Prefect Knitters Limited Rep by GTN Engineering (India) Limited after merger, Hyderabad, Secunderabad V. ACIT, Circle-16(3), Hyderabad, Hyderabad

ITA 1749/HYD/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4669 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 19-10-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 29-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Additional depreciation; Additional evidence
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. M OH AN ALANKAMONY , ACCOUNTANT MEMBER (THROUGH VIRTUAL CONFERENCE) I.T.A. NO S . 1748, 1749, 1750 AND 1751 /HYD/201 6 ASSESSMENT YEAR S : 20 0 5 - 06, 2007 - 08 , 2008 - 09 & 2009 - 10 PREFECT KNITTERS LTD., REP. BY GTN ENGG. (INDIA) LTD. AFTER MERGER, HYD. PAN AABCP 4066H VS ASST. COMMISSIONER OF INCOME - TAX, CIRCLE 16(3), HYDERABAD. (APPELLANT) (RESPONDENT) DATE OF HEARING : 19 - 1 0 - 20 20 DATE OF PRONOUNCEMENT : 20 - 1 0 - 20 20 O R D E R PER SMT. P. MADHAVI DEVI, J.M. : THESE ARE THE APPEALS OF THE ASSESSEE FOR AYS 2005 - 06, 2007 - 08 TO 2009 - 10 AGAINST SEPARATE ORDERS OF CIT(A) 4, HYDERABAD, 07/10/2016 FOR THE RESPECTIVE ASSESSMENT YEARS. 2. THE BRIEF FACTS AS TAKEN FR OM AY 2005 - 06 ARE THAT THE ASSESSEE COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE OF COTTON KNITTED GARMENTS AND ALSO TRADING IN GARMENTS & YARN , FILED ITS RETURN OF INCOME FOR THE AY 2005 - 06 ON 28/10/2005 FOR ASSESSEE : SHRI M.V. ANIL KUMAR FOR REVENUE : SHRI SANDEEP KUMAR MEHTA ITA NO S . 1748 TO 1751 /HYD/201 6 PERFECT KNITTERS LTD., HYD. : - 2 - : ADMITTING TOTAL INCOME AT RS. 2,43,47,400/ - . DURING THE ASSESSMENT PROCEEDINGS U /S 143(3) R.W.S. 147 OF THE IT ACT, THE AO OBSERVED THAT THE ASSESSEE HAS TAKEN FOREIGN CURRENCY LOANS AND HAS DEBI TED FOREIGN EXCHANGE GAIN/LOSS TO THE P&L ACCOUNT. THE AO OBSERVED THAT THE SAID LOANS WERE TAKEN FOR ACQUISITION OF FIXED ASSETS AND THEREFORE THE AMOUNT OF FOREIGN EXCHANGE GAIN/LOSS CHARGED TO P&L ACCOUNT IS TO BE DISALLOWED. HE, ACCORDINGLY, BROUGHT IT TO TAX. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ASSESSMENT ORDER BY OBSERVING THAT THE ASSESSEE HAS NOT FILED ANY DETAILS BEFORE HER. AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED DETAILS OF THE LOAN AS ADDITIONAL EVIDENCE BEFORE HER AND PRAYED FOR THE REM AND OF THE APPEAL TO THE FILE OF CIT(A) FOR DE - NOVO CONSIDERATION. 5. THE LD. DR HAD NO OBJECTION TO THE SUBMISSION OF LD. COUNSEL FOR THE ASSESSEE. 6. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE COUNSELS, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE CIT(A) ITA NO S . 1748 TO 1751 /HYD/201 6 PERFECT KNITTERS LTD., HYD. : - 3 - : WITH A DIRECTION TO RECONSIDER THE ISSUE TA KING INTO CONSIDERATION THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER PROVIDING FAIR OPPORTUNITY OF BEING HEA R D TO THE ASSESSEE. 7. AS REGARDS THE OTHER APPEALS FOR AYS 2007 - 08 TO 2009 - 10, THE ISSUE IS O NLY AGAINST THE DISALLOWANCE OF ADDITIONAL DEPRECIATION AS CLAIMED BY THE ASSESSEE. IN ALL THESE APPEALS, WE FIND THAT THE CIT(A) HAS DISMISSED THE APPEALS EX - PARTE, FOR NON - APPEARANCE OF THE ASSESSEE. 8. THE LD. COUNSEL FOR THE ASSESSEE PRAYED FOR REMAN D OF THE ISSUE TO THE FILE OF THE CIT(A) FOR A DECISION ON MERIT S . THOUGH, LD. DR OBJECTED TO THE REMAND TO THE FILE OF THE CIT(A), WE ARE OF THE VIEW THAT SINCE THE CIT(A) HAS NOT DISPOSED OF THESE APPEALS ON MERITS, THE APPEALS NEED TO BE REMANDED FOR AD JUDICATION OF THE ISSUE ON MERITS. THEREFORE, WE DEEM IT FIT AND PROPER TO REMAND THESE APPEALS ALSO TO THE FILE OF THE CIT(A) WITH A DIRECTION TO DISPOSE OF THESE APPEALS ON MERITS AND IN ACCORDANCE WITH LAW AFTER PROVIDING FAIR OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO S . 1748 TO 1751 /HYD/201 6 PERFECT KNITTERS LTD., HYD. : - 4 - : 9. IN THE RESULT, ALL THESE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER P RONOUNCED IN THE OPEN COURT ON 20 TH OCTOBER , 20 20 . SD/ - SD/ - ( A . M OH AN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDE RABAD, DATED : 20 TH OCTOBER , 20 20 . KV COPY TO : 1. PERFECT KNITTERS LTD., C/O. M. ANANDAM & CO., CAS, 7A, SURYA TOWERS, SD ROAD, SCUNDERABAD 500 003. 2. ACIT 16(3), HYDERABAD. 3 . CIT(A PPEALS ) - 4 , HYDERABAD . 4 . THE PR. CIT - 4 , HYDERABAD. 5 . D.R. ITAT, HYDERABAD. 6 . GUARD FILE.