Handee Foods, Baroda V. The ACIT.,Circle-3, Baroda

ITA 1582/AHD/2011

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9898 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Next Hearing Date: 04-01-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 07-06-2011
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: M K PATEL
• Section: 144

Judgement Text

, D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ./ ITA.NO.1582/AHD/2011 /BLOCK ASSTT. YEAR: 2005-2006 HANDEE FOODS C/O. RITA H. DESAI HARIDWAR 13, PRAKASH PARK SOCIETY, NR. ISCON TEMPLE HARINAGAR CHAR RASTA GOTRI, BARODA 390 021. VS ACIT, CIR.3 BARODA. %& / (APPELLANT) '( %& / (RESPONDENT) ASSESSEE BY : SHRI M.K. PATEL REVENUE BY : SMT. SONIA KUMAR, SR.DR / DATE OF HEARING : 04/01/2016 / DATE OF PRONOUNCEMENT: 06/01/2016 )*/ O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD.COMMISSIONER INCOME-TAX (APPEALS)-II, BARODA DAT ED 18.02.2011 PASSED FOR THE ASSTT.YEAR 2005-06. 2. THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD.CIT (A) HAS ERRED IN DISMISSING THE APPEAL OF THE ASSESSEE AND CONFIRMIN G THE ADDITIONS MADE BY THE AO. ITA NO.1582/AHD/2011 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED ITS RETURN F INCOME ON 25.8.2005 DECLARING TOTAL LOSS OF RS.8,26,213/- . THE LD.AO PASSED THE ASSESSMENT ORDER ON 12.12.2007, WHEREBY THE INCOME OF THE ASSESSEE HAS BEEN DETERMINED AT RS.11,51,956/- AS AGAINST THE LOSS OF RS.8,26,213/-. THE AMOUNT OF RS.11,51,956/- WAS FURTHER ADJUSTED AGAINST THE BROUGHT FORWARD LOSS FOR THE ASTT.YEAR 2000-01 TO 2004-05. THE LD.AO HAS MADE VA RIOUS ADDITIONS TO THE INCOME OF THE ASSESSEE. THE ASSESSMENT ORDER WAS P ASSED UNDER SECTION 144 I.E. EX PARTE ASSESSMENT ORDER, ACCORDING TO THE BEST JUDGMENT O F THE AO. 4. ON APPEAL, THE LD.CIT(A) HAS DISMISSED THE APPEA L OF THE ASSESSEE FOR WANT OF PROSECUTION. 5. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT A DDRESS OF THE ASSESSEE FOR COMMUNICATION IS HANDEE FOODS, C/O. RITA H. DE SAI, HARIDAR, 13, PRAKASH PARK SOCI8ETY, NR.ISCON TEMPLE, HARINAGAR C HAR RATA, GOTRI, VADODARA 390 021. THERE WAS A CHANGE OF ADDRESS AND THE ASSESSEE FAILED TO COMMUNICATE ITS ADDRESS TO THE AO. THE NOTICES WER E SENT TO THE OLD ADDRESS AND DUE TO THIS REASON, THE ASSESSEE COULD NOT APPE AR BEFORE THE LD. REVENUE AUTHORITIES. THE LD.COUNSEL FOR THE ASSESSEE SUBMI TTED THAT ONE MORE OPPORTUNITY BE GRANTED TO THE ASSESSEE FOR DEFENDIN G ITS CASE AND THE ISSUE BE RESTORED TO THE FILE OF THE AO. 6. ON THE OTHER HAND, THE LD.DR CONTENDED THAT IT W AS FOR THE ASSESSEE TO FURNISH LATEST ADDRESS FOR SERVICE OF NOTICE ETC. 7. WE HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GO NE THROUGH THE RECORD CAREFULLY. ADMITTEDLY, THE ASSESSEE FAILED TO COMM UNICATE PROPER ADDRESS TO THE AO FOR SERVICE OF NOTICE. THIS HAS RESULTED IN AN EX PARTE ASSESSMENT ORDER. HOWEVER, IF WE LOOK TO THE TAX LIABILITY BY VIRTUE OF VARIOUS ADDITIONS AND DISALLOWANCES, VIS--VIS THE LAPSE COMMITTED BY THE ASSESSEE, THEN THE ITA NO.1582/AHD/2011 3 PUNISHMENT IN THE SHAPE OF TAX LIABILITY IS DISPROP ORTIONATE TO THE NEGLIGENCE COMMITTED BY THE ASSESSEE. THEREFORE, IN THE INTER EST OF JUSTICE, ONE MORE OPPORTUNITY TO THE ASSESSEE IS BEING GIVEN TO THE A SSESSEE TO DEFEND ITS CASE. WE SET ASIDE BOTH THE ORDERS OF THE REVENUE AUTHORI TIES AND RESTORE ALL THESE ISSUES TO THE FILE OF THE AO FOR FRESH ADJUDICATION . 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 6 TH JANUARY, 2016 AT AHMEDABAD. SD/- SD/- ( MANISH BORAD ) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER