Deccan Leathers Ltd., Medak, Medak V. ITO, Ward-1(2), Hyd, Hyderabad

ITA 1197/HYD/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2426 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 07-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 12-09-2016
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1197/HYD/2016 ASSESSMENT YEAR: 2008-09 M/S. DECCAN LEATHERS LIMITED, HYDERABAD [PAN: AAACD6746M] VS THE INCOME TAX OFFICER, WARD-1(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE FOR REVENUE : SMT SUMAN MALIK, DR DATE OF HEARING : 07-06-2017 DATE OF PRONOUNCEMENT : 07-06-2017 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-5 , HYDERABAD DATED 27-06-2016. THE ISSUE IN THIS APPEAL IS WITH REFERE NCE TO CLAIM OF LOSS OF STOCK VALUED AT RS. 34,05,483/- DUE TO FIRE A CCIDENT. 2. THE ASSESSING OFFICER (AO) IN THE ASSESSMENT DI D NOT ALLOW THE AMOUNT OF RS. 34,05,483/- WRITTEN-OFF TOWARDS LOSS OF S TOCK OF RAW- MATERIAL DUE TO FIRE ACCIDENT OCCURRED IN THE FACTORY P REMISES. SINCE THE INSURANCE CLAIM WAS NOT SETTLED, AO WAS OF THE OPINION THAT THERE IS NO CONCLUSIVE EVIDENCE TO ALLOW THE LOSS A ND I.T.A. NO. 1197/HYD/2016 :- 2 - : ACCORDINGLY, THE SAME WAS DISALLOWED. EVEN THOUGH THE SAME WAS CONTESTED BEFORE THE LD.CIT(A), LD.CIT(A) DISMISSED TH E APPEAL THAT ASSESSEE HAS NOT APPEARED INSPITE OF GIVING MANY OPP ORTUNITIES AND HAS NOT SUBSTANTIATED THE GROUNDS. ASSESSEE HAS RA ISED THE GROUNDS IN ITS APPEAL THAT LD.CIT(A) HAS NOT TAKEN INTO ACCOUNT THE INFORMATION FILED AT THE TIME OF ASSESSMENT. 3. NONE APPEARED WHEN THE CASE WAS TAKEN UP FOR HEARI NG FROM ASSESSEES SIDE AND AFTER HEARING THE LD.DR, WE ARE OF THE OPINION THAT THE MATTER REQUIRES RE-CONSIDERATION BY THE AO. ASS ESSEE SEEMS TO HAVE SUBMITTED ALL THE NECESSARY EVIDENCE INCL UDING FIRE CERTIFICATE BEFORE THE AO. LD.CIT(A) SHOULD HAVE EXA MINED THE GROUNDS ON MERITS RATHER THAN DISMISSING THE APPEAL FOR NON- APPEARANCE. THERE IS NO DECISION ON MERITS OF THE CO NTENTIONS RAISED. IN VIEW OF THAT, WE DIRECT THE AO TO EXAMINE THE EVIDENCE FURNISHED AND IF ANY INSURANCE WAS SETTLED BY THIS TIM E TO GIVE CREDIT FOR THE SAME AND ALLOW THE LOSS AFTER DUE EXAM INATION. GROUNDS ARE CONSIDERED ALLOWED FOR STATISTICAL PURPOS ES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH JUNE, 2017 SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMB ER HYDERABAD, DATED 7 TH JUNE, 2017 TNMM I.T.A. NO. 1197/HYD/2016 :- 3 - : COPY TO : 1. M/S. DECCAN LEATHERS LIMITED, PLOT NO. 25, PHASE -I, IDA PATAN CHERUVU, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-1(2), HYDERABAD. 3. CIT (APPEALS)-5, HYDERABAD. 4. PR.CIT-5, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.