Income Tax Appellate Tribunal - Pune
M/S. Sigma Ventures,, Pune vs Deputy Commissioner Of Income-Tax,, on 18 August, 2017
आयकर अपीलीय अिधकरण,
अिधकरण पुणे यायपीठ "बी
बी"
बी पुणे म
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "B", PUNE
ी डी.
डी. क णाकरा राव , लेखा सद य
एवं ी िवकास अव थी,
अव थी याियक सद य के सम
BEFORE SHRI D.KARUNAKARA RAO, AM
AND SHRI VIKAS AWASTHY, JM
आयकर अपील सं. / ITA No. 1704/PUN/2015
िनधा रण वष / Assessment Year 2010-11
M/s. Sigma Properties, .......... अपीलाथ /
Shivana, Plot No.85, Appellant
Bhusari Colony,
Above Royal Enfield Showroom,
Kothrud, Pune - 411 038
PAN : ABJFS6137J
बनाम v/s
DCIT, Circle-3,
Pune .......... यथ /
Respondent
आयकर अपील सं. / ITA No. 1705/PUN/2015
िनधा रण वष / Assessment Year 2010-11
M/s. Sigma Ventures, .......... अपीलाथ /
Shivana, Plot No.85, Appellant
Bhusari Colony,
Above Royal Enfield Showroom,
Kothrud, Pune - 411 038
PAN : ABKFS8611G
बनाम v/s
DCIT, Circle-3,
Pune .......... यथ /
Respondent
Assessee by : Shri Nikhil Pathak
Revenue by : Shri Vivek Aggarwal
सुनवाई क तारीख / घोषणा क तारीख /
Date of Hearing :09.08.2017 Date of Pronouncement: 18.08.2017
आदेश / ORDER
PER D. KARUNAKARA RAO, AM :
There are 2 appeals of the different assessees under consideration. They are filed against the orders of CIT(A)-3, Pune commonly dated 21-09-2015 for the 2 ITA Nos.1704 and 1705/PUN/2015 M/s. Sigma Properties and M/s. Sigma Ventures common A.Y. 2010-11. Assessees share the common address. The issues raised in the appeals are also partly common.
2. Before us, at the outset, Shri Nikhil Pathak, Ld. Counsel for the assessee narrated the facts of the case and submitted that these 2 different assessees are commonly belong to Shri Sushant Mohan Jadhav, who is a common partner of both. The common address is S.No.36/3, Flat No.B-4, Shree Swami Samarth Housing Society, Erandwane, Pune - 411004. The assessments were completed in an exparte manner on a common date of 26-03-2013. Similarly, the First Appellate proceedings in both the cases were adjudicated in an exparte manner. Further, Ld. Counsel for the assessee brought our attention to the fact that the hearing notices were sent to the assessees with the address at Erandwane as mentioned in the return of income. In the process, CIT(A) ignored the fact that the assessee had a change of address which now falls in the Kothrud are of Pune. However, inadvertently, hearing notices by both the authorities were not sent to the Kothrud address and it resulted in completion of both the assessments as well as First Appellate proceedings in an exparte manner. With these backgrounds facts relating to the preliminary issue, Ld. Counsel for the assessee requested that both the appeals may be remanded to the file of the AO for fresh adjudication after giving reasonable opportunity of being heard to the assessee.
3. Ld. Departmental Representative for the Revenue submitted that there is no information on records about the change of address. Therefore, the legal issue raised by the assessee should be dismissed.
4. On hearing both the sides, we find the fact of change of address to Kothrud, Pune - 38 is not considered by the Revenue authorities while issuing notices. It resulted in exparte assessments as well as exparte adjudication by the AO and the CIT(A) respectively. In effect, the issues raised in both the appeals were the products of such exparte assessments/adjudications. In our view, there is failure 3 ITA Nos.1704 and 1705/PUN/2015 M/s. Sigma Properties and M/s. Sigma Ventures to comply with the set principles of natural justice so far as the communication to the present assessees are concerned. Assessee has the right to be heard more so when an adverse decision is taken by the authorities. On this basis alone, we are of the opinion the request of the Ld. Counsel for the assessee for remanding the issue in both the appeals to the file of the AO is required to be considered favourably. We order accordingly. AO is directed to grant reasonable opportunity of being heard to the assessee in the remand proceedings as per the set principles of natural justice. Therefore, Ground Nos. 1 and 2 raised by the assessees in the above appeals are allowed. Grounds relating to merits in both the appeals are allowed for statistical purposes.
5. In the result, both the appeals of the assessees are partly allowed for statistical purposes.
Order pronounced in the open court on this 18th day of August, 2017.
Sd/- Sd/-
(VIKAS AWASTHY) (D. KARUNAKARA RAO)
याियक सद य /JUDICIAL MEMBER लेखा सद य / ACCOUNTANT MEMBER
पुणे Pune; दनांक Dated : 18th August, 2017.
सतीश
आदेश क ितिलिप अ िे षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. The CIT(A)-3, Pune
4. The CIT-3, Pune
5. िवभागीय %ितिनिध, आयकर अपीलीय अिधकरण, "B Bench"
Pune;
6. गाड फाईल / Guard file.
आदेशानुसार/ BY ORDER,स
स यािपत ित //True Copy//
//True Copy// Senior Private Secretary
आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune