Mojjika Steels Private Ltd., Kolkata V. ITO, Ward-4(2), Kolkata, Kolkata

ITA 1809/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 9618 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 12-09-2016
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KUREEL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D, BENC H KOLKATA BEFORE SHRI S.S.VISWANETHRA RAVI, JM & DR. A.L.SAI NI, AM ./ ITA NO.1809/KOL/2016 ( / ASSESSMENT YEAR:2012-2013) MOJJIKA STEELS PVT. LIMITED, 4, FAIRLIE PLACE, ROOM NO.402, 4 TH FLOOR, KOLKATA-700001 VS. ITO WARD-4(2), P-7, CHOWRANGHEE SQUARE, 8 TH FLOOR, KOLKATA-700069 ./ ./PAN/GIR NO. : AABCM 7080 Q ( /APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY : SHRI NARENDRA KEDIA, ADVOCATE REVENUE BY : SHRI RAJAT KUMAR KUREEL, JCIT / DATE OF HEARING : 16/12/2016 /DATE OF PRONOUNCEMENT 04/01/2017 / O R D E R PER DR. ARJUN LAL SAINI, AM: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PERTAIN ING TO ASSESSMENT YEAR 2012-2013, IS DIRECTED AGAINST THE ORDER PASSED BY LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA, IN APPEAL NO.1304/CIT(A)-2/2014-15, DATED 06.07.2016, WHICH I N TURN ARISES OUT OF ASSESSMENT ORDER PASSED U/S.143(3) OF THE INCOME TA X ACT, 1961 (IN SHORT THE ACT) DATED 31.03.2014. 2. BRIEF FACTS OF THE CASE QUA THE ASSESSEE ARE THA T THE ASSESSEE FILED ORIGINAL RETURN OF INCOME TAX ON 27.08.2012 SHOWING AN INCOME OF RS.NIL. ASSESSEES CASE WAS SELECTED FOR SCRUTINY U /S143(3) OF THE ACT AND THE ASSESSING OFFICER HAS COMPLETED THE ASSESSM ENT BY MAKING DISALLOWANCE U/S.14A OF THE ACT AT RS.20,75,947/-. ITA NO.1809/K/2016 MOJJIKA STEELS PVT. LTD. 2 3. AGGRIEVED FROM THE ORDER OF AO, THE ASSESSEE FIL ED AN APPEAL BEFORE THE CIT(A), WHO HAS CONFIRMED THE ORDER PAS SED BY LD. AO OBSERVING THE FOLLOWINGS :- DURING THE APPELLATE PROCEEDINGS FOLLOWING NOTICES WERE ISSUED FOR HEARING IN THE MATTER. THE DETAILS OF THESE NOTICES ALONG WITH REMARKS ARE AS UNDER :- DATE OF NOTICE DATE OF HEARING REMARKS 12.04.2016 06.05.2016 AS PER RECORD NON-APPEARED NO R ANY ADJOURNMENT WAS FILED/AVAILABLE ON RECORD 12.05.2016 14.06.2016 AS PER RECORD NON-APPEARED NO R ANY ADJOURNMENT WAS FILED/AVAILABLE ON RECORD 15.06.2016 30.06.2016 AS PER RECORD NON-APPEARED NO R ANY ADJOURNMENT WAS FILED/AVAILABLE ON RECORD IN VIEW OF THE ABOVE, IT IS CLEAR THAT THE APPELLA NT IS NOT INTEREST IN PURSUING ANY OF ALL GROUNDS OF APPEAL. I HAVE CONSIDERED THE GROUND OF APPEAL AND STATEMEN T OF FACTS FILED BY THE ASSESSEE AND ALSO THE ORDER AS PASSED BY THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS ALREADY DISCUSSE D THE ISSUE IN DETAILS WITH ALL THE FACTS AND RELEVANT EVIDENCES A VAILABLE ON RECORD WHILE PASSING THE ORDER. DURING THE COURSE OF APPEL LATE PROCEEDINGS, THE ASSESSEE HAS NOT SUBMITTED ANY WRI TTEN OR ORAL ARGUMENTS WITH EVIDENCE AGAINST THE FINDINGS OF THE AO. HENCE, IN THE ABSENCE OF ANY COGENT MATERIAL EVIDEN CE, I DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE AO AND THE S AME IS HEREBY UPHELD. IN VIEW OF THE ABOVE, THE APPEAL OF THE APP ELLANT IS DISMISSED. 4. NOT BEING SATISFIED WITH THE ORDER OF LD. CIT(A) , THE ASSESSEE IS IN FURTHER APPEAL BEFORE US AND HAS TAKEN THE FOLLOWIN G GROUNDS OF APPEAL :- 1) THAT IN THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE LD. CIT(APPEALS) HAS ERRED IN PASSING EX-PARTE ORDER AN D CONFIRMING ALL THE DISALLOWANCES MADE BY THE LD. INCOME TAX OFFICE R WITHOUT CONSIDERING THE MERIT OF THE CASE. 2) THAT WITHOUT PREJUDICE THE LD. CIT(A) HAS ERRED IN CONFIRMING ALL DISALLOWANCES MADE BY THE A.O. ON THE ALLEGED GROUN D THAT IN THE ABSENCE OF ANY COGENT MATERIAL EVIDENCE AND FURTHER ERRED IN CONFIRMING THE ORDER OF THE A.O. WITHOUT GIVING HIS FINDING OR JUSTIFICATION TO THE GROUNDS OF APPEALS ITA NO.1809/K/2016 MOJJIKA STEELS PVT. LTD. 3 3) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCES OF EXPEND ITURE MADE BY THE LD. A.O. U/S.14A OF THE IT. ACT, READ WITH RULE -8D AMOUNTING TO RS. 20,75,947/- WITHOUT GIVING PROPER JUSTIFICATION . 4) THAT THE LD. AUTHORITIES BELOW HAVE ERRED IN IGN ORING THE FACTS THAT INTEREST EXPENDITURE INCURRED BY THE APPELLANT WAS DIRECTLY RELATED TO OTHER BUSINESS ACTIVITIES AND NO DISALLO WANCES WAS CALLED FOR. 5) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE LD. CLT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCES OF SALARY & B ENEFITS AMOUNTING TO RS. 9,600/-. 6) THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE LD. CLT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.3,000/- ON A CCOUNT OF ACCOUNTING CHARGES PAID. 7) THAT THE LD. CIT(A) HAS FURTHER ERRED THE DECISI ON OF A.O. FOR NOT SETTING OFF OF UNABSORBED BUSINESS LOSS AND SET TING OFF AGAINST THE CURRENT YEARS PROFIT. 5. LD. AR, AT THE OUTSET, ARGUED THAT THE EX-PARTE ORDER PASSED BY THE LD. CIT(A) SHOULD BE RESTORED BACK AS THE ASSESSEE DID NOT RECEIVE ANY NOTICE FROM THE COMMISSIONER OF INCOME TAX (APPEALS ). 6. LD. DR FOR THE REVENUE ALSO AGREED WITH THE CONT ENTION RAISED BY THE LD. AR FOR THE ASSESSEE. 7. HAVING HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD, WE ARE OF THE VIEW THAT THERE IS MERIT I N THE SUBMISSIONS OF THE ASSESSEE, AS THE PROPOSITION CANVASSED BY LD. AR FO R THE ASSESSEE ARE SUPPORTED BY THE FACTS NARRATED BY HIM ABOVE. AS LD . AR POINTED OUT THAT ASSESSEE NEVER RECEIVED ANY NOTICE FROM THE LD.CIT( A). KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE, WE ARE OF THE VIE W TO REMIT THE CASE BACK TO THE FILE OF LD. CIT(A) TO ADJUDICATE THE APPEAL AFR ESH. ACCORDINGLY, WE REMIT ITA NO.1809/K/2016 MOJJIKA STEELS PVT. LTD. 4 THE CASE BACK TO THE FILE OF LD. CIT(A) FOR DECIDIN G THE ISSUES AFRESH AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 04/0 1/2017. SD/ - (S.S.VISWANETHRA RAVI) SD/ - (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA ; ! DATED 04/01/2017 ' $%& /PRAKASH MISHRA , 0 . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) % & , / ITAT, 1. / THE APPELLANT- MOJJIKA STEELS PVT. LTD. 2. / THE RESPONDENT.-ITO, WARD-4(2), KOLKATA 3. 1 ( ) / THE CIT(A), KOLKATA. 4. 1 / CIT 5. 23 4 0056 , 56 , / DR, ITAT, KOLKATA 6. 4 78 / GUARD FILE. 2 0 //TRUE COPY//