S AMIT SPECIALITY CHEMICALS PVT LTD., MUMBAI V. DY COMM OF INCOME TAX, CIRCLE-6(1)(1), MUMBAI

ITA 173/MUM/2023

AI Insights

The case involves S Amit Speciality Chemicals Pvt. Ltd, the appellant, contesting an order from the Ld. Commissioner of Income-tax - National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issues in the appeal were the ex parte nature of the decision and the confirmation of a disallowance of Rs. 20,85,691 under section 14A of the Income Tax Act, which was added to the book profit under section 115JB. The appellant argued that the CIT(A) erred in passing the order without considering their submissions and documents. The ITAT noted that despite multiple notices, the CIT(A) proceeded without the appellant's input, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123565 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Next Hearing Date: 19-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A; 115JB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI KULDIP SINGH (JUDICIAL MEMBER) AND SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) ITA No. 173/MUM/2023 Assessment Year: 2017-18 S Amit Speciality Chemicals Pvt. Ltd., 105-A, Neelam Centre, Hind Cycle Road, Worli, Mumbai-400030. Vs. DCIT Circle-6(1)(1), Room No. 501, 5 th floor, Aayakar Bhavan, M.K. Road, Mumbai-400020. PAN No. AAACB 1880 A Appellant Respondent Assessee by : Mr. Kumar Kale, Advocate Revenue by : Mr. Milind S. Chavan, CIT-DR Date of Hearing : 20/03/2023 Date of pronouncement : 31/03/2023 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 29.11.2022 passed by the Ld. Commissioner of Income-tax – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds: 1. On the fact and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in passing the impugned order dated 29.11.2022 ex parte. Your appellant, therefore, prays that the impugned order be quashed and the matter may be remanded back to the file of the Ld. CIT(A). 2. On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming Rs.20,85,691/ appellant, therefore, prays that the aforesaid disallowance us. 14A may be restricted to such amount as may be warranted. 3. On the facts and in the circumstances of the case, in law, the Ld. CIT(A) erred in confirming the addition of Rs.20,85,691/ profit u/s. 115JB being disallowance u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid addition of Rs.20,85,691/ 115JB. 2. At the outset, the Ld. Counsel of the assessee submitted that the Ld CIT(A) has passed without taking into consideration information/documents order of the Ld. CIT(A) might be restored back for deciding afresh and the assessee is willing to file all the necessary documents submissions in support of its claim. 3. We have heard rival submission of t dispute and perused the relevant material on record. The relevant finding of the Ld. CIT(A) deciding the case as under: “4. Findings: In this case, Notice was issued on 18.01.2021 to the appellant to furnish written submissions and documents on or before 25.02.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received S Amit Speciality Chemicals Pvt. Ltd that the impugned order be quashed and the matter may be remanded back to the file of the Ld. CIT(A). 2. On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming the disallowance of Rs.20,85,691/- made by the Ld. AO u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid disallowance us. 14A may be restricted to such amount as may be warranted. On the facts and in the circumstances of the case, in law, the Ld. CIT(A) erred in confirming the addition of Rs.20,85,691/- made by the Ld. AO while computing book profit u/s. 115JB being disallowance u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid addition of 1/- be deleted from the book profit computed u/s. At the outset, the Ld. Counsel of the assessee submitted that passed ex-partee order against the assessee without taking into consideration written submission ents etc on behalf of the assessee order of the Ld. CIT(A) might be restored back for deciding afresh and the assessee is willing to file all the necessary documents submissions in support of its claim. We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. The relevant finding of the Ld. CIT(A) deciding the case ex-partee 4. Findings: In this case, Notice was issued on 18.01.2021 to the appellant to furnish written submissions and documents on or before 25.02.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received S Amit Speciality Chemicals Pvt. Ltd 2 ITA No. 173/M/2023 that the impugned order be quashed and the matter may be 2. On the facts and in the circumstances of the case, and also the disallowance of made by the Ld. AO u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid disallowance us. 14A may be restricted to such amount as may be warranted. On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming the addition of made by the Ld. AO while computing book profit u/s. 115JB being disallowance u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid addition of be deleted from the book profit computed u/s. At the outset, the Ld. Counsel of the assessee submitted that against the assessee, written submission, etc on behalf of the assessee and therefore order of the Ld. CIT(A) might be restored back for deciding afresh and the assessee is willing to file all the necessary documents he parties on the issue-in- dispute and perused the relevant material on record. The relevant partee is reproduced In this case, Notice was issued on 18.01.2021 to the appellant to furnish written submissions and documents on or before 25.02.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received within the stipu the appellant had nothing to say in the matter and the department may proceed ahead based on material available on record. In view of the fact that no written submissions/ information/ documents were received fr any adjournment sought, another notice was issued on 10.12.2021 to the appellant to furnish written submissions, information and documents on or before 17.12.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received within the stipulated time period, it would be presumed that the appellant had nothing further to say in the matter and the appeal would be decided on merits on the basis of material available on record. No written subm received, nor any adjournment sought. Accordingly, yet another notice was issued on 20.12.2021 to the appellant to furnish written submissions, information and documents on or before27.12.2021. In view of the fact that submissions/ information/ documents have been received till date from the appellant nor any adjournment sought, appeal is being decided on the basis of material available on record. Despite repeated notices as delineated above, the appellant has not seen it fit to file any submissions, information or documents during appeal proceedings. The only material on record in this case is Form 35 filed by appellant and copy of assessment order dated 30.11.2019 filed by the appellant along with Form 35. Th perused. There is no material on record to warrant interference in the order of the AO. In view of the fact that there is no material on record to warrant interference in the order of the AO, the Grounds of Appeal are hereby dismissed. 3.1 In view of the above, it is evident that written submission/documents from the assessee’s side have been filed and thus appeal has been decided without assessee’s side by the Ld. CIT(A) S Amit Speciality Chemicals Pvt. Ltd within the stipulated time period, it would be presumed that the appellant had nothing to say in the matter and the department may proceed ahead based on material available on record. In view of the fact that no written submissions/ information/ documents were received from the appellant, nor any adjournment sought, another notice was issued on 10.12.2021 to the appellant to furnish written submissions, information and documents on or before 17.12.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received within the stipulated time period, it would be presumed that the appellant had nothing further to say in the matter and the appeal would be decided on merits on the basis of material available on record. No written submissions/ information/ documents were received, nor any adjournment sought. Accordingly, yet another notice was issued on 20.12.2021 to the appellant to furnish written submissions, information and documents on or before27.12.2021. In view of the fact that submissions/ information/ documents have been received till date from the appellant nor any adjournment sought, appeal is being decided on the basis of material available on record. Despite repeated notices as delineated above, the appellant not seen it fit to file any submissions, information or documents during appeal proceedings. The only material on record in this case is Form 35 filed by appellant and copy of assessment order dated 30.11.2019 filed by the appellant along with Form 35. The material on record has been carefully There is no material on record to warrant interference in the order of the AO. In view of the fact that there is no material on record to warrant interference in the order of the AO, the Grounds of e hereby dismissed.” In view of the above, it is evident that despite notifying written submission/documents from the assessee’s side have been filed and thus appeal has been decided without by the Ld. CIT(A) and action of the Assessing officer S Amit Speciality Chemicals Pvt. Ltd 3 ITA No. 173/M/2023 lated time period, it would be presumed that the appellant had nothing to say in the matter and the department may proceed ahead based on material available on record. In view of the fact that no written submissions/ om the appellant, nor any adjournment sought, another notice was issued on 10.12.2021 to the appellant to furnish written submissions, information and documents on or before 17.12.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received within the stipulated time period, it would be presumed that the appellant had nothing further to say in the matter and the appeal would be decided on merits on the basis of material available on record. issions/ information/ documents were received, nor any adjournment sought. Accordingly, yet another notice was issued on 20.12.2021 to the appellant to furnish written submissions, information and documents on or before27.12.2021. In view of the fact that no written submissions/ information/ documents have been received till date from the appellant nor any adjournment sought, appeal is being decided on the basis of material available on record. Despite repeated notices as delineated above, the appellant not seen it fit to file any submissions, information or documents during appeal proceedings. The only material on record in this case is Form 35 filed by appellant and copy of assessment order dated 30.11.2019 filed by the appellant e material on record has been carefully There is no material on record to warrant interference in the In view of the fact that there is no material on record to warrant interference in the order of the AO, the Grounds of despite notifying no written submission/documents from the assessee’s side have been filed and thus appeal has been decided without considering the on of the Assessing officer has been affirmed. Before us, the Ld. Counsel of the assessee has submitted that assessee could not respond to the notices issued by the Ld. CIT(A) , because correspondence. Howeve written submission/documents before the Ld. CIT(A). In view of the facts and circumstances of the case and justice, we feel it appropriate to restore the appeal back to the file of the Ld. CIT(A) for deciding afresh after considering the submission/documents on behalf of the assessee. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical purposes. 4. In the result, the appeal filed by the assessee is allow statistical purposes. Order pronounced in the open Court on Sd/- (KULDIP SINGH JUDICIAL MEMBER Mumbai; Dated: 31/03/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. S Amit Speciality Chemicals Pvt. Ltd . Before us, the Ld. Counsel of the assessee has submitted that assessee could not respond to the notices issued by , because not being familiar with the e . However, the assessee is now willing to file his written submission/documents before the Ld. CIT(A). In view of the facts and circumstances of the case and in interest of substantial we feel it appropriate to restore the appeal back to the file of d. CIT(A) for deciding afresh after considering the submission/documents on behalf of the assessee. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical In the result, the appeal filed by the assessee is allow Order pronounced in the open Court on 31/03/2023. Sd/ KULDIP SINGH) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : S Amit Speciality Chemicals Pvt. Ltd 4 ITA No. 173/M/2023 . Before us, the Ld. Counsel of the assessee has submitted that assessee could not respond to the notices issued by with the e-mail facility of r, the assessee is now willing to file his written submission/documents before the Ld. CIT(A). In view of the interest of substantial we feel it appropriate to restore the appeal back to the file of d. CIT(A) for deciding afresh after considering the submission/documents on behalf of the assessee. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical In the result, the appeal filed by the assessee is allowed for 03/2023. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER //True Copy// S Amit Speciality Chemicals Pvt. Ltd BY ORDER, (Assistant Registrar) ITAT, Mumbai S Amit Speciality Chemicals Pvt. Ltd 5 ITA No. 173/M/2023 BY ORDER, (Assistant Registrar) ITAT, Mumbai