Singal Udyog, Ludhiana V. ITO, W-1(3), Ludhiana

MA 61/CHANDI/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3853 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 23-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 274; 254(2)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ ‘‘ए एए ए’, च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER M.A. No. 61/CHD/2020 in आयकर अपील सं./ ITA No. 256/CHD/2018 नधा रण वष / A.Y. : 2014-15 M/s Singal Udyog, B-82/20, College Road, Civil Lines, Ludhiana. बनाम VS The ITO, Ward 1(3), Ludhiana. थायी लेखा सं./PAN No: ABNFS5533L अपीलाथ /Appellant यथ /Respondent नधा रती क! ओर से/Assessee by : Shri Sudhir Sehgal, Advocate राज व क! ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR स ु नवाई क! तार&ख/Date of Hearing : 15.06.2022 उदघोषणा क! तार&ख/Date of Pronouncement : 21.06.2022 आदेश/ORDER PER DIVA SINGH The present Miscellaneous Application has been filed by the assessee u/s 254(2) of the Income Tax Act wherein prayer for recalling of the order dated 24.05.2018 in ITA 256/CHD/2018 pertaining to assessment year 2014-15 is made. 2. The ld. AR inviting attention to the Miscellaneous Application filed submitted that the assessee for the specific date of hearing did not receive any notice. In view of peculiar facts where from the premises where the partnership business was carrying on had been M.A.61/CHD/2020 In ITA 256/CHD/2018 Page 2 of 4 stopped due to financial losses. As a result of this, it was submitted that the assessee had closed down its business. The new change of address of the assessee, it was submitted, has been provided and in para 8 of the application, which reads as under : That in future, the notices, if any, may, please, be sent at the new address i.e. B-82/20, COLLEGE ROAD, CIVIL LINES, NEAR LAKME SALON, LUDHIANA.” 3. Relying upon the supporting application dated 14.06.2022, the following facts have been elaborated : 2. It is submitted that the assessee had been engaged in the business of trading of scrap and the business was carried out during the year under consideration at 58, Guru Nanak Market, Focal Point, Ludhiana and that partnership business was stopped due to financial losses and, thereafter, the assessee had closed down its business from the place at 58, Guru Nanak Market, Focal Point, Ludhiana. 3. It is submitted that due to the change of address, no notice of hearing was received by the assessee and, in fact, due to heavy financial losses, the assessee was upset and could not intimate about the change of address to the Hon'ble Bench and which is highly regretted as the assessee was solely dependent upon his counsel. 4. 4. Even, the order of the Hon'ble Bench was not received and it was lateron, received when the assessee made a request for early fixation of appeal and in view of the above said facts and circumstances, the assessee prays for recalling of the order as passed by the Hon'ble Bench vide order, dated 23.05.2018 and the assessee assures full cooperation in early disposal of appeal and oblige. 5. Accordingly, on the basis of these facts and submissions, it was his prayer that the ex-parte order may be recalled in order to grant opportunity of being heard to the assessee. 6. Said request was opposed by the ld. Sr.DR who submitted that assessee should have been live and alert to his responsibility and M.A.61/CHD/2020 In ITA 256/CHD/2018 Page 3 of 4 should have kept the Registry of the ITAT updated about the change of address etc. 7. We have heard the rival submissions and perused the material available on record. On a consideration thereof, where the non- appearance before the ITAT is explained on account of financial losses etc., suffered by the assessee as a result of which there was a closure of the business of the assessee being run from the specific premises. Accordingly, notice for the specific date was not received. On consideration of facts as pleaded, we find that non- representation on behalf of the assessee for the specific date stands explained. We have noted that the ld. Sr.DR has objected to the recall of this order. However, factum of closure of business is not disputed. We find on a consideration thereof, we agree to the extent that assessee is expected to be live and alert to its responsibilities. However, in the facts of the present case, the closure of business is pleaded on account of financial losses. As noticed, this is not in dispute. 7.1 We note that as per para 3 of the aforesaid order dated 24.05.2018, opportunity has been given to the assessee for making a proper application explaining the non-representation on the date of hearing. 8. Being satisfied by the explanation of the assessee exercising the powers as vested in us by proviso to Rule 24 of the ITAT Rules 1963, M.A.61/CHD/2020 In ITA 256/CHD/2018 Page 4 of 4 the ex-parte order dated 24.05.2018 is recalled. Support is drawn from the decision of the Hon'ble Delhi High Court in the case of CIT Vs Ansal Housing Construction Ltd. 274 ITR 131 (Del). 8.1 Registry is, accordingly, directed to fix the appeal for hearing on 21.07.2022 for which date no separate notice of hearing shall be issued to the parties as the date was announced on the date of hearing itself in the presence of the parties. 9. In the result, Miscellaneous Application of the assessee is allowed. Order pronounced on 21 st June,2022. Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा लेखालेखा लेखा सद瀡य सद瀡यसद瀡य सद瀡य/ Accountant Member 瀈याियक 瀈याियक瀈याियक 瀈याियक सद瀡य सद瀡यसद瀡य सद瀡य/ Judicial Member “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. आयकर आयु猴 (अपील)/ The CIT(A) 5. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar