BASUKI VYAPAAR PRIVATE LTD.,KOLKATA vs. I.T.O.,WARD-12(2), KOLKATA

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ITA 731/KOL/2019Status: DisposedITAT Kolkata13 November 2019AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) did not consider the assessment records and failed to discuss the assessee's case on merits, violating natural justice. The matter was restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeal before the CIT(A) was decided ex-parte as notices were not served due to postal anomalies. The assessee contended that this violated the principles of natural justice.

What were the issues?

Whether the ex-parte order passed by the CIT(A) was vitiated due to violation of the principle of natural justice and lack of proper opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B”, BENCH KOLKATA

Before: SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM

For Appellant: Shri Mihir Bandopadhyay, A.R
For Respondent: Smt. Ranu Biswas, Addl. CIT
Hearing: 31/10/2019Pronounced: 13/11/2019

आदेश / O R D E R Per Bench:

1.

The captioned appeal filed by the assessee , pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-4, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the “Act”) dated 26/12/2016.

2.

At the outset itself, the ld. Counsel for the assessee submitted that the assessee could not represent his case before Ld. CIT(A) as the notice was not served to the assessee during the appellate proceedings and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. The ld. Counsel for the assessee contended that in the interest of justice, another

Basuki Vyapaar Pvt. Ltd. Assessment Year:2014-15 opportunity to contest the appeal before the Ld. first appellate authority may be granted to the assessee.

3.

We heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other material available on record. We note that the ld. CIT(A) did not consider the assessment records while adjudicating the issue. We note that the ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. We note that assessee has participated in appellate proceedings, vide para 2 of the order of ld. CIT(A), wherein ld. CIT(A) stated that assessee sought adjournment on 26.09.2018, thereafter ld. CIT(A) issued notice on assessee on three occasions, which were not served on assessee due to postal anomalies. We note that it is settled law that principles of natural justice and fair play require that the effected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(A) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is allowed.

4.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Court on 13.11.2019

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