Rotomac Electricals Pvt. Ltd., Kolkata V. DCIT Cir.-8(2), Kol, Kolkata

ITA 1403/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9438 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 30-06-2016
• Court: TRIBUNAL
• Department Lawyers: ALOK NAG CIT LD
• Assessee Lawyers: PRANABESH SARKAR LD
• Keywords: Business income
• Section: 143(3); 142(1); 234B; 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL,D BENCH,KOLK ATA BEFORE : SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL ME MBER AND SHRI DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA NO. 1403/KOL/2016 A.Y 2010-11 ROTOMAC ELECTRICALS VS. D.C.I.T. CIR-8(2), KOLKAT A PVT. LIMITED PAN: AABCR 2962E [APPELLANT] [RESPONDENT] APPELLANT BY : SHRI PRANABESH SARKAR, ADV OCATE, LD. AR RESPONDENT BY : SHRI ALOK NAG, ADDL. CIT, LD.DR DATE OF HEARING : 09-02-2017 DATE OF PRONOUNCEMENT : 09-02-2017 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JM: THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) [ IN SHORT [ LD. CIT(A)], 1, KOLKATA DATED 31-05-2016 ON THE F OLLOWING GROUNDS:- 1. FOR THAT ON THE FACTS OF THE CASE, THE ORDER PA SSED BY THE LD.C.I.T.(A) IS COMPLETELY ARBITRARY, UNJUSTIFI ED AND ILLEGAL. 2. FOR THAT ON THE FACTS OF THE CASE, THE ORDER PA SSED BY THE LD.C.I.T.(A) WITHOUT GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE AND IGNORING RELATED EVIDENCES WHICH IS COMPLETELY ARBITRARY, UNJUSTIFIED AND ILLEGAL. 3. FOR THAT ON THE FACTS OF THE CASE, THE LD. C.LT .(A) WAS WRONG IN NOT CONSIDERING THE MERIT OF THE CASE, COVERED BY ORDER OF THE APPELLATE AUTHORITY FOR THE PREVIOUS ASSESSMENT YEARS, THEREFORE, THE ORDER PASSED BY THE LD. C.I.T.(A) IS COMPLETELY ARBITRARY , UNJUSTIFIED AND ILLEGAL. 4. FOR THAT ON THE FACTS OF THE CASE, THE LD. C.LT .(A) WAS WRONG IN DITTOING THE ORDER OF THE A.O. AND NOT ALLOWING DEDUCTION U/S.10B OF THE I.T. ACT ON GROSS TOTAL INCOME AMOUNTING TO RS.30, 18,455/WHICH IS COMPLETELY ARBITRARY, UNJUSTIFIED AND ILLEGAL. 5. FOR THAT ON THE FACTS OF THE CASE, THE LD. C.LT .(A) WAS WRONG IN DITTOING THE ORDER OF THE A.O. AND IN NOT ALLOWING EXEMPTION U/S.10B AS INCOME FROM OTHER ITA NO. 1403/KOL/2016 ROTO MAC ELECTRICALS P.LTD 2 SOURCE AMOUNTING TO RS.11,26,398/ WHICH IS COMPLETELY ARBITRARY, UNJUSTIFIED AND ILLEGAL. 6. FOR THAT ON THE FACTS OF THE CASE, THE LD. C.LT .(A) WAS WRONG IN DITTOING THE ORDER OF THE A.O. AND IN TREATING THE INTEREST INCOME AS INCOME FROM OTHER SOURCE IN PLACE OF BUSINESS INCOME AMOUNTING TO RS.11,26,398/ WHICH IS COMPLETELY ARBITRARY, UNJUSTIFIED AND ILLEGAL. 7. FOR THAT ON THE FACTS OF THE CASE, THE LD. C.LT .(A) WAS WRONG IN NOT CONSIDERING THE FACT THAT THE INCO ME FROM OTHER SOURCE ALSO RELATES TO EXPORT BUSINESS, THEREFORE, THE SAID AMOUNT OF RS.11 ,26,398/ IS A LSO ELIGIBLE FOR DEDUCTION U/ S. 10B, SO THE A.O. SHOUL D HAVE ALLOWED DEDUCTION U/S. 10B ON GROSS TOTAL INCOME AS THE GROSS TOTAL INCOME RELATES TO EXPORT, THEREFORE, THE COMPUTATION OF TOTAL INCOME MADE BY THE A.O. AND CONFIRMED BY THE CIT(A) IS COMPLETELY ARBITRARY, UNJUSTIFIED AND ILLEGAL. 8. FOR THAT THE INTEREST U/S. 234B & 234C CHARGED MECHANICALLY IS WRONG & ILLEGAL. 9. THAT THE APPELLANT RESERVES THE RIGHT TO ADDUCE ANY FURTHER GROUND OR GROUNDS, IF NECESSARY, AT OR BEFO RE THE HEARING OF THE APPEAL. 2. THE BRIEF FACTS APPEARING IN THIS CASE ARE THAT THE ASSESSEE COMPANY FILED ITS ORIGINAL RETURN OF INCOME ELECTRO NICALLY ON 28-09- 2010 SHOWING TOTAL INCOME NIL. THE RETURN WAS PROC ESSED ON 07/07/2011 AND SELECTED FOR SCRUTINY THROUGH CASS. NOTICES U/S. 143(2) AND 142(1) OF THE ACT WERE ISSUED ON 24-08-2 011 AND 26-07- 2012 RESPECTIVELY AND DULY SERVED ON THE ASSESSEE C OMPANY. FURTHER, IN RESPONSE TO THESE NOTICES, THE LD.AR OF THE ASSE SSEE APPEARED FROM TIME TO TIME ALONG WITH DETAILS AND DOCUMENTS AS A ND WHEN REQUIRED AND EXPLAINED THE RETURN WITH REFERENCE TO THE PAPE RS FILED. HOWEVER, THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE AC T WITH TOTAL ASSESSED INCOME AT RS.11,26,400/-. 3. WE HAVE PERUSED THE CASE RECORDS HEREIN. WE FIND THAT IN THE ORDER OF THE LD. CIT(A), IT IS STATED THE ASSESSEE WAS GIVEN ANOTHER OPPORTUNITY FIXING THE HEARING ON 23-05-2016, WHEN ANOTHER REQUEST WAS MADE BY THE LD. AR OF THE ASSESSEE FOR PROVIDIN G FURTHER TIME AND HEARING WAS ADJOURNED FOR 30-05-2016, BUT ON THE AP POINTED DATE NONE ATTENDED. UNDER THE CIRCUMSTANCES, THE LD. CIT(A) OBSERVED THAT THE ASSESSEE DOES NOT WANT TO PURSUE THIS APPEAL. THERE FORE, THE LD. ITA NO. 1403/KOL/2016 ROTO MAC ELECTRICALS P.LTD 3 CIT(A) WENT ON TO DECIDE THE APPEAL ON MERITS ON TH E BASIS OF MATERIAL AVAILABLE ON RECORD. THE ORDER, THEREFORE, PASSED B Y THE LD. CIT(A) IS AN EX PARTE ORDER. THE RIGHTS AND LIABILITIES OF TH E ASSESSEE WERE NOT ADJUDICATED BY THE 1 ST APPELLATE AUTHORITY. WE, THEREFORE, ARRIVE AT OUR CONSIDERED VIEW TO SET ASIDE THIS CASE BACK TO THE FILE OF THE CIT(A) FOR HIS FRESH ADJUDICATION AFTER GIVING PROPER OPP ORTUNITY OF HEARING TO BOTH THE PARTIES. WE ORDER ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 09-02-2017 - SD/- SD/- DR. ARJUN LAL SAINI PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 09-02-2017 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT/ASSESSEE: M/S. ROTOMAC ELECTRICALS PVT. L TD 105 PARK ST., 2 ND FLOOR, KOL-16. 2 RESPONDENT/DEPARTMENT : DCIT, CIR 8(2), P-7 CHOWRI NGHEE SQUARE, KOL-69. 3. CIT, 4. CIT(A), 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS [ TRUE COPY ] BY ORDER ASSISTANT REGISTRAR