M/s Stainless International (P) Ltd., Kolkata V. Ld. I.T.O. Ward 5(1), Kolkata, Kolkata

ITA 2085/KOL/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1904 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 23-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 31-10-2016
• Court: TRIBUNAL
• Department Lawyers: ANITABH BHATTACHARYA
• Keywords: Bogus purchase
• Section: 69C; 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D, BENC H KOLKATA BEFORE SHRI S.S.VISWANETHRA RAVI, JM & DR. A.L.SAI NI, AM ./ ITA NO.2085/KOL/2016 ( / ASSESSMENT YEAR :2010-2011) M/S STAINLESS INTERNATIONAL (P) LTD. 5A, N.C. DUTTA SARANI, GROUND FLOOR, KOLKATA-700001 VS. I.T.O. WARD 5(1) KOLKATA, P- 7, CHOWRINGHEE SQUARE, KOLKATA-700001 ./ ./PAN/GIR NO. : AAMCS5299N ( /APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : ANITABH BHATTACHARYA, ADDL.CIT-DR /ASSESSEE BY : GAURAV MATHUR, ADV. / DATE OF HEARING : 19/04/2017 /DATE OF PRONOUNCEMENT 21/04/2017 / O R D E R PER DR. ARJUN LAL SAINI, AM THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PERTAI NING TO THE ASSESSMENT YEAR 2010-2011, IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA , IN APPEAL NO.170/CIT(A)-2/15-16, DATED 18.08.2016, WHICH IN T URN ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER U/S.147/143(3 ) OF THE INCOME TAX ACT 1961, (HEREINAFTER REFERRED TO AS THE ACT), D ATED 29.03.2015. 2. BRIEF FACTS OF THE CASE QUA THE ASSESSEE ARE THA T THE ASSESSEE IS A PRIVATE LIMITED COMPANY AND HAS SUBMITTED ITS RETUR N OF INCOME ON 30.09.2010 DISCLOSING TOTAL INCOME OF RS.2,62,872/- . THE RETURN OF INCOME OF THE ASSESSEE WAS PROCESSED U/S 143(1) OF THE ACT ON 16.04.2011. SUBSEQUENTLY, IT HAS BEEN BROUGHT TO THE NOTICE OF THE ASSESSING OFFICER THAT THE ASSESSEE COMPANY HAD MADE BOGUS PURCHASES FROM 1) BHAGYALAXMI STEEL INDUSTRIES 2) JINESHAWAR TRADING COMPANY 3) KUSHAL ITA NO.2085/KOL/2016 M/S STAINLESS INTERNATIONAL PVT.LTD. 2 STEEL CORPORATION OF RS.25,31,416/-, RS.3,67,851/- & RS.8,081/- RESPECTIVELY AGGREGATING TO RS. 29,07,348/- DURING THE F.Y. 2009-10 RELEVANT TO THE A.Y. 2010-11. IN CONSEQUENCES OF TH E OBSERVATION AND ABOVE FACTS, A NOTICE U/S 148 DATED 03.02.2014 WAS ISSUED TO THE ASSESSEE COMPANY. THE ASSESSING OFFICER COMPLETED T HE ASSESSMENT U/S 147/ 143(3) OF THE ACT BY MAKING THE DISALLOWANCE O F RS. 29,07,348/- ON ACCOUNT OF BOGUS PURCHASE. 3. DISSATISFIED WITH THE ORDER OF THE ASSESSING OFF ICER, THE ASSESSEE FILED AN APPEAL BEFORE THE LD CIT(A) WHO HAS PASSED THE E X-PARTE ORDER AND CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICE R. BEFORE THE LD CIT(A), THE ASSESSEE DID NOT FILE ANY WRITTEN SUBMI SSION AND USED TO TAKE ADJOURNMENT ONLY. ON THE LAST DATE OF HEARING ON DA TED 05/08/2016, NONE APPEARED ON BEHALF OF THE ASSESSEE THEREFORE, THE L D CIT(A) PASSED THE EXPARTE ORDER AND CONFIRMED THE ADDITION MADE BY AS SESSING OFFICER. 4. NOT BEING SATISFIED WITH THE ORDER OF THE LD CIT (A) THE ASSESSEE IS IN FURTHER APPEAL BEFORE US AND HAS TAKEN THE FOLLOWIN G GROUNDS OF APPEAL: 1.THAT THE LD. AO MADE ADDITION OF RS.29,07,348/- O N ACCOUNT OF PURCHASES FROM (I) M/S BHAGYLUXMI STEEL INDUSTRIES (II) JENESHAWAR TRADING COMPANY (III) KAUSHAL STEEL CORPORATION RES PECTIVELY U/S 69C OF THE INCOME TAX ACT, 1961 WITHOUT GOING THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE AND ALSO WITHOUT CONSIDER ING THE MATERIAL FOR ASSESSMENT PLACED BEFORE THE LD AO, AND THE LD CIT( A) CONFORMED THE SAME WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEA RD WHICH IS UNJUSTIFIED, BAD IN LAW, AGAINST THE NATURAL LAW OF JUSTICE AND CRAVES DELETION. 2.THAT THE AO, INITIATED THE PENALTY PROCEEDINGS U/ S 271(1) (C ) OF THE INCOME TAX ACT 1961 IS UNJUSTIFIED AND AGAINST THE NATURAL OF JUSTICE. 5.AT THE OUT SET, THE LD AR FOR THE ASSESSEE HAS S UBMITTED THAT THE ASSESSEE USED TO TAKE ADJOURNMENTS AND DID NOT FILE ANY WRITTEN ITA NO.2085/KOL/2016 M/S STAINLESS INTERNATIONAL PVT.LTD. 3 SUBMISSIONS BEFORE LD CIT(A). THE ASSESSEE COULD NOT ATTEND THE OFFICE OF THE LD CIT(A) BECAUSE OF CERTAIN REASONS AND REQ UESTED THE BENCH TO REMIT THE MATTER BACK TO THE FILE OF THE LD CIT(A) FOR FRESH ADJUDICATION. EVEN LD DR FOR THE REVENUE DID NOT OBJECT ABOUT THE PROPOSITIONS OF THE LD AR FOR THE ASSESSEE. 6. HAVING HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL AVAILABLE ON RECORD, WE NOTICED THAT ASSESSEE USED TO TAKE AD JOURNMENTS DURING THE APPELLATE PROCEEDINGS BEFORE THE LD CIT( A), THEREFORE, IT CAN NOT BE PRESUMED THAT ASSESSEE DID NOT WANT TO P URSUE THE APPEAL. SINCE THE RIGHTS AND DUTIES OF THE ASSESSEE HAS NOT BEEN DETERMINED BY THE LD CIT(A) THEREFORE, WE ARE OF TH E VIEW TO REMIT THE CASE BACK TO THE FILE OF THE LD CIT(A) FOR ADJUDICA TION OF THE ISSUE AFRESH. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE, IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21/ 04/2017. SD/ - (S.S.VISWANETHRA RAVI) SD/ - (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA ; $% DATED 21/04/2017 & ()* /PRAKASH MISHRA ,SR.PS. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) & ' , / ITAT, KOLKATA 1. / THE APPELLANT- M/S STAINLESS INTERNATIONAL (P) LTD. 2. / THE RESPONDENT.-ITO WD-5(1), KOLKATA 3. 4 ( ) / THE CIT(A), KOLKATA. 4. 4 / CIT 5. 56 7 8 , 8 , / DR, ITAT, KOLKATA 6. 7 9 / GUARD FILE. 5 //TRUE COPY//