Trishna Real Estate Pvt. Ltd., Bhubaneswar V. DCIT, Central Circle-1, Bhubaneswar

ITA 156/CTK/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3799 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 26-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B N DAS
• Assessee Lawyers: P R MOHANTY
• Keywords: Search and seizure; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.156/CTK/2017 : ASSESSMENT YEAR : 2007 - 08 ITA NO.157 /CTK/2017 : ASSESSMENT YEAR :200 8 - 09 ITA NO.158 /CTK/2017 : ASSESSMENT YEAR : 2009 - 10 ITA NO.159 /CTK/2017 : ASSESSMENT YEAR : 2010 - 11 TRISHNA REAL ESTATE PVT LTD., N - 3/336, IRC VILLAGE, BHUBANESWAR. VS. DCIT, CENTRAL CIRCLE - 1, BHUBANESWAR, PAN/GIR NO. AABCT 7854 M (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.R.MOHANTY, AR REVENUE BY : SHRI B.N.DAS , DR DATE OF HEARING : 30 /05/ 2017 DATE OF PRONOUNCEMENT : 31 /05/ 2017 O R D E R PER PAVAN KUMAR GADALE, JM THESE ARE APPEAL S FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDER S OF CIT( A) - 3, BHUBANESWAR , ALL DATED 3.10.2016 , FOR THE ASSESSMENT YEAR S 2007 - 08, 2008 - 09, 2009 - 10 & 2010 - 2011 . 2. ALL THESE APPEALS FILED BY THE ASSESSEE ARE BARRED BY LIMITATION BY 138 DAYS. THE ASSESSEE HAS FILED CONDONATION PETITIONS DATED 30 TH MAY, 2017 FOR CONDONING THE DELAY IN FILING THE APPEALS. AFTER GOING THROUGH THE CONDONATION PETITIONS, WE FIND THAT THE ASSESSEE HAD REASONABLE CAUSE 2 ITA NO.156/CTK/2017 : ASSESSMENT YEAR :2007 - 08 ITA NO.157/CTK/2017 : ASSESSMENT YEAR :2008 - 09 ITA NO.158/CTK/2017 : ASSESSMENT YEAR :2009 - 10 ITA NO.159/CTK/2017 : ASSESSMENT YEAR :2010 - 11 FOR NOT FILING THE APPEALS WITHIN THE STIPULATED TIME. LD D.R. DID NOT HAVE ANY SERIOUS OBJECTION FOR CONDONIN G THE DELAY. WE, THEREFORE, CONDONE THE DELAY OF 138 DAYS IN FILING THE APPEALS BEFORE THE TRIBUNAL AND ADMIT THE APPEALS FOR HEARING. 3. SINCE THE FACTS AND ISSUE ARE COMMON IN ALL THESE APPEALS, FOR THE SAKE OF CONVENIENCE, WE TAKE UP THE APPEAL FOR THE ASSESSMENT YEAR 2007 - 08 IN ITA N.156/CTK/2017 FOR OUR ADJUDICATION AND THE DECISION WILL APPLY MUTATIS - MUTANDIS TO OTHER ASSESSMENT YEARS. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF REAL ESTATE ACTIVITIES SINCE 1998. T HERE WAS SEARCH AND SEIZURE OPERATION IN THE CASE OF ARTHA TATWA GROUP ON 11.4.2012 AND CERTAIN INCR IMINATING DOCUMENTS WERE SEIZED. THE ASSESSING OFFICER ISSUED NOTICE U/S.153C OF THE ACT DATED 18.7.2014 TO FILE THE R ETURN OF INCOME. HOWEVER, THE ASSES SEE FILED RETURN OF INCOME ON 13.3.2015 IN COMPLIANCE TO NOTICE U/S.153C OF THE ACT AND FURTHER A NOTICE U/S.143(2) WAS ISSUED TO THE ASSESSEE TO PRODUCE DOCUMENTS AND EVIDENCES IN SUPPORT OF RETURN OF INCOME FILED THE ASSESSEE HAS PRODUCED BOOKS OF ACCOUNT, B ILLS AND VOUCHERS. THE ASSESSING OFFICER FOUND THAT INSPITE OF PROVIDING SUFFICIENT TIME AND OPPORTUNITIES, THE ASSESSEE COULD NOT SUBMIT THE DOCUMENTS REQUIRED FOR ASSESSMENT. THEREFORE, THE ASSESSING OFFICER WAS NOT IN A POSITION TO VERIFY THE BBOOKS OF ACCOUNT AND TO BEST JUDGMENT ASSESSMENT U/S.144 OF THE ACT. A CCORDINGLY, MADE THE ADDITION OF INTEREST PAYMENT OF 3 ITA NO.156/CTK/2017 : ASSESSMENT YEAR :2007 - 08 ITA NO.157/CTK/2017 : ASSESSMENT YEAR :2008 - 09 ITA NO.158/CTK/2017 : ASSESSMENT YEAR :2009 - 10 ITA NO.159/CTK/2017 : ASSESSMENT YEAR :2010 - 11 RS.11,18,127 TO THE RETURNED INCOME AND PASSED ORDER UNDER SECTION 153C/144 OF THE ACT. 5. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE HAS FILED APPEALS WITH THE CIT(A). THE CIT(A) HAS DISMISSED THE ASSESSES APPEAL EXPARTE. AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE HAS FILED APPEAL WITH THE TRIBUNAL. 6. BEFORE US, L D A.R. OF THE ASSES SEE ARGUED THAT THE CIT(A) HAS NOT PROVIDED ADEQUATE OPPORTUNITIES BEFORE PASSING THE ORDERS. THE ASSESSEE COULD NOT FILE THE DETAILS AND EXPLANATION IN RESPECT OF ADDITIONS DUE TO VARIOUS REASONS AND DELAYS . THEREFORE, LD A.R. OF THE ASSESSEE PR AYED THA T ONE MORE OPPORTUNITY BE PROVIDED TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE CIT(A). LD D.R. OPPOSED TO THE PRAYER OF THE LD A.R. OF THE ASSESSEE. 7 . WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. PRIMA FACIE, ON PERUSAL OF THE ORDER OF THE CIT(A), WE FIND THAT THE CIT(A) HAS PASSED EXPARTE ORDER CONFIRMING THE ADDITION. WE ARE OF THE OPI NION THAT NO HARM WILL BE CAUSE TO THE REVENUE IF ONE MORE OPPORTUNITY IS GRANTED TO THE ASSESSEE TO SUBSTANT IATE ITS CASE BEFORE THE CIT(A) AND THE LD A.R. OF THE ASSESSEE UNDERTAKES TO APPEAR BEFORE THE CIT(A) ALONGWITH ALL REQUIRED DETAILS AND DOCUMENTS. WE, IN THE INTEREST OF SUBSTANTIAL JUSTICE , SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE ENTIRE ISSUE TO THE FILE OF THE CIT(A) TO PASS A SPEAKING ORDER AFTER AFFORDING REASONABLE AND PROPER OPPORTUNITIES OF 4 ITA NO.156/CTK/2017 : ASSESSMENT YEAR :2007 - 08 ITA NO.157/CTK/2017 : ASSESSMENT YEAR :2008 - 09 ITA NO.158/CTK/2017 : ASSESSMENT YEAR :2009 - 10 ITA NO.159/CTK/2017 : ASSESSMENT YEAR :2010 - 11 HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DI RECTED TO APPEAR AND COOPERATE IN SUBMITTING THE INFORMATION AND DISPOSAL OF THE APPEAL . ACCORDINGLY, WE RESTORE THE APPEAL TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION AS PER PROVISIONS OF LAW. SIMILARLY, APPEAL FILED BY THE ASSESSEE FOR THE ASSESS MENT YEARS 2009 - 10, 2010 - 2011 ARE ALSO RESTORED TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION AS PER THE PROVISIONS OF LAW. 9. IN THE RESULT, THE APPEAL S F ILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. OR DER PRONOUNCED ON 31 /05/ 2017 SD/ - SD/ - ( N.S SAINI) ( PAVAN KUMAR GADALE) A CCOUNTANT MEMBER JUDICIALMEMBER CUTTACK; DATED 31 /05/2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : TRISHNA REAL ESTATE PVT LTD., N - 3/336, IRC VILLAGE, BHUBANESWAR. 2. THE RESPONDENT. DCIT, CENTRAL CIRCLE - 1, BHUBANESWAR, - 3. THE CIT(A) 3, BHUBANESWAR 4. PR.CIT - 3, BHUABNESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//