Ranjit Kumar Badajena, Bhubaneswar V. ACIT, Circle-2(2), Bhubaneswar

ITA 229/CTK/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5339 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Keywords: Reasonable cause
• Section: 147

Judgement Text

1 ITA NO.229/CTK/2016 ASSESSMENT YEAR : 2009 - 2010 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.229 /CTK/2016 ASSESSMENT YEAR : 2009 - 2010 SHRI RANJIT KUMAR BADAJENA, PLOT NO.58, GAYATRI VIHAR, CHANDRASEKHARPUR, BHUBANESWAR. VS. ACIT, CIRCLE 2(2), BHUBANESWAR. PAN/GIR NO. AHVPB 4152 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI BIBEKANANDA MOHANTY, AR REV ENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 07 /11 / 2017 DATE OF PRONOUNCEMENT : 08 /11 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORD ER OF THE CIT(A) - CUTTACK, DATED 28.3.2016 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE APPEAL FILED BY THE ASSESSEE IS BARRED BY 19 DAYS. THE ASSESSEE HAS FILED COND ONATION PETITION SUPPORTED BY AFFIDAVIT FOR CONDONING THE DELAY IN FILING THE APPEAL. AFTER GOING THR OUGH THE CONDONATION PETITION, WE FIND THAT THE ASSESSEE HAD REASONABLE CAUSE FOR NOT FILING THE APPEAL WITHIN THE STIPULATED TIME. LD D.R. DID NOT HAVE ANY OBJEC TION FOR CONDONING THE DELAY. WE , THE REFOR E, CONDONE THE DELAY OF 19 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL AND ADMIT THE APPEAL FOR HEARING. 2 ITA NO.229/CTK/2016 ASSESSMENT YEAR : 2009 - 2010 3 . THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL: 1. THE ASSESSMENT ORDER U/S 143(3)/147 AS WELL AS THE APPELLATE ORDER ARE AGAINST LAW, WEIGHT OF EVIDENCES AND PROBABILITIES OF THE CASE. THE ORDER IS LIABLE TO BE SET ASIDE SINCE, THE APPELLANT WAS NOT ALLOWED ADEQUATE OPPORTUNITY; MORE SPECIFICALLY THE LAST NOTICE OF HEARING BEFORE THE ORDER WAS PASSED. 2. THE LEARNED ASSESSING OF FICER HAS COMPLETED THE ASSESSMENT WITHOUT GIVING ADEQUATE OPPORTUNITY AND IN SURMISES ADDED THE LORRY FREIGHT PAYABLE UNDER CURRENT LIABILITIES RS.37,48,485/ - IN THE TOTAL INCOME. THE HONOURABLE COMMISSIONER OF INCOME TAX (APPEAL) ALSO SUSTAINED THE ADDIT IONS WITHOUT GIVING ADEQUATE OPPORTUNITY. HENCE, FOR PROPER VERIFICATION OF THE MATTER, THE ORDER MAY PLEASE BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER. 4 . THE BRIEF FACTS OF THE CASE ARE THAT THE ORIGINAL ASSESSMENT WAS COMPLETED UNDER SECTION 143(3 ) OF THE ACT DETERMINING THE TOTAL INCOME AT RS.30,55,650/ - . SUBSEQUENTLY, THE ASSESSING OFFICER FOUND THAT THOUGH THE ASSESSEE WAS CLAIMING LORRY FREIGHT PAYABLE, BUT NOTHING WAS FOUND PAYABLE. HE OBSERVED THAT THE ASSESSEE HAS BEEN FOLLOWING MERC ANTILE SYSTEM OF ACCOUNTING. THEREFORE, THE ASSESSING OFFICER WAS OF THE OPINION THAT THE INCOME HAS ESCAPED ASSESSMENT WITHIN THE MEANING OF SECTION 147 OF THE ACT AND ISSUED NOTICE U/S.148 OF THE ACT FOR REOPENING THE ASSESSMENT. IN RESPONSE TO NOTICE U/S.148 OF THE ACT, THE ASSESSEE DID NOT OFFER ANY EXPLANATION. HENCE, NOTICE U/S.142(1) WAS