AMFORGE INDUSTRIES LTD, MUMBAI V. ACIT (OSD) 2(1), MUMBAI

ITA 1396/MUM/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1081 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-09-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 19-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR YADAV
• Assessee Lawyers: B V JHAVERI
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI BEFORE SHRI DT GARASIA, JM AND SHRI MANOJ KUMAR AGG AR WAL, AM I.T.A. NO. 1396/MUM/2013 ASSESSMENT YEAR: 2006 - 07 M/S AMFORGE INDUSTRIES LTD. 108, RAHEJA CHAMBERS, NARIMAN POINT, MUMBAI - 400021 VS. ACIT (OSD), 2(1), AAYAKAR BHAVAN M.K. ROAD, MUMBAI - 400020 PAN: A AACA8756A (APPELLANT) : (RESPONDENT) APPELLANT BY : SHRI B.V. JHAVERI RESPONDENT BY : SHRI RAJESH KUMAR YADAV DATE OF HEARING : 14/03 /2017 DATE OF PRONOUNCEMENT : 28 /04 /2017 O R D E R PER D. T. GARASIA, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 5 MUMBAI, DATED 21/11/2012 ARI SING OUT OF ORDER OF ASST. CIT (OSD), 2(1) MUMBAI DATED 26/12/2008 PASSED U/S 143(3) OF THE INCOME TAX ACT, 1 961 FOR THE ASSES SMENT YEAR 2006 - 07 . 2 M/S AMFORGE INDUSTRIES LTD. ITA NO. 1396/M/2013 2. THE ONLY GROUND PRESSED BY THE LD. AR DURING THE HEARING BEFORE US IS GROUND NO. 3 WHICH RELATES WITH ENHANCEMENT OF INCOME OF THE ASSESSEE ON ACCOUNT OF EXCISE DUTY OF RAW MATERIAL AND WORK IN PROGRESS FOR RS.65,03,650/ - . 3. THE SHORT FACTS OF THE CASE ARE AS UNDER: - DURING THE COURSE OF APPELLATE PROCEEDINGS THE LD. CIT(A) NOTED THAT THE ASSESSEE TOOK RAW MATERIAL IN THE MANUFACTURING ACCOUNT AT GROSS VALUE INCLUSIVE OF EXCISE DUTY. HOWEVER, FOR THE PURPOSE OF VALUATION OF CLOSI NG STOCK OF RAW MATERIAL AND WORK IN PROGRESS NET VALUE EXCLUDING EXCISE VALUE HAS BEEN TAKEN BY THE APPELLANT WHICH LET THE LD. CIT(A) TO MAKE THE IMPUGNED ADDITIONS. 4. THE LD. AR SUBMITTED THAT THE LD. CIT(A) ERRED ARRIVING AT SAID ENHANCEMENT AND MORE OVER IT MADE THE ENHANCEMENT WITHOUT PROVIDING ANY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE PROVISIONS OF SECTION 251(2) OF THE INCOME TAX ACT AND HENCE THERE WAS VIOLATION OF PRINCIPAL OF NATURAL JUSTICE. 5. THE LD. DR HAS OBJECTED TO THE SUB MISSION OF THE ASSESSEE. 6. WE HAVE HEARD THE RIVAL CONTENTION OF BOTH THE PARTIES AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND STRENGTH IN THE ARGUMENTS IN THE LD. AR THAT ENHANCEMENT HAS BEEN MADE BY THE LD. CIT(A) WITHOUT PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER SECTION 251(2) OF THE INCOME TAX ACT, WHICH WAS IN VIOLATION OF PRINCIPAL OF NATURAL JUSTICE AND HENCE WITHOUT DELVING MUCH DEEPER INTO THE MATTER WE RESTORE THE ISSUE BACK TO THE FILE OF LD. CIT(A) WHO IS DIRECTE D TO DECIDE THE MATTER AFRESH, A FTER PROVIDING SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE, THE ASSESSEE IN TURN IS ALSO DIRECTED TO CO - OPERATE WITH THE LOWER AUTHORITIES IN THIS REGARD AND SUBSTANTIATE HIS CLAIM FORTHWITH FAILING WHICH THE LD. CIT(A) SHALL BE LIBERTY TO DISPOSE OF THE MATTER AS PER LAW ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE ASSESSEES GROUND OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. 3 M/S AMFORGE INDUSTRIES LTD. ITA NO. 1396/M/2013 IN NUTSHELL, THE ASSESSEES APPEAL IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. JUDGMENT PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL 2017. SD/ - SD/ - (MANOJ KUMAR AGG AR WAL) ACCOUNTANT MEMBER (D.T. GARASIA) JUDICIAL MEMBER MUMBAI, DATED: 28 TH APRIL , 2017 *RAHUL SHARMA* COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, A BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI