TOP TELEMEDIA LTD, MUMBAI v. ACIT CIR 11(1), MUMBAI

ITA 4902/MUM/2008 | 2003-2004
Pronouncement Date: 21-05-2010 | Result: Allowed

Appeal Details

RSA Number 490219914 RSA 2008
Bench Mumbai
Appeal Number ITA 4902/MUM/2008
Duration Of Justice 1 year(s) 9 month(s) 19 day(s)
Appellant TOP TELEMEDIA LTD, MUMBAI
Respondent ACIT CIR 11(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 21-05-2010
Date Of Final Hearing 15-12-2009
Next Hearing Date 15-12-2009
Assessment Year 2003-2004
Appeal Filed On 01-08-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH MUMBAI. BEFORE SHRI R.V.EASWAR SR.VP AND SHRI R.K. PANDA AM I.T.A. NOS.4902 & 6234/MUM/2008 (ASSESSMENT YEAR: 2003-04) M/S. TOP TELEMEDIA LTD. A/305 STANDARD HOUSE 4 TH FLOOR MARINE LINES MUMBAI-400 002. PAN:AACCT7700M VS. THE ASSISTANT COMMISSIONER OF INCOME TAX CIR.11(1) 3 RD FLOOR AAYAKAR BHAVAN M.K.ROAD MUMBAI-400 001. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. PRAKASH PANDIT RESPONDENT BY : MR. A.K.ATRI DR O R D E R PER R.V.EASWAR SENIOR VICE PRESIDENT: THESE ARE TWO APPEALS BY THE ASSESSEE RELATING TO THE ASSESSMENT YEAR 2003- 04. ITA NO.4902/MUM/2008 IS AN APPEAL AGAINST THE ASSESSMENT MADE UNDER SECTION 143(3) AND ITA NO.6234/MUM/2008 IS AN APPEAL AGAINST THE PENALTY IMPOSED UNDER SECTION 271(1)(C) CONSEQUENT UPON THE ASSESSM ENT. 2. THE ASSESSEE IS A COMPANY ENGAGED IN SOFTWARE AN D WEBSITE DEVELOPMENT BOOK PUBLISHING SALE OF CASSE TTES VCDS AND BUSINESS IN SHARE TRADING. 3. THE ASSESSEE FILED A RETURN OF INCOME DECLARING LOSS OF RS.1 74 96 430/-. THE ASSESSING OFFICER ISSUED SEVE RAL NOTICES OF HEARING BUT THEY WERE ALL RETURNED UNSERVED EITH ER WITH THE REMARK CLOSED OR WITH THE REMARK LEFT. SINCE TH E ASSESSEE COULD NOT BE SERVED THE NOTICES AND SINCE THE ASSES SMENT WAS ALSO GETTING BARRED BY TIME THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE ACT ON A NET LO SS OF RS.64 67 445/- AFTER MAKING SEVERAL ADDITIONS AND ITA NO.4902 & 6234/M/08 2 DISALLOWANCES. HE ALSO INITIATED PENALTY PROCEEDING S UNDER SECTION 271(1)(C) FOR FURNISHING INACCURATE PARTICU LARS. THE ASSESSMENT ORDER WAS CONFIRMED IN APPEAL AND HENCE THE PRESENT APPEAL IN ITA NO.4902/MUM/2008. 4. THE CONTENTION OF THE ASSESSEE IS THAT THE ASSES SING OFFICER HAD ISSUED ALL THE NOTICES TO THE ASSESSEE AT ITS EARLIER ADDRESS IN MUMBAI WHEREAS THE ASSESSEE HAD SHIFTED TO AHMEDABAD OF WHICH THE ASSESSING OFFICER WAS ALSO A WARE. REFERENCE IN THIS CONNECTION IS MADE TO PAGE 65 OF THE PAPER BOOK WHICH IS A NOTICE ISSUED UNDER SECTION 142(1) BY THE ASSESSING OFFICER ON 15.12.2003 MUCH EARLIER TO TH E COMPLETION OF THE ASSESSMENT FOR THE YEAR UNDER APPEAL TO THE ASSESSEE AT ITS AHMEDABAD ADDRESS. REFERENCE IS ALSO MADE TO TH E LETTER DATED 10 TH FEBRUARY 2003 ISSUED UNDER SECTION 144 OF THE ACT FOR THE ASSESSMENT YEAR 2000-01 AND IT IS POINTED O UT THAT THIS LETTER WAS ALSO SENT TO THE AHMEDABAD ADDRESS OF TH E ASSESSEE. IT IS THUS CLAIMED THAT THE ASSESSING OFFICER SENT THE NOTICES TO A WRONG ADDRESS AND THEREFORE THE ASSESSEE DID NOT RE CEIVE THEM AND CONSEQUENTLY DID NOT GET DUE OPPORTUNITY TO SU BSTANTIATE ITS RETURN. IT IS ACCORDINGLY PLEADED THAT THE ASSE SSMENT SHOULD BE SET ASIDE FOR BEING DONE AFRESH. 5. ON A CAREFUL CONSIDERATION OF THE FACTS AND THE RIVAL SUBMISSIONS WE FIND FORCE IN THE ASSESSEES PLEA. T HE NOTICE AND THE LETTER ISSUED BY THE ASSESSING OFFICER WHICH WE HAVE REFERRED TO IN THE EARLIER PARAGRAPH DO SHOW THAT THE INCOME -TAX AUTHORITIES WERE AWARE OF THE FACT THAT THE ASSESSE E HAD SHIFTED TO AHMEDABAD. THEY HAD ISSUED THE NOTICE AS ALSO TH E LETTER TO THE AHMEDABAD ADDRESS OF THE ASSESSEE. HAVING DONE SO THE ASSESSING OFFICER FOR THE PRESENT YEAR SHOULD NOT H AVE SENT NOTICES TO THE MUMBAI ADDRESS OF THE ASSESSEE. IT I S THEREFORE NOT SURPRISING THAT THE NOTICES CAME BACK UNSERVED. THE ASSESSEE THUS HAS HAD NO EFFECTIVE OPPORTUNITY OF R EPRESENTING ITA NO.4902 & 6234/M/08 3 ITS CASE BEFORE THE ASSESSING OFFICER. WE ACCORDING LY SET ASIDE THE ORDERS OF THE DEPARTMENTAL AUTHORITIES AND REST ORE THE ASSESSMENT TO THE FILE OF THE ASSESSING OFFICER FOR BEING DONE AFRESH IN ACCORDANCE WITH LAW. 6. SINCE THE ASSESSMENT ORDER IS SET ASIDE THE CON SEQUENT PENALTY ORDER HAS NO LEGS TO STAND. THE SAME IS ALS O SET ASIDE. 7. IN THE RESULT ITA NO.4902/MUM/2008 IS ALLOWED FO R STATISTICAL PURPOSES AND ITA NO.6234/MUM/2008 IS AL LOWED. ORDER PRONOUNCED ON THIS 21 ST DAY OF MAY 2010. SD/- ( R.K. PANDA ) SD/- ( R.V.EASWAR ) ACCOUNTANT ME MBER SENIOR VICE PRESIDENT MUMBAI DATED 21 ST MAY 2010. SOMU COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-XI MUMBAI. 4. THE CIT(A)-XI MUMBAI 5. THE DR E BENCH /TRUE COPY/ BY ORDE R ASSTT. REGISTRAR I.T.A.T MUMBAI