Vision Life Science Private Limited , Hyderabad V. Income Tax Officer, Ward-17(4) , Hyderabad

ITA 206/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3037 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2016-2017
• Appeal Filed On: 14-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Opportunity of being heard; Bad and doubtful debts
• Section: 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 206 /H/20 20 ASSESSMENT YEAR: 201 6 - 1 7 VISION LIFE SCIENCES PVT. LTD., HYDERABAD. PAN AACCV 8973C VS. INCOME - TAX OFFICER, WARD 1 7(4) , HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI SANTI PAWAN KUMAR FOR SHRI PAWAN CHAKRAPANI REVENUE BY: S HRI ROHIT MUJUMDAR DATE OF HEARING: 0 9 /0 6 /2021 DATE OF PRONOUNCEMENT: 18 /0 6 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) 5 , HYDERABADS ORDER , DATED 16 / 12 /201 9 FOR AY 201 6 - 17 INVOLVING PROCEEDINGS U/S 14 3(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT. 2 . BRIEF F ACTS OF THE C ASE ARE THAT T HE A SSESSEE COMPANY FILED ITS RETURN OF INCOME FOR THE A.Y. 2016 - 17 ON I TA NO. 206 /HYD /20 20 VISION LIFE SCIENCES PVT. LTD., HYD. : - 2 - : 17.10.2016 ADMITTING INCOME AT RS.18,47,276/ - . SUBSEQUENTLY , THE CASE WAS SELECTED FOR SCRUTINY AN D THE ASSESSMENT WAS COMPLETED VIDE ORDER U/S.143(3) DATED 21.12.2018 BY MAKING ADDITION TOWARDS BAD DEBTS WRITTEN OFF AMOUNTING TO RS.64,634/ - , ADDITION TOWARDS DISCOUNTS TO CUSTOMERS AMOUNTING TO RS;6,02,590/ - , ADDITION TOWARDS BUSINESS PROMOTION EXPENSE S AMOUNTING TO RS.25,93,401/ - , ADDITION TOWARDS GIFTING OF GOLD COINS TO CUSTOMERS AMOUNTING TO RS.37,50,049/ - AND ADD ITION TOWARDS LOWER AMOUNT DISALLOWED U/S. 40(AJ(IA) AMOUNTING TO RS.I0,226/ - AND THEREBY DETERMIN ED TOTAL INCOME OF RS.88,68,176/ - . 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE PASSING EX - PA RTE ORDER BY HOLDING THAT THE APPELLANT FAILED TO APPEAR BEFORE THE UNDERSIGNED AND SUBSTANTIATE ITS GROUND OF APPEAL WITH EVIDENCES . 4 . IN THE COURSE OF HEARING, IT WAS POINTED OUT BY THE LEARNED COUNSEL OF THE ASSESSEE THAT THE LEARNED CIT(A) HAD DECID ED THE MATTERS EX - PARTE. THEREFORE, IT WOULD BE IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED TO HIS FILE FOR DECIDING VARIOUS GROUNDS OF APPEAL S ON MERITS. THE LEARNED DR AGREED WITH THE AFORESAID STATEMENT OF THE LEARNED AR. 4 . WE HAVE CONSIDE RED THE FACTS OF THE CASE AND THE REQUEST MADE BY THE LEARNED AR. WE ARE OF THE VIEW THAT I TA NO. 206 /HYD /20 20 VISION LIFE SCIENCES PVT. LTD., HYD. : - 3 - : INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS RESTORED TO THE FILE OF FIRST APPELLATE AUTHORITY FOR DECIDING VARIOUS GROUNDS OF APPEAL OF THE ASSESSEE ON MERITS . ACCORDINGLY, THE CIT(A) IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTER DECIDE THE APPEAL ON MERITS. WE DIRECT THE ASSESSEE TO APPEAR BEFORE CIT(A) ON OR BEFORE 3 0 TH SEPTEMBER , 2021 WITH ALL THE RELEVANT EVIDENCES; AT HIS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 18 TH JUNE , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 18 TH JUNE , 20 2 1 . K V C OPY TO : 1 VISION LIFE SCIENCES PVT. LTD., D.NO. 5 - 5 - 35/M113, MYTRI NAGAR, KUKATPALLY , HYDERABAD . 2 IT O , WARD 1 7(4), SIGNATURE TOWERS, OPP. BOTANICAL GARDENS, RR DIST., HYDERABAD. 3 C I T(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO. 206 /HYD /20 20 VISION LIFE SCIENCES PVT. LTD., HYD. : - 4 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER