Danam Dharmender, Hyderabad V. Asst. Commissioner of Income Tax, Circle-14(1), Hyderabad

ITA 1996/Hyd/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7327 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 12-12-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 03-10-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: SANJAY KUMAR SHARDA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B - SMC , HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1996/HYD/2018 ASSESSMENT YEAR: 2015 - 16 DANAM D HARMENDER, HYDERBABAD. PAN: ACZPD 9126 H VS. ACIT, CIRCLE - 14(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI SANJAY KUMAR SHARDA REVENUE BY: SRI NILANJAN DEY, DR DATE OF HEARING: 12/12/2019 DATE OF PRONOUNCEMENT: 14 /01/2020 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 6, HYDERABAD IN APPEAL NO. 10137/2017 - 18/B2/CIT(A) - 6, DATED 03/08/2018 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE ASSESSMENT YEAR 2015 - 16. 2. THE ASSESSEE HAS RAISED THE FOLL OWING GROUNDS IN HIS APPEAL: 1. IN COMPUTING THE TOTAL INCOME FOR 2015 - 16 A. THE LEARNED ASSESSING OFFICER HAS PASSED THE ORDER U/S. 143(3) FOR THE A.Y. 2015 - 16 BY WRONGLY AND ARBITRARILY ESTIMATING NET PROFIT AT 3% OF COST OF GOODS SOLD AND THE CIT(A) UPHEL D THE ORDER PASSED. 2. THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND OR MODIFY THE ABOVE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPAL, IF IT IS CONSIDERED NECESSARY. 2 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE LD. CIT (A) HAS PASSED EX - PARTE ORDER WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PURS UE THE APPEAL . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APP EARED BEFORE THE LD. CIT (A). IT WAS FURTHER SUBMITTED THAT THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER ON MERITS BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL F OR ANY INTERFERENCE AND APPEAL OF THE ASSESSEE MAY BE DISMISSED. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE, I FIND MERIT IN THE SUBMISSIONS OF THE LD. DR. THE LD. CIT (A) HAD P OSTED THE CASE ON 03/08/2018. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE CIT(A) ON THE ABOVEMENTIONED DATE OF HEARING. THEREFORE, THE LD. CIT (A) WAS LEFT WITH NO OTHER OPTION EXCEPT TO ADJUDICATE THE APPEAL EX - PARTE. IN THIS SITUATION, I DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR, AND IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A) IN ORDER TO CONSIDER THE APPEAL AFRESH BY PROVIDI NG ONE 3 MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, I ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS FAILING WHICH THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN A CCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. I ALSO CAUTION THE LD. CIT (A) TO TAKE INTO CONSIDERATION OF THE MARGIN OF PROFIT OFFERED BY THE S TATE TRADING AUTHORITIES FOR SELLING THE INDIAN MANUFACTURED LIQUOR AND ALSO THE PROVISIO NS UNDER THE ACT RELATING TO MANDATORY MAINTENANCE OF BOOKS OF ACCOUNT AND THE SPECIAL PROVISIONS FOR COMPUTING PROFITS AND GAINS OF BUSINESS ON PRESUMPTIVE BASIS. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR ST ATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY, 2020. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 14 TH JANUARY, 2020. OKK COPY TO: - 1) DANAM DHARMENDER , 6 - 1 - 503, NEW CIB QUARTERS, KHAIRATABAD, HYDERABAD 500 004. 2) ACIT, CIRCLE - 14(1), 6 TH FLOOR, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD. 3) THE CIT(A) - 6, HYDERABAD 4) THE PR. CIT - 6, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE