ACIT, Circle-2(2), Hyderabad V. M/s Essen Supplements India Limited, Medak Dist

ITA 236/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69994 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 25-02-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: GVSS MURTHY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA.NO.236/HYD/2013 ASSESSMENT YEAR 2004-2005 THE ACIT, CIRCLE 2(2) HYDERABAD VS. M/S. ESSEN SUPPLEMENTS INDIA LTD. BOLARUM, MEDAK DISTRICT. PAN AAACE7414P (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI SOLGY JOSE T KOTTARAM FOR RESPONDENT : SHRI GVSS MURTHY DATE OF HEARING : 18.12.2013 DATE OF PRONOUNCEMENT : 18.12.2013 ORDER PER SMT. ASHA VIJAYARAGHAVAN, J.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-III, HYDERABAD DATE D 20 TH DECEMBER, 2012 FOR THE ASSESSMENT YEAR 2004-2005. 2. BRIEF FACTS OF THE CASE ARE THAT THE HONBLE IT AT, HYDERABAD B BENCH IN ITA.NO.783/HYD/2011 VIDE ITS ORDER DATED 12.12.2011 PASSED ORDER IN THE QUANTUM APPEAL. SUBSEQUENTLY, THE ASSESSING OFFICER LEVIED PENALTY UNDER SECTION 271(1)(C) ON THE QUANTUM ADDITION. H OWEVER, THE ORDER OF THE ITAT WAS RECTIFIED/RECONSIDERED WH EN THE DEPARTMENT SUBMITTED THAT A MISTAKE APPARENT FROM T HE ORDER OF THE TRIBUNAL HAD CREPT-IN, IN NOT TAKING I NTO CONSIDERATION THE FACT THAT THE AMOUNTS WRITTEN-OFF WERE NOT 2 ITA.NO.236/HYD/2013 M/S. ESSEN SUPPLEMENTS INDIA LTD. OFFERED AS INCOME FOR EARLIER ASSESSMENT YEARS. THE TRIBUNAL ALLOWED THE M.A. OF THE REVENUE AND THE MODIFIED OR DER OF THE TRIBUNAL AT PARA 11 WHICH READS AS FOLLOWS : 11. AFTER HEARING THE LEARNED DR AND PERUSING THE RECORD, WE FIND THAT THERE IS A MISTAKE CREPT IN THE ORDER OF THE TRIBUNAL, AS CONTENDED BY THE LEARNED DR, THAT THE AMOUNTS CLAIMED AS BAD DEBT BY THE ASSESSEE HAS NOT BEEN CONSIDERED BY THE TRIBUNAL IN ITS IMPUGNED ORDER WHETHER THE SAME WERE OFFERED FOR TAXATION IN THE EARLIER ASSESSMENT YEARS. THEREFORE, WE MODIFY THE ORDER OF THE TRIBUNAL TO THAT EXTENT AND THE ISSUE IS REMITTED TO THE FILE OF THE A.O. WITH A DIRECTION TO VERIFY WHETHER THE ASSESSEE HAS OFFERED THE AMOUNTS TO TAXATION IN THE EARLIER ASSESSMENT YEARS, CLAIMED AS BAD DEBT, DURING THE YEAR UNDER CONSIDERATION AND DECIDE THE SAME IN ACCORDANCE WITH LAW. ACCORDINGLY, PARA 8 OF THE IMPUGNED ORDER OF THE TRIBUNAL IS MODIFIED AS UNDER : 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3. ON APPEAL AGAINST THE PENALTY ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF TH E ACT, THE LEARNED CIT(A) WITHOUT CONSIDERING THE M.A.NO.122/H YD/ 2012 IN ITA.NO.783/HYD/2011 FILED BY THE REVENUE FO R THE ASSESSMENT YEAR 2004-2005, CONSIDERED ONLY THE ORDE R OF THE ITAT IN ITA.NO.783/HYD/2011 AND RELYING ON THE SAME 3 ITA.NO.236/HYD/2013 M/S. ESSEN SUPPLEMENTS INDIA LTD. HELD THAT SINCE THE ADDITION ITSELF STANDS DELETED, THE PENALTY ON THAT ADDITION CANNOT BE SUSTAINED AND ALLOWED TH E APPEAL OF THE ASSESSEE. 4. WE FIND THAT THE CIT(A) WAS NOT AWARE OF THE M.A. FILED AGAINST THE ORDER OF THE TRIBUNAL IN ITA.NO.783/HYD/2011 DATED 14.12.2011 AND IN THESE CIRCUMSTANCES, SINCE PARA 11 OF THE TRIBUNAL ORDER DATED 14.12.2011 IS MODIFIED BY REMITTING THE ISSUE TO TH E FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO VERIFY WH ETHER THE ASSESSEE HAS OFFERED THE AMOUNTS TO TAXATION IN THE EARLIER ASSESSMENT YEARS CLAIMED AS BAD DEBT DURING THE YEA R UNDER CONSIDERATION AND TO DECIDE THE SAME IN ACCORDANCE WITH LAW AND ACCORDINGLY, THE APPEAL OF THE ASSESSEE WAS ALL OWED FOR STATISTICAL PURPOSES. WE, THEREFORE, DEEM FIT TO RE MIT THE ISSUE OF PENALTY TO THE FILE OF THE ASSESSING OFFIC ER TO DECIDE IN ACCORDANCE WITH THE DECISION TAKEN WITH RESPECT TO QUANTUM APPEAL WHICH HAS BEEN SET ASIDE TO THE FILE OF ASSESSING OFFICER BY THE TRIBUNAL VIDE ITS ORDER DA TED 12.10.2012 IN MA.NO.122/HYD/2012 IN ITA.NO.783/HYD/ 2011. ACCORDINGLY, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18.12.201 3. SD/- SD/- (CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATE 18 TH DECEMBER, 2013 VBP/- 4 ITA.NO.236/HYD/2013 M/S. ESSEN SUPPLEMENTS INDIA LTD. COPY TO : 1. THE ACIT, CIRCLE 2(2), 8 TH FLOOR, B-BLOCK, ROOM NO. 826, I.T. TOWERS, A.C. GUARDS, HYDERABAD 2.M/S. ESSEN SUPPLEMENTS INDIA LTD., 39-B & 40-B, A NRICH INDUSTRIAL ESTATE, BOLARUM, MEDAK DISTRICT. 3. CIT-III, HYDERABAD. 4. CIT-II, HYDERABAD 5. D.R. ITAT B BENCH, HYDERABAD.