Smt. Pundaleeka Geetha, Bangalore V. Income Tax Officer, (International Taxation), Ward-1(1), Bangalore

ITA 135/BANG/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4546 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-09-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 29-03-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Reasonable cause; Unabsorbed depreciation; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER IT ( IT) A NO . 135/BANG/2021 ASSESSMENT YEAR : 2016 - 17 SMT. PUNDALEEKA GEETHA, NO.4, 6 TH CROSS, N R COLONY, BANGALORE 560 019. P AN: AIQPG 4611B VS. THE INCOME TAX OFFICER (INTERNATIONAL TAXATION), WARD 1(1), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI G. VENKATESH, ADVO CATE RESPO NDENT BY : SHRI K. SANKAR GANESH , JT . C IT(DR)(IT AT ), BENGALURU. DATE OF HEARING : 16 . 0 9 .2021 DATE OF PRONOUNCEMENT : 27 .0 9 .202 1 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 23.12.2020 OF THE CIT(APPEALS)-12, BENGALURU FOR TH E ASSESSMENT YEAR 2016-17. 2. THE ASSESSEE HAS RAISED THE GROUND THAT THE CIT( APPEALS) ERRED IN DISMISSING THE APPEAL IN LIMINE WITHOUT PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 3. IN THE COURSE OF ASSESSMENT, THE AO DISALLOWED PROFESSIONAL FEES OF RS.9,26,970/- AND REPAIR EXPENSES OF RS.19,21,711/- STATING THAT THEY PERTAIN TO EARLIER ASSESSMENT YEAR AND NOT TO THE R ELEVANT ASSESSMENT YEAR. IT(IT)A NO. 135/BANG/2021 PAGE 2 OF 3 FURTHER, OTHER EXPENSES TOTALLY AMOUNTING TO RS.16, 23,489/- CAME TO BE DISALLOWED FOR WANT OF EVIDENCE. THUS, THE TOTAL DI SALLOWANCES AMOUNTS TO RS.44,72,170. APART FROM THESE DISALLOWANCES, IN COMPUTING THE BROUGHT FORWARD LOSSES AND UNABSORBED DEPRECIATION, THE AO ONLY CONSIDERED RS.3,63,84,361 AS AGAINST THE ACTUAL AMOUNT OF RS.3 ,88,03,074 AS PER RETURN OF INCOME AND THUS THE DISALLOWED THE BROUGH T FORWARD LOSS AND UNABSORBED DEPRECIATION OF RS.24,18,713. 4. ON APPEAL, THE CIT(APPEALS) DISMISSED THE APPEAL IN LIMINE FOR NON- PROSECUTION. HE HAD GIVEN THE FOLLOWING OPPORTUNIT IES OF HEARING TO THE ASSESSEE:- SL. NO. DATE OF ISSUE OF NOTICE DATE OF HEARING REMARKS 1. 02.03.2020 11.03.2020 ASSESSEE ASKED FOR ADJOURNMENT. CASE WAS FIXED FOR 23.03.2020. 2. N/A 23.03.2020 NO ONE CAME FOR HEARING. 3. 25.10.2020 16.11.2020 NO REPLY 4. 11.12.2020 15.12.2020 NO REPLY 5. 17.12.2020 22.12.2020 NO REPLY 5. THERE WAS NO REPRESENTATION FROM THE ASSESSEES SIDE BEFORE THE CIT(APPEALS). BEFORE US, THE LD. AR SUBMITTED THAT WHEN THE CASE WAS POSTED FOR HEARING ON 11.3.2020, THE ASSESSEE SOUGH T ADJOURNMENT AND CASE WAS POSTED FOR 23.3.2020. LATER THE CASE WAS POSTED ON VARIOUS DATES ON 16.11.2020 AND 22.12.2020, WHERE DURING TH ESE DAYS COVID-19 PANDEMIC PREVAILED AND THE ASSESSEE COULD NOT AVAIL THE OPPORTUNITY ON ACCOUNT OF HEALTH REASONS. HOWEVER, THE APPEAL WAS DISMISSED IN LIMINE BY THE CIT(APPEALS) HOLDING THAT THE ASSESSEE WAS NOT INTERESTED IN PROSECUTING THE APPEAL THE LD. AR SUBMITTED THAT T HE ASSESSEE IS VERY MUCH INTERESTED IN PURSUING HER APPEAL AND PRAYED F OR ONE MORE IT(IT)A NO. 135/BANG/2021 PAGE 3 OF 3 OPPORTUNITY TO PRESENT HER CASE BEFORE THE CIT(APPE ALS). WE ACCEPT THE PRAYER OF THE LD. AR. THE PERIOD DURING WHICH THE CASE WAS POSTED FOR HEARING BEFORE THE CIT(APPEALS), COVID-19 PANDEMIC PREVAILED AND THERE WAS REASONABLE CAUSE FOR NOT ATTENDING THE CASE BEF ORE THE CIT(APPEALS). WE ARE OF THE VIEW THAT THE ASSESSEE HAS TO BE PROV IDED ONE MORE OPPORTUNITY BEFORE THE CIT(APPEALS). ACCORDINGLY, W E SET ASIDE THE ORDER OF THE CIT(APPEALS) AND REMIT THE APPEAL BACK TO THE F ILE OF CIT(APPEALS) FOR FRESH DECISION IN ACCORDANCE WITH LAW, AFTER AFFORD ING DUE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF SEPTEMBER, 2021. SD/- SD/- ( N V VASUDEV AN ) ( CHANDRA POOJARI ) VICE PRESID ENT ACCOUNTAN T MEMBER BANGALORE, DATED, THE 27 TH SEPTEMBER, 2021. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.