ACIT, CHENNAI V. M/s. Confidence Trading Co. Ltd., Maharashtra

ITA 2289/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7959 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 04-08-2016
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: B RAMAKRISHNAN
• Section: 143(3); 69; 37

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU R L REDDY , JUDICIAL MEMBER ./ I T.A. NO. 228 9 /MDS/201 6 / ASSESSMENT YEAR :20 1 2 - 1 3 THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1 ( 2 ) , CHENNAI 600 034 . VS. M/S. CONFIDENCE TRADING COMPANY LTD., NO. 9, BOTAWALA BUILDIN G, 3 RD FLOOR, 11/13 HORNIMAN CIRCLE, FORT MUMBAI, MAHARASHTRA 400 001. [PAN:AA BC C 5629F ] ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI SUPRIYO PAL, JCIT / RESPONDENT BY : SHRI B. R AMAKRISHNAN, C.A. / DATE OF HEARING : 26 . 1 0 .201 6 / DATE OF P RONOUNCEMENT : 30 . 1 1 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF T HE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1 , CHENNAI , DATED 1 1 . 0 5 .20 1 6 RELEVANT TO THE ASSESSMENT YEAR 20 1 2 - 1 3 . IN THIS APPEAL, THE REVENUE HAS CHALLENGED THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE UNDER SECTION 69 OF THE ACT BY ADMITTI NG FRESH EVIDENCE BY VIOLATING THE PROVISIONS OF RULE 46A OF THE INCOME TAX RULES. I.T.A. NO . 2 2 89 /M/ 16 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF FINANCE AND TRADING AND FILED ITS RETURN OF INCOME ON 12.10.2012 ADMITTING AN INCOME OF .48,79,060/ - . THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED. AFTER CONSIDERING THE DETAILS FILED BY THE ASSESSEE, THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT ON 20.02.2015 D ETERMINING THE TOTAL INCOME AT .1,13,58,705/ - BY MAKING DISALLOWANCES UNDER SECTION 69 OF THE ACT OF .64,29,645/ - AND UNDER SECTION 37 OF THE ACT AT .50,000/ - . 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITIONS MADE BY THE ASSESSING OFFICER UNDER SECTIONS 69 AS WELL AS 37 OF THE ACT. 4. ON BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. DR HAS STRONGLY CONTENDED THAT WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSING OFFICER, BASED ON THE FRESH MATERIALS FILED BY THE ASSESSEE, THE LD. CIT(A) HAS DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITIONS MADE BY HIM IS ABSOLUTELY IN VIOLATION OF PROVISIONS OF RULE 46A OF THE INCOME TAX RULES. THEREFORE, HE PLEADED THAT THE MATTER SHOULD BE REMITTED BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. I.T.A. NO . 2 2 89 /M/ 16 3 5. TO THIS MOVE OF THE LD. DR, LD. COUNSEL FOR THE ASSESSEE DID N OT OBJECT BUT SUBMITTED THAT NO DOUBT FRESH EVIDENCES HAVE BEEN FILED BEFORE THE FIRST APPELLATE AUTHORITY, BUT THE LD. CIT(A) HAS DULY CONSIDERED THE SAME TO ALLOW RELIEF TO THE ASSESSEE AS WAS ALLOWABLE. 6 . WE HAVE HEARD BOTH THE SIDES, CONSIDERED THE MATERIAL ON RECORD INCLUDING THE PAPER BOOK FILED BY THE ASSESSEE AND FIND THAT THE ASSESSEE HAS FILED FRESH EVIDENCE FOR THE FIRST TIME BEFORE THE FIRST APPELLATE AUTHORITY, WHICH IS FOUND TO HAVE BEEN ACCEPTED AND CONSIDERED IN ALLOWING RELIEF TO THE AS SESSEE AND DELET ED THE IMPUGNED ADDITION S MADE BY THE ASSESSING OFFICER UNDER SECTIONS 69 AS WELL AS 37 OF THE ACT. FURTHER, WE FIND THAT BEFORE ACCEPTING THE FRESH EVIDENCE, THE LD. CIT(A) HAS NOT OBTAINED REMAND REPORT FROM THE ASSESSING OFFICER AND THEREFORE, WE FIND THAT T HE LD. CIT(A) HAS NOT COMPLIED WITH THE PROVISIONS OF RULE 46A OF THE INCOME TAX RULES, 1962 BEFORE ACCEPTING THE FRESH EVIDENCE AND CONSIDERING THE SAME. THEREFORE, IN THE INTEREST OF JUSTICE AND TO HAVE FAIR PLAY IN THE MATT ER, WE FIND IT JUST AND APPROPRIATE TO SET ASIDE THE ORDER OF THE LD. CIT(A) WITH REGARD TO BOTH THE ISSUES AND REMIT THE MATTER BACK T O THE ASSESSING OFFICER WITH THE DIRECTION TO DECIDE BOTH THE ISSUE S AFRESH IN ACCORDANCE WITH LAW AFTER GIVING DUE OPPOR TUNITY TO THE ASSESSEE. THUS, THE GROUND RAISED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. I.T.A. NO . 2 2 89 /M/ 16 4 7 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 30 TH NOVEMBER , 2016 AT CHENNAI. SD/ - S D/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 30 . 1 1 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.