DCIT, Circle-8(1), Kolkata, Kolkata V. M/S. NTC Industries Ltd. (Formerly R.D.B. Industries), Kolkata

ITA 2197/KOL/2014

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1658 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SALLONG YADEN CIT DR REVENU
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA [BEFORE SRI J. SUDHAKAR REDDY, A CCOUNTANT M EMBER & SRI S. S. VISWANETHRA RAVI , JUDICIAL MEMBER ] I .T.A. NO. 2197 /KOL/2 01 4 ASSESSMENT YEAR: 20 06 - 07 DCIT, CIRCLE - 8(1), KOLKATA.. . . . ... APPELLANT AAYKAR BHAWAN 4 TH FLOOR P - 7, CHOWRINGHEE SQUARE KOLKATA - 700 09 M/S. NTC INDUSTRIES LTD . .. ... RESPONDENT M/S. ZOOM ENTERPRISES LTD. X - 1, BLOCK - EP SECTOR - V SALT LAKE ELECTRONICS COMPOUD KOLKATA 700 091 [PAN : AABCR 4307 D ] APPEARANCES BY: NONE , APPEAR ED ON BEHALF OF THE ASSESSEE. SHRI SALLONG YADEN, ADDL. CIT, DR , APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 23 RD , 201 8 DATE OF PRONOUNCING THE ORDER : FEBRU ARY 9 TH , 201 8 O R D E R PER J. SUDHAKAR REDDY : - THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - CENTRAL - II, KOLKATA , (HEREINAFTER THE LD. CIT (A)), PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 2 9 / 08/ 201 4 , FOR THE ASSESSMENT YEAR 20 06 - 07 . 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUAL OF NOTICE THROUGH RPAD AS WELL AS THROUGH THE DEPARTMENT. THIS CASE IS COMING UP BEFORE UP THIS BENCH FROM 18 TH APRIL, 2017. ON NONE OF THE DATES OF HEARING, THE ASSESSEE APPEARED EITHER BY HIMSELF OR THROUGH AN AUTHORIZED REPRESENTATIVE. THE DATES OF HEARING WERE 18/04/2017, 20/0/2017, 31/07/2017, 21/09/2017, 06 /11/2017, 06/12/2017 AND TODAY I.E., 23/01/2018. UNDER THESE CIRCUMSTANCES, WE DISPOSE OF THE CASE EX PARTE ON MERITS, AFTER HEARING THE LD. D/R. 2 I.T.A. NO. 2197/KOL/2014 ASSESSMENT YEAR: 2006 - 07 M/S. NTC INDUSTRIES LTD 3. HEARD THE LD. D/R. AFTER PERUSING THE PAPERS ON RECORD AND ORDERS OF THE AUTHORITIES BELOW, WE HOLD AS FOLLOWS: - THE ASSESSEE IS A COMPANY AND IS IN THE BUSINESS OF REAL ESTATE DEVELOPMENT AND MANUFACTURING OF CIGARETTES. IT FILED ITS RETURN OF INCOME ON 06/12/2006, DECLARING TOTAL INCOME AT RS.1,45,17,593/ - . THE ASSESSING OFFICER COMPLETED ASSESSMENT ON 2 8/03/2014, DETERMINING TOTAL INCOME AT RS.60.09,245/ - , INTERALIA MAKING ADDITION OF CAPITAL ADVANCES WRITTEN OFF. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL. 4. THE LD. FIRST APPELLATE AUTHORITY, ACCEPTED THE CONTENTION OF THE ASSESSEE THAT THE RE - OPENING WAS BAD IN LAW. THUS, THE ASSESSEE WAS STRUCK DOWN AND THE ADDITIONS WERE NOT ADJUDICATED ON MERITS. 5. WE FIND THAT THE RE - OPENING IN THIS CASE WAS DONE BY ISSUE OF NOTICE U/S 148 OF THE ACT, ON 21/03/2013. ASSESSMENT WAS ORIGINALLY COMPLETED U/S 143(3) OF THE ACT ON 31/12/2007. THE ASSESSING OFFICER AT PARA 2, 3 & 4 OF HIS ORDER HAS GIVEN THE BACKGROUND FO R RE - OPENING THE ASSESSEE, WHICH IS EXTRACTED FOR READY REFERENCE: - 3 I.T.A. NO. 2197/KOL/2014 ASSESSMENT YEAR: 2006 - 07 M/S. NTC INDUSTRIES LTD 6. THE LD. CIT(A), HAS AT PARA 5 ONWARDS, COME TO A CONCLUSION THAT THERE IS NO FAILURE ON PART OF THE ASSESSEE IN FULLY AND TRULY DISCLOSING MATERIAL FACTS REQUIRED FOR THE ASSESSMENT AND HENCE THE RE - OPENING IS IN VIOLATION TO THE 1 ST PROVISO TO SECTION 147 OF THE ACT. THIS FINDING OF THE LD. CIT(A), COULD NOT BE CONTROVERTED BY THE LD. D/R. HENCE, WE UPHOLD THE ORDER OF THE LD. CIT(A) AND DISMISS THIS APPEAL OF THE REVENUE. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. KOLKATA, THE 9 T H DAY OF FEBRUARY , 201 8 . S D / - S D / - [ S.S. VISWANETHRA RAVI ] [ J. SUDHAKAR REDDY ] J UDICIAL MEMBER ACCOUNTANT MEMBER DATED : 0 9 . 0 2 .201 8 {SC SPS} C O PY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE - 8(1), KOLKATA AAYKAR BHAWAN 4 TH FLOOR P - 7, CHOWRINGHEE SQUARE KOLKATA - 700 09 2. M/S. NTC INDUSTRIES LTD M/S. ZOOM ENTERPRISES LTD. X - 1, BLOCK - EP SECTOR - V SALT LAKE ELECTRONICS COMPOU N D KOLKATA 700 091 3. CIT(A) - 4. CIT - , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/ D.D.O. ITAT, KOLKATA BENCHES