Gloster Cables Ltd., Hyd, Secunderabad V. ACIT, Circle-2(3), Hyd, Hyderabad

ITA 1046/HYD/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6123 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 21-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Depreciation; Additional depreciation

Judgement Text

1 ITA.NO.1046/HYD/2016 GLOSTER CABLES LIMITED, SECUNDERABAD. IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC) : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA.NO.1046/HYD/2016 ASSESSMENT YEAR 2009-2010 GLOSTER CABLES LTD., HYDERABAD. PAN AAACC8377R VS. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2(3), I.T. TOWERS, HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.A. SAI PRASAD FOR REVENUE : SMT. U. MINICHANDRAN DATE OF HEARING : 04.01.2017 DATE OF PRONOUNCEMENT : 04.01.2017 ORDER THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSES SEE-COMPANY AND IT PERTAINS TO THE A.Y. 2009-2010. 2. THE ASSESSEE IS A MANUFACTURER OF CABLES. FO R THE YEAR UNDER CONSIDERATION, IT DECLARED LOSS OF RS.10.85 CRORES WH EREAS ASSESSMENT WAS COMPLETED BY REDUCING THE LOSS TO RS.10.73 CRORES WHICH WAS ALLOWED TO BE CARRIED FORWARD. THE DISALLOWANCES MAD E BY THE A.O. ARE AS UNDER : 1. APPLICATION OF 40(A)(IA) ON ACCOUNT OF TDS NOT REMITTED ON THE GROUND THAT THE PAYMENT PERTAINS TO A.Y. 2007-08 THOUGH THE ACTUAL PAYMENT WAS MADE IN THE YEAR UNDER CONSIDERATION. RS. 49,635 2. ADDITION ON ACCOUNT OF SALES TAX NOT PAID RS.1,42,6 33 3. INTEREST PAID ON DELAYED REMITTANCE OF TDS RS. 79 ,417 4. INTEREST ON FRINGE BENEFIT TAX (FBT) RS. 34,40 1 5. ADDITION ON ACCOUNT OF ADDITIONAL DEPRECIATION RS. 48,743 6. CLUB MEMBERSHIP IN THE NAME OF DIRECTOR NOT ALLOWED. RS.8,20,228 2 ITA.NO.1046/HYD/2016 GLOSTER CABLES LIMITED, SECUNDERABAD. 3. AGGRIEVED, ASSESSEE CONTENDED BEFORE THE LD. CIT(A) THAT THE DISALLOWANCE MADE BY THE A.O. ARE NOT IN ORDER AND FI LED PAPER BOOK TO SUPPORT ITS CONTENTION. THE LD. CIT(A) DISPOSED OF THE A PPEAL EX-PARTE ON THE GROUND THAT THE ASSESSEE HAS NOT FURNISHED ANY EV IDENCE. FURTHER AGGRIEVED ASSESSEE IS IN APPEAL BEFORE ME. T HE MAIN GROUND OF THE ASSESSEE-COMPANY IS THAT THE LD. CIT(A) ERRED IN P ASSING THE EX- PARTE ORDER WITHOUT REFERRING TO THE FACTS ON RECORD AN D THE PAPER BOOK FILED ON 23.12.2015. A COPY OF THE PAPER BOOK WAS AL SO FILED BEFORE ME TO HIGHLIGHT THAT THE ADDITIONS MADE BY THE A.O. WERE NOT PROPER AND SUFFICIENT EVIDENCE WAS PLACED ON RECORD BUT THE LD. C IT(A) OVERLOOKED THE EVIDENCE WHILE CONFIRMING THE ADDITIONS. 4. I HAVE HEARD THE LEARNED COUNSEL FOR THE ASSESSEE AS WELL AS THE LD. D.R. AND CAREFULLY PERUSED THE RECORD. NO DOUBT THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT ON MERITS ASSESSE E HAS A STRONG CASE AND THE MATTER NEED NOT BE SET ASIDE BUT THE F ACT REMAINS THAT THE LD. CIT(A) HAS NOT CONSIDERED THE PAPER BOOK AN D MATERIAL FILED FOR THE FIRST TIME BEFORE THE LD. CIT(A) AND THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE, I DEEM IT FAIR AND REASONABLE TO RESTORE THE MATTER TO THE FILE OF THE CIT(A) WHO IS DIRECTED TO TAKE ON RECO RD THE MATERIAL FILED BEFORE HIM AND TO RE-CONSIDER THE MATTER IN ACC ORDANCE WITH LAW. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE-COMPAN Y IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04.01.2017. SD/- (D.MANMOHAN) VICE PRESIDENT HYDERABAD, DATED 04 TH JANUARY, 2017. VBP/- 3 ITA.NO.1046/HYD/2016 GLOSTER CABLES LIMITED, SECUNDERABAD. COPY TO 1. GLOSTER CABLES LIMITED, 183/184 (5-3-370 TO 372A), 2 ND FLOOR, ABOVE MODY MOTORS (HERO SHOW ROOM) R.P. ROAD, SECUN DERABAD. 2. THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE-2(3) , I.T. TOWERS, HYDERABAD. 3. CIT(A)-2, HYDERABAD. 4. PR. CIT-2, HYDERABAD. 5. D.R. ITAT B (SMC) BENCH 6. GUARD FILE.