Karnataka Urban Infrastructure & Development and Finance Corportion Ltd., Bangalore V. ACIT, Bangalore

ITA 1489/BANG/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 51395 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 22-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN THOMAS JOSE JT

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER ITA NO.1489/BANG/2010 ASSESSMENT YEAR : 2006-07 KARNATAKA URBAN INFRASTRUCTURE & DEVELOPMENT AND FINANCE CORPORATION LTD., SILVER JUBILEE BLOCK, 2 ND FLOOR, UNITY BUILDING ANNEXE, 3 RD CROSS, MISSION ROAD, BANGALORE 560 027. PAN : AAACK 6953F VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 11(5), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI T.S. NAGARAJ, FINANCE MANAGER OF KUIDFC RESPONDENT BY : SMT. SUSAN THOMAS JOSE, JT.CIT(DR) DATE OF HEARING : 19.12.2011 DATE OF PRONOUNCEMENT : 19.12.2011 O R D E R PER N.K. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL AGAINST THE ORDER DATED 05.10.2 010 OF THE CIT(APPEALS)-I, BANGALORE. ITA NO.1489/BANG/10 PAGE 2 OF 3 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THE ORDERS OF THE LAA AND LAO ARE BAD IN LAW. 2. THE LAO ERRED IN HOLDING THAT THE APPELLANT IS N OT A FINANCIAL CORPORATION WHICH IS ENGAGED IN PROVIDING LONG TERM FINANCE FOR INDUSTRIAL OR AGRICULTURE DEVELOPMENT O R DEVELOPMENT OF INFRASTRUCTURE FACILITY IN INDIA. HE FAILED TO A PPRECIATE THE FACT THAT THE APPELLANT WAS THE CORPORATE BODY OF GOVERN MENT OF KARNATAKA SPECIFICALLY INCORPORATED TO FUND, MONITO R, SUPERVISE AND/OR MANAGE FINANCE FOR URBAN INFRASTRUCTURAL DEV ELOPMENT AT VARIOUS TOWNS AND CITIES. THE LAA ERRED IN CONFIRMING THE ACTION OF THE LAO. 3. WITHOUT PREJUDICE TO THE ABOVE GROUND, THE LAO E RRED IN FAILING TO APPRECIATE THAT RECEIPT OF MANAGEMENT FE ES AND NOT THE INTEREST ON THE SURPLUS FUNDS, WOULD BASICALLY MAKE THE APPELLANT COMPANY AS THE ONE AS NON-FINANCIAL CORPORATION. THE LAA ERRED IN CONFIRMING THE ACTION OF THE LAO. 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE FILED RETURN ON 22.11.2006 DECLARING TOTAL INCOME OF RS.29,35,630 W HICH WAS PROCESSED U/S. 143(1) OF THE INCOME-TAX ACT, 1961 [HEREINAFTE R REFERRED TO AS THE ACT IN SHORT]. LATER ON THE CASE WAS SELECTED FOR S CRUTINY AND THE AO FRAMED THE ASSESSMENT AT AN INCOME OF RS.41,62,383 U/S. 14 3(3) OF THE ACT. 4. THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A PPEALS) WHO DISMISSED THE APPEAL OF THE ASSESSEE BY OBSERVING A S UNDER: 3. CASE WAS FIXED FOR HEARING ON THREE OCCASIONS V IZ., 20-8- 2010, 9-09-2010 AND 05-10-2010 BUT ON ALL OCCASIONS ADJOURNMENT LETTERS WERE FILED. NO ONE APPEARED PE RSONALLY TO EXPLAIN THE REASONS FOR NON-APPEARANCE. THIS SHOWS THAT THE APPELLANT IS NOT INTERESTED TO PURSUE THE APPEAL. HENCE APPEAL IS TREATED AS DISMISSED FOR STATISTICAL PURPOSES VIDE. , CIT VS. MULTIPLAN INDIA (P) LTD 38 ITD 320. ITA NO.1489/BANG/10 PAGE 3 OF 3 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE BOTH T HE PARTIES AND THE MATERIAL ON RECORD. IN THE INSTANT CASE, IT APPEAR S THAT THE LD. CIT(APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-APPEAR ANCE, HOWEVER, HE HAS NOT DISCUSSED THE REASONS GIVEN BY THE ASSESSEE FOR SEEKING THE ADJOURNMENT BEFORE HIM. THE LD. CIT(A) HAD ALSO NO T DECIDED THE ISSUE AGITATED BY THE ASSESSEE ON MERITS. WE THEREFORE D EEM IT APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT( APPEALS) AND REMAND THE CASE BACK TO HIS FILE, TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERA TE AND NOT TO SEEK UNWARRANTED AND UNREASONABLE ADJOURNMENTS. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF DECEMBER, 2011. SD/- SD/- ( GEORGE GEORGE K. ) ( N.K. SAINI ) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 19 TH DECEMBER, 2011. DS/- COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. C IT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE (1+1) BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.