ACIT, Cir.-1, Aurangabad V. Jalna Sah. Sakhar Karkhana Ltd., Jalna

ITA 1113/PUN/2011

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2213 (ITAT-PUNE)
• Duration Of Justice: 7 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 05-09-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARISES OUT OF PASSED
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER . / ITA NO.1113/PUN/2011 / ASSESSMENT YEAR : 2006-07 ACIT, CIRCLE-1, AURANGABAD VS. JALNA SAHAKARI SAKHAR KARKHANA LTD., C/O. DATTATRAY KESHAVRAO MORE (CHAIRMAN), AT POST GOLAPANGRI, TQ. DIST. JALNA - 431213 PAN : AAAAJ0670Q (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A), AURANGABAD ON 30-06-2011 IN RELATION TO THE A.Y. 2006-07. 2. IT IS A RECALLED MATTER IN AS MUCH AS THE EARLIER EX PARTE ORDER PASSED BY THE TRIBUNAL DISMISSING THE APPEAL OF THE APPELLANT BY MS. NANDITA KANCHAN RESPONDENT BY NONE DATE OF HEARING 25-06-2019 DATE OF PRONOUNCEMENT 26-06-2019 ITA NO. 1113/PUN/2011 JALNA SAHAKARI SAKHAR KARKHANA LTD., 2 REVENUE FOR NON-SERVICE OF NOTICE ON THE ASSESSEE WAS SUBSEQUENTLY RECALLED VIDE ITS LATER ORDER DATED 14-12-2016. 3. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST DELETION OF ADDITION OF RS.15,57,54,073/- MADE BY THE ASSESSING OFFIC ER (AO) U/S. 41(1) OF THE INCOME-TAX ACT, 1961 (HEREINAF TER ALSO CALLED THE ACT) ON ACCOUNT OF CESSATION OF LIABILITY. 4. SUCCINCTLY, THE FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED ITS RETURN DECLARING LOSS OF RS.3,07,943/-. THE AO TOOK U P THE ASSESSMENT PROCEEDINGS. DESPITE CERTAIN NOTICES REQUIRING THE PRESENCE OF THE ASSESSEE FOR ENABLING THE AO TO COMPLETE THE ASSESSMENT, THE ASSESSEE DID NOT TURN UP. THE AO, ON PERUSAL OF THE BALANCE SHEET, OBSERVED THAT THE ASSESSEE SQUARED U P ITS LIABILITIES AMOUNTING TO RS.15.57 CRORE AND ODD. INVOKING THE PROVISIONS OF SECTION 41(1) OF THE ACT, THE AO MADE ADDITION FOR THE SAID SUM IN HIS ORDER PASSED U/S 144 OF THE ACT, WHICH CAME TO BE DELETED BY THE LD. CIT(A). 5. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE DESPITE THE FACT THAT THE NOTICE HAS BEEN SERVED B Y THE DEPARTMENT. IN FACT, THE ASSESSEE STOPPED RESPONDING TO THE ITA NO. 1113/PUN/2011 JALNA SAHAKARI SAKHAR KARKHANA LTD., 3 NOTICES OF THE TRIBUNAL SINCE 2014. THE TRIBUNAL DIRECTED THE REVENUE ON THE LAST DATE OF HEARING TO SERVE THE NOTICE ON THE ASSESSEE, WHICH HAS BEEN DONE. IN VIEW OF THESE FACTS, WE ARE PROCEEDINGS TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE. 6. IT IS SEEN THAT THE AO GAVE SEVERAL OPPORTUNITIES TO THE ASSESSEE FOR ATTENDING THE PROCEEDINGS, WHICH FELL ON DEAF EARS. CONSEQUENTLY, THE ASSESSMENT ORDER WAS PASSED U/S.144 OF THE ACT IN WHICH THE ADDITION OF RS.15.57 CRORE AND ODD WAS MA DE U/S.41(1) OF THE ACT. THE LD. CIT(A) ENTERTAINED CERTAIN F RESH SUBMISSIONS/EVIDENCE FROM THE ASSESSEE AND ACCORDINGLY DELE TED THE ADDITION, WITHOUT EVEN SEEKING COMMENTS OF THE AO. THE LD. DR SUBMITTED THAT NO REMAND REPORT WAS CALLED FOR FROM THE AO EVEN THOUGH IT HAS BEEN WRONGLY MENTIONED IN THE CAPTION OF THE IMPUGNED ORDER THAT THERE IS A REMAND REPORT. THE LD. D R STRONGLY CONTESTED THE DELETION OF ADDITION. HAVING REGARD TO TH E FACTS OF THE INSTANT CASE AND WITHOUT GOING INTO THE MERITS, IN OUR CONSIDERED OPINION, THE ENDS OF JUSTICE WOULD MEET ADEQUATE LY IF THE IMPUGNED ORDER IS SET-ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AO. WE ORDER ACCORDINGLY AND DIRECT HIM TO FRAME THE ASSESSMENT AFRESH AS PER LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. NEEDLESS TO SAY, THE ITA NO. 1113/PUN/2011 JALNA SAHAKARI SAKHAR KARKHANA LTD., 4 ASSESSEE WILL BE AT LIBERTY TO LEAD ANY EVIDENCE BEFORE THE A O IN SUCH FRESH PROCEEDINGS AS IT CONSIDERS EXPEDIENT. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH JUNE, 2019. SD/- SD/- (VIKAS AWASTHY) (R.S.SYAL ) / JUDICIAL MEMBER / VICE PRESIDENT PUNE; DATED : 26 TH JUNE, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS), AURANGABAD 4. 5. THE CIT, AURANGABAD ' , , / DR B, ITAT, PUNE; 6. ( / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO. 1113/PUN/2011 JALNA SAHAKARI SAKHAR KARKHANA LTD., 5 DATE 1. DRAFT DICTATED ON 25-06-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 25-06-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *