M/s. Nandan VSP Developers, Pune V. Income-tax Officer, Ward - 3(1), Pune

ITA 1136/PUN/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9910 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VITTHAL BHOSALE
• Assessee Lawyers: N O N E
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI, J UDICIAL MEMBER . / ITA NO . 1136 /PUN/201 8 / ASSESSMENT YEAR : 20 14 - 15 M/S. NANDAN VSP DEVELOPERS, FLAT NO. 1, NANDADEEP APARTMENTS, S. NO. 82 - 2, PRABHAT ROAD, ERANDWANE, PUNE - 411004 PAN : AAIFN6404D ...... / APPELLANT / V/S. ITO, WARD - 3(1), PUNE / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI VITTHAL BHOSALE / DATE OF HEARING : 1 9 - 07 - 2021 / DATE OF PRONOUNCEMENT : 23 - 0 7 - 2021 / ORDER PER S.S. VISWANETHRA RAVI, JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 25 - 04 - 2018 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 3, PUNE [CIT(A)] FOR ASSESSMENT YEAR 20 14 - 15. 2. WE FIND NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FILED SEEKING ADJOURNMENT. THE ASSESSEE CALLED ABSENT AND SET 2 ITA NO .1136/PUN/2018, A.Y. 2014 - 15 EX - PARTE. THEREFORE, WE PROCEED TO HEAR THE LD. DR AND PASS ORDER BASING ON THE MATERIAL AVAILABLE ON RECORD. 3. THE ONLY ISSUE RAISED BY THE ASSESSEE IS AS TO WHETHER THE CIT(A) JUSTIFIED IN UPHOLDING THE ORDER OF AO IN REDUCING RS.1,90,84,020/ - FROM BALANCE OF WORK - IN - PROGRESS ON ACCOUNT OF INTEREST RECEIVABLE FROM PARTNERS IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 4. HEARD LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ASSESSEE IS A FIRM CONDUCTS ITS BUSINESS BY NAME AND STYLE M/S. NANDAN VSP DEVELOPERS AND IS ENGAGED IN THE BUSINESS OF PROMOTER AND DEVELOPER. THE ASSESSEE FILED RETURN OF INCOME DECLARING A TOTAL INCOME AT NIL. UNDER SCRUTINY, THE AO DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT NIL BUT REDUCED THE WORK IN PROGRESS FOR THE CURRENT YEAR AT RS.37,84,36,772/ - AGAINST RS.39,75,20,792/ - AS CLAIMED BY THE ASSESSEE IN THE RETURN OF INCOME. THE ASSESSEE CHALLENGED THE SAME BEFORE THE CIT(A). WE NOTE THAT THERE WAS NO REPRESENTATION ON BEHALF OF THE ASSESSEE BE FORE THE CIT(A) AND THE CIT(A) DECIDED THE ISSUE EX - PARTE OF THE ASSESSEE. WE FIND THE ISSUE RAISED BEFORE THIS TRIBUNAL AS AGAINST THE ORDER OF CIT(A) REQUIRES ASSISTANCE OF ASSESSEE BY RELEVANT DOCUMENTARY EVIDENCES BUT THE CIT(A) DECIDED THE ISSUE WITH OUT THERE BEING ANY EVIDENCES SHOWN BY THE ASSESSEE. IT IS CLEAR THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND OF NON PROSECUTION. IT IS, THEREFORE, CLEAR THAT RIGHTS AND LIABILITIES OF THE PARTIES WERE NOT ADJUDICATED UPON ON MER ITS. WE ARE OF THE CONSIDERED VIEW THAT ONE MORE OPPORTUNITY NEEDS TO BE GIVEN TO THE ASSESSEE TO REPRESENT HIS CASE ON MERITS SO THAT JUSTICE CAN BE DELIVERED. 3 ITA NO .1136/PUN/2018, A.Y. 2014 - 15 5. IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDER OF LD. CIT(A) A ND RESTORE THE MATTER TO HIS FILE FOR FRESH ADJUDICATION TO PASS ORDER AFTER PROVIDING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. AT THE SAME TIME, WE DIRECT THE ASSESSEE TO MAKE PRESENCE BEFORE THE LD. CIT(A) WITH RELEVANT DOCUMENTARY EVIDENCES, I F ANY, TO REPRESENT ITS CASE ON MERITS. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD JULY, 202 1 . SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 23 RD JULY, 202 1 . RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 3, PUNE 4. THE PR. CIT - 2 , PUNE 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE