Tata pigments Ltd, Jamshedpur V. ACIT CIR-3, Jamshedpur

ITA 202/RAN/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9615 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 27-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Keywords: Opportunity of being heard
• Section: 142(1)

Judgement Text

1 ITA NO. 202 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 202 /RAN/201 6 A .Y. : 20 07 - 2008 THE TATA PIGMENTS LTD., SAKCHI BOULEVARD, JAMSHEDPUR - 831002, JHARKHAND V S ACIT, CIRCLE - 3, JAMSHEDPUR P AN NO. : A AACT 6760 D (APPELLANT ) . RESPONDENT ASSESSEE BY : NONE REVENUE BY :SHRI P.K.MONDAL, JCIT DATE OF HEARING : 2 4 . 05 .201 8 DATE OF PRONOUNCEMENT : 25.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESS E E AGAINST THE ORDER OF CIT ( A ) , JAMSHEDPUR , DATED 25.04.2016 , FOR THE ASSESSMENT YEAR 2007 - 08 . 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE , HOWEVER, THE LD . AR OF THE ASSESSEE HAS FILED AN APPLICATION SEEKING ADJOURNMENT ON THE GROUND THAT DUE TO SOME MEDICAL AILMENT, HE IS UNABLE TO ATTEND THE HEARING , WHICH IN OUR OPINION IS NOT A PLAUSIBLE ONE , THEREFORE, THE BENCH PROCEEDED TO DISPOSED OFF THE APPEAL CO NSIDERING THE SUBMISSIONS OF LD. DR AND THE MATERIAL AVAILABLE ON RECORD. 2 ITA NO. 202 /RAN/ 201 6 3 . THERE ARE TWO SUBSTANTIVE GROUNDS RAISED BY THE ASSESSEE, WHICH ARE AS UNDER : - I) THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.6,44,670/ - BEING 10% OF RS.64,46,693/ - UNDER THE HEAD OTHER EXPENSES; AND II) THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF 16,34,938/ - MADE ON ACCOUNT OF ALLEGED REFUND. 4 . B RIEF FACTS OF THE CASE ARE THA T THE ASSESSEE IS ENGAGED IN THE MANUFACTURE OF OXIDES OF IRON, DRY CEMENT PAIN, EMULSION PA INT, ACRYLIC DISTEMPER AND WALL PUTTY AND FILED RETURN OF INCOME WITH TOTAL INCOME OF RS. 3,12,99,950/ - . THE RETURN OF INCOME WAS PROCESSED U/S.143(1) OF THE ACT. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY ON CASS AND NOTICES U/S.143(2) & 142(1) OF T HE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME. THEREAFTER THE AO COMPLETED THE ASS ESSMENT AND MADE CERTAIN ADDITION S AND ASSESSED TOTAL INCOME AT RS. 3,41,15,190/ - AND PAS SED ORDER U/S.143(3) OF THE ACT , DATED 29.12.2009. 5 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS LD. AR OF THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS AND LD.CIT(A) HAVING CONSIDERED THE FINDINGS A ND THE SUBMISSIONS OF THE ASSESSEE DEALT ON THE DISPUTED ISSUE AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 6 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 3 ITA NO. 202 /RAN/ 201 6 7 . NONE APPEARED ON BEHALF OF THE ASSESSEE, WHEREAS LD . DR ON THE OTHER HAND, SUBMITTED THAT THE AO HAS MADE ADDITION IN RESPECT OF EXPENSES AS NO BILLS WERE PROVIDED, THEREFORE, ESTIMATED INCOME AT 10% AND PASSED ORDER AND THE ASSESSEE COULD NOT FILE EVIDENCES TILL TODAY AND PRAYED FOR DISMISSAL OF THE APPEA L OF THE ASSESSEE. 8 . WE HAVE HEARD THE SUBMISSIONS OF LD.DR AND PERUSED THE MATERIAL ON RECORD. ON PERUSAL OF THE SUBMISSIONS MADE BY THE ASSESSEE AND THE ORDER OF CIT(A), WE FOUND THAT THE CIT(A) HAS CONSIDERED THE SUBMISSIONS OF THE ASSESSEE, AND CONTE NTION OF THE ASSESSEE BEFORE THE CIT(A) WAS THAT THE AO HAS NOT PROVIDED ADEQUATE OPPORTUNITY TO SUBSTANTIATE/EXPLAIN THE CASE OF THE ASSESSEE. HOWEVER, THE CIT(A) HAS NOT TAKEN INTO CONSIDERATION THE ABOVE SUBMISSION OF ASSESSEE RELATING TO THE DISALLOWAN CE NEITHER ANY PROPER FINDING IN REGARD TO THE SUBMISSION OF THE ASSESSEE. THEREFORE, ASSESSEE COULD NOT MAKE SUBMISSION IN RESPECT OF DISALLOWANCE MADE BY THE AO. HENCE, WE ARE OF THE OPINION THAT THE ASSESSEE SHOULD BE PROVIDED ONE MORE OPPORTUNITY TO SU BSTANTIATE ITS CLAIM AND THE MATTER HAS TO BE RECONSIDERED BY THE CIT(A). ACCORDINGLY, WE REMIT THE ENTIRE ISSUE TO THE FILE OF CIT(A), WHO SHALL RECONSIDER THE ISSUE AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THE ASSESSEE SHA LL COOPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF THE APPEAL. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4 ITA NO. 202 /RAN/ 201 6 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNC ED IN THE OPEN COURT ON 25 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 25 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.