M.Veerashekar, CHENNAI V. DCIT, CHENNAI

ITA 1935/CHNY/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4689 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 9 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 06-04-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 14-07-2014
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: D ANAND
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . , # $ BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 1935/MDS/2014 / ASSESSMENT YEAR : 2007-08 M. VEERASHEKAR, 3 RD FLOOR, 45-47, GANDHINAGAR, I MAIN ROAD, ADYAR, CHENNAI 600 020. [PAN: AABPV 3975G] VS . THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE IV(1), CHENNAI. ( / APPELLANT) ( /RESPONDENT) & ' / APPELLANT BY : SHRI D. ANAND, ADVOCATE *+& ' / RESPONDENT BY : SHRI SUPRIYO PAL, JCIT ' /DATE OF HEARING : 06.04.2017 ' /DATE OF PRONOUNCEMENT : 02.05.2017 /O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER: THE ASSESSEE HAS FILED AN APPEAL IN THE ORDER OF C OMMISSIONER OF INCOME TAX, APPEALS (CENTRAL) -1, CHENNAI IN ITA NO . 140/09-10 DATED 27.03.2014 U/S. 143(3) OF THE INCOME TAX ACT. :-2-: I.T.A. NO. 1935/MDS/2014 2. THE ASSESSEE HAS RAISED THE SOLE SUBSTANTIVE GRO UND THAT THE LD. CIT(A) ERRED IN DISPOSING OF THE APPEAL WITHOUT AFFORDING PROPER OPPORTUNITY OF BEING HEARD AND THE LD. AR APPEARED AND MADE SUBMISSIONS BUT LD. CIT(A) HAS CONFIRMED THE ADDITIONS OF ASSESSING OFFICER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS THE BUSINESS OF REAL ESTATE AND FLATS PROMOTION AND FILED THE RETURN OF INCOME ON 29.10.2007 WITH TOTAL INCOME OF RS. 4,96,370/- AND THE RETURN OF IN COME WAS PROCESSED U/S. 143(1) OF THE ACT ON 06.03.2009. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S. 143(2) OF THE ACT WAS ISSU ED AND THE CASE WAS POSTED FOR HEARING ON 29.07.2009. THE ASSESSING OFFICER O N PERUSAL OF THE FINANCIAL STATEMENTS FOUND THAT THERE ARE OUTSTANDING RECEIPT S OF PROJECTS TO THE EXTENT OF RS. 36,93,391/- AND ASSESSEE FAILED TO SUBSTANTI ATE THE REFUND OF ADVANCES AND MADE ADDITION. 3.1 THE SECOND ADDITION BEING THAT THE ASSESSEE HAS CLAIMED SALARY PAYMENTS OF PROJECT AND EXPLAINED THAT THE FRESH CA NDIDATES ARE BEING ENGAGED AS PROJECT MANAGERS, PROJECT ENGINEERS ON V ARIOUS DATES AND SUCH ONGOING PROJECT COULD NOT IMPLEMENT THE SCHEME DUE TO FINANCIAL CONSTRAINTS AND THE LD. AO FOUND THE EXPLANATIONS PROVIDED BY T HE ASSESSEE ARE NOT SATISFACTORY AND DISALLOWED RS. 31,87,691/-. THE TH IRD ISSUE BEING THE ASSESSING OFFICER DISALLOWED THE FOREIGN TRAVEL EXP ENSES RS. 2,95,973/- AND :-3-: I.T.A. NO. 1935/MDS/2014 THE INTEREST RS. 25,74,669/- IN RESPECT OF PROJECT COST AND ASSESSED THE TOTAL INCOME OF RS. 1,02,47,490/- AND PASSED ORDER U/S. 1 43(3) OF THE ACT DATED 23.12.2009. 4. AGGRIEVED BY THE ORDER, THE ASSESSEE FILED AN AP PEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS, THE LD. AR ARGUED THA T THE LD. CIT(A) HAS CONSIDERED THE FINDINGS OF THE ASSESSING OFFICER AN D IS OF THE OPINION THAT THE ASSESSEE IN THE ASSESSMENT PROCEEDINGS HAS NOT FURN ISHED ANY DETAILS BEFORE THE ASSESSING OFFICER AND THEREFORE THE LD. AO MADE ADDITION AND EVEN IN THE APPELLATE PROCEEDINGS THE ASSESSEE COULD NOT SUBSTA NTIATE THE GROUNDS RAISED IN THE APPEAL AND THE LD. CIT(A) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER AND DISMISSED THE ASSESSEE APPEAL. