M/S. IBD SPACE INFRASTRUCTURE PVT. LTD.,INDORE vs. THE DCIT (CENTRAL)-II, BHOPAL
What did the Tribunal hold?
The Tribunal held that the CIT(A) dismissed the appeals without providing a proper opportunity of being heard, violating the principles of natural justice. Therefore, the appeals were restored to the CIT(A) for fresh adjudication.
What were the facts?
A search and seizure operation was conducted at the assessee's premises, leading to the detection of undisclosed income. The Assessing Officer made additions to the total income, which were confirmed by the CIT(A) due to the assessee's non-compliance with hearing notices.
What were the issues?
Whether the CIT(A) was justified in dismissing the appeals without affording a proper opportunity of being heard to the assessee, thus violating principles of natural justice.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI C.M. GARG & SHRI O.P. MEENA
आदेश /O R D E R
PER BENCH
These appeal have been filed by the assessee against the
consolidated order of the learned CIT(A)-3, Bhopal, dated 11.1.2017
in First Appeal Nos. CIT(A)-e/BPL/IT-303 to 307/2015-16 for the
assessment year 2009-10, 2010-11, 2011-12, 2012-13 & 2013-14. 1
IBD Space Infrastructure IT(SS)A Nos.69 to 72 & 209/Ind/2017 2. Since identical issues are involved in these appeals, we
propose to decide these appeals by this consolidated order for the
sake of convenience.
The ground nos. 1 and 2, which are common in all these
appeals, are that the Commissioner of Income Tax (Appeals) was
not justified in dismissing the appeals of the assessee-appellant
without affording proper and effective opportunity of being heard as
also in not adjudicating the appeals on merits.
In nutshell, the facts of the case are that search and seizure
operation u/s 132 of the Income Tax Act, 1961 (hereinafter referred
to as ‘Act’) was carried out at the business premises of the assessee
as well as at the premises of other concerns/business associated on
30.11.2012 during which various books of accounts, loose papers,
etc. were seized and impounded from these premises. The assessee-
appellant is a private limited company and has shown income from
business of real estate, construction and development of all types of
land and housing colony, etc. Notices u/s 153A of the Act were
issued for the assessment years 2007-08 to 2012-13 in response to
which the assessee filed returns of income. After detailed discussion
IBD Space Infrastructure IT(SS)A Nos.69 to 72 & 209/Ind/2017 as made in the assessment orders, the Assessing Officer found that
there was undisclosed income was detected during the course of
assessment. The Assessing Officer, therefore, after rejecting the
books of accounts, added the undisclosed income to the total
income of the assessee for all the assessment years, under
consideration, as discussed in the assessment orders.
Being aggrieved with the additions made by the Assessing
Officer in all these assessment years, the assessee-appellant
preferred appeals before the Commissioner of Income Tax (Appeals).
The Commissioner of Income Tax (Appeals) issued various notices
for hearing to the assessee but the assessee did not comply with the
same and as such the Commissioner of Income Tax (Appeals)
confirmed the action of the Assessing Officer. Now the assessee is
in appeals before the Tribunal.
Before us, the learned counsel for the assessee submitted that
because of the reasons beyond its control, the assessee could not
comply with the notices of hearing issued by the Commissioner of
Income Tax (Appeals). He, therefore, humbly prayed that the
assessee-appellant may kindly be granted one more opportunity to
IBD Space Infrastructure IT(SS)A Nos.69 to 72 & 209/Ind/2017 represent its case before the Commissioner of Income Tax (Appeals).
On the other hand, the learned DR strongly opposed the request of
the assessee on the ground that sufficient opportunity has already
been provided to the assessee and as such, the assessee-appellant
has no case for grant of another opportunity of hearing.
We have heard both the sides on this issue and have carefully
considered the orders of the authorities below. We find that the
Commissioner of Income Tax (Appeals) has given inasmuch as 6
opportunities to the assessee-appellant to represent its case but the
assessee utterly failed to avail the same. We also note that the
assessee-appellant has made request for adjournment on two
occasions but both the applications for adjournment were filed after
the date of hearing. In such a scenario, the Commissioner of
Income Tax (Appeals) was left with no choice but to proceed to
decide the appeals. Accordingly, the appeals were decided and after
considering the facts and the material available on record, the
Commissioner of Income Tax (Appeals) dismissed the same.
However, it is a well settled principle of natural justice that no-body
should be condemned unheard. Principle of natural requires that
IBD Space Infrastructure IT(SS)A Nos.69 to 72 & 209/Ind/2017 sufficient opportunity of being heard should be provided to the
assessee before deciding the issue against it. We are, therefore, of
the considered opinion that since the Commissioner of Income Tax
(Appeals) has decided the matter without hearing the assessees in
violation of the principles of natural justice and fair play, these
appeals need to be restored to his file for deciding the same after
providing due opportunity of being heard to the assessees. We,
therefore, following the principle of natural justice and equity,
restore these appeals to the file of the Commissioner of Income Tax
(Appeals) with the direction to provide the assessee-appellant one
more opportunity of being heard and then to decide the appeals in
accordance with law. At the same time, we also direct the assessee-
appellant to remain present on the date of hearing before the
Commissioner of Income Tax (Appeals) and not to seek unnecessary
adjournment. We direct accordingly.
Since we have restored the entire appeals to the file of the
learned CIT(A) for fresh adjudication as per the directions given
above, other grounds of the assessee on merit become academic in
nature and we are not adjudicating them.
IBD Space Infrastructure IT(SS)A Nos.69 to 72 & 209/Ind/2017 9. In the result, all the appeals of the assessee are allowed for statistical purposes.
The order has been pronounced in open Court on 09th May,
2017.
Sd/- sd/-
लेखा सद�य �या�यक सद�य (O.P.Meena) (C.M. Garg) Accountant Member Judicial Member
May 09, 2017
Dn/
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