Labh Construction & Industries Ltd., Ahmedabad V. The ACIT, (OSD)- 1, Range-4, Ahmedabad

ITA 1746/AHD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1672 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 05-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAURYA SHUKLA
• Keywords: Depreciation; Principle of natural justice; Validity of assessment
• Section: 147

Judgement Text

ITA NO.1746/AHD/2014 A.Y. 2006-07 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.1746/AHD/2014 ASSESSMENT YEAR: 2006-07 LABH CONSTRUCTION & INDS. LTD., VS. A.C.I.T. (OSD)- I, 104, SHANTANU, RANGE-4, AHMEDABAD. OPP. KLASSIC GOLD HOTEL, SARDAR PATEL NAGAR ROAD, AHMEDABAD 380 009. [PAN AAACL 2648 G] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAKAR SHARMA, A.R. RESPONDENT BY : SHRI SHAURYA SHUKLA, SR. D.R . DATE OF HEARING : 05.05.2016 DATE OF PRONOUNCEMENT : 06.05.2016 O R D E R PER R.P. TOLANI, JUDICIAL MEMBER: THIS IS ASSESSEES APPEAL. GROUNDS RAISED IN THE A PPEAL ARE THAT THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN : I) NOT CONDONING THE DELAY IN FILING THE APPEAL AND DISMISSING THE SAME IN LIMINE II) CONFIRMING THE VALIDITY OF ASSESSMENT UNDER SEC TION 147 OF THE ACT III) CONFIRMING DISALLOWING OF INTEREST PAID TO RAJ KOT NAGARIK SAHAKARI BANK LIMITED IV) CONFIRMING ADDITION OF RS.19,89,379/- V) NON-GRANTING OF SET OFF AND CARRY FORWARD OF UNA BSORBED DEPRECIATION AND BUSINESS LOSSES OF EARLIER YEARS. 2. LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, CON TENDS THAT THE LD. CTT(A) DISMISSED THE ASSESSEES APPEAL BY FOLLOWING OBSERV ATIONS:- ITA NO.1746/AHD/2014 A.Y. 2006-07 PAGE 2 OF 3 THE CONDONATION PETITION HAS NOT BEEN FILED BY THE DIRECTOR OF THE APPELLANT COMPANY. I AM NOT CONVINCED WITH THE REA SON GIVEN BY THE CA FOR DELAY IN FILING THE APPEAL. THERE ARE FIVE DIRECTO RS IN THE COMPANY AND SIGNATURE COULD HAVE BEEN TAKEN FROM ANY ONE OF THE DIRECTORS. I AM THEREFORE, NOT SATISFIED THAT THE APPELLANT HAD SUFFICIENT CAU SE FOR NOT PRESENTING THE APPEAL WITHIN THE PERIOD OF 30 DAYS. THE APPEAL IS NOT ADMITTED AND ACCORDINGLY DISMISSED, 3. IT IS CONTENDED THAT THE CHARTERED ACCOUNTANT OF THE ASSESSEE FILED CONDONATION PETITION WHICH IS THE COMMON PRACTICE. WITHOUT POINTING OUT THE DEFECTS OR ASKING THE ASSESSEE TO FILE A CONDONATION PETITI ON SIGNED BY THE DIRECTOR, THE APPEAL HAS BEEN DISMISSED WHICH IS AGAINST THE PRIN CIPLES OF NATURAL JUSTICE. THEREFORE, THE ISSUE MAY BE SET ASIDE AND RESTORED BACK TO THE FILE OF LD. CIT(A) TO ENABLE THE ASSESSEE TO FILE PROPER CONDONATION PETI TION AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING THE ASSESSEE OPPO RTUNITY OF BEING HEARD. 4. LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE OR DER OF LD. CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND MERIT IN THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. AFTER FINDING THE DEFECT IN THE SIGNATURE, THE DEFECT SHO ULD HAVE BEEN POINTED OUT TO THE ASSESSEE TO COMPLY WITH THE PRINCIPLES OF NATURAL J USTICE. CONSEQUENTLY, WE SET ASIDE THE APPEAL BACK TO THE FILE OF LD. CIT(A) TO ALLOW THE ASSESSEE TO FILE FRESH CONDONATION PETITION AND DECIDE THE SAME, AFTER GIVING THE ASSE SSEE ADEQUATE OPPORTUNITY OF HEARING IN ACCORDANCE WITH LAW. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. (THIS ORDER PRONOUNCED IN THE OPEN COURT TODAY ON T HE 6 TH DAY OF MAY, 2016.) SD/- SD/- N.K. BILLAIYA R.P. TOLANI (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, THE 6 TH DAY OF MAY, 2016 PBN/* ITA NO.1746/AHD/2014 A.Y. 2006-07 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDE NT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FIL E BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD