Income Tax Appellate Tribunal - Lucknow
Grand International, Kanpur vs Deputy Commissioner Of Incometax, ... on 28 February, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
LUCKNOW BENCH "A", LUCKNOW
BEFORE SHRI A.D JAIN, VICE PRESIDENT AND
SHRIT.S. KAPOOR, ACCOUNTANT MEMBER
ITAN0.460/LKW/2018
Assessment Year 2014-15
Grand International, Vs. DCIT-Circle-2,
39, Factory Area Fazalganj, Kanpur
Kanpur 208012
PANAACFG0813D
(Appellant) (Respondent)
Appellant by Shri P.K. Kapoor, CA
Respondent by Shri C.K. Singh, DR
Date of hearing 26/02/2019
Date of pronouncement 28/02/2019
ORDER
PER: A.D. JAIN. VICE PRESIDENT:
This is assessee's appeal for the Assessment Year 2014-15, taking the following grounds:-
BECAUSE, "(1) the "CIT(a)" has erred in law and on facts in upholding the disallowance of Rs.10,91,793/- out of interest paid on borrowings, by invoking the provisions of section 36(1) (iii) of the Act, in terms of ex- parte order dated 23.03.2018;
(2) the "CIT(A)" on a due consideration of the facts and circumstances of the case as were available on record (as per the statement of facts filed alongwith Memo of appeal in the first appeal), particularly, that
a) the case had been selected for scrutiny assessment on the specific issues, viz.2 ITA No. 460/Lkw/2018
i) "sale consideration of property in ITR is less than sale consideration of property reported in AIR;"
ii) "large value of sale consideration of property in ITR is less than sale consideration of property reported in TDS return under section 194(1A);"
iii) "mismatch in amount paid to related persons under section 40A(2B) reported in audit report in ITR;"
iv) "mismatch between income/received credited to P&L Account considered under the heads of income and income from other than business and profession"
b) during the course of assessment proceedings the Assessing Officer got fully satisfied with explanation given by the assessee/appellant as was manifest in the fact that no addition/disallowance on that score had been made in the assessment order dated 29.12.2016.
c) disallowance so made was in contravention of instructions of CBDT, which were binding on the Assessing Officer the disallowance of Rs.10,91,793/- was wholly uncalled for, and unauthorized, liable to be deleted."
2. By virtue of the impugned order, the Id. CIT(A) has dismissed the assessee's appeal for non prosecution, observing that notices dated 20.09.2017, 07/11/2017, 05/12/2017 and 10/01/2018 and 25/10/2017 for compliance on 09/10/2017, 21.11.2017, 14.12.2017, 25.01.2018 were served on the address submitted by the assessee in its memo of appeal; that however, no written submission or paper book had been filed in support of any of the grounds of appeal taken; and that none had attended on behalf of the assessee. Such service of notices has, however, been disputed by the assessee.
3. We have heard the rival parties and have gone through the material placed on record. We noted that the Id. CIT(A) has passed the ex-parte order as according to him, nobody has appeared on the date when the appeal was 3 ITA No. 460/Lkw/2018 fixed for hearing before him. We also noticed from the order of the CIT(A) that he has summarily decided the appeal of the assessee without giving any cogent reason and his order is non speaking order. Under these circumstances, we feel that one more opportunity should be given to the assessee as Id. CIT(A) has not decided the appeal on merits. The provision of section 250 which deals with the procedure in appeal before the Id. CIT(A), allows a right to an assessee to be heard at the time of hearing of appeal. Even the natural justice demands that no appeal should be disposed of without being heard the party or without giving him the proper and sufficient opportunity. We, therefore, in the interest of justice and fair play to both the parties, set aside the order of CIT(A) and restore the appeal to the file of the CIT(A) with the direction that the CIT(A) shall refix the said appeal and decide the appeal afresh after giving proper and sufficient opportunity of being heard to the assessee. The assessee is also directed to be present on the date of hearing fixed by Id. CIT(A) and not to seek undue adjournment and co-operate with Id. CIT(A) in disposing of the appeal.
4. In the result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 28/02/2019.
Sd/- Sd/- (T.S. Kapoor) (A.D. Jain) Accountant Member Vice President Aks - Dtd. 28/02/2019 4 ITA No. 460/Lkw/2018 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar