M/s Mustang Leather Pvt. Ltd., Kanpur V. Income Tax Officer-6(1), Kanpur

ITA 20/LKW/2014

• Counselvise Citation: 2023714 RSA 2014
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-04-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 13-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K RAM
• Keywords: Gross profit estimation; Depreciation; Opportunity of being heard; Reasonable cause
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 20/LKW/2014 ASSESSMENT YEAR: 2005 - 06 M/S MUSTANG LEATHER PVT. LTD. KANPUR V. THE INCO ME TAX OFFICER 6(1) KANPUR PAN: AAACM9812F (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. RAKESH GARG, ADVOCATE RESPONDENT BY: SHRI. R. K. RAM, D.R. DATE OF HEARING: 22.04.2014 DATE OF PRONOUNCEMENT: 24 .04.2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS WHICH ARE AS UNDER: - 1 . BECAUSE THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN DISMISSING THE APPEAL EX PARTE W ITHOUT GIVING ANY ADEQUATE OPPORTUNITY TO THE ASSESSEE. 2 . BECAUSE THE CIT(A) HAS FAILED TO APPRECIATE TO DISPOSE OF THE APPEAL ON MERITS. 3 . BECAUSE THE ASSESSEE BEING PREVENTED BY SUFFICIENT AND PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : REASONABLE CAUSE COULD NOT PUT AN APPEARANCE AND HENCE, THE DISMISSAL OF THE APPEAL EX PARTE IS CONTRARY TO THE PROVISIONS OF LAW. 4 . BECAUSE WITHOUT PREJUDICE TO THE ABOVE, THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN UPHOLDING THE APPLICABILITY OF THE PROVISIONS OF SECTION 145(1) OF THE ACT, THEREBY CONFIRMING THE ADDITION OF RS.9,22,453/ - MADE BY THE ASSESSING OFFIC ER ON ACCOUNT OF LOW GROSS PROFIT. 5 . BECAUSE ON A PROPER CONSIDERATION AND CIRCUMSTANCES OF THE CASE, THE ADDITION OF RS.9,22,453/ - MADE BY THE ASSESSING OFFICER, BY APPLYING THE PROVISIONS OF SECTION 145 OF THE ACT, IS CONTRARY TO THE PROVISIONS OF LAW AND BE DELETED. 6 . BECAUSE THERE BEING NO DEFECTS IN THE BOOKS OF ACCOUNTS, THE CIT(A) WAS NOT JUSTIFIED IN UPHOLDING THE APPLICABILITY OF SECTION 145 OF THE ACT, AND THEREBY ARBITRARILY UPHOLDING THE ADDITION OF RS.9,22,453/ - . 7 . BECAUSE THE CIT(A) HAS ERRED ON FAC TS AND IN LAW IN UPHOLDING THE DISALLOWANCE OF RS.27,489/ - OUT OF TRAVELLING AND CONVEYANCE EXPENSES, WHICH ADDITION IS CONTRARY TO FACTS, BAD IN LAW AND BE DELETED. 8 . BECAUSE THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN UPHOLDING THE ADDITION OF RS.5000/ - OU T OF POSTAGE AND TELEGRAM EXPENSES, WHICH ADDITION IS CONTRARY TO FACTS, BAD IN LAW AND BE DELETED. 9 . BECAUSE THE CIT(A) HAS ERRED ON FACTS AND IN LAW IN NOT ADJUDICATING GROUND NO. 4 RELATING TO DISALLOWANCE OF RS.16,829/ - PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : OUT OF DEPRECIATION ON VEHICLE. 10 . BE CAUSE NON ADJUDICATION OF GROUND OF APPEAL AND ARBITRARINESS IN MENTIONIN G T HE FIGURES OF DISALLOWANCE SUGGESTS THAT THE ORDER HAS BEEN PASSED BY THE CIT(A) IN UTTER HASTE, EVEN WITHOUT LOOKING THE GROUND OF APPEAL AS WELL AS THE RECORDS OF THE CASE. THE A DDITIONS MADE BE DELETED. 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(A) HAS PASSED AN EX - PARTE ORDER AND DISMISSED THE APPEAL IN LIMINE WITHOUT DEALING WITH THE ISSUES ON MERIT. THEREFORE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATION OF THE ISSUES AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED HEAVY RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF RECORD, WE FIND THAT THE LD. CIT(A) HAS DECIDED THE APPEAL EX - PARTE THOUGH HE HAS DISCUSSED VARIOUS CASE LAWS IN HIS ORDER WHILE PROCEEDING EX - PARTE AGAINST THE ASSESSEE, BUT HE HAS NOT DEALT WITH THE ISSUES ON MERIT. UNDER THE INCOME - TAX ACT, THE LD. CIT(A) IS REQUIRED TO ADJUDICATE ALL THE ISSUES RAISED BEFORE HIM ON MERIT EVEN IF THE ASSESSEE DOES NOT APPEAR. BUT IN THE INSTANT CASE, ALL THE ISSUES RAISED BEF ORE HIM WERE NOT PROPERLY EXAMINED BY THE LD. CIT(A) AND HE HAS DISMISSED THE APPEAL SUMMARILY. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO ADJUDICATE ALL THE ISSUE S RAISED BEFORE HIM ON MERI T BY PASSING A SPEAKING ORDER . WE ALSO DIRECT THE ASSESSEE TO APPEAR BEFORE THE LD. CIT(A) AND MAKE COMPLIANCE TO PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : THE DIRECTIONS OF THE LD. CIT(A) ISSUED DURING THE COURSE OF HEARING OF THE APPEAL. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STAT ISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.4.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH APRIL, 2014 JJ: 2204 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT RE GISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )