION TO BOTH THE SIDES. 4. THE APPLICATION STANDS ALLOWED IN TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED ON 19 TH FEBRUARY, 2021. SD/- SD/- (VIKAS AWASTHY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 19/02/2021 SR.PS, KASARLA THIRUMALESH / COPY OF THE ORDER FORWARDED TO : 1. !' / THE APPELLANT 2. #$' / THE RESPONDENT 3. % %& ( ! ) / THE CIT(A) 4. % %& / CIT CONCERNED 5. '(#)* , % ! * , / DR, ITAT, MUMBAI 6. (,-. / GUARD FILE