M/s Pran Commercial Pvt Ltd, Kolkata V. I.T.O Wd 2(1),kolkata, Kolkata

ITA 2040/KOL/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4774 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 19-07-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 28-06-2013
• Court: TRIBUNAL
• Department Lawyers: HARI SHNKAR LAL
• Assessee Lawyers: S M SURANA
• Section: 153A; 144

Judgement Text

1 ITA NO.2040/KOL/2013-M/S.PRAN COMMERCIAL PVT. LTD. A.Y.2005-06 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A KOL KATA [BEFORE HONBLE SHRI N.V.VASUDEVAN, JM & SHRI M.B ALAGANESH, AM ] ITA NO.2040/KOL/2013 ASSESSMENT YEAR : 2005-06 M/S.PRAN COMMERCIAL PVT. LTD. -VERSUS- I.T.O., WAR D-2(1), KOLKATA KOLKATA (PAN:AABCP 5217 G) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI S.M.SURANA, ADVOCATE FOR THE RESPONDENT: SHRI HARI SHNKAR LAL, CIT DATE OF HEARING : 19.07.2016. DATE OF PRONOUNCEMENT : 03.08.2016. ORDER PER N.V.VASUDEVAN, JM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 04.04.2013 OF CIT(A) XX, KOLKATA, RELATING TO AY 2005-06. 2. THE ASSESSEE IS A COMPANY. FOR A.Y.2005-06 TH E ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. NIL. ORDER OF ASSESSM ENT U/S 144 OF THE ACT DATED 28.12.2007 WAS PASSED BY THE AO WHEREIN HE DETERMIN ED THE TOTAL INCOME OF ASSESSEE AT RS.21,34,466/-. THE ASSESSEE HAD CLAIMED INCOME FROM AGRICULTURE OF RS.14,45,886/- WHICH WAS TREATED BY THE AO AS INCOM E FROM OTHER SOURCES FOR WANT OF PROOF THAT THE INCOME IN QUESTION WAS DERIVED FROM AGRICULTURE. BESIDES THE ABOVE, CERTAIN OTHER ADDITIONS WERE MADE IN THE ASSESSMENT CONCLUDED U/S 144 OF THE ACT. 3. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE FIL ED APPEAL BEFORE CIT(A). IT APPEARS THAT CIT(A) FIXED THE APPEAL FOR HEARING ON 04.02.2 010, 16.03.2010, 23.03.2011, 19.05.2011, 23.11.2012, 17.12.2012 & 12.02.2013 RES PECTIVELY. THE ORDER OF CIT(A) IS SILENT AS TO WHETHER NOTICE OF HEARING FOR THE A BOVE DATES OF HEARING WERE SERVED ON 2 ITA NO.2040/KOL/2013-M/S.PRAN COMMERCIAL PVT. LTD. A.Y.2005-06 THE ASSESSEE OR NOT. ACCORDING TO THE CIT(A) NONE A PPEARED ON BEHALF OF THE ASSESSEE AND THEREFORE THE CIT(A) PROCEEDED TO DISMISS THE A PPEAL OF ASSESSEE EX-PARTE AND CONFIRMED THE ORDER OF AO. 4. AGGRIEVED BY THE ORDER OF CIT(A) THE ASSESSEE HAS PREFERRED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5. ONE OF THE GROUNDS RAISED BEFORE THE TRIBUNA L IS THAT NO NOTICE OF HEARING OF APPEAL BEFORE CIT(A) AS STATED IN THE ORDER OF CIT( A) WAS EVER SERVED ON THE ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE BROUGHT TO OUR NOT ICE THAT THE ASSESSEE GOT AMALGAMATED WITH M/S. VICONIC VYAPAR LTD., PURSUANT TO THE ORDER