M/s Micropet Industries, Sirmour V. Deputy Commissioner Of Income Tax, Shimla

MA 84/CHANDI/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4690 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 9 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 05-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Set aside
• Section: 80IC; 2

Judgement Text

1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH , , , BEFORE: SMT.DIVA SINGH, JM & SMT.ANNAPURNA GUPTA, A M /MA NOS.84 & 85/CHD/2017 IN . / ITA NOS.1457 & 1458/CHD/2016 / ASSESSMENT YEARS :2012-13 & 2013-14 ) M/S MICROPET INDUSTRIES, VILLAGE OGLI, NAHAN ROAD, KALA AMB, TEHSIL NAHAN, DISTT. SIRMOUR, HIMACHAL PRADESH. THE D.C.I.T., CIRCLE SHIMLA, H.P. ./ PAN: AAMFM5828L /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI ATUL GOYAL, CA / REVENUE BY : SHRI MANJIT SINGH, SR. DR ! /DATE OF HEARING : 25.02.2019 ! /DATE OF PRONOUNCEMENT:.14.03.2019 /ORDER PER BENCH : THE PRESENT MISCELLANEOUS APPLICATIONS ARE FILED BY THE APPLICANT FOR RECALLING OF THE CONSOLIDATED ORD ER OF THE TRIBUNAL DATED 23.2.2017 IN ITA NO.1457 & 1458/CHD/ 16, RELATING TO ASSESSMENT YEARS 2012-13 AND 2013-14, W HICH WAS DISMISSED EX-PARTE ON MERITS. 2. IT WAS POINTED OUT THAT THE IMPUGNED APPEALS WER E DISMISSED ALONGWITH A GROUP OF OTHER APPEALS, THE I SSUE IN ALL OF WHICH WAS IDENTICAL, RELATING TO ALLOWANCE O F 2 DEDUCTION U/S 80IC OF THE INCOME TAX ACT, 1961(HEREINAFTER REFERRED TO AS 'ACT') @ 100% OF TH E ELIGIBLE PROFITS, ON SUBSTANTIAL EXPANSION UNDERTAK EN BY THE ASSESSEE, WHEN EARLIER DEDUCTION @ 100% OF THE PROFITS HAD BEEN CLAIMED FOR THE STIPULATED PERIOD OF FIVE YEARS. THAT THE ITAT HAD DISMISSED ALL THE APPEALS FOLLOWI NG THE DECISION OF THE COORDINATE BENCH IN THE CASE OF HYC RON ELECTRONICS VS ITO IN ITA NO.798/CHD/2012.THAT THE IMPUGNED APPEALS WERE ALSO DISMISSED EX PARTE FINDI NG THE ISSUE COVERED BY THE AFORESAID DECISION OF THE ITAT . 3. THE APPLICANT SUBMITTED THAT THE REASON FOR NOT ATTENDING THE HEARING ON 22.2.2017 WAS THAT THE PAR TNERS OF THE FIRM HAD DULY PRAYED FOR ADJOURNMENT VI DE LETTER DATED 20.2.2017, RECEIVED BY THIS OFFICE ON 20.2.20 7 ITSELF. SINCE THE COUNSEL FOR THE ASSESSEE WAS OUT OF STATI ON FOR SOME UNAVOIDABLE WORK ON THAT DATE, THE HEARING WAS NOT REPRESENTED EITHER IN PERSON OR THROUGH THE AUTHORI ZED REPRESENTATIVE. IT WAS CONTENDED THAT THE APPELLANT HAD NO INTENTION WHATSOEVER OF NOT REPRESENTING THE CASE A ND WOULD NOT HAVE BENEFITED BY THE SAME ALSO. IT WAS THEREFORE PLEADED THAT THE IMPUGNED APPEALS BE RECA LLED FOR HEARING AFRESH. 4. THE LD. DR DID NOT CONTROVERT 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 3 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 APPEALS ARE ACCOR DINGLY RECALLED FOR HEARING. THE ORDER WAS PRONOUNCED IN O PEN COURT. 6. AT THE REQUEST OF BOTH THE COUNSELS WHO POINTED OUT THAT THE ISSUE IN THE IMPUGNED APPEALS WAS COVERED BY THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF P R.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN CIVIL APPEAL NO .1784 OF 2019, DATED 20.02.2019, THE APPEALS WERE POSTED FOR HEARING TODAY ITSELF I.E. 25.2.2019. 7. IN THE RESULT, BOTH THE MISCELLANEOUS APPLICATIO N FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.2.2019. SD/- SD/- '# $%&' ( ) * +, (DIVA SINGH) (ANNAPURNA GUPTA) - %. / JUDICIAL MEMBER %. / ACCOUNTANT MEMBER '(& /DATED: 14 TH MARCH, 2019 *,* 4 ' () *) / COPY OF THE ORDER FORWARDED TO : / THE APPELLANT '-/ THE RESPONDENT ./ CIT . ()/ THE CIT(A) )12 ' 3, ! 3, 56728/ DR, ITAT, CHANDIGARH 27 / GUARD FILE / BY ORDER, / ASSISTANT REGISTRAR