ISSUED TO THE ASSESSEE REQUIRING EXPLANATION FROM THE ASSESSEE REGARDING THE DISALLOWABILITY OF LORRY FREIGHT PAYABLE AS SHOWN BY THE ASSESSEE IN THE BALANCE SHEE T. THE ASSESSING OFFICER OPINED THAT THOUGH THE ASSESSEE 3 ITA NO.229/CTK/2016 ASSESSMENT YEAR : 2009 - 2010 WAS OFFERED REASONABLE OPPORTUNITIES OF BEING HEARD, HE DID NOT FILE ANY EXPLANATION IN RESPECT OF THE ISSUES RAISED DURING THE ASSESSMENT PROCEEDINGS. THEREFORE, THE ASSESSING OFFICER ADDED THE L ORRY FREIGHT PAYABLE OF RS.37,48,485/ - AS SHOWN IN THE LIABILITIES IN THE BALANCE SHEET OF THE ASSESSEE TO THE INCOME OF THE ASSESSEE. 5 . ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6 . BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEF ORE US. 7 . AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE REQUESTED THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION AS THE LORRY FREIGHT PAYABLE UNDER CURRENT LIABILITIES IS THE PART OF THE LORRY FREIGHT DE BITED IN THE PROFIT AND LOSS ACCOUNT AND THE ASSESSEE HAS MADE THE PAYMENT IN THE SUBSEQUENT ASSESSMENT YEAR 2010 - 2011. 8 . ON THE OTHER HAND, LD DEPARTMENTAL REPRESENTATIVE VEHEMENTLY OBJECTED TO ALLOWING FURTHER OPPORTUNITY TO THE ASSESSEE. 9 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE FAILED TO FILE DETAILS AS CALLED FOR BY THE ASSESSING OFFICER. BEFORE THE CIT(A) ALSO, THE ASSESSEE COULD NOT EXPLAIN THE NATURE OF CURRENT LIABIL ITIES AND PROVISIONS OF RS.37,48,485/ - SHOWN AS LORRY FREIGHT PAYABLE . BEFORE US, LD A.R. SUBMITTED IF ONE MORE OPPORTUNITY BE GIVEN, THE ASSESSEE WILL SUBMIT THE DETAILS AS CALLED FOR BY THE ASSESSING OFFICER. THEREFORE, IN THE INTEREST OF SUBSTANTIAL JUSTICE, THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER TO ALLOW ONE MORE OPPORTUNITY TO THE ASSESSEE TO 4 ITA NO.229/CTK/2016 ASSESSMENT YEAR : 2009 - 2010 PRESENT ITS CASE BEFORE THE ASSESSING OFFICER. HENCE, WE SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND RESTORE THE MATT ER BACK TO THE FILE OF THE ASSESSING OFFICER TO RE - ADJUDICATE THE ISSUE INVOLVED IN THIS APPEAL AFRESH AS PER LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE ASSESSING OFFICER SUO - MOTO WITHIN 30 DAYS FROM THE DATE OF THIS ORDER FOR FIXING THE DATE OF HEARING AND RENDER FULL CO - OPERATION TO THE ASSESSING OFFICER BY FILING ALL THE DETAILS AS AND WHEN CALLED UPON TO DO SO. IN THE EVENT, THE ASSESSEE FAILS TO PROVIDE DETAILS AND DOCUM ENTS BEFORE THE ASSESSING OFFICER, THEN THE ASSESSING OFFICER WILL BE AT FULL LIBERTY TO TAKE A NY DECISION, WHICH HE DEEMS FIT IN THE MATTER. 10 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED ON 8 /11 /2017. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 8 /11 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SHRI RANJIT KUMAR BADAJENA, PLOT NO.58, GAYATRI VIHAR, CHANDRASEKHARPUR, BHUBANESWAR. 2. THE RESPONDENT. ACIT, CIRCLE 2(2), BHUBANESWAR 3. THE CIT(A) - CUTTACK 4. PR.CIT - BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//