The ITO, Thrissur V. M/s. V Mariappan Chettiar & Sons, Thrissur

ITA 271/COCH/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1271 (ITAT-COCHIN)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2021
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-04-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 26-06-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SANTHOSH ANTONY
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJARI AM & SHRI GEORGE MATHAN, JM ITA NO. 271 / COCH / 2020 (ASSESSMENT YEAR: 2014 - 15 ) THE INCOME TAX OFFICER WARD - 2(3) TRISSUR VS. M/S. V. MARIAPPAN CHETTIAR & SONS TC18/1056, 1057, RICE BAZAR THRISSUR 680001 PAN AABFV9268J APPELLANT RESPONDENT APPELLANT BY: SMT. J.M. JAMUNA DEVI, SR. DR RESPONDENT BY: SHRI SANTHOSH ANTONY DATE OF HEARING: 0 8 .0 4 .2021 DATE OF PRONOUNCEMENT: 0 8 . 0 4 .2021 O R D E R PER GEORGE MATHAN , JM THIS APPEAL FILED BY REVENUE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A), THRISSUR IN APPEAL NO. ITA - 1242/16 - 17 DATED 12.03.2020 FOR A.Y. 2014 - 15. 2. SMT. J.M. JAMUNA DEVI, SR. DR APPEARED ON BEHALF OF REVENUE AND SHRI SANTHOSH ANTONY APPEARED ON BEHALF OF THE ASSESSEE . 3. IT IS SUBMITTED BY THE LEARNED D.R. THAT THE ASSESSEE IS A TRADE IN GINGELLY OIL AND GINGELLY. IT WAS THE SUBMISSION THAT IN THE COURSE OF ASSESSMENT THE AO HAD DETECTED UNACCOUNTED SALE OF 3,18,70,473/ - REPRESENTING AN INVESTMENT OF 2,36, 7 0,153/ - AND PROFIT OF 82,00,320/ - . IT WAS THE SUBMISSION THAT IT WAS FOUND THAT THE ASSESSEE HAS SOLD REFINED OIL TO SREE SAI TRADERS AND THE SAME WAS NOT SHOWN IN THE PURCHASE LIST OF THE ASSESSEE. FURTHER IT WAS SUBMI TTED THAT AN ADDITION OF 43,00,691/ - WAS MADE ON ACCOUNT OF SUPPRESS PROFIT OF THE ASSESSEE BY INFLATING THE PURCHASES THROUGH THE DEVICE OF SISTER CONCERN WHICH WAS HELD TO BE COLOURABLE DEVICE. IT WAS THE SUBMISSION THAT BEFORE THE LEARNED CIT(A) THE AS SESSEE HAD PRODUCED ITA NO. 271 /COCH/ 2020 M/S. V. MARIAPPAN CHETTIAR & SONS 2 FRESH EVIDENCES AND THE WRITTEN SUBMISSIONS FILED BEFORE THE CIT(A) WERE ALSO CONTRADICTORY. IT WAS THE SUBMISSION THAT THE LEARNED CIT(A) HAS ERRONEOUSLY DELETED THE UNACCOUNTED SALES AND INFLATED PURCHASES AS MADE BY THE AO. IT WAS FU RTHER SUBMITTED THAT NEITHER THE EVIDENCES PRODUCED BEFORE T HE LEARNED CIT(A) NOR THE WRITTEN SUBMISSIONS WERE WHAT WERE STATED IN THE COURSE OF ASSESSMENT. THE LEARNED D.R. SUBMITTED THAT THE REVENUE HAS NO OBJECTION IF THE ISSUE IS RESTORED TO THE AO FOR READJUDICATION. 4. IN REPLY THE LEARNED AR FOR THE ASSESSEE SUBMITTED THAT WHAT WAS PRODUCED BEFORE THE LEARNED CIT(A) WAS ONLY A CONSOLIDATION OF THE BOOKS OF ACCOUNT WHICH HAD BEEN PRODUCED BEFORE THE AO. HE SUBMITTED THAT THE APPEAL OF THE REVENUE IS LIAB LE TO BE DISMISSED. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN THE GROUNDS OF APPEAL THE REVENUE HAS SPECIFICALLY STATED THAT IN THE SUBMISSION DATED 08.07.2016 THE ASSESSEE HAS STATED THAT IT HAS SOLD 63,353 NUMBERS OF 15 KG GINGELLY OIL TINS WHEREAS TH E ASSESSEE IN ITS SUBMISSION DATED 09.12.2016 HAS STATED THAT IT HAS SOLD ONLY 45,477 NUMBER OF 15 KG GINGELLY OIL TINS. A PERUSAL OF THE ORDER OF THE LEARNED CIT(A) SHOWS THAT THE LEARNED CIT(A) HAS CALCULATED 34168 NUMBERS OF 15 KG TINS. HOW THIS FIGURE HAS BEEN DETERMINED IS NOT COMING OUT OF THE ORDER OF THE LOWER AUTHORITIES. CONSEQUENTLY THE FACTS ITSELF HAVE NOT BEEN PROPERLY DETERMINED IN THE PRESENT CASE. IN THESE CIRCUMSTANCES, IN THE INTEREST OF JUSTICE, THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR READJUDICATION AFTER GRANTING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 7. DICTATED AND PRONOUNCED IN THE OPEN COURT ON 8 TH APRIL, 2021. SD/ - SD/ - (CHANDRA POOJARI ) ( GEORGE MATHAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN , DATED: 8 TH APRIL, 202 1 ITA NO. 271 /COCH/ 2020 M/S. V. MARIAPPAN CHETTIAR & SONS 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) - THRISSUR 4. THE PR. CIT - THRISSUR 5. THE DR, ITAT, COCHIN 6. GUARD FILE BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT, COCHIN N.P.