M/S. KOCH CHEMICALS TECHNOLOGY GROUP INDIA PVT. LTD, MUMBAI V. THE DY CIT 10(2), MUMBAI

ITA 1052/MUM/2008

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 8634 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 20-01-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 12-02-2008
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: MILIN K MEHTA
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH A,MUMBAI BEFORE SHRI R.S. SYAL(AM) & SMT. ASHA VIJAYARAGHAV AN (JM) I.T.A.NO.1052/MUM/2008 (A.Y. 2004-05) M/S.KOCH CHEMICAL TECHNOLOGY GROUP INDIA PVT. LTD., 10 TH FLOOR, CORPORATE PARK-II, SION-TROMBAY ROAD, CHEMBUR, MUMBAI-400 074. PAN: AABCK3688G VS. DY. COMMR. OF INCOME-TAX-10(2), AAYKAR BHAVAN, M.K. ROAD, MUMBAI-400 020. APPELLANT RESPONDENT APPELLANT BY SHRI MILIN K. MEHTA. RESPONDENT BY SHRI SU RENDRA KUMAR. O R D E R PER R.S. SYAL, AM: THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 23-11-2007 IN RELATION TO THE ASSTT. YE AR 2004-05. 2. THE FIRST GROUND IS AGAINST THE NON-ADMISSION OF ADDITIONAL EVIDENCE FILED BEFORE THE LEARNED FIRST APPELLATE AUTHORITY, WHILE CONFIRMING THE DISALLOWANCE U/S. 40(A)(I) OF THE ACT. 3. SHORN OF UNNECESSARY DETAILS, IT IS SEEN THAT TH E AO MADE DISALLOWANCE OF RS.21,27,107/- U/S.40(A)(I) IN RESP ECT OF SHARED SERVICE COST. THE ASSESSEE TRIED TO PRODUCE ADDITIONAL EVID ENCE IN THE SHAPE OF COST SHARING AGREEMENT BEFORE THE LEARNED FIRST APP ELLATE AUTHORITY, WHO REFUSED TO ADMIT THE SAME AND UPHELD THE ASSESSMENT ORDER ON THIS ISSUE. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELE VANT MATERIAL ON RECORD, IT IS NOTED FROM THE SUBMISSIONS ADVANCED O N BEHALF OF THE ITA 1052/M/08 2 ASSESSEE THAT THE AO DID NOT PROVIDE ADEQUATE OPPOR TUNITY TO THE ASSESSEE IN DEFENCE OF ITS CASE. IT WAS ONLY AT THE APPELLAT E STAGE THAT THE ASSESSEE PUT FORWARD THE NECESSARY EVIDENCE IN SUPPORT OF I TS CLAIM, WHICH WAS NOT ADMITTED BY THE LEARNED CIT(A). WITHOUT GOING INTO THE MERITS OF THE CASE, WE ARE OF THE CONSIDERED OPINION THAT IT WILL BE JU ST AND FAIR IF THE IMPUGNED ORDER IS SET ASIDE AND THE MATTER IS RESTO RED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT THE AO TO DECIDE TH IS ISSUE DE NOVO AS PER LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD, UNINFLUENCED BY ANY FINDING IN THE IMPUGNED ORDER. NEEDLESS TO SAY THE ASSESSEE WILL BE AT LIBERTY TO LEAD ANY EVIDENCE BEFORE THE AO IN ITS D EFENCE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THE 28TH DAY OF JANUARY, 2011. SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEM BER MUMBAI: 28TH JANUARY , 2011. NG: COPY TO : 1. ASSESSEE. 2. DEPARTMENT. 3 CIT(A)-X,MUMBAI. 4 CIT, MC-X, MUMBAI. 5.DR,A BENCH,MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER, ASST.REGISTRAR, ITAT, MUMBAI. ITA 1052/M/08 3 DETAILS DATE INITIALS DESIGNA TION 1. DRAFT DICTATED ON 20-01-2010 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 20-01-2010 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/ AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *