Mishra Polypacks Private Limited , Hyderabad V. Asst. Commissioner of Income Tax(ODS), Ward-16(4), Hyderabad

ITA 1247/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7065 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 16-10-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 09-08-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.S. ARVINDAKSHAN
• Section: 143(3); 234B; 40(a)(ia); 194J

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1247/HYD/2019 ASSESSMENT YEAR: 2015 - 16 MISHRA POLYPACKS PRIVATE LIMITED, HYDERABAD. PAN: AADCM 4273 F VS. ASST. COMMISSIONER OF INCOME TAX (OSD), WARD - 16(4), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA, AR REVENUE BY: SRI R.S. ARVINDAKSHAN, DR DATE OF HEARING: 16/10/2019 DATE OF PRONOUNCEMENT: 16/10/2019 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 4, HYDERABAD IN APPEAL NO.1017817 - 18/ACIT,OCD CIR.16(4)/CIT(A) - 4/HYD /19 - 20, DATED 26/6/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2015 - 16. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN HIS APPEAL: - 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) . CIT(A) ERRE D IN DECIDING THE APPEAL WITHOUT PROVIDING FURTHER OPPORTUNITY. 3. THE LD. CIT(A) . CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. IN DISALLOWING 30% OF THE SALARIES PAID TO DIRECTORS / EMPLOYEES OF THE COMPANY BY APPLYING THE PROVISIONS OF SECTION 40(A) (IA) OF THE ACT. 2 4. THE LD. CIT(A) . CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A.O. IN HOLDING THAT THE PROVISIONS OF SECTION 194J ARE APPLICABLE TO THE PAYMENT OF AUDIT FEE OF RS. 56,600/ - AND FURTHER ERRED IN DISALLOWING THE SAID EXPENDITURE BY APPLYIN G THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 5. THE LD. CIT(A) . CIT(A) ERRED IN CONFIRMING THE LEVY OF INTEREST U/S. 234B OF THE ACT. 6. ANY OTHER GROUND THAT MAY BE URGED AT TIME TO HEARING. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE ME THAT THE LD. CIT (A) HAS PASSED AN EX - PARTE ORDER WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PURSUE THE APPEAL. THE LD DR ON THE OTHER HAND STRONGLY OPPOSED TO THE SUBMISSION OF THE LD. AR. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON PERUSING THE ORDER OF THE LD. CIT (A), IT IS APPARENT THA T ON THE DATE OF HEARING, NEITHER THE ASSESSEE NOR HIS COUNSEL APPEARED BEFORE THE LD. CIT (A). THEREFORE, THE LD. CIT (A) WAS RIGHT IN HIS REALM TO ADJUDICATE THE APPEAL EX - PARTE ON MERITS BASED ON THE MATERIALS ON RECORD. IN THIS SITUATION I DO NOT FIN D MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A) IN ORDER TO CONSIDER THE APPEAL AFRESH BY PROVIDING ONE MORE OPPOR TUNITY TO THE ASSESSEE OF BEING HEARD. AT THE 3 SAME BREATH I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS FAILING WHICH THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH MER ITS AND LAW BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 16 TH OCTOBER, 2019. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 16/10/2019 OKK COPY TO: - 1) MISHRA POLYPACKS PRIVATE LIMITED, H.NO. 2 - 3 - 671, AZAD NAGAR, AMBERPET, HYDERABAD. 2) ACIT (OSD), 1 ST FLOOR, B - BLOCK, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD. 3) THE CIT(A) - 4, HYDERABAD 4) THE PR. CIT - 4 , HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE 1. DRAFT DICTATED ON 2. DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR.P.S./PS 6. KEPT FOR PRONOUNCEMENT ON 7. FILE SENT TO THE BENCH CLERK 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER