Amritsar Swadeshi Textile Corp. P. Ltd., Amritsar. V. The Addl. Commissioner of Income Tax, Amritsar.

ITA 174/ASR/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8671 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 22-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 29-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHABIR HANDOO
• Keywords: Rejection of books of accounts
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH.T.S. KAPOOR, ACCOUNTANT MEMBER AND SH.N.K.CHOUDHRY, JUDICIAL MEMBER I.T.A NO.174(ASR)/2016 ASSESSMENT YEAR: 2007-08 AMRITSAR SWADESHI TEXTILE CORP. PVT. LTD. RAMTIRATH ROAD, AMRITSAR. PAN: AAFCA-0627F VS. ADDL. CIT, RANGE-V, AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. R.L.MEHRA (CA) RESPONDENT BY: SH. SHABIR HANDOO (DR) DATE OF HEARING: 22.02.2017 DATE OF PRONOUNCEMENT: 29.03.20 17 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORD ER OF LD. CIT(A)-2 AMRITSAR, DATED 31.12.2015, FOR ASST. YEAR: 2007-08 . 2. THE ASSESSEE HAS TAKEN VARIOUS GROUNDS OF APPEAL . HOWEVER, AT THE TIME OF HEARING, THE LD. AR SUBMITTED THAT HE WILL BE ARGUING ONLY ON GROUND NO.8. FOR THE SAKE OF CONVENIENCE, GROUND NO .8 OF THE APPEAL IS REPRODUCED BELOW. (8) THAT THE PERUSAL OF THE RECORDS OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) RELATING TO BOTH THE APPEAL S I.E. ONE OF AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMIT ED FOR THE ITA NO.17 4(ASR)/2016 ASST. YEAR: 2007-08 2 ASSESSMENT YEAR:2007-2008 AND THE OTHER OF APPEAL N O.20/2009- 2010 OF AMRITSAR SWADESHI WOOLLEN MILLS FOR THE ASS ESSMENT YEAR 1997-98 UNDER SECTION 143(3)/147 WILL MAKE IT CRYST AL CLEAR THAT WHAT WAS TAKEN UP AND HEARD ON 8.12.2015 WAS THE AP PEAL RELATING TO AMRITSAR SWADESHI WOOLLEN MILLS AND NOT THAT OF AMRITSAR SWADESHI TEXTILE CORPORATION PRIVATE LIMIT ED FOR THE YEAR UNDER CONSIDERATION. 3. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE LD. CIT(A) HAS NOTED VARIOUS OPPORTUNITIES GRANTED TO THE ASSESSEE AT PA GE 13 OF HIS ORDER AND AT PAGE 14 HE HAS MENTIONED THAT ON 28.10.2015, THE APPEAL WAS ADJOURNED FOR 9.11.2015 WHEREAS, THE FACT REMAINS T HAT WHEN ON 10.11.2015, THE APPEAL OF THE ASSESSEE FOR ASST. YE AR: 2008-09 & 2009- 10 WERE BEING HEARD THE LD. CIT(A) KEEPING IN VIEW THE MEDICAL PROBLEMS OF THE COUNSEL STATED THAT ALL OTHER APPEALS SHALL BE KEPT PENDING AND SHALL BE TAKEN UP FOR HEARING ON ANY DATED AS CONVE NIENT TO COUNSEL. THAT ON 8.12.2015, THE COUNSEL AGAIN APPEARED BEFOR E LD. CIT(A) IN APPEAL NO.20/2009-10 FOR ASST. YEAR:1997-98 AND ON THAT DATE ONLY THE SAID APPEAL WAS HEARD AND THE APPEAL NO.496 FOR ASS T. YEAR: 2007-08 WAS NEITHER TAKEN UP FOR HEARING ON 08.12.2015 NOR ON ANY OTHER DATE. THE LD. AR IN THIS RESPECT INVITED OUR ATTENTION TO THE COPY OF AFFIDAVIT DULY ATTESTED AND SIGNED BY SH.R.L.MEHRA, CHARTERED ACCOUNTANT OF ASSESSEE. THE LD. AR ALSO INVITED OUR ATTENTION TO COPY OF ORDER SHEET OF LD. CIT(A) FOR ASST. YEAR: 2007-08 WHEREIN ON 08.12 .2015 THE LD. CIT(A) HAD NOTED THAT WRITTEN SUBMISSIONS WERE FILED RELAT ING TO APPEAL FOR ASST. YEAR: 1997-98. THE LD. AR, THEREFORE, SUBMITTED THA T LD. CIT(A) HIMSELF HAS WRITTEN THAT WRITTEN SUBMISSIONS WERE ONLY FOR ASST. YEAR:1997-98 ITA NO.17 4(ASR)/2016 ASST. YEAR: 2007-08 3 AND THEREFORE, IT WAS WRONG ON THE PART OF LD. CIT( A) TO STATE THAT WRITTEN SUBMISSIONS WERE FILED BY ASSESSEE. THEREFORE, IT W AS PRAYED THAT NECESSARY OPPORTUNITY BE GRANTED TO ASSESSEE TO EXP LAIN HIS CASE BEFORE LD. CIT(A). 4. THE LD. DR, ON THE OTHER HAND, HEAVILY PLACED HI S RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. HOWEVER, HE ADMITTED T HAT IN THE ORDER SHEET DATED 08.12.2015, THE LD. CIT(A) HAS NOTED THAT WRI TTEN SUBMISSIONS WERE FILED FOR ASST. YEAR: 1997-98. 5. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GON E THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT DURING APPELLATE PR OCEEDINGS, THE LD. CIT(A) HAS GIVEN VARIOUS DATES FOR HEARING BUT ON N ONE OF THE DATES THE MATTER WAS HEARD AS ASSESSEE CONTINUOUSLY FILED ADJ OURNMENT LETTERS. FROM THE COPY OF ORDER SHEET OF LD. CIT(A) ON RECOR D, WE FIND THAT LD. CIT(A) HAS NOTED ON 08.12.2015 THAT SH. R.L. MEHRA, CHARTERED ACCOUNTANT ATTENDED AND FILED WRITTEN SUBMISSIONS A ND ARGUED THE APPEAL FOR ASSESSMENT YEAR:1997-98. THE ORDER SHEET ENTRY DOES NOT MENTION ABOUT THE WRITTEN SUBMISSIONS FOR THE YEAR UNDER CONSIDERATION. FOR THE SAKE OF COMPLETENESS, THE COPY OF ORDER SHE ET HAS BEEN MADE PART OF THIS ORDER. ITA NO.17 4(ASR)/2016 ASST. YEAR: 2007-08 4 ITA NO.17 4(ASR)/2016 ASST. YEAR: 2007-08 5 THE LD. CIT(A) HIMSELF AT PAGE 15 HAS NOTED AS UNDE R: THE APPELLANT HAVING NOT FURNISHED ANY WRITTEN ARG UMENT AGAINST THE REJECTION OF THE BOOKS OF ACCOUNTS OR AGAINST THE G .P ADDITION OF RS.97,41,678/-, AND DID NOT APPEAR EVEN ONCE FOR HE ARING BEFORE THE CIT(A), AMRITSAR TO EXPLAIN ITS OWN CASE WITH BOOKS OF ACCOUNTS, BILLS HAND VOUCHERS TO PROVE THAT THE AO HAD ERRED IN REJECTIN G THE BOOKS OF ACCOUNTS AND MAKING THE G.P ADDITION OF RS.97,41,678/-. IN T HE CIRCUMSTANCES THE OBSERVATIONS AND THE DECISIONS OF THE AO IN THE ASS ESSMENT ORDER CANNOT BE FAULTED AND THEREFORE THE REJECTION OF BOOKS OF ACCOUNTS U/S 143(3) AND THE G P ADDITION OF RS.97,41,678/- IS UPHELD. THE LD. AR HAS ALSO FILED AN AFFIDAVIT CONFIRMING T HAT HE HAD NOT FILED WRITTEN SUBMISSIONS AND THIS CASE WAS NEVER T AKEN UP FOR HEARING, THEREFORE, IN VIEW OF THE ABOVE FACTS AND CIRCUMSTA NCES, WE DEEM IT APPROPRIATE THAT THE LD. CIT(A) SHOULD DECIDE THE A PPEAL OF ASSESSEE AFRESH AFTER HEARING THE ASSESSEE. SINCE, WE HAVE REMITTED THAT ISSUE BACK TO THE OFFI CE OF LD. CIT(A) GROUNDS ON MERITS NEED NOT BE ADJUDICATED AND NEITH ER LD. COUNSEL ARGUED ON MERITS. NEEDLESS TO SAY THAT ASSESSEE WILL BE PROVIDED SUF FICIENT OPPORTUNITIES OF BEING HEARD. 6. IN VIEW OF THE ABOVE, THE APPEAL FILED BY THE AS SESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.03. 2017 . SD/- SD/- (N.K.CHOUDHRY ) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED:29.03.2017. /PK/ PS. ITA NO.17 4(ASR)/2016 ASST. YEAR: 2007-08 6 COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER