Tejdeep Engineering Enterprises Pvt. Ltd., Hyderabad V. ITO, Ward-2(2), Hyderabad

ITA 1535/HYD/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 8959 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 04-03-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 20-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Depreciation; Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1535/HYD/2013 ASSESSMENT YEAR: 2010-11 M/S TEJDEEP ENGINEERING ENTERPRISES LTD., HYDERABAD. PAN AABCT6576A INCOME-TAX OFFICER, WARD 2(2), HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI P. MURALI MOHAN RAO REVENUE BY SHRI RAJAT MITRA DATE OF HEARING 04-03-2015 DATE OF PRONOUNCEMENT 11-03-2015 O R D E R PER P.M. JAGTAP, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. CIT(A)-III, HYDERABAD DATED 11 TH OCTOBER, 2013 FOR AY 2010-11. 2. ASSESSEE, IN THE PRESENT CASE, IS A COMPANY, WH ICH IS ENGAGED IN THE BUSINESS OF TRADING IN STEEL PRODUCTS. RETUR N OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 01/02/2 011 DECLARING TOTAL INCOME OF RS. 22,47,924. IN THE ASSESSMENT COMPLETE D U/S 143(3) VIDE ORDER DATED 31/03/2013, THE TOTAL INCOME OF TH E ASSESSEE WAS DETERMINED BY AO AT RS. 1,47,96,351 AFTER MAKING DI SALLOWANCE OF RS. 1,21,18,127 ON ACCOUNT OF FINANCIAL CHARGES AND DISALLOWANCE OF RS. 4,30,300 ON ACCOUNT OF DEPRECIATION. 2 ITA NO. 1535/HYD/2013 M/S TEJDEEP ENGG. ENTERPRISES LTD. 3. AGAINST THE ORDER PASSED BY AO U/S 143(3), APPEA L WAS PREFERRED BY ASSESSEE BEFORE THE LD. CIT(A) AND SIN CE THERE WAS NO COMPLIANCE TO THE NOTICES ISSUED BY HIM FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FROM TIME TO TIME, LD. CIT(A) CONFIRMED BOTH THE ADDITIONS MADE BY AO AND DISMISSED THE APPEAL OF TH E ASSESSEE VIDE APPEAL ORDER PASSED EX-PARTE, WHICH IS DISPUTED BY ASSESSEE IN THE PRESENT APPEAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LD. CO UNSEL FOR THE ASSESSEE HAS SUBMITTED THAT BOTH THE ISSUES RELATIN G TO DISALLOWANCE OF FINANCIAL CHARGES AND DISALLOWANCE OF DEPRECIATI ON ARE SQUARELY COVERED IN FAVOUR OF ASSESSEE BY THE ORDER DATED 27 /11/2014 OF THE COORDINATE BENCH OF THIS TRIBUNAL PASSED IN THE CAS E OF M/S GLOBAL FORGING LTD., SISTER CONCERN OF ASSESSEE. THE LD. D R HAS SUBMITTED THAT THE IMPUGNED ORDER WAS PASSED BY LD. CIT(A) EX -PARTE CONFIRMING BOTH THE ADDITIONS MADE BY AO SINCE THERE WAS NO CO MPLIANCE ON THE PART OF ASSESSEE TO THE NOTICES ISSUED BY HIM FIXIN G THE HEARING FROM TIME TO TIME. HE HAS CONTENDED THAT THE MATTER MAY, THEREFORE, BE REMITTED BACK TO CIT(A) FOR DECIDING THE SAME ON ME RIT IN THE LIGHT OF THE DECISION OF THE TRIBUNAL IN THE CASE OF M/S GLO BAL FORGING LTD. (SUPRA) CITED BY THE LD. COUNSEL FOR THE ASSESSEE. WE FIND MERIT IN THE CONTENTION OF LD. DR. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORDER OF LD. CIT(A) AND REMIT THE MATTER BACK TO LD. CIT(A) FOR DISPOSING THE APPEAL OF ASSESSEE AFRESH IN ACCORDANCE WITH LAW AF TER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO ASSESS EE. LD. CIT(A) IS ALSO DIRECTED TO TAKE INTO CONSIDERATION THE DECISI ON OF THE COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S GLOBAL FO RGING LTD. (SUPRA) WHILE DECIDING THE ISSUES INVOLVED IN THE APPEAL ON MERIT. 3 ITA NO. 1535/HYD/2013 M/S TEJDEEP ENGG. ENTERPRISES LTD. 5. IN THE RESULT, APPEAL OF ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 11 TH MARCH, 2015 SD/- SD/- (ASHA VIJAYARAGHAVAN) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTA NT MEMBER HYDERABAD, DATED: 11 TH MARCH, 2015 KV COPY TO:- . 1. M/S TEJDEEP ENGG. ENTERPRISES PVT. LTD., C/O P. MURALI & CO., CAS., 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500 082 2. IT), WARD 2(2), HYDERABAD 3. CIT(A)-III, HYDERABAD 11. CIT-II, HYDERABAD 12. THE DR, ITAT, HYDERABAD