M/S V N EXPORTS , MUMBAI V. ASST CIT 19(3), MUMBAI

ITA 1173/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5618 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 17-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Accommodation entries
• Section: 143(3)

Judgement Text

, , ! IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER . 1173 / / 2020 (%. 2010-11 ) ITA NO.1173/MUM/2020(A.Y 2010-11) M/S. V.N.EXPORTS, 1306, PRASAD CHAMBERS, TATA ROAD-3, OPERA HOUSE, MUMBAI 400 004. PAN-AACFV-4623-L ...... ' / APPELLANT % VS. THE ASSTT.COMMISSIONER OF INCOME TAX-19(3), MATRU MANDIR, TARDEO ROAD, MUMBAI 400 007 ..... ()/ RESPONDENT '*/ APPELLANT BY : SHRI RAHUL SARDA ()*/ RESPONDENT BY : MS. SMITA VERMA %+) / DATE OF HEARING : 08/09/2021 ,-. +) / DATE OF PRONOUNCEMENT : 08/09/2021 / ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST AN EX-PARTE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) -30, MUMBAI [I N SHORT THE CIT(A)] DATED 29/11/2019 FOR THE ASSESSMENT YEAR 2010-11. 2. SHRI RAHUL SARDA APPEARING ON BEHALF OF THE ASS ESSEE SUBMITTED THAT THE CIT(A) WITHOUT AFFORDING OPPORTUNITY OF HEARING TO THE ASSESSEE HAS ENHANCED THE DISALLOWANCE MADE IN RESPECT OF ALLEGED BOGUS PURCH ASES. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT ASSES SMENT FOR ASSESSMENT YEAR 2010- 11 WAS REOPENED ON THE GROUND THAT ASSESSEE HAS ALL EGEDLY OBTAINED 2 ITA NO.1173/MUM/2020(A.Y 2010-11) ACCOMMODATION ENTRIES FROM THE CONCERN BELONGING TO BHANWARLAL JAIN GROUP. THE ASSESSING OFFICER ESTIMATED SUPPRESSED PROFIT MARGI N @5% AND MADE ADDITION OF RS.30,97,074/-. AGGRIEVED BY THE ASSESSMENT ORDER DATED 23/03/2016 PASSED U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 ( IN SHORT ' THE ACT'), THE ASSESSEE FIELD APPEAL BEFORE THE CIT(A). THE CIT(A) ALLEGEDLY ISS UED NOTICE OF HEARING ON 16/09/2019 AND 03/10/2019, HOWEVER, NONE OF THE AFO RESAID NOTICES WERE EVER RECEIVED BY THE ASSESSEE / APPELLANT. THE LD. AUTH ORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS PRIMA-FACI E GOOD CASE IN ITS FAVOUR AND HAS SUFFICIENT EVIDENCES TO PROVE GENUINENESS OF THE PURCHASES. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE PRAYED THAT AN OPPO RTUNITY MAY BE GRANTED TO PRESENT THE CASE BEFORE THE CIT(A). 3. ON THE OTHER HAND, MS. SMITA VERMA REPRESENTING THE DEPARTMENT VEHEMENTLY DEFENDED THE IMPUGNED ORDER. THE LD.DEP ARTMENTAL REPRESENTATIVE SUBMITTED THAT THE CIT(A) HAD ISSUED NOTICE TO THE ASSESSEE ON THE ADDRESS FURNISHED IN FORM NO.35, HOWEVER, THE ASSESSEE FAIL ED TO APPEAR BEFORE THE FIRST APPELLATE AUTHORITY. 4. BOTH SIDES HEARD, ORDERS OF AUTHORITIES BELOW EX AMINED. A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT THE NOTICE OF HEARING OF THE APPEAL WAS ISSUED BY THE CIT(A) ON TWO OCCASIONS I.E. ON 16/09/2019 AND 03/ 10/2019. HOWEVER, IT IS NOT EMANATING FROM THE ORDER WHETHER THE SAID NOTICES W ERE DULY SERVED ON THE ASSESSEE OR NOT. THE REQUIREMENT OF LAW IS THAT NOTICES S HOULD BE SERVED ON THE ASSESSEE. BE THAT AS IT MAY, WITHOUT COMMENTING ON MERITS O F ADDITION, I DEEM IT APPROPRIATE TO RESTORE THIS APPEAL BACK TO THE FILE OF CIT(A) F OR DENOVO ADJUDICATION AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, IN ACCORDANCE WITH LAW. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE CIT(A ) UPON SERVICE OF NOTICE AND CO- OPERATE IN THE PROCEEDINGS. THE IMPUGNED ORDER IS SET-ASIDE AND THE APPEAL BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 3 ITA NO.1173/MUM/2020(A.Y 2010-11) 5. IN THE RESULT, APPEAL BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON WEDNESDAY, THE 8 TH DAY OF SEPTEMBER, 2021 SD/- (VIKAS AWASTHY) / JUDICIAL MEMBER / MUMBAI, 0%/ DATED 08/09/2021 VM , SR. PS (O/S) COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT , 2. () / THE RESPONDENT. 3. 1) ( )/ THE CIT(A)- 4. 1) CIT 5. 23()% , . . . , / DR, ITAT, MUMBAI 6. 3 4567 / GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI