M/s. Tiruchirappalli District Co-operative Milk Producers Union Ltd., Trichy V. JCIT, Trichy

ITA 1892/CHNY/2009

• Counselvise Citation: 189221714 RSA 2009
• Duration Of Justice: 2 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-11-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 16-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JUNIOR
• Assessee Lawyers: S SRIDHAR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A.NO. 1892/MDS/2009 ASSESSMENT YEAR : 2006-07 TIRUCHIRAPPALLI DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD., PUDUKOTTAI MAIN ROAD, KOTTAPATTU, TRICHY. PAN AAAAT0654Q VS. THE JOINT COMMISSIONER OF INCOME-TAX, RANGE-IV, TRICHY. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI K.E.B.RENGARAJAN, JUNIOR STANDING COUNSEL DATE OF HEARING : 22 ND NOVEMBER, 2012 DATE OF PRONOUNCEMENT : 22 ND NOVEMBER, 2012 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVAN T ASSESSMENT YEAR IS 2006-07. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) AT ITA 1892/09 :- 2 -: TIRUCHIRAPPALLI DATED 29.10.2009 AND ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1 961. 2. THE GROUNDS RAISED BY THE ASSESSEE IN THE PRESE NT APPEAL READ AS BELOW : 2. THE CIT(APPEALS) ERRED IN SUSTAINING THE ADDIT ION OF ` 37,19,374/- BEING THE DIFFERENCE IN SALES TURNOVER AS ASSESSABLE INCOME WITHOUT ASSIGNING PROPER REASONS AND JUSTIFICATION. 3. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THE GROUND NO.2 RAISED BEFORE HIM WAS NOT CONSIDERED IN PROPER PERSPECTIVE INASMUCH AS THE TURNOVER SHOWN T O THE SALES TAX DEPARTMENT SHOULD NOT BE TAKEN INTO CONSIDERATION IN VIEW OF INCLUSION OF CERTAIN OTHER ITEMS MORE FULLY EXPLAINED. 4. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THERE WAS NO PROPER APPRECIATION OF THE ACCOUNTS PRESENTE D BEFORE THEM AND NON CONSIDERATION OF THE ACCOUNTS SUBMITTED AS WELL AS LACK OF FINDINGS TO REJECT THE SAID SUBMISSION WOULD VITIATE THE IMPUGNED ORDER. 5. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THE FINDINGS RECORDED IN THIS REGARD IN PARA 2 OF THE ITA 1892/09 :- 3 -: IMPUGNED ORDER WERE WRONG, INCORRECT, UNJUSTIFIED, ERRONEOUS AND NOT SUSTAINABLE BOTH ON FACTS AND IN LAW. 6. THE CIT(APPEALS) ERRED IN SUSTAINING THE DISALLOWANCE OF INTEREST TO THE EXTENT OF ` 37,47,250/- RELATABLE TO THE BORROWINGS THROUGH NDDB, WITHOUT ASSIGNING PROPER REASONS AND JUSTIFICATION. 7. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THE PROVISIONS OF SECTION 43B OF THE ACT HAD NO APPLICA TION TO THE FACTS OF THE CASE INASMUCH AS GROUND NO.4 RAISED BEFORE HIM WAS NOT CONSIDERED IN A PROPER PERSPECTIVE. 8. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THE FINDINGS RECORDED IN THIS REGARD IN PARA 3 OF THE IMPUGNED ORDER WERE WRONG, INCORRECT, UNJUSTIFIED, ERRONEOUS AND NOT SUSTAINABLE BOTH ON FACTS AND IN LAW. 9. THE CIT(APPEALS) FAILED TO APPRECIATE THAT THERE WAS NO PROPER OPPORTUNITY GIVEN BEFORE PASSING THE IMPUGNED ORDER AND ANY ORDER PASSED IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE IS NULLITY IN LAW . ITA 1892/09 :- 4 -: 3. WE HEARD BOTH SIDES IN DETAIL. 4. ON GOING THROUGH THE RECORDS OF THE CASE AND THE ORDERS OF THE LOWER AUTHORITIES, WE FIND THAT THE COMMISSIONE R OF INCOME- TAX(APPEALS) HAS NOT CONSIDERED THE ISSUES IN A DET AILED MANNER IN THE LIGHT OF THE PARTICULARS AND EXPLANATIONS FU RNISHED BY THE ASSESSEE. THEREFORE, THE ORDER OF THE COMMISSIONER OF INCOME- TAX(APPEALS) IS SET ASIDE AND THE FILE IS REMITTED BACK TO HIM TO CONSIDER THE APPEAL AFRESH IN THE LIGHT OF THE DETA ILS AND EXPLANATIONS AVAILABLE WITH THE ASSESSEE. THE ASSE SSEE MAY BE GIVEN AN OPPORTUNITY OF BEING HEARD. 5. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON THURSDAY, THE 22 ND OF NOVEMBER, 2012 AT CHENNAI. SD/- SD/- (S.S.GODARA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 22 ND NOVEMBER , 2012 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR