Yogiraj Polyster Pvt.Ltd., Surat V. The Income tax Officer,Ward-4(4), Surat

ITA 1407/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76851 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2014
• Appeal Filed By: Assessee
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 16-05-2011
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Keywords: Gross profit estimation

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD 0 00 0 0 00 0 , , , , !'# !$ !'# !$ !'# !$ !'# !$0 00 0! !! !0 00 0 %$ %$ %$ %$, , , , &' ( &' ( &' ( &' ( & & & & BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ITA NO. 1407/AHD/2011 ASSESSMENT YEAR 2007-08 YOGIRAJ POLYESTER PVT. LTD. 310, RAJ HANS COMPLEX, RING ROAD, SURAT. PAN: AACY0932C VS INCOME TAX OFFICER, WARD-4(4), SURAT. )*/ APPELLANT ,-)* / RESPONDENT REVENUE BY : SHRI ROOPCHAND, SR. DR ASSESSEE(S) BY : SHRI MEHUL SHAH, AR $'. / 0'/ // / DATE OF HEARING : 29/05/2014 123 / 0' / DATE OF PRONOUNCEMENT : 20/06/2014 &4 &4 &4 &4/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-IV, SURAT DATE D 27.01.2011. 2. THE SOLE ISSUE INVOLVED IN THE APPEAL IS THAT T HE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS 5,72,260/- ON ACCOUNT OF A LLEGED LOW GROSS PROFIT. ITA NO. 1407/AHD/2011 YOGIRAJ POLYESTER PVT. LTD., SURAT. FOR A.Y. 2007-08 - 2 - 3. AT THE OUTSET, THE AUTHORIZED REPRESENTATIVE O F THE ASSESSEE SUBMITTED THAT THE COMMISSIONER OF INCOME TAX (APPE ALS) DISMISSED THE APPEAL OF THE ASSESSEE ON THE GROUND THAT NOTICE OF HEARING WAS SENT TO THE ASSESSEE BY REGISTERED POST WHICH WAS RETURNED BY T HE POSTAL AUTHORITIES WITH THE COMMENTS LEFT. THEREAFTER, THE COMMISSI ONER OF INCOME TAX (APPEALS) OBSERVING THAT THE NOTICE OF HEARING WAS RETURNED BACK BY THE POSTAL AUTHORITIES WITH THE COMMENTS LEFT AND AS NO CHANGE OF ADDRESS WAS INTIMATED TO HIS OFFICE, THEREFORE, HE DID NOT HAVE THE BENEFIT OF ASSESSEES VERSION AND THEREFORE WAS CONSTRAINED TO CONFIRM TH E ACTION OF THE ASSESSING OFFICER. HE ARGUED THAT THE COMMISSIONER OF INCOME TAX (APPEALS) COULD HAVE SENT NOTICE OF HEARING TO THE AUTHORIZED REPRE SENTATIVE OF THE ASSESSEE WHOSE ADDRESS WAS AVAILABLE ON THE FILE OF THE COMM ISSIONER OF INCOME TAX (APPEALS) IN THE LETTER OF AUTHORITY FILED WITH HIM . HE, THEREFORE, PRAYED THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY SH OULD BE GRANTED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE COMMISSIONE R OF INCOME TAX (APPEALS) AND THEREFORE, THE MATTER SHOULD BE REMAN DED BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPEALS). 4. THE DEPARTMENTAL REPRESENTATIVE DID NOT HAVE AN Y OBJECTION TO THE ABOVE PRAYER OF THE AUTHORIZED REPRESENTATIVE O F THE ASSESSEE. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON REC ORD, WE FIND THAT IN THE INSTANT CASE, THE ASSESSING OFFICER MADE ADDITION O F RS 5,72,260/- ON THE GROUND THAT THE GROSS PROFIT RATIO OF THE ASSESSEE HAS FALLEN TO 0.84% IN THE YEAR UNDER CONSIDERATION FROM 6.59% IN THE PRECEDIN G ASSESSMENT YEAR. THE ASSESSEE FILED APPEAL BEFORE THE COMMISSIONER O F INCOME TAX (APPEALS). THE NOTICE OF HEARING ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) WAS RETURNED UNSERVED BY THE POSTAL AUTHORITIES WIT H THE REMARKS LEFT. ITA NO. 1407/AHD/2011 YOGIRAJ POLYESTER PVT. LTD., SURAT. FOR A.Y. 2007-08 - 3 - THEREFORE, THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFICER IN ABSENCE OF ANY OTHER MA TERIAL AVAILABLE ON RECORD. IN THE ABOVE CIRCUMSTANCES, WE ARE OF THE CONSIDERE D VIEW THAT IN ORDER TO RENDER SUBSTANTIAL JUSTICE, ONE MORE OPPORTUNITY SH OULD BE GRANTED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE COMMISSIONE R OF INCOME TAX (APPEALS). WE, THEREFORE, SET ASIDE THE ORDER OF T HE COMMISSIONER OF INCOME TAX (APPEALS) AND REMAND THE MATTER BACK TO HIS FILE FOR ADJUDICATION OF THE APPEAL OF THE ASSESSEE AFRESH A S PER LAW AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOT H THE PARTIES. 6. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) SUO MOTU WITHIN THREE WEEKS FROM THE DATE OF RECEIPT OF THIS ORDER FOR FIXING THE DATE OF HEARIN G OF THE APPEAL. THE ASSESSEE IS FURTHER DIRECTED TO RENDER FULL COOPERA TION TO THE COMMISSIONER OF INCOME TAX (APPEALS) BY FILING ALL THE RELEVANT DETAILS AND PAPERS AS AND WHEN CALLED UPON TO DO SO. THE COMMISSIONER OF INC OME TAX (APPEALS) IS ALSO REQUESTED TO DISPOSE OFF THE APPEAL AS EXPEDIT IOUSLY AS POSSIBLE. WITH THESE DIRECTIONS, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 20 TH OF JUNE, 2014 AT AHMEDABAD. SD/- SD/- (G.C. GUPTA) VICE PRESIDENT ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 20/06/2014 GHANSHYAM MAURYA, SR. P.S.