ITO, WD-2(4), KOLKATA, Kolkata V. M/s Simco Telecommunications (South Asia) Ltd., Kolkata

ITA 1238/KOL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1841 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 01-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

1 I.T.A NO. 1238/KOL/2016 M/S. SIMOCO TELECOMMUNCATION (SOUTH ASIA) LTD. IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOLKATA BEFORE: SHRI J. SUDHAKAR REDDY , ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO. 1238 /KOL/201 6 A.Y: 20 1 0 - 11 INCOME TAX OFFICER VS. M/S. SIMOCO TELECOMMU - WARD 2(4), KOLKATA NICATIONS (SOUTH ASIA) LTD. PAN: AAECS 4335F [APPELLANT] [RESPONDENT] FO R THE APPELLANT : SHRI S. DASGUPTA, ADDL.CIT, LD.SR.DR FOR THE RESPONDENT : SHRI NIKHILES ROYCHAUDHURI, FCA, LD.AR DATE OF HEARING : 1 4 - 06 - 2018 DATE OF PRONOUNCEMENT : 07 - 0 9 - 201 8 ORDER SHRI S.S. VISWANETHRA RAVI , JM: TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), 1 KOLKATA DT. 0 4 - 04 - 2016 FOR THE A.Y 20 1 0 - 11. 2. THE ONLY ISSUE IS TO BE DECIDED AS TO WHETHER THE CIT - A IS JUSTIFIED IN DELETING THE IMPUGNED ADDITION MADE BY AO BY TREATING THE SAME AS INCOME FROM BUSINESS IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE CONTENTION OF THE LD.DR IS THAT THE ISSUE INVOLVED IN THE APPEAL IS THAT TO DETERMINE WHETHER THE INTEREST INCOME IS INCOME FROM OTHER SOURCES OR INCOME FROM BUSI NESS. THE LD. DR DID NOT DISCUSS THE ISSUE IN DETAIL AND REFERRED TO ASSESSMENT ORDER DT. 26 - 03 - 2013 AND ARGUED THAT THE ORDER OF AO IS CRYPTIC AND AS SUCH URGED TO REMAND THE MATTER TO THE FILE OF AO TO CONSIDER THE ISSUE AFRESH . 4. ON THE OTHER HAND, TH E LD.AR DID NOT CONTROVERT THE ABOVE SUBMISSIONS OF THE LD.DR. 2 I.T.A NO. 1238/KOL/2016 M/S. SIMOCO TELECOMMUNCATION (SOUTH ASIA) LTD. 5. AFTER HEARING BOTH THE PARTIES AND PERUSED THE RECORD. IT IS NOTED FROM THE ASSESSMENT ORDER THAT THE ASSESSE E COMPANY IS MANUFACTURER AND TRADER OF COMMUNICATION EQUIPMENT. WE FIND THAT TH E ISSUE IN QUESTION WAS NOT DISCUSSED BY AO IN HIS ORDER REGARDING THE NATURE OF INTEREST INCOME. THEREFORE, TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LD. D R, FACTS OF THE CASE AND IN THE INTEREST OF NATURAL JUSTICE, WE DEEM IT FIT AND PROPER TO REM AND THE MATTER TO THE FILE OF AO TO DECIDE THE SAME AFRESH AND TO PASS A FRESH ORDER AS PER LAW, AFTER GIVING THE ASSESSEE ADEQUATE OPPORTUNITY OF HEARING . THE ASSESSE IS AT LIBERTY TO FILE REQUISITE EXPLANATION/EVIDENCES, IF ANY, TO SUBSTANTIATE ITS CLAIM . GROUNDS RAISED BY THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES . 6 . IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSE . ORDER PRONOUNCED IN THE OPEN COURT ON 07 - 0 9 - 2018 SD/ - SD/ - J. SUDHAKAR REDDY S.S. VISWANETHRA RAVI ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07 - 0 9 - 2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT / REVENUE : THE I.T.O, WARD 2(4), P - 7 CHOWRINGHEE SQUARE, 7 TH FLOOR, KOLKATA - 69. 2 RESPONDENT / ASSESSEE : M/S. SIMOCO TELECOMMUNI CATIONS (SOUTH ASIA) LTD. BLOCK - EP & GP, SECTOR - V, ELECTRONIC COMPLEX, KOLKATA - 91. 3. THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, S ENIOR PRIVATE SECRETARY HEAD OF OFFICE, ITAT KOLKATA 3 I.T.A NO. 1238/KOL/2016 M/S. SIMOCO TELECOMMUNCATION (SOUTH ASIA) LTD.