Salasar Warehousing Pvt.Ltd, Pune V. Income-tax Officer, Ward - 6 (1), Pune

ITA 1104/PUN/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6294 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 15-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH R PARDESHI
• Assessee Lawyers: R G NAHAR
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 143(3); 143(1); 143(2)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER . / ITA NO.1104/PUN/2019 / ASSESSMENT YEAR : 2014-15 SALSAR WAREHOUSING PRIVATE LIMITED, S.NO.20/2/A, KHARADI, NEAR MUNDHWAR BIRDGE, KHARADI, PUNE 411 014. PAN : AAMCS4843C. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 6(1), PUNE. . / RESPONDENT ASSESSEE BY : SHRI R.G. NAHAR. REVENUE BY : SHRI DINESH R. PARDESHI. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY ASSESSEE IS EMANATING OUT OF THE ORDE R OF COMMISSIONER OF INCOME TAX (APPEALS) 13, PUNE DATED 26 .04.2019 FOR A.Y. 2014-15. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER :- ASSESSEE IS A COMPANY STATED TO BE ENGAGED IN THE BU SINESS OF GOODS TRANSPORT SERVICES UNDER THE NAME AND STYLE OF SALASAR WAREHOUSING PVT. LTD. ASSESSEE FILED ITS RETURN OF INCOME FO R A.Y. / DATE OF HEARING : 11.09.2019 / DATE OF PRONOUNCEMENT: 09.10.2019 2 2014-15 ON 29.09.2014 DECLARING TOTAL INCOME AT RS.1,05 ,400/-. THE RETURN WAS INITIALLY PROCESSED U/S 143(1) OF THE ACT. THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY THROUGH CASS AND AC CORDINGLY, NOTICE U/S 143(2) OF THE ACT WAS ISSUED ON 31.08.2015. SUBSEQUENTLY, ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 27.12.2016 AND THE TOTAL INCOME WAS ASSES SED AT RS.20,80,180/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE C ARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE ORDER DATED 26.04.2019 (IN APPEAL NO.PN/CIT(A)-13/ITO WARD 6(1), PUNE/387/2016-17) DISMISSE D THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), AS SESSEE IS NOW IN APPEAL AND HAS RAISED THE FOLLOWING GROUNDS : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE IT B E HELD THAT THE CONCERNED AUTHORIZED PERSON HAS NOT RECEIVED ANY OF THE NOTICES FOR HEARING THEREFORE ONE MORE OPPORTUNITY TO THE APPEL LANT MAY BE GIVEN. 2. WITHOUT ANY PREJUDICE TO THE ABOVE GROUNDS ON TH E FACTS AND CIRCUMSTANCES PREVAILING IN THE CASE AND AS PER PRO VISIONS AND SCHEME OF THE ACT IT BE HELD THAT THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE FIRST APPELLATE AUTHOR ITY ON ACCOUNT OF FREIGHT PAYABLE EXPENSES ARE NOT IN ACCORDANCE WITH THE PROVISIONS OF THE ACT. THE ADDITIONS SO MADE BE DELETED. 3. BOTH THE GROUNDS BEING INTER-CONNECTED ARE CONSIDER ED TOGETHER. 4. BEFORE ME, LD.A.R. AT THE OUTSET SUBMITTED THAT LD.CIT(A) HAS PASSED AN EX-PARTE ORDER AND HAS NOT DECIDED THE ISSU E ON MERITS. LD.A.R. ALSO FILED THE SWORN AFFIDAVIT OF THE DIRECTOR OF ASSESSE E WHEREIN IT IS SUBMITTED THAT NOTICES OF HEARING OF APPEA L ISSUED BY COMMISSIONER OF INCOME TAX (APPEALS) 13 WERE NOT RECEIV ED BY THEIR COMPANY AND HENCE, NONE COULD ATTEND BEFORE THE LD.CIT(A). LD.A.R. SUBMITTED THAT IF GIVEN A CHANCE, ASSESSEE COMPANY UNDERTAKES TO APPEAR BEFORE LOWER AUTHORITIES AND FURNISH ALL THE 3 REQUIRED DETAILS TO SUBSTANTIATE ITS CASE. HE THEREFORE SUBMITTED THAT ASSESSEE BE GRANTED ONE MORE OPPORTUNITY TO EXPLAIN IT S CASE. LD.D.R. ON THE OTHER HAND SUPPORTED THE ORDER OF AO AND LD.CIT(A) AND OBJECTED TO LD.A.R.S PRAYER FOR 2 ND INNINGS. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPECT TO ADDITION OF RS.19,74,780/- ON ACCOUNT OF UNEXPLAINED CREDITS IN THE B OOKS OF ACCOUNTS OF ASSESSEE COMPANY. THE PERUSAL OF ORDER O F LD.CIT(A) REVEALS THAT LD.CIT(A) HAS PASSED AN EX-PARTE ORDER WITHOUT DECIDING THE ISSUE ON MERITS. I N VIEW OF THE WELL SETTLED PRINCIPLE OF NATURAL JUSTICE THAT SUFFICIENT OPPORTUNITY OF HEARING SHOULD BE AFFORDED TO THE PARTIES AND NO PARTY SHOULD BE CONDEMNE D UNHEARD AND IN VIEW OF THE REASONS MENTIONED IN THE AFFIDAVIT FILED BY THE DIRECTOR OF THE ASSESSEE COMPANY, I AM OF THE VIEW THAT ONE MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE LOWER AUTHORITIES. I THEREFORE RESTORE THE MATTER BACK TO THE FILE OF LD.CIT(A) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT LD.CIT(A) SHALL GRANT ADEQUATE OPP ORTUNITY OF HEARING TO BOTH THE PARTIES. ASSESSEE IS ALSO DIRECTED T O PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY THE AUTHORITIES. IN VIEW OF MY DECISION TO RESTORE THE ISSUE TO LD.CIT(A), I AM NOT ADJ UDICATING ON MERITS THE GROUNDS OF THE APPEAL RAISED BY THE ASSESSEE . THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PUR POSES. 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 9 TH DAY OF OCTOBER, 2019. SD /- ( ANIL CHATURVEDI ) ' / ACCOUNTANT MEMBER PUNE; DATED : 9 TH OCTOBER, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-13, PUNE. PR. CIT-3, PUNE. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // Y // 012%3&4 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.