THE COTTON CORPORATION OF INDIA, NAVI MUMBAI V. DCIT 3(1), MUMBAI

ITA 2759/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83486 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 18-02-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 24-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARMINDER
• Assessee Lawyers: KESHAV B BHUJLE
• Keywords: Opportunity of being heard; Tangible material
• Section: 147; 148

Judgement Text

IN THE INCO ME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA , JUDICIAL MEMBER ./I.T.A. NO. 2759/M/2012 ( AY: 200 3 - 20 04 ) THE COTTON CORPORATION OF INDIA LTD, KAPAS BHAVAN , PLOT NO.3 A, SECTOR 10, CBD BELAPUR, NAVI MUMBAI - 400614. / VS. DCIT - 3(1), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020. ./ PAN : AAACT4053B ( / APPELLANT) .. ( / RESPONDENT ) / A PPELLANT BY : SHRI KESHAV B BHUJLE / RESPONDENT BY : SMT. PARMINDER / DATE OF HEARING :12.8 .2014 / DATE OF PRONOUNCEMENT :12.8 .2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY ASSESSEE ON 24.4.2012 IS AGAINST THE ORDER OF THE CIT (A) - 7, MUMBAI DATED 20.10.2011 FOR THE ASSESSMENT YEAR 2003 - 2004. 2. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING GROUND WHICH READS AS UNDER: REDUCING THE LOSS OF YOUR APPELLANT TO THE EXTENT OF RS. 1,11,19,445/ - THOUGH THE INTEREST OF RS. 1,11,19,445/ - RECEIVED ON THE INCOME TAX REFUND WAS IN THE NATURE OF RECOUPMENT OF INTEREST CHARGED UNDER SECTION 234 B AND / OR 220(2) IN RESPECT OF EARLIER YEARS WHEN IT WAS NOT ALLOWED AS A DEDUCTIBLE EXPENDITURE. 3. AT THE OUTSET, SHRI KESHAV B BHUJLE, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE ABOVE GROUND AND MENTIONED THAT THE ASSESSEE FILED THE ADDITIONAL GROUNDS WHICH NOT SIGNED BY THE M ANAGING DIRECTOR OF THE ASSESSEE - COMPANY. IN THIS BACKGROUND, ASSESSEE FILED FRESH ADDITIONAL GROUNDS DULY SIGNED BY THE MD AND PRAYED FOR ADMITTING THE SAME. AFTER HEARING BOTH THE PARTIES, WE FIND THE GROUND S RAISED BY THE ASSESSEE RELATE TO NOTICE ISS UED U/S 147 READ WITH SECTION 148 OF THE ACT AND THEY ARE LEGAL IN NATURE. ACCORDINGLY, THE SAME ARE ADMITTED. IN THIS 2 REGARD, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO PAGE 206 OF THE PAPER BOOK AND MENTIONED THAT THE CONTENTS OF THIS PAGE RELATES TO REASONS FOR REOPENING DATED 12.3.2010. FURTHER, HE ELABORATED BY MENTIONING THAT THE SOURCE MATERIAL WHICH FORM THE BASIS FOR REOPENING ARE THE RECORDS ALREADY AVAILABLE WITH THE AO. NO OTHER TANGIBLE MATERIAL WAS BROUGHT FORTH OR GARNERED B Y THE AO. WITHOUT GOING INTO THE MERITS OF THE CASE AND REASONS FOR ADDITIONS, LD REPRESENTATIVES OF BOTH THE PARTIES CONCURRED WITH THE PROPOSAL TO REVISIT THE ISSUE TO THE FILE OF THE AO AS THE ISSUES RAISED IN THE ADDITIONAL GROUNDS WERE NOT SUBJECT MA TTER OF ADJUDICATION BEFORE THE LOWER AUTHORITIES. IT IS AN ADMITTED FACT THAT THE REASONS RECORDED WERE NOT ADJUDICATED BY THE AO WITHIN THE MEANING OF THE RATIO OF THE JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF GKN DRIVESHAFTS (INDIA) LTD VS. INCOME TAX OFFICER AND OTHERS 259 ITR 19 (SC). 4. ON THE OTHER HAND, LD DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE RELEVANT MATERIAL PLACED BEFORE U S. AFTER HEARING BOTH THE PARTIES, WITHOUT GOING INTO THE MERITS AS WELL AS THE REASONS RECORDED BY THE AO FOR REOPENING THE CONCLUDED ASSESSMENT, WE ARE OF THE OPINION THAT THE MATTER SHOULD BE SET ASIDE FOR COMPLYING WITH THE PROCEDURAL FORMALITIES AS E NUNCIATED IN THE SAID JUDGMENT OF THE HONBLE SUPREME COURT IN THE CASE OF GKN DRIVESHAFTS (INDIA) LTD (SUPRA). AO SHALL GRANT A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2014. SD/ - SD/ - (AMIT SHUKLA ) (D. KARUNAKARA RAO ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; 12/08/2014 . . ./ OKK , SR. PS 3 / 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