M/s Chalaki Primary Co-operative Milk Producer Society Ltd., Morinda V. ITO, W2(4), Ropar

ITA 1537/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5026 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 07-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: NEERAJ ARORA
• Keywords: Depreciation; Opportunity of being heard; Set aside
• Section: 80P; 68; 144

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCHES, SMC CHANDIGARH !', # $ BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER ./ ITA NO.1537/CHD/2018 / ASSESSMENT YEAR : 2013-14 M/S CHALAKI PRIMARY CO - OPERATIVE MILK PRODUCER SOCIETY LTD. VILLAGE CHALAKI, MORINDA, DISTT. ROPAR. VS. THE ITO, WARD - 2(4), ROPAR ./ PAN NO: AAAAT7977Q / APPELLANT / RESPONDENT / ASSESSEE BY : SHRI NEERAJ ARORA, CA ! / REVENUE BY : SHRI MANJIT SINGH, CIT ' # $/ DATE OF HEARING : 14/08/2019 %&'( $/ DATE OF PRONOUNCEMENT : 19.08.2019 %&/ ORDER PER DIVA SINGH , JM: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE ASSAILING THE CORRECTNESS OF THE ORDER DATED 28/09/ 2018 OF CIT(A)-1, CHANDIGARH PERTAINING TO 2013 14 ASSESS MENT YEAR ON THE FOLLOWING GROUNDS: 1. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT JUST IFIED TO PASS THE ORDER EX-PARTE WITHOUT THE PRESENCE OF APPELLANT OR HIS COUNSEL. ITA-1537/CHD/2018 A.Y. 2013-14 PAGE 2 OF 5 2. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT J USTIFIED TO DISMISS THE FIRST GROUND OF APPEAL REGARDING ADDITION OF RS. 47 ,839/- COMPRISING OF CDF, DEPRECIATION AND DIESEL EXPENDITURE. 3. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT J USTIFIED TO DISMISS THE SECOND GROUND OF APPEAL REGARDING DISALLOWANCE OF D EDUCTION U/S 80P ON INTEREST INCOME OF RS. 3,208/- 4. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT J USTIFIED TO DISMISS THE THIRD GROUND OF APPEAL REGARDING DEDUCTION OF RS. 1 ,076/- U/S 80P ON PROFIT ON TRADING OF CATTLE FEED AND GHEE. 5. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT J USTIFIED TO DISMISS THE FOURTH GROUND OF APPEAL REGARDING ADDITION OF RS. 8 ,94,331/- BY INVOKING THE PROVISIONS OF SECTION 68 OF THE INCOME TAX ACT, 196 1 IN RESPECT OF LIABILITIES OUTSTANDING IN THE BALANCE SHEET OF THE APPELLANT A ND TREATING THEM AS UNEXPLAINED. 6. THAT THE LEARNED CIT(A)-1, CHANDIGARH, WAS NOT J USTIFIED IN NOT HAVING DISPOSED OFF THE FIFTH GROUND OF APPEAL REGARDING D ISALLOWANCE OF DEDUCTION OF RS. 2,17,495/- U/S 80P OF THE INCOME TAX ACT, 1961 DESP ITE THE FACT THAT THE APPELLANT SOCIETY WAS ELIGIBLE FOR SUCH DEDUCTION. 7. THAT THE APPELLANT SOCIETY WAS IN ANY CASE ENTIT LED FOR DEDUCTION U/S 80P ON ITS INCOME AND EVEN ON DISALLOWANCES, DEDUCTION U/S 80P DESERVES TO BE ALLOWED. 8. THAT THE APPELLANT SOCIETY RESERVES THE RIGHT TO RAISE ANY ADDITIONAL GROUND OF APPEAL DURING APPELLATE PROCEEDINGS. 2. AT THE TIME OF HEARING THE LD. AR INVITED ATTENT ION TO THE APPLICATION FILED SEEKING TIME. RELYING ON THE SAME IT WAS SUBMITTED THAT CERTAIN DOCUMENTS WERE BEING OBTAINE D ON THE BASIS OF WHICH THE ASSESSEE SEEKS TO ASSAIL THE EX- PARTE ORDER. HOWEVER CONSIDERING THE FACT THAT IT WAS AN EX-PART E ORDER PASSED BY THE LD. CIT(A) WHICH FACT HAS BEEN ADDRES SED IN THE APPLICATION MOVED ITSELF, THE LD. AR WITHDREW THE R EQUEST FOR TIME. ADDRESSING THE NON REPRESENTATION OF THE ASS ESSEE BEFORE ITA-1537/CHD/2018 A.Y. 2013-14 PAGE 3 OF 5 THE LD. CIT(A), IT WAS SUBMITTED THAT THERE WAS SOM E DISPUTE BETWEEN THE SECRETARY OF THE SOCIETY AND THE MEMBER S AND ULTIMATELY THE SECRETARY OF THE SOCIETY WAS REMOVED . ON ACCOUNT OF THIS, DISPUTE UNKNOWN TO THE SOCIETY IT REMAINED UN-REPRESENTED. IT WAS SUBMITTED BY THE LD. AR THA T THE ASSESSEE SOCIETY HAS ADDRESSED ITS INTERNAL DISPUTE S AND IN THE EVENTUALITY THE REMAND BACK IS DIRECTED, THE ASSESS EE SHALL FULLY PARTICIPATE IN THE PROCEEDINGS. 2.1 THE LD. AR INVITING ATTENTION TO THE ASSESSMENT ORDER SUBMITTED THAT THE ORDER HAS BEEN PASSED U/S 144 OF THE ACT AS THE ASSESSEE REMAINED UNREPRESENTED EVEN BEFORE THE AO. ACCORDINGLY, IT WAS HIS PRAYER THAT IN CASE THE REM AND IS MADE TO THE CIT(A), THE ASSESSEE WOULD NEED TO FILE FRES H EVIDENCES AS ADMITTEDLY NO EVIDENCES WERE PLACED ON BEHALF OF THE ASSESSEE DUE TO ITS INTERNAL PROBLEMS WITH ITS SECR ETARY. 3. THE LD. CIT-DR CONSIDERING THE ASSESSMENT ORDER DATED 04.03.2016 PASSED U/S 144 AGREED THAT THE ASSESSEE ADMITTEDLY DID NOT PARTICIPATE BEFORE THE AO AND EV EN BEFORE THE CIT(A) HAS REMAINED UNREPRESENTED. IN THE CIRC UMSTANCES, REMAND BACK TO THE AO WAS NOT OBJECTED TO. ITA-1537/CHD/2018 A.Y. 2013-14 PAGE 4 OF 5 4. I HAVE HEARD THE SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. IN THE FACTS OF THE PRESENT CASE, A PERUSA L OF THE RECORD SHOWS THAT THE ASSESSEE SOCIETY REMAINED UNR EPRESENTED BEFORE THE AO AS WELL AS THE CIT(A). THE LD. AR HAS EXPLAINED THE LACK OF REPRESENTATION BEFORE THE SAID AUTHORIT IES HAS ARISEN ON ACCOUNT OF SOME INTERNAL DISPUTES WITH TH E SECRETARY OF THE SOCIETY. IT HAS BEEN STATED THAT THE INTERN AL AFFAIRS OF THE ASSESSEE SOCIETY HAVE BEEN PUT IN ORDER AND THE ASSESSEE IN THE EVENTUALITY OF REMAND BACK IS MADE, SHALL NO T ABUSE THE TRUST REPOSED AND PARTICIPATE IN THE PROCEEDINGS FU LLY AND FAIRLY. ACCORDINGLY, IN THE PECULIAR FACTS AND CIR CUMSTANCES AS ARGUED BEFORE THE BENCH WHICH ARE NOT SHOWN TO BE I NCORRECT, IT IS DEEMED APPROPRIATE TO SET ASIDE THE ISSUES BA CK TO THE FILE OF THE AO WITH A DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REA SONABLE OPPORTUNITY OF BEING HEARD. WHILE SO DIRECTING, IT IS MADE CLEAR THAT IN THE EVENTUALITY THE ASSESSEE ABUSES THE TRU ST REPOSED AND FAILS TO PARTICIPATE FULLY AND FAIRLY BEFORE TH E AO, THE AO WOULD BE AT LIBERTY TO PASS AN ORDER ON THE BASIS O F MATERIAL AVAILABLE ON RECORD. ITA-1537/CHD/2018 A.Y. 2013-14 PAGE 5 OF 5 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH AUGUST,2019. SD/- !', ( DIVA SINGH) # $ / JUDICIAL MEMBER AG/POONAM &) *+ ,+/ COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' -/ CIT 4. ' - ()/ THE CIT(A) 5. +01 2, $ 2, 45617/ DR, ITAT, CHANDIGARH 6. 16 8#/ GUARD FILE &) ' / BY ORDER, 9 ! / ASSISTANT REGISTRAR