Income Tax Officer, Ward - 1(1)(2), Bangalore V. M/s. APS Steel Private Limited, Bangalore

ITA 1072/BANG/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5081 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 21-01-2021
• Assessment Year: misc
• Appeal Filed On: 16-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Keywords: Reopening of assessment; Unexplained expenditure; Income from undisclosed sources; Opportunity of being heard; Principle of natural justice
• Section: 250; 132

Judgement Text

ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NOS.1071 TO 1073/BANG/2019 ASSESSMENTYEAR:2010-11, 2011-12 & 2015-16 ITO WARD-1(1)(2) BANGALORE VS. M/S. APS STEEL PVT. LTD. # 71, 72, 2 ND FLOOR INDUSTRIAL LAYOUT 5 TH BLOCK KORAMANGALA BENGALURU 560 095 PAN NO :AALCA6169Q APPELLANT RESPONDENT ITA NOS.814 TO 816/BANG/2019 ASSESSMENT YEAR:2010-11, 2011-12 & 2015-16 M/S. APS STEEL PVT. LTD. # 71, 72, 2 ND FLOOR INDUSTRIAL LAYOUT 5 TH BLOCK KORAMANGALA BENGALURU 560 095 VS. ITO WARD-1(1)(2) BANGALORE APPELLANT RESPONDENT APPELLANT BY : SHRI PRIYADARSHI MISHRA, D.R. RESPONDENT BY : SHRI S. PARTHASARATHI, A.R. DATE OF HEARING : 22.09.2021 DATE OF PRONOUNCEMENT : 28.09.2021 ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 2 OF 10 O R D E R PER BENCH: THESE CROSS APPEALS RELATE TO ASSESSMENT YEARS 2010 -11, 2011-12 & 2015-16 AND THEY ARE DIRECTED AGAINST THE ORDERS PASSED BY LD. CIT(A)-1, BENGALURU. 2. ALL THESE APPEALS WERE HEARD TOGETHER AND HENCE THEY ARE BEING DISPOSED OF BY THIS COMMON ORDER, FOR THE SAK E OF CONVENIENCE. 3. IN THE APPEALS OF THE REVENUE, THE COMMON ISSUE URGED IN ALL THE 3 YEARS RELATES TO THE RELIEF GRANTED BY LD. CI T(A) IN RESPECT OF ADDITION RELATING TO SUPPRESSED SALES. 4. IN THE APPEAL OF THE ASSESSEE, THE ASSESSEE IS C HALLENGING FOLLOWING ISSUES:- A) VALIDITY OF RE-OPENING OF ASSESSMENT IN ASSESSMENT YEARS 2010-11 & 2011-12. B) ADDITION SUSTAINED BY LD. CIT(A) IN RESPECT OF SUPPRESSED TURNOVER IN ALL THE THREE YEARS. C) ADDITION OF SUNDRY CREDITORS IN ALL THE THREE YEARS . D) ADDITION OF PRIOR PERIOD EXPENDITURE IN ASSESSMENT YEAR 2010-11. 5. THE FACTS RELATING TO THE CASE ARE STATED IN BRI EF. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURE AND SALE OF STEEL BY RUNNING A MINI STEEL PLANT. THE ASSESSEE IS CONVER TING METAL SCRAPS INTO STEEL BILLETS. THE ASSESSEE BELONGS TO OPG GR OUP OF COMPANIES. THE REVENUE CARRIED OUT SEARCH & SEIZURE OPERATION U/S 132 OF THE ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 3 OF 10 INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT] IN THE CA SE OF OPG GROUP OF COMPANIES ON 7.8.2014. DURING THE COURSE OF SEA RCH, IT WAS NOTICED THAT OPG GROUP IS UNDER THE CONTROL AND MAN AGEMENT OF SHRI RAVI GUPTA AND SHRI ALOK GUPTA. THE SEARCH OF FICIALS TOOK A STATEMENT FROM SHRI ALOK GUPTA. IN THE STATEMENT, HE WAS ASKED TO FURNISH ACTUAL PROFIT& LOSS ACCOUNT OF THE ASSESSEE HEREIN FOR THE YEAR OF SEARCH AS WELL AS PREVIOUS 6 FINANCIAL YEAR S. SHRI ALOK GUPTA ADMITTED THAT THE COMPANIES UNDER THEIR MANAG EMENT INCLUDING M/S. APS STEELS ARE INDULGING IN UNACCOUN TED SALES AND SUCH UNACCOUNTED SALES ARE IN THE RANGE OF 5% TO 10 % OF THE TURNOVER ADMITTED IN THE BOOKS. BASED ON THE ABOVE SAID INFORMATION, THE A.O. REOPENED THE ASSESSMENT OF AS SESSMENT YEARS 2010-11 & 2011-12. IN THE ASSESSMENT PROCEEDINGS, THE A.O. ADDED 10% OF THE SALES TURNOVER AS UNDISCLOSED INCO ME OF THE ASSESSEE AS DETAILED BELOW: ASSESSMENT YEAR SALES REPORTED 10% THEREOF 2010-11 26,07,65,920 2,60,76,592 2011-12 41,90,39,290 4,19,03,929 2015-16 36,80,82,430 3,68,08,243 6. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. ASKED THE ASSESSEE TO FURNISH THE DETAILS OF SUNDRY CREDI TORS AND ALSO CONFIRMATIONS FROM THEM. SINCE THE ASSESSEE DID NO T FURNISH THE DETAILS, THE A.O. ADDED THE BALANCE OF SUNDRY CREDI TORS TO THE TOTAL INCOME OF THE ASSESSEE AS DETAILED BELOW: ASSESSMENT YEAR SUNDRY CREDITORS AMOUNT 2010-11 2,05,12,678 2011-12 3,62,602 2015-16 43,01,897 ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 4 OF 10 7. THE A.O. ALSO NOTICED THAT THE ASSESSEE HAS DEBI TED A SUM OF RS.5 LAKHS AND RS.5,50,000/- RESPECTIVELY IN THE YE ARS RELEVANT TO THE ASSESSMENT YEARS 2010-11 & 2015-16 AS PRIOR PE RIOD EXPENSES. SINCE THE ASSESSEE DID NOT FURNISH THE DETAILS THERE OF, THE A.O. HELD THAT THE PRIOR PERIOD EXPENDITURE IS NOT ALLOWABLE AS DEDUCTION AND ACCORDINGLY DISALLOWED THE CLAIM. 8. IN THE APPELLATE PROCEEDINGS, THE LD. CIT(A) NOT ICED THAT SHRI ALOK GUPTA HAS STATED IN HIS STATEMENT THAT THERE I S UNACCOUNTED SALES AS WELL AS UNACCOUNTED PURCHASES. ACCORDINGL Y, THE LD. CIT(A) DIRECTED THE A.O. TO RESTRICT THE DISALLOWAN CE TO GROSS PROFIT MARGIN ON THE SUPPRESSED SALES. HOWEVER, HE CONFIR MED THE DISALLOWANCE RELATING TO SUNDRY CREDITORS AND PRIOR PERIOD EXPENSES. HE ALSO UPHELD THE VALIDITY OF REOPENING OF ASSESSM ENTS OF AY 2010- 11 AND 2011-12. 9. AGGRIEVED BY THE ORDER PASSED BY LD. CIT(A), BOT H THE PARTIES ARE IN APPEAL ON THE ISSUES DECIDED AGAINST EACH OF THEM. 10. WE SHALL FIRST TAKE UP THE VALIDITY OF REOPENIN G OF ASSESSMENT URGED IN THE APPEALS FILED BY THE ASSESSEE IN ASSES SMENT YEARS 2010-11 AND 2011-12. THE LD A.R SUBMITTED THAT THE ASSESSEE COMPANY WAS EARLIER OWNED BY SOME OTHER GROUP AND I T CAME INTO THE CONTROL OF OPG GROUP ONLY IN APRIL, 2012. THE LD A.R SUBMITTED THAT THE ASSESSING OFFICER HAS REOPENED THE ASSESSM ENT ON THE BASIS OF STATEMENT RECORDED FROM MR. ALOK GUPTA U/S 132(4 ) OF THE ACT. HE SUBMITTED THAT SHRI ALOK GUPTA WAS NOT IN CHARGE OF THE ASSESSEE COMPANY DURING THE IMPUGNED TWO YEARS AND HENCE HIS STATEMENT COULD NOT HAVE BEEN RELIED UPON BY THE AO FOR THE PURPOSE OF REOPENING OF ASSESSMENT. ACCORDINGLY TH E LD A.R SUBMITTED THAT THERE IS NO CREDIBLE MATERIAL AVAILA BLE WITH THE AO TO ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 5 OF 10 FORM THE BELIEF THAT THERE WAS ESCAPEMENT OF INCOME IN THE YEARS RELEVANT TO AY 2010-11 AND 2011-12. ACCORDINGLY, T HE LD A.R CONTENDED THAT THE REOPENING IS BAD IN LAW. 11. THE LD D.R, ON THE CONTRARY, SUBMITTED THAT THE ASSESSEE IS A LIMITED COMPANY AND HENCE IT IS SEPARATE ENTITY IND EPENDENT OF ITS SHARE HOLDERS/DIRECTORS. FURTHER, AS PER THE PROVI SIONS OF SEC.132(4) OF THE ACT, THE STATEMENT IS TAKEN FROM ANY PERSON WHO IS FOUND TO IN POSSESSION OR CONTROL OF ANY BOOKS OF A CCOUNTS, DOCUMENTS ETC. THERE IS NO DISPUTE THAT SHRI ALOK GUPTA WAS IN POSSESSION OR CONTROL OF THE AFFAIRS OF THE ASSESSE E COMPANY DURING THE COURSE OF SEARCH AND HENCE STATEMENT WAS TAKEN FROM HIM. THE LD D.R SUBMITTED THAT EVEN THOUGH THE ASSESSEE COMP ANY CAME TO BE ACQUIRED BY OPG GROUP IN 2012, YET SHRI ALOK GUP TA DID NOT MENTION IN THE STATEMENT THAT HE WAS NOT AWARE OF D ETAILS OF TRANSACTIONS PRIOR TO ITS ACQUISITION IN 2012. IN FACT, HE HAS REVEALED THE TREND PREVAILING IN THEIR GROUP, INCLU DING THAT OF THE ASSESSEE COMPANY. FURTHER, THE STATEMENT SO GIVEN HAS NOT BEEN RETRACTED BY THE ASSESSEE TILL DATE. HE SUBMITTED THAT AS PER THE PROVISIONS OF SEC.132(4) OF THE ACT, THE STATEMENT TAKEN U/S 132(4) MAY BE USED IN EVIDENCE IN ANY PROCEEDING UNDER THE ACT. ACCORDINGLY, THE LD D.R SUBMITTED THAT THE STATEMEN T SO GIVEN BY SHRI ALOK GUPTA IS A VALID MATERIAL AND FORMS THE B ASIS OF REOPENING OF ASSESSMENT OF THE TWO YEARS UNDER CONSIDERATION. ACCORDINGLY HE CONTENDED THAT THE LD CIT(A) WAS JUSTIFIED IN CONFI RMING THE VALIDITY OF REOPENING OF ASSESSMENT. 12. WE HEARD THE PARTIES AND PERUSED THE RECORD. W E FIND MERIT IN THE CONTENTIONS MADE BY LD D.R. AS RIGHTLY POIN TED BY LD D.R, SHRI ALOK GUPTA HAS NOT EXPRESSED HIS IGNORANCE ABO UT THE AFFAIRS OF THE ASSESSEE COMPANY PRIOR TO THE PERIOD OF ACQU ISITION, MEANING ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 6 OF 10 THEREBY, IT CAN BE SAFELY PRESUMED THAT HE WAS AWAR E OF THE TRANSACTIONS OF THE ASSESSEE COMPANY PRIOR TO ITS A CQUISITION BY OPG GROUP. FURTHER, THE STATEMENT SO GIVEN U/S 132 (4) HAS NOT BEEN RETRACTED TILL DATE. UNDER THE PROVISION OF S EC.132(4), THE STATEMENT SO GIVEN MAY BE USED IN EVIDENCE IN ANY P ROCEEDING UNDER THE INCOME TAX ACT. HENCE WE ARE OF THE VIEW THAT THE AO WAS JUSTIFIED IN PLACING RELIANCE ON THE STATEMENT GIVEN BY ALOK GUPTA FOR THE TWO YEARS UNDER CONSIDERATION FOR REO PENING THE ASSESSMENTS OF THESE TWO YEARS. ACCORDINGLY, WE HO LD THAT THE LD CIT(A) WAS JUSTIFIED IN CONFIRMING THE VALIDITY OF REOPENING OF ASSESSMENT OF THE TWO YEARS UNDER CONSIDERATION. 13. THE NEXT ISSUE IS A COMMON ISSUE URGED BOTH BY THE ASSESSEE AND REVENUE. IT RELATES TO THE ADDITION MADE BY TH E AO ON ACCOUNT OF SUPPRESSED SALES. WE NOTICED EARLIER THAT SHRI ALOK GUPTA HAS STATED IN THE SWORN STATEMENT THAT THE SUPPRESSED S ALES WILL BE IN THE RANGE OF 5% TO 10% OF THE DECLARED TURNOVER. A CCORDINGLY, THE AO ADDED 10% OF THE DECLARED TURNOVER AS INCOME OF THE ASSESSEE IN ALL THE THREE YEARS UNDER CONSIDERATION. THE LD CI T(A) NOTICED THAT THE SUPPRESSION HAS TAKEN PLACE BOTH FROM SALES AND THE CORRESPONDING EXPENDITURE. ACCORDINGLY, THE LD CIT (A) HAS TAKEN THE VIEW THAT ONLY GROSS PROFIT MARGIN SHOULD BE AP PLIED ON THE SUPPRESSED SALES. BOTH THE PARTIES ARE AGGRIEVED. 14. WE HEARD THE PARTIES AND PERUSED THE RECORD . THE ADDITION ON ACCOUNT OF SUPPRESSION OF SALES HAS BEEN MADE IN ALL THE THREE YEARS ON THE BASIS OF STATEMENT TAKEN FROM SHRI ALO K GUPTA, MORE PARTICULAR QUESTION NO.24 AND 25. FOR THE SAKE OF CONVENIENCE, THE RELEVANT QUESTION AND THE ANSWERS GIVEN TO THEM ARE EXTRACTED BELOW:- ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 7 OF 10 Q24. GOING BY THE NOTINGS IN THE SIZED MATERIAL PA GE NOS.87 TO 90, IT IS UNDERSTOOD THAT THERE ARE TWO SETS OF BOOKS MAINTAI NED AND THE UNACCOUNTED BOOKS WHICH SHOWS THE ACTUAL PROFIT IS MAINTAINED IN THE NAME 'KATCHA'. PLEASE EXPLAIN WHAT IS THE MODUS OPE RANDI OF GENERATION OF THIS UNACCOUNTED INCOME IN YOUR BUSIN ESS CONCERNS. ANS: SIR, IN THE STEEL INDUSTRY DUE TO THE FACTORS LIKE BUSINESS COMPETITION DEMANDS OF CUSTOMERS AND DUE TO BUSINES S EXIGENCIES 5 TO 10 PERCENTAGE UNACCOUNTED SALE OF THE TURNOVER HAS TO BE DONE TO SURVIVE IN THE BUSINESS. ACCORDINGLY, MY CONCERN WA S ALSO DOING THE SAME IN THE BUSINESS. SIR, AT MY STEEL COMPANIES. I REQU EST . YOU TO GIVE A WEEK'S TO WORKOUT THE SAME. Q.25. IT IS OBSERVED THAT YOUR COMPANIES M/S.SONAL VYAPAR, M/S. SRI SRIRUKMANI ROLLING MILLS PVT LTD AND M/S APS STEELS LTD HAS A COMBINED TURNOVER AROUND RS.250 CRORES. GOING BY THE ESTIMAT ION OF COMBINED TURNOVER OF AROUND RS.250 CRORES OF THE SAID COMPAN IES, APPROXIMATELY RS. 250 CRORES OF UNACCOUNTED SALES PER ANNUM MUST HAVE BEEN AROUND RS.75 CRORES OF ACCOUNTED SALES. PLEASE STATE THE A PPLICATION OF THE REVENUE REALIZED FROM UNACCOUNTED SALE. ANS: SIR, SIMILAR TO THE UNACCOUNTED SALE DUE TO BU SINESS EXIGENCIES WE ARE ALSO INDULGED IN UNACCOUNTED EXPENDITURE LIKE U NACCOUNTED PURCHASE OF RAW MATERIALS. MAJOR PART OF REVENUE REALIZED TH OUGH UNACCOUNTED SALE IS USED FOR UNACCOUNTED CASH PURCHASE. I REQUEST YO U A WEEKS TIME FOR ME QUANTIFY THE UNACCOUNTED INCOME EARNED BY WAY OF UN ACCOUNTED SALES. SIR, I ALSO SUBMIT THAT IN M/S. APS STEELS LTD DUE THE BURST OF THE TRANSFORMER THE BUSINESS WAS SHUT DOWN FOR THE PAST SIX MONTHS. THE NET ACTUAL INCOMES RECEIVED BY ME OUT OF THE NORMAL BOOKS OF ACCOUNTS ARE BEING USED BY ME FOR PERSONAL EXPENSES OF THE FAMIL Y. A PERUSAL OF ANSWER GIVEN TO QUESTION NO.25 WOULD S HOW THAT THE ASSESSEE HAS ADMITTED THAT THERE IS SUPPRESSION OF EXPENDITURE DUE TO BUSINESS EXIGENCIES, WHICH INCLUDED UNACCOUNTED PURCHASE OF RAW MATERIALS. HENCE THERE IS SUPPRESSION OF BOTH PURCHASES AND SALES. ACCORDINGLY, THE LD CIT(A) HAS TAKEN THE VI EW THAT, IN THE ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 8 OF 10 FACTS AND CIRCUMSTANCES OF THE CASE, THE GROSS PROF IT ONLY SHOULD HAVE BEEN ASSESSED INSTEAD OF ASSESSING ENTIRE SUPP RESSED SALES. IN OUR CONSIDERED VIEW, THERE IS NO ERROR IN THE DE CISION SO REACHED BY LD CIT(A). WHEN THERE IS SUPPRESSION OF BOTH PU RCHASES AND SALES, THEN WHAT COULD BE ASSESSED IS THE PROFIT EL EMENT EMBEDDED THEREIN. BEFORE US, BOTH THE PARTIES COULD NOT SHO W AS TO HOW THE DECISION SO REACHED BY LD CIT(A) WAS NOT CORRECT, I N THE FACTS AND CIRCUMSTANCES OF THE CASE. HENCE, WE ARE OF THE VIE W THAT THE LD CIT(A) WAS JUSTIFIED IN DIRECTING THE AO TO RESTRIC T THE ADDITION TO THE GROSS PROFIT AMOUNT IN RESPECT OF SUPPRESSED SA LES. ACCORDINGLY, WE CONFIRM HIS ORDER PASSED ON THIS IS SUE. 15. ACCORDINGLY, THE APPEALS OF THE REVENUE AND THE GROUND OF THE ASSESSEE ON THIS ISSUE IN ALL THE THREE YEARS ARE R EJECTED. 16. THE NEXT ISSUE URGED BY THE ASSESSEE IN A LL THE THREE YEARS RELATE TO THE ADDITION OF SUNDRY CREDITORS BALANCE FOR WANT OF DETAILS. AS NOTED EARLIER, THE AO MADE THE ADDITION FOR WANT OF DETAILS, SINCE THE ASSESSEE FAILED TO FURNISH PAN NUMBER OF CREDIT ORS, CONFIRMATION FROM CREDITORS ETC. BEFORE LD CIT(A) ALSO, THE ASSESSEE DID NOT FURNISH ANY DETAILS AND HENCE THE FIRST APP ELLATE AUTHORITY CONFIRMED THE ADDITION OF SUNDRY CREDITORS IN ALL T HE THREE YEARS. 17. THE LD A.R SUBMITTED THAT THE SUNDRY CREDITORS BALANCE RELATES TO TRADE CREDITORS AND IT IS A RUNNING ACCOUNT. TH E ASSESSEE HAS MADE THE PAYMENTS IN SUBSEQUENT YEARS THROUGH BANKI NG CHANNELS. HE FURTHER SUBMITTED THAT THE AO, HAVING ACCEPTED THE PURCHASES, COULD NOT HAVE DISBELIEVED THE SUNDRY CR EDITORS. ACCORDINGLY, THE LD A.R SUBMITTED THAT THE ADDITION OF SUNDRY CREDITORS BALANCE IN ALL THE THREE YEARS IS LIABLE TO BE DELETED. ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 9 OF 10 18. ON THE CONTRARY, THE LD D.R SUBMITTED THAT THE ASSESSEE HAS FAILED TO FURNISH THE DETAILS RELATING TO SUNDRY CR EDITORS CALLED FOR BY THE AO AND HENCE HE HAS MADE THE ADDITION. HE SUBM ITTED THAT THE ASSESSEE HAS NOT FURNISHED THE DETAILS TILL DATE. 19. WE HEARD THE PARTIES ON THIS ISSUE AND PER USED THE RECORD. THE LD A.R HAS SUBMITTED THAT THE SUNDRY CREDITORS BALANCE REPRESENTS TRADE CREDITORS AND ALL THE CREDITORS HA VE RUNNING ACCOUNT. HE ALSO CONTENDED THAT THE AO COULD NOT H AVE DISBELIEVED THE TRADE CREDITORS WHILE ACCEPTING THE PURCHASES. HOWEVER, THE FACT REMAINS THAT THE ASSESSING OFFICER HAS MADE TH E IMPUGNED ADDITION ONLY FOR THE REASON THAT THE ASSESSEE HAS NOT FURNISHED RELEVANT DETAILS CALLED FOR BY HIM. HENCE, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOUL D BE PROVIDED WITH ONE MORE OPPORTUNITY TO FURNISH EXPLANATIONS AND DE TAILS ON THIS ISSUE. ACCORDINGLY, WE SET THE ORDER PASSED BY LD CIT(A) ON THIS ISSUE IN ALL THE THREE YEARS AND UNDER CONSIDERATIO N AND RESTORE THE SAME TO THE FILE OF AO FOR EXAMINING THE SAME AFRES H. AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD, THE AO MAY TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 20. THE LAST ISSUE URGED IN AY 2010-11 RELATES TO DISALLOWANCE OF PRIOR PERIOD EXPENSES. THE AO MADE THIS DISALLOWAN CE FOR WANT OF DETAILS AND ALSO FOR THE REASON THAT THIS EXPENSE D ID NOT RELATE TO AY 2010-11. THE LD CIT(A) CONFIRMED THE SAME ON IDENT ICAL REASONING. BEFORE US ALSO, NO DETAIL WAS FURNISHED. ACCORDING LY, WE CONFIRM THE ORDER PASSED BY LD CIT(A) ON THIS ISSUE. ITA NO.1071 TO 1073/BANG/2019 & ITA NOS.814 TO 816/BANG/2019 M/S. APS STEEL PVT. LTD., BANGALORE PAGE 10 OF 10 21. IN THE RESULT, ALL THE APPEALS FILED BY T HE ASSESSEE ARE TREATED AS PARTLY ALLOWED AND ALL THE APPEALS OF TH E REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH SEPT, 2021. SD/- (N.V. VASUDEVAN) VICE PRESIDENT SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 28 TH SEPT, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.