M/S GUPTA METAL SHEET (P) LTD.,NEW DELHI vs. DCIT, FARIDABAD

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ITA 336/DEL/2014Status: DisposedITAT Delhi27 July 2016AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the AO and CIT(A) passed orders without affording the assessee an opportunity of being heard. The CIT(A)'s order was cryptic and passed in haste, failing to consider the assessee's submissions.

What were the facts?

The assessee appealed to the CIT(A) against penalty orders. The CIT(A) dismissed the appeal without providing the assessee with a proper opportunity of being heard, as the notice of hearing was allegedly not served.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal without affording the assessee a proper opportunity of being heard, and consequently confirming the penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘C’: NEW DELHI

Before: SHRI S.V. MEHROTRA, & SHRI CHANDRA MOHAN GARG

For Appellant: Shri Satyen Sethi, Adv, Shri Arta Trana Panda, Adv
Hearing: 20.07.2016Pronounced: 27.07.2016

PER CHANDRA MOHAN GARG, JUDICIAL MEMBER

1.

These two appeals filed by the assessee are directed against the order of the CIT(A)-Central, Gurgaon, dated 14/11/2013 for A.Ys 2008-09 and 2009-10.

2.

The assessee has raised the following identical grounds of appeal in both the appeals:

“1. That on the facts as well as in law the CIT(A), Central, Gurgaon was not justified in dismissing the appeal without giving the proper opportunity to the appellant of being heard, as the notice dated 11th November, 2013 fixing the date f hearing was never served on the appellant.

2. That on the facts as well as in law the CIT(A), Central Gurgaon was not justified in confirming the penalty of Rs. 16,72,386/- [Rs. 37,52,977/- in AY. 2009-10 u/s 271AAA] u/s 271(1)(c) of the Income-tax Act, 1961.”

3.

At the very outset of the hearing of the arguments, the ld. AR submitted that the AO was not justified in coming to a haste and arbitrary conclusion without appreciating the facts and circumstances of the case and without making any efforts to enquire and ascertain the evidence placed on record. The ld. AR also submitted that the bald conclusion against the assessee without any objective reasoning is against the principles of natural justice. The ld. AR further strenuously submitted that the CIT(A) was not at all justified in dismissing the appeal of the assessee without giving proper opportunity of being heard to the assessee when the assessee never received the notice of hearing dated 11.11.2013 and which was never served upon the assessee. Therefore, the ld. AR contended that the CIT(A) ought not have confirmed the penalty of Rs 16,72,386/- u/s 271(1)(c) of the Act in A.Y 2008-09 and Rs.37,52,977/- in AY 2009-10.

3. Per contra, the ld. DR supported the order of the ld. CIT(A) and submitted that the ld. CIT(A) was quite justified in upholding the order of the AO and levying penalty u/s 271(1)(c) of the Act.

4.

We have heard the arguments of both the sides and carefully perused the relevant material placed on record before us. We find from the orders of the authorities below that the issue under consideration has not been decided by the AO in a proper manner and facts have not been appreciated in a judicious manner. We further find that the AO as well as the ld. CIT(A) have passed their respective orders without affording any opportunity of being heard to the assessee. On the basis of foregoing discussion and careful perusal of the operative part of the ld. CIT(A)’s conclusion, it is amply clear that the ld. CIT(A) has decided the issue in haste by passing a cryptic order without giving the assessee opportunity of being heard, which is not sustainable. We further note that the ld. CIT(A) has also not properly considered the submissions and facts of the case and simply followed the AO’s conclusion and dismissed the appeal of the assessee. We further note that the ld. CIT(A) too has not given due opportunity of being heard to the assessee which is clear from the fact that the assessee has not even received the notice of hearing. The ld. DR has supported the order of the ld. CIT(A). However, he raised no serious objection if the appeal is restored to the file of the AO. Therefore, in that view of the matter, in the interest of justice, we deem it fit to restore the grounds of appeal raised by the assessee in both the AYs to the file of the CIT(A) for fresh adjudication. Needless to mention that the CIT(A) shall provide due and proper opportunity of being heard to the assessee without being prejudiced with the earlier impugned order. Grounds of appeal raised by the assessee in both the AYs are allowed for statistical purposes.

5.

In the result, both the appeals of the assessee stand allowed for statistical purposes.

The order is pronounced in the open court on 27.07.2016.

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