Pentamedia Graphics Limited, CHENNAI V. ACIT, NCC - 20 (1) , Chennai

ITA 1302/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3351 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 29-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITHA IRS
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./I.T.A. NO.1302/CHNY/2019 ! ' / ASSESSMENT YEAR : 2014-2015. M/S. PENTAMEDIA GRAPHICS LTD, NO.30A, AKBARABAD, 1 ST STREET, KODAMBAKKAM, CHENNAI 600 024. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 20(1) CHENNAI. [PAN AAACP 1647B] ( / APPELLANT) ( /RESPONDENT) # $ % / APPELLANT BY : SHRI. G. BASKAR, ADVOCATE &' # $ % /RESPONDENT BY : MS. R. ANITHA, IRS, JCIT. ( ) $ * /DATE OF HEARING : 28-11-2019 +,'! $ * /DATE OF PRONOUNCEMENT : 02-12-2019 / O R D E R PER INTURI RAMA RAO , ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-7, CHENNAI (CIT(A) FOR SHORT) DATED 19.03.2019 FOR THE AS SESSMENT YEAR (AY) 2014-2015. ITA NO.1302/CHNY/2019 :- 2 -: 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT NAMELY M/S. PENTAMEDIA GRAPHICS LTD IS A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE CO MPANIES ACT, 1956. IT IS ENGAGED IN DEVELOPMENT AND EXPORT OF MULTIMEDIA SOFTWARE, SPECIAL EFFECT MOVES, COMPUTER BASED TUT ORIALS ETC. THE RETURN OF INCOME FOR THE AY 2014-15 WAS FILED ON 24 .09.2014 DISCLOSING TOTAL LOSS OF RS.7,57,57,801/-. AGAINST THE SAID RE TURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE ASSISTANT COMMISSIO NER OF INCOME TAX, NON CORPORATE CIRCLE-20(1), CHENNAI (HEREINAF TER CALLED AO) VIDE ORDER DATED 31.12.2016 PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT TOTAL INCOME OF R S.43,42,320/-. WHILE DOING SO, THE ASSESSING OFFICER DISALLOWED THE CLAI M FOR DEDUCTION OF WRITE OFF OF RIGHTS OF INVENTORIES TO THE EXTENT O F E8,01,00,000/- ON THE GROUND THAT ASSESSEE HAD NOT FURNISHED ANY REASONS ESTABLISHING AS TO WHY WRITE OFF OF INVENTORIES WAS NECESSITATED. 3. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE TH E LD. CIT(A), WHO VIDE IMPUGNED ORDER DISMISSED THE APPEA L FOR NON PROSECUTION. 4. BEING AGGRIEVED BY THE ABOVE DECISION OF THE CIT( A), THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT AP PEAL. THE LD. ITA NO.1302/CHNY/2019 :- 3 -: AUTHORISED REPRESENTATIVE SUBMITTED THAT LD. CIT(A) HAD NOT CONSIDERED THE MATERIAL ON RECORD WHILE PASSING TH E IMPUGNED ORDER. 5. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE PLACED RELIANCE ON THE ORDERS OF LOWER AUTHORITIES. 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. ADMITTEDLY, THE APPEAL WAS DISMISSED BY TH E LD. CIT(A) FOR NON PROSECUTION. THE LD. CIT(A) HAS GRANTED SUFFIC IENT NUMBER OF OPPORTUNITIES TO ENABLE THE ASSESSEE TO REPRESENT BEFORE HIM. WE ARE OF THE CONSIDERED OPINION THAT LD. CIT(A) CANNO T BE FAULTED FOR DISMISSING THE APPEAL EX-PARTE. HOWEVER, THE LAW MANDATES THAT LD. CIT(A) SHOULD PASS EVEN EX-PARTE ORDER ON MERITS A FTER CONSIDERING THE MATERIALS ON RECORD. IN THE PRESENT CASE, THOU GH THE LD. CIT(A) HAS DISMISSED THE APPEAL ON MERITS, IT IS APPARENT FROM THE IMPUGNED ORDER THAT WITHOUT REFERRING TO ANY MATERIAL ON REC ORD, PASSED CRYPTIC ORDER. IN THE CIRCUMSTANCES, WE REMAND THE ISSUE B ACK TO THE FILE OF LD. CIT(A) FOR FRESH ADJUDICATION ON THE MERITS OF THE APPEAL AFTER AFFORDING DUE OPPORTUNITY OF HEARING TO THE APPELLA NT IN ACCORDANCE WITH LAW. HENCE, APPEAL FILED BY THE ASSESSEE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO.1302/CHNY/2019 :- 4 -: 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 2ND DAY OF DECEMBER, 2019, A T CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNT ANT MEMBER -) / CHENNAI . / DATED:2ND DECEMBER, 2019. KV /0 $0& *12032'* / COPY TO: 0 1 . # / APPELLANT 3. 0 ( 4*056 / CIT(A) 5. 278 0& * 9 / DR 2. &' # / RESPONDENT 4. 0 ( 4* / CIT 6. 8:0;) / GF