M/S AJAY ENGICON PVT LTD. , RANCHI V. DCIT CIR-1 , RANCHI

ITA 252/RAN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9696 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 10-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: VINAY KUMAR JALAN
• Keywords: Principle of natural justice
• Section: 142(1)

Judgement Text

1 ITA NO. 252 /RAN/ 201 7 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 252 /RAN/201 7 A.Y. : 20 06 - 20 07 M/S AJAY ENGICONE PVT.LTD C/O - SRI VINAY KUMAR JALAN, M/S O.P.JALAN & A SSOCIATES CONSULTANTS LLP, 48 CART SARAI ROAD, UPPER BAZAAR, RANCHI, JHARKHAND - 834001 V S DY.CIT, CIRCLE - 1, RANCHI P AN NO. : A A DCA 2509 E (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI VINAY KUMAR JALAN , ADVOCATE REVENUE BY :SHRI A.K.MOHANTY , JCIT DATE OF HEARING : 2 5 . 05 .201 8 DATE OF PRONOUNCEMENT : 28 . 05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT ( A ) , RANCHI , DATED 0 1 .09.2017 , FOR THE ASSESSMENT YEAR 2006 - 2007 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . FOR THAT, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE THE ORDER PASSED BY LD. CIT(A) WAS AGAINST THE PRINCIPLES OF NATURAL JUSTICE, WAS BAD IN LAW AND WAS ERRONEOUS, WHERE THE PRECEDENTS, ANTECEDENTS AND THE PAPERS FILED BY THE ASSESSEE BEFORE THE LD. ASSESSING OFFICER AND SUBMITTED BEFORE THE LD. CIT(A) ON DEMAND, WERE IGNORED. 2 . FOR THAT, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN RELYING UPON THE REMAND REPORT OF THE LD. ASSESSING OFFICER WITHOUT CONSIDERING THE PRECEDENTS AND THE 2 ITA NO. 252 /RAN/ 201 7 ANTECEDENTS AND CONFIRMED THE JUSTIFICATION OF THE LD. ASSESSING OFFICER FOR HAVING PASSED THE ORDER U/S 144. 3 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCU MSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 79,55,357/ - , WHICH IS 100% OF THE AMOUNT SHOWN AS SUNDRY CREDITORS UNDER THE HEAD PETTY CONTRACTOR. 4 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 45,93,727/ - , WHICH IS 100% OF THE AMOUNT DEBITED UNDER THE HEAD VEHICLE HIRE CHARGES IN THE DIRECT EXPENSES OF P&L ACCOUNT. 5 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANC E OF 20% OF THE AMOUNT DEBITED UNDER THE FABRICATING AND MEASURING EXPENSES IN THE DIRECT EXPENSES OF P&L ACCOUNT. 6 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 13,12,900/ - , WHICH IS 18% OF THE AMOUNT DEBITED UNDER THE HEAD REPAIR & MAINTENANCE IN THE INDIRECT EXPENSES OF P&L ACCOUNT. 7 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 24,770/ - , WHICH IS 100% OF THE AMOUNT DE BITED UNDER THE HEAD DONATION & SUBSCRIPTION IN THE INDIRECT EXPENSES OF P&L ACCOUNT. 8 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 26,30,610/ - , WHICH IS 100% OF THE AMOUNT DEBITED UNDER THE HEAD LOSS BY FIRE IN THE INDIRECT EXPENSES OF P&L ACCOUNT. 9 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 100,004/ - , WHICH IS 100% OF THE AMOUNT DEBITED UNDER THE HEAD COMPENSATION O F DEATH IN THE INDIRECT EXPENSES OF P&L ACCOUNT. 10 . FOR THAT, THE LD. CIT(A) UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 26,947/ - , WHICH IS 20% OF THE AMOUNT DEBITED UNDER THE HEAD MISCELLANEOUS EXPENSES IN THE I NDIRECT EXPENSES OF P&L ACCOUNT. 11. FOR THAT, THE OTHER GROUNDS SHALL BE URGED AT THE TIME OF HEARING. 3 ITA NO. 252 /RAN/ 201 7 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CONTRACTOR AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006 - 2007 ON 13.12.2006 WITH TOTAL INCOME OF RS. 24,12,156/ - AND THE RETURN OF INCOME WAS DULY PROCESSED U/S.143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS . SUBSEQUENTLY, NOTICE U/S.143(2) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND CASE WAS DISCUSSED . THEREAFTER THE AO COMPLETED THE ASS ESSMENT AND MADE VARIOUS ADDITION S AND ASSESSED TOTAL INCOME AT RS. 1,90,56,870/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 25.12.2008 . 4 . AGGRIEVED BY T HE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS MADE BEFORE THE AO. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE AND THE FINDING S OF AO, DISMISSED THE APPEAL OF THE ASSESSEE. 5 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR BEFORE US SUBMITTED THAT THE CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE AO AND FURTHER SU BMITTED THAT THE ASSESSEE HAS PROVIDED COMPLETE DETAILS IN RESPECT OF CLAIMS MADE AND FILED RELEVANT DOCUMENTS IN THE FORM OF PAPER BOOK ALONG WITH JUDICIAL DECISIONS. THE CONTENTION OF LD.AR IN THE ASSESSMENT PROCEEDINGS THE ASSESSEE HAS ALREADY FILED TH E INFORMATION, WHEREAS THE AO HAS OVERLOOKED THESE FACTS 4 ITA NO. 252 /RAN/ 201 7 AND MADE ADDITION AND THE CIT(A) CONFIRMED THE SAME. THEREFORE, LD. AR PRAYED THAT THE ASSESSEE MAY BE PROVIDED ONE MORE OPPORTUNITY TO SUBSTANTIATE ITS CLAIM BEFORE THE CIT(A) . 7 . LD.DR RELIED ON T HE ORDERS OF LOWER AUTHORITIES. 8 . WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. LD. ARS CONTENTION THAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITIONS AND ALSO REMAND REPORT WAS CALLED FOR IN THIS REGARD BUT THE FACT REMAINS THAT THE ASSESSEE HAS ALSO FILED INFORMATION WHICH THE AO AND THE CIT(A) HAVE NOT BEEN CONSIDERED AND ALSO FILED THE PAPER BOOK CONTAINING THE DETAILS OF CLAIMS AND SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES ALONG WITH TAX AUDIT REPORT. CONSIDERING THE SUBMISSIO N OF THE LD. AR FOR AN OPPORTUNITY TO SUBSTANTIATE ITS CLAIM, WE, THEREFORE, REMIT THE ENTIRE DISPUTED ISSUE TO THE FILE OF CIT(A), WHO SHALL CONSIDER THE DOCUMENTS FILED BY THE ASSESSEE AND PASS ORDER AFTER PROVIDING ADEQUATE OPPORTUNITY O F HEARING TO TH E ASSESSEE AND THE ASSESSEE SHALL COOPERATE IN SUBMITTING THE INFORMATION. ACCORDINGLY, THE GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUN CED IN THE OPEN COURT ON 28 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI, DATED 28 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS 5 ITA NO. 252 /RAN/ 201 7 COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT M/S AJAY ENGICONE PVT.LTD C/O - SRI VINAY KUMAR JALAN , M/S O.P.JALAN & ASSOCIATES CONSULTANTS LLP, 48 CART SARAI ROAD, UPPER BAZAAR, RANCHI, JHARKHAND - 834001 2. THE RESPONDENT DY.CIT, CIRCLE - 1, RANCHI 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.