M/s. Absolute HR Solutions Pvt. Ltd., Bhopal V. The PR.CIT-1, Bhopal

ITA 243/IND/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4376 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-10-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 31-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Assessee Lawyers: ANIL KUMAR KHAA
• Keywords: Revision of order; Opportunity of being heard
• Section: 143(3); 263

Judgement Text

ABSOLUTE HR SOLUTIONS PVT LTD ITA NO.243/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.243/IND/2017 ASSESSMENT YEAR: 2012-13 REVENUE BY SMT. ASHIMA GUPTA, CIT ASSESSEE BY SHRI AN IL KUMAR KHABYA ,C.A DATE OF HEARING 25 . 10 . 2018 DATE OF PRONOUNCEMENT 31 .10 .2018 O R D E R PER MANISH BORAD, AM. THIS APPEAL OF ASSESSEE PERTAINING TO A.Y. 2012-13 IS DIRECTED AGAINST THE ORDER OF LD. PR. COMMISSIONER OF INCOME TAX-I, BHOPAL (IN SHORT PR.CIT), DATED 06.03.2017 WHICH IS ARIS ING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(HEREINA FTER CALLED AS THE ACT) FRAMED ON 13.03.2015 BY DCIT-1(1), BHOPA L. M/S. ABSOLUTE HR SOLUTIONS PVT. LTD, C/O BANSAL CONSTRUCTION WORKS, 3 RD FLOOR TAWA COMPLEX, BITTAN MARKET, E-5 ARERA COLONY, BHOPAL VS. PR. COMMISSIONER OF INCOME TAX-1, BHOPAL ( APPELLANT ) (RESPONDENT ) PAN NO. AAGCA9724J ABSOLUTE HR SOLUTIONS PVT LTD ITA NO.243/IND/2017 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL; 1. THAT THE LEARNED PR. COMMISSIONER OF INCOME TAX ERRED IN CANCELLING ORDER OF ASSESSMENT DATED 13.03.2015 PASSED BY THE A.O. INVOKING PROVISIONS OF SECTION 263 OF THE ACT. 3. BRIEFLY STATED FACTS AS CULLED OUT FROM THE RECO RDS ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY. ASSESSMENT U/S 143(3) OF THE ACT WAS FRAMED ON 13.03.2015 THEREBY ASSESSING INCOME AT RS.NIL AFTER DISALLOWING THE LOSS OF RS.50,96,323/- CLAIMED BY THE ASSESSEE IN THE RETURN OF INCOME FILED ON 26.9.2012 FOR ASSESSMENT YEAR 2012-13. THEREAFTER LD. CIT(A) BY VIRTUE OF H IS POWER U/S 263 OF THE ACT ISSUED NOTICE TO THE ASSESSEE ON 31.1.20 17 ALLEGING THAT THE ASSESSMENT ORDER FRAMED BY THE LD.A.O IS ERRONE OUS IN SO FAR AS PREJUDICIAL TO THE INTEREST OF REVENUE AS LD.A.O HA S NOT EXAMINED THE GENUINENESS OF THE UNSECURED LOAN OF RS.48,00,0 00/- RECEIVED FROM M/S. BANSAL CONSTRUCTION WORKS. LD.CIT(A) IN THE ORDER U/S 263 OF THE ACT CANCELLED THE ASSESSMENT ORDER AND D IRECTED THE LD.A.O TO REFRAME THE ASSESSMENT AFTER EXAMINING TH E ISSUES MENTIONED IN THE ORDER. 4. AGGRIEVED ASSESSEE IS NOW IN APPEAL BEFORE THE T RIBUNAL. 5. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT ALL NECESSARY DOCUMENTS IN ORDER TO PROVE THE IDENTITY, GENUINENESS AND CREDITWORTHINESS OF THE UNSECURED LOAN OF RS.48 ,00,000/- WERE PLACED BEFORE THE LD.A.O WHICH WAS THOROUGHLY EXAMI NED BEFORE ABSOLUTE HR SOLUTIONS PVT LTD ITA NO.243/IND/2017 3 PASSING THE ASSESSMENT ORDER. HE FURTHER SUBMITTED THAT LD.CIT(A) DURING THE COURSE OF THE PROCEEDINGS U/S 263 OF THE ACT DID NOT EXAMINED THE ISSUE AT HIS LEVEL AND SUFFICIENT OPPO RTUNITY WAS NOT PROVIDED TO FURNISH THE DETAILS. HE PRAYED THAT TH E ISSUES IN THIS APPEAL MAY BE SET ASIDE TO THE FILE OF LD.CIT(A) TO CONDUCT FRESH PROCEEDINGS U/S 263 OF THE ACT AFTER PROVIDING SUFF ICIENT OPPORTUNITY TO THE ASSESSEE. 6. LD. DEPARTMENTAL REPRESENTATIVE RAISED NO OBJECT ION TO THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE FOR SET TING ASIDE THE ISSUE IN THIS APPEAL TO THE FILE OF LD.CIT(A). 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. ASSESSEE IS AGGRIEVED WITH THE O RDER OF LD.CIT(A) FRAMED U/S 263 OF THE ACT THEREBY QUASHING ASSESSME NT ORDER FRAMED U/S 143(3) OF THE ACT ON 13.3.2015 DIRECTING THE ASSESSING OFFICER TO REFRAME THE ASSESSMENT AFRESH. LD. COUN SEL FOR THE ASSESSEE BROUGHT TO OUR NOTICE THAT ALL NECESSARY D OCUMENTS FOR PROVING THE IDENTITY, GENUINENESS AND CREDITWORTHIN ESS OF THE UNSECURED LOAN TAKEN FROM M/S. BANSAL CONSTRUCTION WORKS, BHOPAL WERE DULY EXAMINED BY THE LD.A.O. LD.CIT(A) DURING THE COURSE OF PROCEEDINGS U/S 263 OF THE ACT HAVE NOT G ONE THROUGH THE DOCUMENTS FILED DURING THE ASSESSMENT BEFORE QUASHI NG THE ASSESSMENT ORDER U/S 143(3) OF THE ACT. ABSOLUTE HR SOLUTIONS PVT LTD ITA NO.243/IND/2017 4 8. WE OBSERVE THAT THE REQUEST MADE BY THE LD. COUN SEL FOR THE ASSESSEE FOR SETTING ASIDE THE ISSUES RAISED IN THI S APPEAL TO THE FILE OF LD.CIT(A) FOR CONDUCTING FRESH PROCEEDINGS U/S 263 OF THE ACT HAVE NOT BEEN OBJECTED BY THE LD. DEPARTMENTAL REPR ESENTATIVE. WE THEREFORE IN THE INTEREST OF JUSTICE AND FAIR PLAY SET ASIDE THE ISSUE RAISED IN THIS APPEAL TO THE FILE OF LD.CIT(A) FOR FRAMING ORDER U/S 263 OF THE ACT AFRESH AND DIRECT HIM TO CONDUCT THE PROCEEDINGS U/S 263 OF THE ACT AFRESH AFTER PROVIDING SUFFICIENT OP PORTUNITY TO THE ASSESSEE AND ALSO TO GO THROUGH THE DOCUMENTS FILED BY THE ASSESSEE IN SUPPORT OF THE CLAIM TO PROVE THE IDEN TITY, GENUINENESS AND CREDITWORTHINESS OF THE UNSECURED LOAN OF RS.48 ,00,000/- TAKEN FROM MS/ BANSAL CONSTRUCTION WORKS. NEEDLESS TO ME NTION THAT SUFFICIENT OPPORTUNITY OF BEING HEARD SHOULD BE PRO VIDED TO THE ASSESSEE. 9. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 31.10.201 8. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 31 OCTOBER, 2018 /DEV ABSOLUTE HR SOLUTIONS PVT LTD ITA NO.243/IND/2017 5 COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSTT.REGISTRAR,I.T.A.T., INDORE