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Income Tax Appellate Tribunal - Mumbai

Dharmik Exim Pvt. Ltd., Mumbai vs Dcit - 9(1), Mumbai on 3 February, 2017

                IN THE INCOME TAX APPELLATE TRIBUNAL,
                       MUMBAI BENCH "D", MUMBAI

         BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND
                SHRI SANJAY GARG, JUDICIAL MEMBER

                                MA No.120/M/2016
          (Arising out of ITA No.1403/M/2011 date of decision: 15.07.2015)
                             Assessment Year: 2000-01

        M/s. Dharmik Exim P. Ltd.,          DCIT-9(1),
        106, Ruby Indl. Estate,             Aayakar Bhavan,
        Chincholi Bunder Road Extn.,        M. K. Road,
                                        Vs.
        Off Link Rd.,                       Mumbai - 400020
        Malad (W),
        Mumbai - 400 064
        PAN: AAACD3656N
             (Appellant)                        (Respondent)

      Present for:
      Assessee by                : Shri Pankaj Toprani, A.R.
      Revenue by                 : Shri Tufail A. Khan, D.R.

      Date of Hearing            : 03.02.2017
      Date of Pronouncement      : 03.02.2017

                                   ORDER

Per Sanjay Garg, Judicial Member:

The present miscellaneous application has been moved by the assessee for recalling of the ex-parte order dated 15.07.2015 against the assessee. Vide the said order of the Tribunal, the appeal of the assessee was dismissed ex- parte. The Tribunal has dismissed the appeal of the assessee not only on merits but also on the ground that it was defective. Now in the present application the assessee has pleaded that it was in financial crunch and has not been able to pay salaries to its minimum staff and because of that the staff became non cooperative. The defect notice sent by the registry therefore might not have been accepted by the staff and was returned as "Not claimed". The assessee, however, has pleaded that even otherwise the said notice was not served upon the assessee. It has been further pleaded that in the quantum appeal of the MA No.120/M/2016 2 M/s. Dharmik Exim P. Ltd.

assessee, the Tribunal has restored the matter back to the file of the AO, therefore, the very basis upon which the penalty was levied by the AO under section 271(1)(c) of the Act, which is a matter in the appeal relating to the present application, has ceased to exist. Therefore, the assessee, otherwise, has a good case on merits. The assessee could not present itself on the date of hearing because of the above stated reasons. The application of the assessee has been supported with an affidavit of Shri Gulmelwani, a director of the assessee company.

2. The Ld. D.R., on the other hand, has opposed the application.

3. After considering the submissions made in the application which are further supported with the affidavit of the director of the assessee company, we think that interest of justice will be well served, if the assessee is allowed to contest the appeal on merits. The ex-parte order dated 15.07.2015 is therefore recalled and the appeal is restored to its original position and number, to be heard afresh on merits. The registry is directed to fix the appeal for hearing in regular course. The assessee is directed to rectify the defects in the appeal as early as possible and at least 15 days before the date of hearing.

4. In the result, the application of the assessee stands allowed.

Order pronounced in the open court on 03.02.2017.

         Sd/-                                                 Sd/-
   (R.C. Sharma)                                         (Sanjay Garg)
ACCOUNTANT MEMBER                                    JUDICIAL MEMBER

Mumbai, Dated: 15.02.2017.
* Kishore, Sr. P.S.

Copy to: The Appellant
        The Respondent
                                                                          MA No.120/M/2016
                                            3                      M/s. Dharmik Exim P. Ltd.


        The CIT, Concerned, Mumbai
        The CIT (A) Concerned, Mumbai
        The DR Concerned Bench
//True Copy//                           [




                                                By Order



                              Dy/Asstt. Registrar, ITAT, Mumbai.