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE H AS FILED AN APPEAL WITH THE TRIBUNAL. BEFORE US, THE LD. AR ARGUED THAT TH E LD. CIT(A) HAS NOT GIVEN ADEQUATE OPPORTUNITY TO PRODUCE THE INFORMATION IN THE HEARING AND RELIED ONLY ON THE FINDINGS OF THE ASSESSING OFFICER AND O VERLOOKED THE SUBMISSIONS OF APPELLATE PROCEEDINGS AND LD. AR PRAYED FOR AN O PPORTUNITY TO THE ASSESSEE. CONTRA, THE LD. DR RELIED ON THE ORDERS OF CIT(A) AND OPPOSED THE GROUNDS. :-4-: I.T.A. NO. 1935/MDS/2014 6. WE HEARD THE RIVAL SUBMISSIONS, PERUSED THE MATE RIAL ON RECORD AND JUDICIAL DECISIONS. BEFORE WE GO INTO MERITS OF TH E CASE, WE FOUND THE LD. AR HAS EMPHASIZED THAT THE LD. CIT(A) HAS NOT PROVIDED PROPER OPPORTUNITY TO REPRESENT THE CASE WITH FACTS AND THE APPEAL WAS DI SMISSED. WE ON PERUSAL OF THE CIT(A) ORDER FOUND THAT THE LD. CIT(A) HAS O BSERVED AT PARA 6 AS UNDER: 6. I HAVE CONSIDERED THE ASSESSMENT ORDER AND GROUNDS OF APPEAL. IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE APPELLANT HAS NOT FURNISHED ANY DETAILS BEFORE THE AO DURING THE SCRUTINY PROCEEDINGS. AS A RESULT, THE AO HAS PROCEEDED TO MAKE THE ADDITIONS TO THE TUNE OF RS. 97,51,124/- O N ACCOUNT OF SUPPRESSION OF RECEIPTS, DISALLOWANCE OF SALARY, FO REIGN TRAVEL EXPENSES AND DISALLOWANCE OF INTEREST. DURING THE APPEAL PROCEEDINGS ALSO, WHEN THE CASE WAS POSTED FOR HEAR ING ON 27.11.2013, THE AR WAS ASKED TO FILED REQUISITE DET AILS IN SUPPORT OF THE GROUNDS RAISED IN THE APPEAL. HOWEVER, THE AR HAS FAILED TO FURNISH THE SAME TO SUBSTANTIATE THE GROUNDS RAI SED IN THE APPEAL. THEREFORE, I AM LEFT WITH NO OPTION BUT TO CONFIRM THE ADDITIONS MADE BY ACTION OF RS. 97.51.124/- MADE BY THE AO TO THE RETURNED INCOME. AS A RESULT, THE GROUNDS RAIS ED ARE DISMISSED. AND FINALLY THE LD. CIT(A) HAS DISMISSED THE APPEA L. WE ARE OF THE OPINION THAT THE LD. CIT(A) HAS CATEGORICALLY MENTIONED THA T THE ASSESSEE HAS NOT FURNISHED THE DETAILS IN THE ASSESSMENT PROCEEDINGS AND IN THE APPELLATE PROCEEDINGS AND NO OTHER MATERIAL AVAILABLE WITH TH E LD. CIT(A) AND DISMISSED :-5-: I.T.A. NO. 1935/MDS/2014 THE ASSESSEE APPEAL. WE CONSIDERING THE APPARENT FA CTS, MATERIAL ON RECORD ARE OF THE OPINION THAT, AS PRAYED BY THE LD. AR, O NE MORE OPPORTUNITY BE PROVIDED TO THE ASSESSEE. IN THE INTEREST OF JUSTI CE, WE REMIT THE DISPUTED ISSUE TO THE FILE OF THE CIT(A) TO ADJUDICATE ON ME RITS WITH SPEAKING ORDER AND ASSESSEE IS PROVIDED ADEQUATE OPPORTUNITY TO FILE T HE DETAILS AND CLAIM BEFORE PASSING THE ORDER. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSE. ORDER PRONOUNCED ON TUESDAY, THE 2 ND DAY OF MAY, 2017 AT CHENNAI. SD/- ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER SD/- ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER /CHENNAI, 0 /DATED: 2 ND MAY, 2017. JPV ' *#23 43 /COPY TO: 1. &/ APPELLANT 2. *+& /RESPONDENT 3. 5 ( )/CIT(A) 4. 5 /CIT 5. 3 *## /DR 6. 9 /GF