Gangothri Nutrients and Fertilizers Private Limited , Hyderabad V. Income Tax Officer, Ward-2(2), Hyderabad

ITA 2168/Hyd/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0918 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2015-2016
• Appeal Filed On: 12-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Assessee Lawyers: T. CHAITHANYA KUMAR
• Section: 68; 144; 142(1); 143(2)

Judgement Text

ITA NO 2168 OF 2018 GANGOTHRU NUTRIENTS AND FERTIL IZERS P LTD HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.2168/HYD/2018 ASSESSMENT YEAR: 2015-16 GANGOTHRI NUTRIENTS & FERTILISERS PVT LTD HYDERABAD PAN:AAECG4191M VS. INCOME TAX OFFICER, WARD 2(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI T. CHAITHANYA KUMAR REVENUE BY : SRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 09/12/2020 DATE OF PRONOUNCEMENT: 10/12/2020 ORDER PER A. MOHAN ALANKAMONY, A.M THIS IS ASSESSEES APPEAL FOR THE A.Y 2015-16 AGAIN ST THE ORDER OF THE CIT (A)-6, HYDERABAD IN APPEAL NO. 10030/2018- 19/B2, DATED 10.08.2018 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY IS ENGAGED IN THE BUSINESS OF MANUFACTURING GRANULATED SOIL CONDITIONERS, FILED ITS RETURN OF INCOME FOR THE A. Y 2015-16 ON 21.09.2015, ADMITTING A TOTAL LOSS OF RS.2,84,73,39 7/-. THE RETURN WAS SELECTED THROUGH CASS AND A NOTICE U/S 1 43(2) WAS ISSUED TO THE ASSESSEE ON 13.04.2016. IN RESPONSE T O THE NOTICE, THE ASS FILED POWER OF ATTORNEY AND COPIES OF BALAN CE SHEET AND P&L A/C ALONG WITH ANNEXURES. NOTICED U/S 142(1) WA S ISSUED TO THE ASSESSEE ON 17.5.2017, NOTICE U/S 143(2) R.W.S. 129 WERE ITA NO 2168 OF 2018 GANGOTHRU NUTRIENTS AND FERTIL IZERS P LTD HYDERABAD PAGE 2 OF 4 ISSUED TO THE ASSESSEE ON 16.06.2017 AND ON 29.08.2 017 DUE TO CHANGE IN JURISDICTION. IN RESPONSE TO NOTICE ISSUE D ON 29.8.2017, THE LD.A.R. OF THE ASSESSEE APPEARED ON 11.09.2017 AND REQUESTED TIME FOR FURNISHING CERTAIN DETAILS. THER EAFTER THE CASE WAS POSTED FOR HEARING ON 20.09.2017. HOWEVER NONE APPEARED ON THE ABOVE DATE. SUBSEQUENTLY, THE LD.AR AND THE FIN ANCE MANAGER OF THE ASSESSEE APPEARED ON 10.10.2017 AND FILED PARTIAL DETAILS. THE LD.AR ONCE AGAIN REQUESTED FOR TIME TO FURNISH THE DETAILS OF SHARE APPLICATION MONEY AND PRODUCE BOOK S OF ACCOUNT FOR VERIFICATION. THE CASE WAS POSTED FOR HEARING O N 23.10.2017. NEVERTHELESS, NONE APPEARED ON THAT DATE. A FINAL N OTICE U/S 142(1) WAS ISSUED ON 20.11.2017 PROPOSING TO COMPLE TE THE ASSESSMENT U/S 144 OF THE IT ACT CLEARLY MENTIONING THAT IF THE ASSESSEE FAILED TO FURNISH ANY OBJECTIONS FOR THE P ROPOSED ADDITIONS/DISALLOWANCES, THE CASE WILL BE COMPLETED EX-PARTE U/S 144 OF THE I.T. ACT. SINCE NO RESPONSE WAS RECEIVED , THE AO COMPLETED THE ASSESSMENT EX-PARTE U/S 144 OF THE I. T. ACT. 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT (A) WHO DIS MISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION SINCE NE ITHER THE ASSESSEE NOR THE LD.AR APPEARED BEFORE THE LD.CIT(A ). AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RA ISING THE FOLLOWING GROUNDS OF APPEAL: 1) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS ) IS ERRONEOUS, ILLEGAL AND HELD CONTRARY TO THE FACTS O F THE INSTANT CASE. 2) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER PASSED ORDER U/S 144 OF THE I.T ACT WITHOUT GIVING ANY FURTHER OPPORTUNITY. 3) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN TREATING AN AMOUNT RS 3,78,50,344/UNDISCLOSED INCOM E ITA NO 2168 OF 2018 GANGOTHRU NUTRIENTS AND FERTIL IZERS P LTD HYDERABAD PAGE 3 OF 4 U/S 68 OF THE I.T ACT WITHOUT GIVING ANY FURTHER OPPORTUNITY. 4) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER AN AMOUNT OF RS 20,00,364/- CURRENT LIABILITIES TREATI NG AS UNDISCLOSED INCOME OF THE APPELLANT. 5) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN DISALLOWING EXPENSES AN AMOUNT OF RS 47,24,094 I.E 10% ON TOTAL EXPENSES WITHOUT GIVING ANY FURTHER OPPORT UNITY. 6) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN DETERMINING THE TOTAL INCOME AT RS.1,61,O1 ,405/- AS AGAINST THE LOSS ADMITTED OF RS.(2,84,73,397/-) WITHOUT CONSIDERING THE APPELLANT'S SUBMISSIONS. 7) ANY OTHER GROUNDS/GROUND MAY BE URGED AT THE TIM E OF HEARING. 4. THE LD. AR SUBMITTED BEFORE US THAT BOTH THE REV ENUE AUTHORITIES HAVE NOT GIVEN PROPER OPPORTUNITY TO TH E ASSESSEE OF BEING HEARD. THEREFORE, IT WAS PRAYED THAT THE APPE AL MAY BE REMITTED BACK TO THE LD. AO FOR DENOVA CONSIDERATIO N. ON THE OTHER HAND, THE LD. AR VEHEMENTLY ARGUED THAT THE R EVENUE AUTHORITIES HAVE PROVIDED PROPER OPPORTUNITIES TO T HE ASSESSEE, HOWEVER, NEITHER THE ASSESSEE NOR ITS COUNSEL COOPE RATED BEFORE THE LD. REVENUE AUTHORITIES. IT WAS THEREFORE, PLEA DED THAT THE ORDERS OF THE LD .REVENUE AUTHORITIES MAY BE CONFIR MED. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL PLACED ON RECORD, WE FIND THAT THOUGH SEVERAL OPPOR TUNITIES WERE PROVIDED TO THE ASSESSEE TO SUBMIT THE DETAILS BEFO RE THE LD.AO AND THE LD.CIT (A) THE ASSESSEE FAILED TO DO SO. TH EREFORE, WE DO NOT FIND MUCH STRENGTH IN THE SUBMISSIONS OF THE LD .AR. HOWEVER, CONSIDERING THE PRAYER OF THE LEARNED AR AND IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FIL E OF THE LEARNED AO FOR FRESH CONSIDERATION AND IN ORDER TO PASS APP ROPRIATE ORDER ITA NO 2168 OF 2018 GANGOTHRU NUTRIENTS AND FERTIL IZERS P LTD HYDERABAD PAGE 4 OF 4 IN ACCORDANCE WITH MERIT AND LAW AFTER AFFORDING PR OPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD AND AFTE R ADMITTING AND EXAMINING FRESH EVIDENCE FILED BY THE ASSESSEE IF ANY. WE ALSO HEREBY DIRECT THE ASSESSEE TO PROMPTLY COOPERATE BE FORE THE REVENUE AUTHORITIES IN THEIR PROCEEDINGS FAILING WH ICH THEY SHALL BE AT LIBERTY TO COMPLETE THE PROCEEDINGS IN ACCORD ANCE WITH LAW AND ON MERITS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED FOR STATISTICAL PURPOSES AS MENTIONED HEREIN ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH DECEMBER, 2020. SD/- SD/- (P.MADHAVI DEVI) JUDICIAL MEMBER (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER HYDERABAD, DATED 10 TH DECEMBER, 2020. VINODAN/SPS COPY TO: 1 SHRI T.CHAITANYA KUMAR, ADVOCATE, FLAT NO.102, GO WRI APTS, URDU LANE, HIMAYATHNAGAR, HYDERABAD 2 ITO WARD 2(2) HYDERABAD 3 CIT (A)-6 HYDERABAD 4 PR. CIT 2 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER