Sunday Exports Ltd., Surat V. The ACIT.,Circle-4, Surat

ITA 263/AHD/2009

• Counselvise Citation: 26320514 RSA 2009
• Duration Of Justice: 2 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 20-09-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 28-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S PARIDA
• Assessee Lawyers: M K PATEL
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND A. K. GARODIA AM) ITA NO.263/AHD/2009 A. Y.: 2005-06 M/S. SUNDAY EXPORTS LTD., SUNDAY HOUSE, A. K. ROAD, SURAT VS THE A. C. I. T., CIRCLE-4, AAYAKAR BHAVAN, MAJURA GATE, SURAT PA NO. AADCS 1501 J (APPELLANT) (RESPONDENT) APPELLANT BY SHRI M. K. PATEL, AR RESPONDENT BY SHRI S. S. PARIDA, CIT DR DATE OF HEARING: 20-09-2011 DATE OF PRONOUNCEMENT: 20-09-2011 O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-II I, SURAT DATED 03-11-2008, FOR ASSESSMENT YEAR 2005-06, ON THE FOL LOWING GROUNDS: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN MAKING THE ADDITION OF RS.2,85,53,970/- ON ACCOUNT OF ALLEGED SUNDRY CREDI TORS DISALLOWED U/S. 41 (1) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF ITA NO.263/AHD/2009 M/S. SUNDAY EXPORTS LTD. VS ACIT, CIRCLE-4, SURAT 2 INCOME TAX (APPEALS) HAS ERRED CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN MAKING THE ADDITION OF RS.2,70,666/- ON ACCOUNT OF CREDITORS PARTIES TREAT ED AS CEASED AND ADDED BACK. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE MAJOR ADDITION OF RS.2,83,53,970/- WAS MADE ON THE BASIS OF THE ADDITION MADE IN THE ASSESSMENT YEAR 2003-04. THEREFORE, THE ADDITION IS MADE ON PROTECTIVE BASIS IN THE ASSESSMENT YEAR UND ER APPEAL. HE HAS SUBMITTED THAT IN THE ASSESSMENT YEAR 2003-04, THE TRIBUNAL SET ASIDE THE ORDER OF THE LEARNED CIT(A) IN ITA NO.208 9/AHD/2007 DATED 19-07-2007. COPY OF THE ORDER IS PLACED ON RECORD. HE HAS SUBMITTED THAT THE MATTER IS STILL PENDING BEFORE THE LEARNED CIT(A), THEREFORE, THE PRESENT APPEAL MAY BE RESTORED TO THE FILE OF T HE LEANED CIT(A) FOR DECISION AFRESH. HE HAS SUBMITTED THAT ON GROUND NO .2 ALSO THE ISSUE IS SAME, THEREFORE, ENTIRE MATTER MAY BE RESTORED T O THE FILE OF THE LEARNED CIT(A). THE LEARNED DR ON GOING THROUGH THE ORDER OF THE TRIBUNAL DATED 19-07-2007 SUBMITTED THAT THE ENTIRE MATTER MAY BE RESTORED TO THE FILE OF THE LEARNED CIT(A) FOR RECO NSIDERATION AFRESH. 3. ON CONSIDERATION OF THE SUBMISSIONS OF THE PARTI ES AND THE FACT THAT SUBSTANTIVE ADDITION WAS MADE IN THE ASSESSMEN T YEAR 2003-04 ON WHICH THE MATTER IS STILL PENDING BEFORE THE LEA RNED CIT(A) FOR RECONSIDERATION, WE SET ASIDE THE ORDER OF THE LEAR NED CIT(A) ON THESE GROUNDS AND RESTORE THE APPEAL OF THE ASSESSE E TO HIS FILE WITH DIRECTION TO RE-DECIDE BOTH THE GROUNDS AFRESH SIMU LTANEOUSLY WHILE DECIDING THE APPEAL FOR ASSESSMENT YEAR 2003-04 BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.263/AHD/2009 M/S. SUNDAY EXPORTS LTD. VS ACIT, CIRCLE-4, SURAT 3 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A. K. GARODIA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD