Manpasand Cement Private Limited, Burdwan V. D.C.I.T Cir 3,Asansol, Asansol

ITA 1149/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4819 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-05-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 03-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 09-05-2013
• Court: TRIBUNAL
• Department Lawyers: DEBASISH LAHIRI
• Assessee Lawyers: V N PUROHIT FCA LD
• Keywords: Bogus purchase; Principle of natural justice; Revenue expenditure
• Section: 143(3)

Judgement Text

ITA NO. 1149/KOL/2013-A-JM M/S. MANPASAND CEMENT PVT.LTD 1 IN THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, K OLKATA BEFORE : SHRI P.M. JAGTAP, ACCOUNTANT MEMBER, AN D SHRI S.S VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO. 1149/KOL/2013 A.Y. 2008-09 M/S. MANPASAND CEMENT VS. D.C.I.T, CIR-3, ASANS OL PVT. LIMITED PAN: AAECM 3697G (APPELLANT) (RESPONDENT ) FOR THE APPELLANT/ASSESSEE : SHRI V.N PUROHI T, FCA, LD.AR FOR THE RESPONDENT/DEPARTMENT: SHRI D EBASISH LAHIRI, JCIT, LD.SR.DR DATE OF HEARING: 03-03-2016 DATE OF PRONOUNCEMENT: 27 -05 -2016 ORDER SHRI S.S VISWANETHRA RAVI, JM THIS APPEAL OF THE ASSESSEE IS ARISING OUT OF THE ORDER OF THE LEARNED CIT (A)- DURGAPUR IN APPEAL NO. 408/CIT(A)/ASL/DCIT/CIR CLE-3/ASL/2010-11 DATED 22-02-2013 AGAINST THE ORDER OF ASSESSMENT FRAMED U /S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) F OR THE ASSESSMENT YEAR 2008-09. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- 1.0 FOR THAT UNDER THE FACTS AND CIRCUMSTANCES O F THE CASE, LD. CIT(A), DURGAPUR IS UNJUSTIFIED IN DISMISSING THE APPEAL WI THOUT HAVING JURISDICTION OVER THE APPELLANT MORE PARTICULARLY W HEN THERE WAS ALREADY AN INCUMBENT IN THE OFFICE OF JURISDICTIONAL CIT(A) , ASANSOL AND AS ALSO WITHOUT GOING INTO THE GROUNDS OF APPEAL. 2.0 FOR THAT UNDER THE FACTS AND CIRCUMSTANCES OF T HE CASE, THE ADDITION OF RS.18,77,100.00 AS MADE BY THE LD.AO ON ACCOUNT OF SUBSIDIES IS WRONG ITA NO. 1149/KOL/2013-A-JM M/S. MANPASAND CEMENT PVT.LTD 2 AND INCORRECT; THE ADDITION SO MADE BEING PERVERSE NEEDS TO BE DELETED IN FULL. 3.0 FOR THAT UNDER THE FACT AND CIRCUMSTANCES OF TH E CASE, THE LD.AO ERRED IN MAKING AN ADDITIONS OF RS.45,56,174.00 ON ACCOUNT OF ALLEGED BOGUS PURCHASES ON THE GROUNDS WHICH ARE NOT CORREC T; THE ADDITION SO MADE BEING PERVERSE NEEDS TO BE DELETED IN FULL. 4.0 FOR THAT UNDER THE FACT AND CIRCUMSTANCES OF TH E CASE, THE LD.AO ERRED IN MAKING AN ADDITION OF RS.36,486.00 ON ACCO UNT OF ALLEGED CONCEALED STOCK ON THE GROUNDS WHICH ARE NOT CORREC T; THE ADDITION SO MADE BEING PERVERSE NEEDS TO BE DELETED IN FULL. 5.0 FOR THAT THE APPELLANT CRAVES LEAVE TO MODIFY, TO AMEND, TO ADD AND/ OR WITHDRAW ANY GROUND/S OF APPEAL AT THE TIME OR BEFORE THE HEARING OF THE APPEAL. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS ENGAGED IN MANUFACTURING OF PORTLAND SLAG CEMENT. THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 29-09-2008 SHOWING TOTAL LOSS OF RS.11, 63,466/-. THE CASE WAS SELECTED FOR SCRUTINY AND ISSUED NOTICES U/S. 143( 2)/142(1). IN RESPONSE TO WHICH, THE LD.AR OF THE ASSESSEE APPEARED AND FILED DETAILS BEFORE THE AO. DURING THE ASSESSMENT PROCEEDINGS, THE AO ADDED RS. 18,77,100/- AS RECEIVED BY THE ASSESSEE TOWARDS SUBSIDY ON VARIOUS CATEGORIES AND AO TREATED THE SAME AS REVENUE EXPENDITURE. FURTHER, THE AO FOUND DIFFEREN CES IN OPENING AND CLOSING BALANCE AND ADDED THE SAID AMOUNT OF RS.45,56,174/ - TREATING AS BOGUS TRANSACTIONS. THE AO ALSO ADDED RS. 36,486/- BEING FOUND AS DIFFERENCE IN STOCK SUBMITTED TO THE BANK AND STOCK REGISTER AS MAINTAI NED BY THE ASSESSEE. 4. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD.CIT(A). THE LD. CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE FOR NON-COMPLIANCE OF ITA NO. 1149/KOL/2013-A-JM M/S. MANPASAND CEMENT PVT.LTD 3 NOTICES ISSUED INTIMATING FOR APPEARANCE AND HEARI NG OF FIRST APPEAL BY OBSERVING AS UNDER:- 2. NOTICE U/S. 250 WAS ISSUED AND IN RESPONSE THE APPELLANT FILED ADJOURNMENT PETITION DATED 17-01-2012 SEEKING ADJO URNMENT OF THE HEARING FIXED ON 25.01.2012. SUBSEQUENTLY, THE CASE WAS REFIXED FOR HEARING ON 13.12.2012, 29.01.2013 & 12.02.2013 RESP ECTIVELY. BUT THESE DATES WERE ALSO NOT COMPLIED WITH AND IN EVER Y OCCASION THE APPELLANT SOUGHT FOR ADJOURNMENT ON THE PLEA THAT H IS A/R WAS OUT OF STATION. IT APPEARS THAT THE APPELLANTS A/R IS ALW AYS PREOCCUPIED ON THE DATE FIXED FOR HEARING AND THIS STATE OF AFFAI RS IS SEEN TO BE GOING ON FOR MORE THAN A YEAR. THE APPELLANT HAS BEEN GIVE N SEVERAL OPPORTUNITIES TO REPRESENT HIS CASE BUT HAS PRACTIC ALLY REFUSED, BY HIS NON-COMPLIANCE, TO AVAIL THEM. UNDER THE CIRCUMSTAN CES, I DO NOT SEE ANY POINT IN ADJOURNING THE APPEAL ANY FURTHER. THE APPEAL IS, ACCORDINGLY, DISMISSED. 5. HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL AVAILABLE ON RECORD. IT IS NOTICED THAT THE LD. CIT-(A) HAD FIXED THE DA TE OF HEARING ON 17-01-2012, WHEREIN THE ASSESSEE FILED AN ADJOURNMENT PETITIO N AND CASE WAS ADJOURNED TO 25-01-2012. THE ASSESSEE SOUGHT ADJOURNMENT FROM TI ME TO TIME AS AND WHEN THE CASE OF THE ASSESSEE WAS FIXED. THE REASON GIVE N FOR NON APPEARANCE WAS THAT ITS AR OUT OF STATION. WE FIND THAT THE LD. CIT(A) HAS AFFORDED MANY OPPORTUNITIES TO THE ASSESSEE TO PROSECUTE ITS CASE . HOWEVER, IN THE INTEREST OF NATURAL JUSTICE AND FOR PROPER ADJUDICATION, WE D EEM IT FIT, JUST AND PROPER TO REMAND THE CASE TO THE FILE OF THE LD.CIT(A) TO DEC IDE THE CASE AFRESH IN ACCORDANCE WITH LAW AFTER GIVING ADEQUATE OPPORTUNI TY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO CO-OPERA TE AND PRODUCE NECESSARY EVIDENCES IN SUPPORT OF ITS CLAIM AND SHALL NOT SEE K ANY FURTHER ADJOURNMENT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ITA NO. 1149/KOL/2013-A-JM M/S. MANPASAND CEMENT PVT.LTD 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. THIS ORDER IS PRONOUNCED IN OPEN COURT ON 27 / 5/2 016 COPY OF THE ORDER FORWARDED TO: 1.. THE APPELLANT/ASSESSEE: M/S. MANPASAND CEMENT PVT. LIMITED D-3 MANGALPUR INDUSTRIAL ESTATE, P.O BAKTARNAGAR DI ST:BURDWAN (WB) PIN 713321. 2 THE RESPONDENT/DEPARTMENT: DEPUTY COMMISSIONER OF INCOME TAX, CIR-3,, PARMAR BUILDING, %4 G.T ROAD, WEST, P.O ASA NSOL- 4, DIST:BURDWAN (WB). 3 /THE CIT, 4. THE CIT(A) 5. DR, KOLKATA BENCH 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT REGISTRAR *PRADI P SPS SD/ P.M. JAGTAP ACCOUNTANT MEMBER SD/- S.S. VISWANETHRA RAVI J JUDICIAL MEMBER DATE 27-05 /2016