Balaji Injection Mauldings Pvt. Ltd., Kakinada V. The CIT(A)-1, Guntur

ITA 235/VIZ/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6729 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 25-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S RAVI SHANKAR NARAYAN
• Assessee Lawyers: C R HEMANTH KUMAR
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 23 5 / VIZ /201 7 (ASST. YEAR : 200 7 - 0 8 ) BALAJI INJECTION MOULDINGS PVT. LTD., D.NO. 2 - 49 - 10, ENDOWMENTS COLONY, KAKINADA. V S . IT O , WARD - 2 , KAKINADA . PAN NO. AABCB 5461 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.R. HEMANTH KUMAR FC A DEPARTMENT BY : SHRI S. RAVI SHANKAR NARAYAN SR. DR DATE OF HEARING : 30 / 0 8 /201 7 . DATE OF PRONOUNCEMENT : 30 / 0 8 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 22 / 12 /201 6 FOR THE ASSESSMENT YEARS 2007 - 0 8 . 2. THERE IS A DELAY OF 04 DAYS IN FILING THE APPEAL . THE ASSESSEE HAS FILED AN AFFIDAVIT , WHEREIN HE EXPLAINED THAT THE DELAY IS NEITHER INTENTIONAL NOR DELIBERATE AND IT IS BEYOND HIS CONTROL AND SUBMITTED THAT THE SAME MAY BE CONDONED. WE FIND THAT THERE IS A JUSTIFIABLE CAUSE FOR NON - FILING OF THE APPEAL IN TIME . IT IS A FIT CASE TO CONDONE THE DELAY . ACCORDINGLY, THE DELAY IS CONDONED. 2 ITA NO. 235/VIZ/2017 ( BALAJI INJECTION MOULDINGS PVT. LTD. ) 3 . SO FAR AS FACTS OF THE CASE IS CONCERNED , THE ASSESSEE COMPANY ENGA G ED IN MANUFACTURING AND SALE OF HOUSE - HOLD PLASTIC GOODS. THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2007 - 08 ADMITTING TOTAL LOSS OF 7 , 14,770/ - COMPRISING BUSINESS LOSS OF 5,90,345/ - AND DEPRECIATION LOSS OF 1,24,425/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE 'ACT'). AFTER COMPLETING DUE PROCEDURE, ASSESSMENT IS COMPLETED UNDER SECTIO N 143(3) OF THE ACT. IN THE ASSESSMENT ORDER , THE ASSESSING OFFICER HAS OBSERVED THAT FROM THE SCHEDULE - VIII OF THE BALANCE SHEET AS ON 31/03/2007 , THE ASSESSEE COMPANY HAS SHOWN SALES - TAX PAYABLE TO THE TUNE OF 38,38,396/ - , WHEREAS, AS PER THE SCHEDULE XIX OF THE AU DIT REPORT, THE SALES - TAX LIABI LITY WAS SHOWN AT 36,88,760/ - . WHEN THIS ASPECT WAS CONFRONTED TO THE ASSESSEE COMPANY, EXCEPT FURNISHING COPIES OF VAT RETURNS AND RECONCILIATION OF SALES AND SALES - TAX DURING THE F INANCIAL Y EAR 2006 - 07 , THE ASSESSEE COMPANY COULD NOT EXPLAIN THE DISCREPANCY SHOWN IN THE RETURN OF INCOME. IN ABSENCE OF PROPER RECONCILIATION FROM THE ASSESSEE COMPANY, THE DIFFERENCE IN SALES - TAX PAYABLE OF 1,49,636/ - IS DISALLOWED AND ADDED T O THE TOTAL LOSS RETURNED. 4 . BY AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD.CIT(A), WHO DISMISSED THE APPEAL EXPARTE . 3 ITA NO. 235/VIZ/2017 ( BALAJI INJECTION MOULDINGS PVT. LTD. ) 5. ON BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. 6 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 7 . WE FIND THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBSTANTIATE HIS CASE. THEREFORE, THE ORDER PASSED BY THE LD. CIT(A) IS SET A SIDE AND REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) TO PASS A N ORDER A FRESH , IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 30 TH DAY OF AUGUST , 201 7 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 TH AUGUST , 201 7 . VR/ - COPY TO: 1. THE ASSESSEE BALAJI INJECTION MOULDINGS PVT. LTD., D.NO. 2 - 49 - 10, ENDOWMENTS COLONY, KAKINADA. 2. THE REVENUE ITO, WARD - 2, KAKINADA. 3. THE P CIT - II, VISAKHAPATNAM. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.