Kendrapada Urban Co-operative Bank Ltd, Kendrapada V. ACIT, Cuttack

ITA 203/CTK/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3753 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 24-04-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: P C SETHI
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO .203 /CTK/201 5 ASSESSMENT YEAR : 2010 - 2011 KENDRAPARA URBAN CO - OP. BANK LTD., COLLEGE SQUARE, TINIMUHANI , KENDRAPARA. VS. ACIT, CIRCLE 1(2),CUTTACK PAN/GIR NO . AAATK 8347 E (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.C.SETHI, AR RE VENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 10 /07 / 2017 DATE OF PRONOUNCEMENT : /07 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - CUTTACK , DATED 20.11.2012, FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT, THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS), CUTTACK [HEREINAFTER REFERRED AS 'THE LEARNED CIT (A)'] HAS COMMITTED SERIOUS ERROR IN NOT QUASHING THE ASSESSMENT ORDER PASSED BY THE LEARNED ASSESSING OFFICER WHICH IS PER SE ILLEGAL, UNJUST, WITHOUT JURISDICTION, ARBITRARY AND CONTRARY TO THE PROVISIONS OF THE ACT AND HAS BEEN PASSED ON GROSS VIOLATION TO THE PRINCIPLES OF NATURAL JUSTICE. 2. THAT, THE LEARNED CIT (A) HAS COMMITTED SERIOUS ERROR IN NOT QUASHING THE ASSESSMENT ORDER WHICH HAS BEEN PASSED ON THE BASIS OF AN ILLEGAL NOTICE U /S 143(2) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED AS 'THE ACT') ON AN EXTRANEOUS REASONS. 2 ITA NO.203 /CTK/2015 ASSESSMENT YEAR:2010 - 2011 3. THAT, THE LEARNED CIT (A) HAS COMMITTED SERIOUS ERROR IN NOT DELETING THE ADDITION MADE BY THE LEARNED ASSESSING OFFICER OF RS.81,51,731/ - WITHOUT GIV ING AN OPPORTUNITY OF BEING HEARD AND WITHOUT CONFRONTING THE MATERIALS ON THE BASIS OF WHICH THE LEARNED ASSESSING OFFICER HAS MADE THE ADDITION. 4. THAT, THE LEARNED CIT (A) HAS COMMITTED SERIOUS ERROR IN NOT DELETING THE ADDITION MADE BY THE LEARNE D ASSESSING OFFICER WHICH HAS BEEN PASSED ON THE BASIS OF THE MATERIALS THAT WITHOUT NO BILLS AND VOUCHERS RELATING TO RS.81,51,731/ - WAS ADDED WHICH IS CONTRARY TO THE EVIDENCE ON RECORD AND FOR WHICH SAME IS LIABLE TO BE ALLOWED. 5. THAT, THE LEARNE D CIT (A) HAS COMMITTED SERIOUS ERROR IN ENHANCING THE ASSESSMENT WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD TO THE APPELLANT AND FOR WHICH SAID ENHANCEMENT MADE BY THE LEARNED CIT(A) IS LIABLE TO BE DELETED. 6. THAT, THE LEARNED CIT (A) HAS COMMITTED SERIOUS ERROR IN CONFORMING AND ENHANCING THE ADDITION U/S 36(1) (VIIA) OF THE ACT WHICH WAS NEVER IS THE BASIS OF ADDITION BY THE LEARNED ASSESSING OFFICER. 7. THAT, THE LEARNED CIT (A) HAS COMMITTED A SERIOUS ERROR IN MAKING THE CALCULATION @ 7 .5% P.A. ON THE NET PROFIT INCLUDING THE PROVISIONS AT RS.88,1007 - . 8. THAT, THE LEARNED CIT (A) HAS EXCEEDED IN HER JURISDICTION BY CITING THE REASONS WHICH WAS NEVER ON THE BASIS OF ASSESSMENT ORDER AND FOR WHICH SAME IS LIABLE TO BE DELETED. 9. THAT, THE APPELLANT MAY ADD, ALTER, DELETE OR MODIFY ANY OF THE GROUNDS AT THE TIME OF HEARING OF THE MATTER WITH THE LEAVE OF THE HON'BLE ITAT. 3 . AT THE OUTSET, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS NOT ISSUED ANY ENHANCEMENT NOTICE BEFORE MAKING ADDITION OF RS. 81,51,731/ - . 4. ON THE OTHER HAND, LD D.R. SUBMITTED THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE CIT(A) FOR RE - ADJUDICATING THE ISSUE BY ISSUING ENHANCEMENT NOTICE TO THE ASSESSEE. 3 ITA NO.203 /CTK/2015 ASSESSMENT YEAR:2010 - 2011 5. IN THE REJOINDER, LD A.R. HAD NO OBJECTION TO THE ABOVE SUBMISSION OF LD D.R. 6. IN VIEW OF ABOVE SUBMISSIONS OF BOTH THE PARTIES, WE SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE CIT(A) TO RE - ADJUDICATE THE ISSUE AFTER ISSUING ENHANCEMENT NOTICE TO THE ASSESSEE FOR THE ADDITION OF RS.81,51,731/ - AND AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL F ILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCE D IN THE OPEN COURT O N 10 /07 /2017 IN THE PRESENCE OF PARTIES. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 10 /07 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. TH E APPELLANT : KENDRAPARA URBAN CO - OP. BANK LTD., COLLEGE SQUARE, TINIMUHANI, KENDRAPARA 2. THE RESPONDENT. ACIT, CIRCLE 1(2), CUTTACK 3. THE CIT(A) - CUTTACK 4. PR.CIT - CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//