Sri Bishnu chand choudhary, Jamshedpur V. ITO WARD-1(3), Jamshedpur

ITA 27/RAN/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9656 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 10-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: S K PODDARDEVESH PODDAR
• Keywords: Set aside
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.27 /RAN/201 7 ASSESSMENT YEAR : 2013 - 2014 SHRI BISHNU CHAND CHOUDHARY, B - 31, ASHIANA GARDEN, SONARI, JAMSHEDPUR VS. ITO, WARD - 1(3), JAMSHEDPUR PAN/GIR NO. ABGPC 3041 E (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: SHRI S.K.PODDAR/DEVESH PODDAR, ADV REVENUE BY : SHRI P.K.MONDAL, JCIT DATE OF HEARING : 28 /05 / 201 8 DATE OF PRONOUNCEMENT : 29 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE A GAINST THE ORDER OF THE CIT(A) - JAMSHEDPUR DATED 19.6.2017 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT THE CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL FILED EXPARTE WITHOUT CONSIDERING MERITS OF THE CASE. 2. FOR THAT THE DISALLOWANCE OF ENTIRE SALE PROMOTION EXPENSES CLAIMED BY THE APPELLANT IS UNJUSTIFIED, ILLEGAL AND INCORRECT. APPELLANT HAS MAINTAINED COMPLETE D ETAILS FOR THE EXPENSES INCURRED. IN PAST, EXPENSES INCURRED FOR SALE PROMOTION WERE ALLOWED. THE AO WAS NOT JUSTIFIED IN SUGGESTING THAT THE EXPENSES INCURRED WAS OF PERSONAL NATURE. 2 ITA NO.27/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 3. FOR THAT THE AO DISALLOWED 20% OF THE EXPENSES INCURRED UNDER THE H EAD TRAVELLING AND CONVEYANCE. THE DISALLOWANCE WAS MADE IN A SUMMARY MANNER WITHOUT CONSIDERING FACTS OF THE CASE AND REASONABLE OF THE EXPENSES. 4. FOR THAT THE AO WAS NOT JUSTIFIED IN MAKING A DISALLOWANCE OF 5% OF THE REPAIR AND MAINTENANCE EXPENSES I NCURRED BY THE APPELLANT FOR MAINTENANCE OF DUMPERS AND TRUCKS USED FOR THE PURPOSES OF TRANSPORT. THE AO FAILED TO POINT OUT ANY DISCREPANCY OR MALAFIDE NATURE OF VOUCHERS OR BILLS. AS SUCH, DISALLOWANCE MADE IS UNJUSTIFIED, ILLEGAL AND INCORRECT. 5. FOR THAT THE EXPENSES INCURRED WERE REASONABLE CONSIDERING TURNOVER OF THE APPELLANT, PROFIT DISCLOSED WAS REASONABLE, COMPARED WELL WITH THE PAST RECORDS. AS SUCH, THE CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL WITHOUT CONSIDERING THE GROUNDS RAISED BY THE APPELLANT. 6. FOR THAT THE AO WAS NOT JUSTIFIED IN CHARGING INTEREST U/S.234A AND 234B ON THE ASSESSED INCOME. INTEREST SHOULD BE CHARGED ON THE RETURNED INCOME FOLLOWING THE DECISION OF HONBLE JHARKHAND HIGH COURT. 3 . AT THE OUTSET, LD A.R. OF THE ASSESSEE REFERRED TO THE CIT(A)S ORDER AND SUBMITTED THAT THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE EXPARTE WITHOUT CONSIDERING THE MERITS OF THE CASE AND PRAYED THAT ONE MORE OPPORTUNITY SHOULD BE GRANTED T O THE ASSESSEE TO PRESENT HIS CASE BEF ORE THE CIT(A). 4. LD D.R. VEHEMENTLY OPPOSED TO THE GRANTING OF ANOTHER OPPORTUNITY TO THE ASSESSEE BEFORE THE CIT(A) AND SUBMITTED THAT SUFFICIENT OPPORTUNITIES HAVE BEEN ALLOWED BY THE CIT(A) AND THE ASSESSEE HAS FAILED TO COMPLY WITH THE SAME AND, THER EFORE, NO MERCY SHOULD BE SHOWN TO THE ASSESSEES AT THIS STAGE OF PROCEEDINGS. 3 ITA NO.27/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE CIT(A) HAD FIXED THE HEARING ON 14.9.2014, 20.9.2016 AND 26.9.2016 A ND SINCE THE FAILED TO APPEAR BEFORE HIM, HE HAS DISMISSED THE APPEAL OF THE ASSESSEE EXPARTE WITHOUT DECIDING THE APPEAL ON MERITS. BEFORE US, LD A.R. HAS REQUESTED TO ALLOW ONE MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE THE CIT(A). IN VIEW OF ABOVE AN D IN ORDER TO RENDER SUBSTANTIAL JUSTICE TO THE ASSESSES, ALL MATERIALS FACTS ARE REQUIRED TO BE BROUGHT ON RECORD TO ADJUDICATE THE ISSUE. FOR DOING SO, AN OPPORTUNITY HAS TO BE ALLOWED TO THE ASSESSEES. WE , THEREFORE, SET ASIDE THE ORDER OF LD CIT(A) A ND RESTORE THE MATTER BACK TO THE FILE OF THE LD CIT(A) TO RE - ADJUDICATE THE APPEAL AFRESH AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOTH THE PARTIES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 29 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 29 /05 /201 8 B.K.PARIDA, SPS 4 ITA NO.27/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SH BISHNU CHAND CHOUDHARY, B - 31, ASHIANA GARDEN, SONARI, JAMSHEDPUR 2. THE RESPONDENT: ITO, WARD - 1(3), JAMSHEDPUR 3. THE CIT(A), JAMSHEDPUR 4. PR. CIT , JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//