VIKRANT ROPES PRIVATE LIMITED,BHILAI vs. INCOME TAX OFFICER, WARD-1(1), BHILAI

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ITA 56/RPR/2020Status: DisposedITAT Raipur12 June 2023AY 2016-17Bench: SHRI RAVISH SOOD (Judicial Member), DR. DIPAK P. RIPOTE (Accountant Member)5 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) did not provide a proper opportunity to the assessee and did not adjudicate the case on merits. Therefore, the order of the CIT(A) was set aside for fresh adjudication.

What were the facts?

The assessee's appeal was dismissed by the CIT(A) for non-appearance and lack of substantiating details for business loss. The assessee claims they were not given a reasonable opportunity to be heard.

What were the issues?

Whether the assessee was provided with a reasonable opportunity of being heard by the lower appellate authority. Whether the CIT(A) properly adjudicated the grounds of appeal on merits.

Which sections of the Income-tax Act were involved?

Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH :: RAIPUR

Before: SHRI RAVISH SOOD & DR. DIPAK P. RIPOTE

For Appellant: Shri Prakash Bakliwal(Adv.) & Shri
For Respondent: Shri Piyush Tripathi – DR
Hearing: 31/03/2023Pronounced: 12/06/2023

ORDER

PER DR. DIPAK P. RIPOTE, AM:

1.

This is an appeal filed by the Appellant Assessee against the order of the Commissioner of Income Tax (Appeal)-II, Raipur dated 20/01/2020 emanating from the order u/s 143(1) dated 12/01/2017 for AY 2016-17 passed by the Asst.Director of Income Tax(CPC). The assessee has raised the following grounds of appeals: “(1) That on the facts and circumstances of the case, the Learned C.I.T.(Appeal)-II- Raipur has dismissed the appeal without giving reasonable and proper opportunity to the Assessee / Appellant. The same order is quite unjustified and bad, both in law and facts.

(2) That on the facts and circumstances of the case without giving the reasonable opportunity, the order passed U/S 143 (1) by the Deputy Commissioner, Income Tax CPC Bangalore is quite unjustified & bad both in law and facts. The reasonable opportunity should be given.

(3) That on the facts and circumstances of the case the loss declared in the return of income should be accepted in TOTO. The loss declared in the Return of (Income is as under : -

(i) Business loss declared Rs.3,41,729/- (ii) Depreciation loss declared Rs.32,08,007/- The same should be accepted in TOTO. (4) That on the facts and circumstances of the case, the learned Deputy Commissioner, Income Tax CPC, Bangalore and learned C.I.T.(Appeal) II – Raipur has determined the income of Rs.15,74,380/- is quite illegal and bad both in law and facts.

(5) That on the facts and circumstances of the case, the learned Deputy Commissioner, Income Tax CPC, Bangalore and learned C.I.T. (Appeal) II- Raipur has determined the income U/S 115 JB of Rs.7,18,077/- is quite illegal and bad both in law and facts.

(6) That on the facts and circumstance of the case, the Unabsorbed Depreciation Loss of Rs.2200884/- of A.Y. 2015-16 should be set off / carried forward in the subsequent years.

(7) That reasonable opportunity should be given to the Appellant as per the principal of natural justice.

(8) That on the facts and circumstances of the case, the tax payable / determined of Rs.5,59,176/- is quite illegal and bad both in law & facts of the case.

(9) Any other grounds may be received at the time of hearing f appeal.”

Findings and Analysis 2. Thus, the major grievance of the assessee is that ld.CIT(A) has not given proper opportunity to the assessee. On perusal of the ld.CIT(A)’s order it is observed that the ld.CIT(A) has dismissed the appeal of the assessee on the ground that no one appeared for assessee and no details have been filed by the assessee to substantiate its claim of business loss. It is also observed from the order under section 143(1) that nowhere the Asst.Director Income Tax (CPC) has mentioned that opportunity was provided to the assessee and what was the reply of the assessee and if the reply was not acceptable the reason for same. The Ld.AR has submitted before us written submission, in the said written submission it is mentioned that the notice dated 19/12/2019 issued by the ld.CIT(A) was received by the assessee on 31/12/2019. It is further mentioned in the written submission that the Advocate of the appellant attended the office of the ld.CIT(A) on schedule date of hearing, i.e. 01/01/2020, however, it was told to the Advocate that the ld.CIT(A) was busy .

3.

It is a fact that the ld.CIT(A) has not given any findings on merits of the case. He has merely dismissed the appeal. The ld.CIT(A) has mentioned that the Assessee failed to file the details.

However, we do not understand what details the ld.CIT(A) was looking for, the issue was Business Loss, the ld.CIT(A) had access to copies of all the returns and Audit Reports of the assessee as Department is custodian of returns and its enclosures . It was easy for the ld.CIT(A) to get the returns and audit report and verify the claim of the assessee. However, ld.CIT(A) merely dismissed the appeal of the assessee.

4.

In these facts and circumstances of the case we set aside the order of the ld.CIT(A) for denovo adjudication to the ld.CIT(A). The ld.CIT(A) shall provide appropriate opportunity of hearing to the assessee.

5.

In the result Grounds of appeal of the assessee are allowed for statistical purpose.

Order pronounced under Rule 34(4) of Appellate Tribunal Rules, 1963.

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