OF THE HONBLE CALCUTTA HIGH COURT OF CP NO.402 OF 2006 DATED 09.0 1.2007. IT WAS FURTHER BROUGHT TO OUR NOTICE THAT PURSUANT TO THE AMALGAMATION THE ASSESSEE HAS CHANGED ITS PLACE OF BUSINESS FROM KOLKATA TO RAIPUR, STATE OF CHATTISGA RH. THE APPEAL BEFORE CIT(A) AGAINST THE ORDER OF AO DATED 28.12.2007WAS FILED ON 25.01.2008 AND THEREAFTER CHANGE OF PLACE OF BUSINESS OF THE ASSESSEE HAD TAK EN PLACE. IT IS ONLY IN THIS CIRCUMSTANCES THAT THE ASSESSEE COULD NOT ATTEND T HE HEARING BEFORE CIT(A). THE LD. COUNSEL FOR THE ASSESSEE PRAYED THAT ORDER OF CIT(A ) MAY BE SET ASIDE. IT WAS ALSO PRAYED THAT SINCE THE ASSESSMENT WAS COMPLETED U/S 144 OF THE ACT, THE ASSESSEE COULD NOT EXPLAIN BEFORE AO ITS SOURCE OF INCOME AS ONE F ROM AGRICULTURE. IT WAS ALSO BROUGHT TO OUR NOTICE THAT THERE WAS A SEARCH IN TH E GROUP COMPANIES OF THE ASSESSEE AT RAIPUR. PURSUANT TO THE SEARCH ORDER U/S 153A OF TH E ACT FOR A.Y.2005-06 WAS PASSED ON 20.03.2013 IN WHICH THE TOTAL INCOME OF THE ASSE SSEE WAS ASSESSED ONLY AT RS.17,660/-. IT WAS PRAYED THAT ALL THE ABOVE FACTS AND ALSO SOURCE OF AGRICULTURAL INCOME NEED TO EXAMINED BY THE AO AND THEREFORE ORD ER OF CIT(A) BE SET ASIDE AND THE ISSUE RAISED BEFORE CIT(A) ON MERITS BY THE ASS ESSEE SHOULD BE DIRECTED TO BE CONSIDERED BY THE AO AFRESH. THE LD. DR RELIED ON T HE ORDER OF CIT(A). 6. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND ACCEPTING THE EXPLANATIONS AND REASONS GIVEN BY THE LD. COUNSEL FOR THE ASSESSEE, WE SET ASIDE THE ORDER OF CIT(A) 3 ITA NO.2040/KOL/2013-M/S.PRAN COMMERCIAL PVT. LTD. A.Y.2005-06 AND REMAND THE ISSUE RAISED BY THE ASSESSEE BEFORE CIT(A) FOR FRESH CONSIDERATION BY THE AO IN THE LIGHT OF THE SPECIFIC ARGUMENTS AND S EARCH CONDUCTED IN THE CASE OF THE ASSESSEE DE NOVO. THE AO WILL GIVE OPPORTUNITY TO T HE ASSESSEE BEFORE MAKING ASSESSMENT DE NOVO. FOR STATISTICAL PURPOSES THE A PPEAL OF THE ASSESSEE IS TREATED AS ALLOWED. IN VIEW OF THE ABOVE CONCLUSION, THE OTHE R GROUNDS RAISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL ARE NOT BEING ADJUDICATED. 7. IN THE RESULT THE APPEAL BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 03.08.2016. SD/- SD/- [M.BALAGANESH ] [ N.V.VASUDEVAN ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03.08.2016. [RG PS] COPY OF THE ORDER FORWARDED TO: 1.M/S. PRAN COMMERCIAL PVT. LTD., M/S RAJESH MOHAN & ASSOCIATES, BAGATI HOUSE, 5 TH FLOOR, UNIT NO.18, 34, GANESG CHANDRA AVENUE, KOLKA TA-700013. 2. I.T.O., WARD-2(1), KOLKATA. 3. CIT(A)-XX, KOLKATA 4. CIT-I, KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, ASST. REGISTRAR, ITAT, KOLKATA BENCHES 4 ITA NO.2040/KOL/2013-M/S.PRAN COMMERCIAL PVT. LTD. A.Y.2005-06