Moheshwary Steel Supply Co., , Kolkata V. DCIT, Circle - 44, Kolkata , Kolkata

ITA 1373/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9116 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-01-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI ROY
• Keywords: Depreciation; Set aside
• Section: 143(3)

Judgement Text

I.T.A. NO. 1373/KOL/2018 ASSESSMENT YEAR: 2 013-2014 MAHESHWARY STEEL SUPPLY CO. 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NO. 1373/KOL/2018 ASSESSMENT YEAR: 2013-2014 MAHESHWARY STEEL SUPPLY CO.,....................... ............................APPELLANT P-5, KALAKAR STREET, KOLKATA-700007 [PAN:AAGFM9877R] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. .....................RESPONDENT CIRCLE-44, KOLKATA 3, GOVERNMENT PLACE WEST, KOLKATA-700001 APPEARANCES BY: SHRI SIDDHARTH AGARWAL, ADVOCATE , FOR THE APPELLA NT SHRI DHRUBAJYOTI ROY, JCIT, FOR THE RESPONDE NT DATE OF CONCLUDING THE HEARING : JANUARY 09, 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 09, 2020 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-13, KOLKATA DA TED 19 TH JANUARY, 2018 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPE AL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND TRADIN G OF IRON AND STEEL. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATI ON WAS FILED BY IT ON 05.09.2013 DECLARING TOTAL INCOME OF RS.1,20,97,260 /-. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 10.03.2016, THE FOLLOWING ADDITIONS WERE MADE BY THE ASSESSING OFFI CER TO THE TOTAL INCOME OF THE ASSESSEE:- (I) DISALLOWANCE OF INTEREST RS.46,56,868/ - (II) BOGUS CREDITORS RS.35,42,249/ - I.T.A. NO. 1373/KOL/2018 ASSESSMENT YEAR: 2 013-2014 MAHESHWARY STEEL SUPPLY CO. 2 (III) DIFFERENCE IN THE BALANCE OF LOAN CREDITOR M/S. SREI EQUIPMENT FINANCE PVT. LIMITED RS.77,17,471/ - (IV) DISALLOWANCE OF DEPRECIATION RS. 81,899/ - THE ASSESSING OFFICER ALSO DID NOT ALLOW THE CLAIM OF THE ASSESSEE FOR SET OFF OF BUSINESS LOSS AGAINST THE ORDER UNDER THE HE AD CAPITAL GAIN IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN O RDER DATED 10.03.2016. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) DISPUTING THE VARIOUS ADDITIONS/DISALL OWANCE MADE BY THE ASSESSING OFFICER AND SINCE THERE WAS NO SATISFACTO RY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM F IXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DIS MISSED THE APPEAL OF THE ASSESSEE EX-PARTE VIDE HIS APPELLATE ORDER DATE D 19.01.2018. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE CHALLENGING THE IMPUGNED ORD ER PASSED BY THE LD. CIT(APPEALS), THE LD. COUNSEL FOR THE ASSESSEE HAS FILED AN AFFIDAVIT OF THE EX-PARTNER OF THE ASSESSEE-FIRM EXPLAINING THE NON- COMPLIANCE BEFORE THE LD. CIT(APPEALS) AS UNDER:- 1. THAT I AM ONE OF THE PARTNERS OF M/S MAHESHWARY STEEL SUPPLY CO. AS SUCH, I AM COMPETENT TO SWEAR THIS AF FIDAVIT ON BEHALF OF THE SAID FIRM. 2. THAT THE AFORESAID FIRM BEING AGGRIEVED WITH THE ASSESSMENT ORDER DATED 10.03.2016 FILED AN APPEAL B EFORE THE LD. CIT(A). 3. THAT THE SAID APPEAL WAS DISMISSED BY THE LD. CI T(A) BY PASSING AN EX-PARTE ORDER DUE TO NON-APPEARANCE OF ANYONE I.T.A. NO. 1373/KOL/2018 ASSESSMENT YEAR: 2 013-2014 MAHESHWARY STEEL SUPPLY CO. 3 ON BEHALF OF THE SAID FIRM ON THE DATE FIXED FOR HE ARING BEFORE THE LD. CIT(A). 4. THAT MR. S. S. LOHIA, FCA/A.R OR THE ASSESSEE FI RM, WAS ENGAGED IN THE INSTANT MATTER TO APPEAR BEFORE THE LD. CIT(A). 5. THAT ON VARIOUS OCCASIONS THE CASE WAS FIXED AND THE LD. A/R HAS TAKEN ADJOURNMENT. THEREAFTER, THE LD. CIT( A) FIXED THE CASE FOR HEARING ON 14.11,2017 AND ON THE SAME DAY AGAIN ADJOURNMENT PETITION WAS FILED. LNSPITE O F THAT THE LD. CIT(A) PASSED AN EX-PARTE ORDER. 6. THAT I GIVE AN UNDERTAKING THAT PROPER COMPLIANC ES SHALL BE MADE III CASE THE ABOVEMENTIONED CASE IS SENT BA CK TO THE FILE OF THE LD. CIT(A). 5. KEEPING IN VIEW THE AVERMENTS MADE BY THE PARTNE R OF THE ASSESSEE- FIRM IN THE AFFIDAVIT AS ABOVE, WE ARE SATISFIED TH AT THERE WAS A SUFFICIENT CAUSE FOR THE NON-APPEARANCE OF THE ASSESSEE WHEN I TS APPEAL WAS CALLED FOR HEARING FINALLY BEFORE THE LD. CIT(APPEALS) ON 14.11.2017. EVEN THE LD. D.R. HAS NOT DISPUTED THIS POSITION. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPALS) EX-PARTE AND RE MIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFR ESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING ONE MORE OPPORTUNI TY OF BEING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE LD. C IT(APPEALS) AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO ENA BLE THE LD. CIT(APPEALS) TO DISPOSE OF THE APPEAL AFRESH EXPEDI TIOUSLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JANUARY 09, 2 020. SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTAP) JUDICIAL MEMBER VICE-PRESIDENT KOLKATA, THE 9 TH DAY OF JANUARY, 2020 I.T.A. NO. 1373/KOL/2018 ASSESSMENT YEAR: 2 013-2014 MAHESHWARY STEEL SUPPLY CO. 4 COPIES TO : (1) MAHESHWARY STEEL SUPPLY CO., P-5, KALAKAR STREET, KOLKATA-700007 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-44, KOLKATA 3, GOVERNMENT PLACE WEST, KOLKATA-700001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-13, KOLKAT A, (4) COMMISSIONER OF INCOME TAX , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.