SANGHAVI JEWELLERY MFG.CO. PVT. LTD., MUMBAI V. I.T.O.-8(3)(1), MUMBAI

ITA 2528/MUM/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0859 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 28-04-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 16-04-2012
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Assessee Lawyers: B V JHAVERI
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI RAM LAL NEGI, JUDICIAL MEMBER ITA NO.2528/M/2012 (2004 - 2005) M/S. SANGHAVI JEWELLERY MFG. CO. PVT LTD., PLOT NO.75, C - 14, CROSS ROAD, MAROL M.I.D.C., ANDHERI (E), MUMBAI 400 093. / VS. INCOME TAX OFFICER - 8(3)(1), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 20. ./ PAN : AAACS7836B ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI B.V. JHAVERI / RESPONDENT BY : DR. A.K. NAYAK, DR / DATE OF HEARING : 17.04.2017 / DATE OF PRONOUNCEMENT : 19 .04.2017 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 16.4.2012 IS AGAINST THE ORDER OF THE CIT (A) - 18, MUMBAI DATED 29.2.2012 FOR THE ASSESSMENT YEAR 2004 - 05. IN THIS APPEAL, ASSESSEE RAISED FOUR GROUNDS IN TOTO AND THEY REVOLVE AROUND THE CIT (A)S DECISION IN CONF IRMING THE ORDER OF THE AO U/S 271(1)(C) OF THE ACT. 2. AT THE OUTSET, LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE GROUNDS RAISED IN THIS APPEAL NEED TO BE SET ASIDE TO THE FILE OF THE AO FOR FRESH ADJUDICATION AFTER GIVING EFFECT TO THE ORDER OF THE TRIBUNAL IN ITA NO. 577/M/2008, DATED 22.12.2016 ON MERITS OF THE ADDITION. 3. AFTER HEARING THE LD REPRESENTATIVES OF BOTH THE PARTIES AND ON PERUSAL OF THE ABOVE CITED ORDER OF THE TRIBUNAL DATED 22.12.2016 (SUPRA), WE FIND, THE TRIBUNAL DELETED FEW AD DITIONS (VIDE PARA 8) OR REMANDED CERTAIN ISSUES (PARA 12 OF THE SAID TRIBUNALS ORDER IS RELEVANT). WITHOUT GOING INTO THE DETAILS OF THE SAME, WE ARE OF THE OPINION, THE PRAYER OF THE ASSESSEE GIVEN IN PARA 10 OF HIS WRITTEN SUBMISSIONS SHOULD BE ALLOWE D. THE SAID PARA READS AS UNDER: - 2 10. THE ASSESSEE COMPANY, THEREFORE, RESPECTFULLY, SUBMITS THAT THE ORDER LEVYING PENALTY U/S 271(1)(C) OF THE ACT MAY BE SET ASIDE AND THE PENALTY PROCEEDINGS MAY BE RESTORED TO THE FILE OF THE INCOME TAX OFFICER WITH A DIRECTION TO PASS THE ORDER GIVING EFFECT TO THE ORDER OF THE APPELLATE TRIBUNAL AND THEREAFTER TO DECIDE DENOVO WHETHER IT CAN BE HELD THAT THE ASSESSEE COMPANY HAS CONCEALED ITS INCOME IN THE YEAR UNDER CONSIDERATION. 3. CONSIDERING THE ABOVE AND AFTER HEARING BOTH THE PARTIES, WE DIRECT THE AO TO GIVE EFFECT TO THE ORDER OF THE TRIBUNAL AND DECIDE THE LEVY OF PENALTY DENOVO AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE IN THE APEAL ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNC ED IN THE OPEN COURT ON 1 9 T H APRIL, 2017. S D / - S D / - ( RAM LAL NEGI) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 19.04.2017 . . ./ OKK , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI