Advanced Construction Technologies (P) Ltd., Chennai V. DCIT Corporate Circle 1(1), CHENNAI

ITA 2307/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5927 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 06-08-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.2307/CHNY/2018 / ASSESSMENT YEAR: 2011-12 M/S. ADVANCED CONSTRUCTION TECHNOLOGIES (P) LTD., NO. 5/55, FOREST RANGE ROAD, KUTHAMBAKKAM VILLAGE AND POST, CHETTIPEDU, POONAMALLE TALUK, TIRUVALLUR DT., CHENNAI 600 124. [PAN: AAACP1904F] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(1), AAYAKAR BHAVAN, R. NO. 611, WANAPARTHY BLOCK, 6 TH FLOOR, 121, MAHATMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI 600 034. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI SAROJ KUMAR PARIDA, ADVOCATE / RESPONDENT BY : SHRI B. SAGADEVAN, JCIT / DATE OF HEARING : 08.01.2019 /DATE OF PRONOUNCEMENT : 21.01.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1, CHENNAI, DATED 20.06.2018 RELEVANT TO THE ASSESSMENT YEAR 2011-12. THE GROUND RAISED BY THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE LOSS QUANTIFIED AT .39,28,189/- BY REDUCING THE LOSS ADMITTED BY THE ASSESSEE AT .75,61,140/- WHICH CONSTITUTED THE MISMATCH BETWEEN THE RECEIPTS ADMITTED IN THE TDS CERTIFICATE 26AS STATEMENT AND THE PROFIT AND LOSS I.T.A. NO. 2307/CHNY/18 2 ACCOUNT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN EXECUTION OF CIVIL ENGINEERING CONTRACTS. THE ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] WAS COMPLETED ON 28.03.2014 IN WHICH THE ADDITION ON ACCOUNT OF MISMATCH OF INCOME BETWEEN FORM 26AS AND THE PROFIT AND LOSS ACCOUNT WAS MADE TO THE EXTENT OF .75,61,140/-. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO ALLOWED THE APPEAL ON THE BASIS OF CERTAIN RECONCILIATION SUBMITTED BY THE ASSESSEE FOR THE FIRST TIME BETWEEN THE LD. CIT(A). THE REVENUE CARRIED THE MATTER IN APPEAL BEFORE THE ITAT AS THE LD. CIT(A) HAS NOT OFFERED AN OPPORTUNITY TO THE ASSESSING OFFICER TO VERIFY THE CORRECTNESS OF THE RECONCILIATION. THE ITAT, VIDE ORDER DATED 31.05.2016 IN I.T.A. NO. 664/MDS/2016 REMITTED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY THE RECONCILIATION STATEMENT AND DECIDE THE ISSUE AFRESH. UPON THE DIRECTIONS OF THE ITAT, THE ASSESSING OFFICER OFFERED AN OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE VIDE LETTER DATED 24.05.2017, WHICH WAS SERVED ON THE ASSESSEE ON 25.05.2017. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE AND NO SUBMISSION WAS FILED ON THE ISSUE INVOLVED BY THE ASSESSEE. THEREFORE, THE ASSESSING I.T.A. NO. 2307/CHNY/18 3 OFFICER SUSTAINED THE ADDITION OF .75,61,140/- AND ACCORDINGLY, THE LOSS OF THE ASSESSEE WAS DETERMINED AT .39,28,189/-. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE MATERIALS AVAILABLE ON RECORD, THE LD. CIT(A) DISMISSED THE APPEAL BY PASSING EX-PARTE ORDER SINCE THERE WAS NO REPRESENTATION FROM ASSESSEES SIDE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESSEE HAS RAISED SPECIFIC GROUND THAT THE ASSESSEE DID NOT RECEIVE THE NOTICES OF POSTING THE APPEAL FOR HEARING BEFORE THE LD. CIT(A) AS THE NOTICES HAD BEEN SENT TO THE ASSESSEES OLD ADDRESS, WHEREAS, THE ASSESSEES PRESENT ADDRESS WAS AVAILABLE IN FORM NO. 35 FILED IN THE APPEAL PROCEEDINGS. BY REFERRING TO THE ABOVE GROUND, THE LD. COUNSEL FOR THE ASSESSEE HAS PRAYED THAT THE ASSESSEE SHOULD BE GIVEN AN OPPORTUNITY TO PRESENT ITS CASE BEFORE THE LD. CIT(A). WE FIND FORCE IN THE ARGUMENT OF THE LD. COUNSEL. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) TO ADJUDICATE THE ISSUE AFRESH AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO. 2307/CHNY/18 4 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 21 ST JANUARY, 2019 IN CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 21.01.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.