PARAGON CONSTRUCTION, Hooghly v. A.C.I.T., Circle-1, Hooghly, Hooghly

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA [BEFORE HONBLE SRI D. K. TYAGI JM & HONBLE SRI B . C. MEENA AM] I.T.A. NO. 951/KOL/2009 ASSESSMENT YEAR :2004-05 PARAGON CONSTRUCTION -VS- ASSISTANT COMMISSIONE R OF INCOME-TAX (PA NO.AAGFP 4966 Q) CIRCLE-1 HOOGHLY (APPELLANT) (RESPONDENT) APPELLANT BY : N O N E RESPONDENT BY : SRI K. K. TRIPATHI O R D E R PER D. K. TYAGI JM : THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE LD. CIT(A) KOLKATA DATED 23.02.2009 FOR ASSESSMENT YEA R 2004-05 ON THE FOLLOWING GROUNDS : 1. FOR THAT THE LD.CIT(APPEALS) WAS UNJUSTIFIED IN PASSING AN EXPARTE ORDER WITHOUT GIVING PROPER OPPORTUNITY TO THE APPELLANT. 2. FOR THAT THE ASSESSMENT IS BAD IN VIEW OF THE FA CT THAT THE SCRUTINY PROCEEDINGS HAD BEEN STARTED BY THE A.O. NOT ON HIS OWN BUT ON THE DIRECTION OF THE HIGHER AUTHORITY. 3. FOR THAT THE LD. CIT (APPEALS) WAS UNJUSTIFIED I N DISALLOWING THE EXPENDITURE. OF RS.2 60 000 INVOKING SECTION 40A(3) OF THE I.T. ACT 1961. 4. FOR THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN CON FIRMING THE DISALLOWANCE OF RS.5 39 527 FROM FUEL EXPENSES. 5. FOR THAT THE LD. CIT(A) WAS UNJUSTIFIED IN CONFI RMING THE DISALLOWANCE OF RS.2 87.062 FROM INTEREST. 6. FOR THAT THE DEMAND RAISED AT RS.2 63 775 IS ERR ONEOUS EXCESSIVE ARBITRARY AND ILLEGAL (NO DETAIL EITHER IN THE ASSESSMENT ORDER O R IN THE DEMAND NOTICE COMPUTING OF DEMAND) 7. FOR THAT THE ASSESSMENT IS OTHERWISE ILLEGAL AR BITRARY AND ULTRA VIRES. 2. NONE APPEARED AT THE TIME OF HEARING BEFORE US ON BEHALF OF THE ASSESSEE DESPITE NOTICE BEING SERVED ON THE ASSESSEE. WE HOWEVER PROCEEDED TO DISPOSE OF THE APPEAL BY HEARING THE LD. DR. 3. AFTER HEARING THE LD. DR PERUSING THE MATERIAL AVAILABLE ON RECORD AND THE ORDERS OF THE LOWER AUTHORITIES WE FIND THAT THE L D. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE BY PASSING AN EX PARTE ORDER WITHOUT P ROVIDING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THEREFORE IN THE INT EREST OF NATURAL JUSTICE AND FAIR PLAY THE MATTER IS RESTORED TO THE FILE OF THE LD. CIT(A) FO R FRESH ADJUDICATION AFTER AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. THE ASSESSEE IS ALSO DIRECTED TO 2 COOPERATE IN THE APPELLATE PROCEEDINGS BEFORE THE L D. CIT(A) OTHERWISE ADVERSE VIEW MAY BE TAKEN. THE APPEAL OF THE ASSESSEE IS THEREF ORE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES 7. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B. C. MEENA) ( D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 6 TH APRIL 2010 COPY FORWARDED TO THE :- 1) M/S. PARAGON CONSTRUCTION J. M. S. SUPER MARKET SINGUR BAZAR SINGUR HOOGHLY. 2) ACIT CIRCLE-1 HOOGHLY 3) CIT(A) KOLKATA 4) CIT KOLKATA. 5) D. R. ITAT KOLKATA. (TRUE COPY) BY ORDER DEPUTY REGISTRAR JD. (SR. P.S.) I.T.A.T. KOLKATA