M/s Sri Arun Towers Pvt ltd , Bangalore V. Assistant Commissioner of Wealth Tax Circle-12(3), Bangalore

WTA 26/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5948 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 22 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 1991-1992
• Appeal Filed On: 09-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: H ANAND
• Assessee Lawyers: SIDDAREDDY
• Keywords: Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER WTA NO. 24 TO 26/BANG/2018 (ASSESSMENT YEAR : 1989 90 TO 1991 92) M/S. SHRI ARUN TOWERS PVT. LTD., APPE LLANT NO. 2, GRANT ROAD, ST. JOSEPHS INDIA SCHOOL COMPOUND, BENGALURU 560001. PAN. AACCS9119F VS THE ACWT, CIRCLE 12 (3), RESPONDENT BENGALURU. ASSESSEE BY : SHRI SIDDA REDDY, ADVOCATE REVENUE BY : SHRI H. ANAND, ADDL. CIT (DR) DATE OF HEARING : 21 01 2019 DATE OF PRONOUNCEMENT : 25 01 2019 O R D E R PER A. K. GARODIA, A.M.: THESE THREE APPEALS ARE FILED BY THE ASSESSEE WHICH ARE DIRECTED AGAINST A COMBINED ORDER OF CWT (A) 6, BENGALURU DATED 31.1 0.2017 FOR A. Y. 1989 90 TO 1991 - 92. THESE APPEALS WERE HEARD TOGETHER AND AR E BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. AS PER GROUND NO. 2 IN THESE THREE YEARS, THIS I S THE GRIEVANCE OF THE ASSESSEE THAT THE ORDER HAS BEEN PASSED BY CWT (A) IN GROSS VIOLATION OF PRINCIPAL OF NATURAL JUSTICE. 3. AT THE VERY OUTSET, LEARNED AR OF THE ASSESSEE S UBMITTED AS PER PARA 1 OF THE IMPUGNED ORDER OF CWT (A), IT IS STATED BY HIM THAT SEVERAL NOTICES WERE SENT BY HIM FOR HEARING BUT NOBODY APPEARED. HE SUBMITTED THAT THE ASSESSEE HAS NOT RECEIVED ANY NOTICE AND CWT (A) IS ALSO NOT SAYING THAT NOTI CES WERE SERVED. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF CWT (A). HE ALSO SUBMITTED THAT SEVERAL NOTICES WERE SENT TO THE ASSESSEE BY CWT (A) AND IT IS NOT ESTABLISHED THAT THESE NOTICES WERE NOT SERVED ON THE ASSESSEE AND HENCE, THERE IS NO VIOLATION OF PRINCIPAL OF NATURAL JUSTICE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT AS PER PARA 1 OF THE IMPUGNED ORDER, SEVERAL NOTICES WERE SENT BY CWT (A ) TO THE ASSESSEE BUT THERE IS NO MENTION IN THE IMPUGNED ORDER ABOUT SERVICE OF T HESE NOTICES ON THE ASSESSEE. WTA NOS. 24 TO 26/BANG/2018 2 BEFORE US, IT IS THE SUBMISSION OF THE LEARNED AR O F THE ASSESSEE THAT NO NOTICE WAS SERVED ON THE ASSESSEE AND BECAUSE OF THIS, THERE W AS NO COMPLIANCE BEFORE CWT (A). WE FIND THAT AS PER COPY OF FORM 35 FILED BEF ORE CWT (A), COPY AVAILABLE ON THE RECORDS, THE ADDRESS AT WHICH, THE NOTICE OF HEARIN G WAS TO BE ISSUED BY CWT (A) IS THIS. M/S K. R. PRASAD, ADVOCATES & TAX CONSULTANT S, 9/3, OLD MADRAS BANK ROAD, BANGALORE 560001. WE DO NOT KNOW AS TO ON WHICH ADDRESS, THE NOTICES WERE SENT BY CWT (A). THERE IS NO MENTION IN THE IMPUGNED ORD ER ABOUT SERVICE OF NOTICES ON THE ASSESSEE. BEFORE US, THIS WAS A CATEGORICAL CLA IM OF THE LEARNED AR OF THE ASSESSEE THAT NO NOTICE WAS SERVED ON THE ASSESSEE ALTHOUGH THERE IS NO EVIDENCE BROUGHT ON RECORD IN THIS REGARD BUT THIS IS ALSO T RUE THAT INSISTING FOR EVIDENCE IN SUPPORT OF NEGATIVE IS NOT PROPER. CONSIDERING THE ENTIRE FACTS, WE FEEL IT PROPER TO SET ASIDE THE IMPUGNED ORDER OF CWT (A) AND RESTORE THE MATTER BACK TO HIS FILE FOR A FRESH DECISION AFTER PROVIDING REASONABLE OPPORTUNI TY OF BEING HEARD TO BOTH SIDES. IN VIEW OF THIS DECISION, OTHER GROUNDS ON MERIT DO NO T CALL FOR ANY ADJUDICATION AT THE PRESENT STAGE. 5. IN THE RESULT, ALL THREE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DA TE MENTIONED ON THE CAPTION PAGE. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTA NT MEMBER BANGALORE, DATED, THE 25 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, BANGALORE.