M/s Sahyaadri Health Tourism Private Limited , Bangalore V. Deputy Commissioner of Income Tax Circle-1 , Shivamogga

SA 4/BANG/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6167 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 30 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 02-01-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIKAS K SURYAWANSHI
• Assessee Lawyers: G S PRASHANTH
• Keywords: Opportunity of being heard; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER S.P. NO.4/BANG/2019 (IN ITA NO.3120/BANG/2018) & ITA NO. 3120/ BANG/201 8 ASSESSMENT YEAR : 20 1 4 - 1 5 M/S. SAHYAADRI HEALTH TOURISM PVT. LTD., NOS. 157 & 158, 10 TH A MAIN, FIRST BLOCK, JAYANAGAR, BANGALORE 560 011. KARNATAKA PAN: AAMCS5709D VS. THE DCIT, CIRCLE 1, SHIVAMOGGA. APPELLANT RESPONDENT ASSESSEE BY : SHRI G.S. PRASHANTH, CA REVENUE BY : SHRI VIKAS K. SURYAWANSHI, ADDL. CIT (DR) DATE OF HEARING : 1 8 . 01 .201 9 DATE OF PRONOUNCEMENT : 18 . 01 .201 9 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER; THIS STAY PETITION IS FILED BY THE ASSESSEE SEEKING STAY OF DISPUTED OUTSTANDING DEMAND OF RS. 33,34,601/-. 2. IN COURSE OF HEARING OF THIS STAY PETITION, IT W AS SUBMITTED BY LD. AR OF ASSESSEE THAT THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE EX-PARTE ORDER PASSED BY THE CIT (A) IN WHICH THE LD. CIT (A) HAS NOT DECIDED THE ISSUE ON MERIT BUT HE SIMPLY DISMISSED THE APPEAL OF THE ASS ESSEE IN LIMINE BY FOLLOWING THE TRIBUNAL ORDER RENDERED IN THE CASE O F MULTIPLAN (INDIA) LTD., 38 ITD 320 (DEL). HE SUBMITTED THAT THIS ORDER OF CIT (A) IS NOT SUSTAINABLE AND THEREFORE, THE APPEAL ITSELF MAY BE DECIDED AND THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT (A) FOR FRESH DECISION AFTE R PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO ASSESSEE. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF CIT(A) AND HE SUBMITTED THAT THE ORDER OF CIT(A) SHOULD BE CONFIRMED AND EVEN IF THE APPEAL IS NOT DECIDED, NO STAY SHOULD BE GRANTED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IT IS NOTED BY CIT (A) IN PARA 3 OF HIS ORDER THAT THE CASE WAS POSTED FOR HEARING ON 21.02.2018 AND THE ASSESSEES AR APPEARED AND HE WA S ASKED TO FILE DETAILS OF TRANSACTIONS AND THE CASE WAS REPOSTED F OR HEARING ON S.P. NO. 4/BANG/2019 (IN ITA NO. 3120/BANG/2018)& ITA NO. 3120/BANG/2018 PAGE 2 OF 2 04.04.2018. ON THIS DATE, THERE WAS NO COMPLIANCE. HE FURTHER NOTED THAT THE CASE WAS REFIXED FOR HEARING ON 03.10.2018. ON THIS DATE, THERE WAS NO COMPLIANCE FROM THE ASSESSEE OR HIS AR. IT IS SEEN THAT OUT OF SEVERAL DATES OF HEARING FIXED BY CIT (A), THERE WAS NO EFFECTIVE COMPLIANCE FROM THE ASSESSEES SIDE. FIRSTLY ON 04.04.2018 BUT THEREAF TER, THE MATTER WAS REFIXED FOR HEARING ON 12.09.2018 AND ON THIS DATE, THE AR OF ASSESSEE APPEARED BEFORE CIT (A) AND SOUGHT ADJOURNMENT. HE NCE, THIS NON- COMPLIANCE IS NOT MATERIAL. THEREAFTER, ON 03.10.2 018, THERE IS ONE MORE NON-COMPLIANCE. IN OUR CONSIDERED OPINION EVEN IF THE LD. CIT (A) CONSIDERED IT PROPER TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE, HE SHOULD HAVE DECIDED THE APPEAL ON MERIT INSTEAD OF DISMISSING THE APPEAL IN LIMINE AND HENCE, WE SET ASIDE THE ORDER OF CIT (A) AND RESTORE BACK THE MATTER TO HIS FILE FOR FRESH DECISION AFTER PROVIDI NG REASONABLE OPPORTUNITY OF BEING HEARD TO ASSESSEE. SINCE WE HAVE DECIDED THE APPEAL ITSELF, THE STAY PETITION DOS NOT SURVIVE AND THEREFORE, DISMISSED. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY PETITION OF THE ASSESSEE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF H EARING ON CONCLUSION OF THE HEARING. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 18 TH JANUARY, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGAL ORE.