ASHISH INDUSTRIES, MUMBAI V. ITO WD 17(3)(1), MUMBAI

ITA 2814/MUM/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2829 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 28-10-2015
• Assessment Year: 2001-2002
• Appeal Filed On: 25-04-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SU JIT BANGAR
• Keywords: Reasonable cause
• Section: 143(3); 147; 148

Judgement Text

, THE INCOME-TAX APPELLATE TRIBUNAL -ABENCH MUMB AI , , BEFORE SH.RAJENDRA,ACCOUNTANT MEMBER AND S MT.BEENA PILLAI,JUDICIAL MEMBER /ITA NO.2814/MUM/2012, /ASSESSMENT YEAR 2001-02) M/S. ASHISH INDUSTRIES C/O. PRAKASH JHUNJHUNWALA CHARTERED ACCOUNTANT 5, JOLLY BHAVAN NO.2, GR.FLOOR 7, NEW MARINE LINES,CHURCHGATE MUMBAI-400 020. PAN: AAAFA 2177 Q VS. INCOME TAX OFFICER WARD-17(3)(1) MUMBAI. ( / APPELLANT ) ( / RESPONDENT ) / ASSESSEE BY : SHRI PRAKASH JHUNJHUNWALA / REVENUE BY :SHRI SUJIT BANGAR / DATE OF HEARING :28.10. 2015 / DATE OF PRONOUNCEMENT :28 .10 . 2015 ,1961 254(1) ORDER U/S.254(1)OF THE INCOME-TAX ACT,1961(ACT) PER RAJENDRA, A.M. CHALLENGING THE ORDER DT.10.11.2010 OF CIT(A)-29, M UMBAI, THE ASSESSEE, HAS RAISED FOLLOWING GROUNDS OF APPEAL : OUT OF THE 7 GROUNDS FILED BY THE ASSESSEE, GROUN D NO.1, DEALS WITH THE REOPENING OF THE ASSESSMENT. DURING THE COURSE OF HEARING BEFORE US, THE AR OF THE ASSESSEE DID NOT PRESS THE GROUND NO.1, HENCE SAME STANDS DISMISSED AS NOT PRE SSED. 2. ASSESSEE -FIRM ENGAGED IN THE BUSINESS OF MANUFACTU RING OF STEEL WOOL FILED ITS RETURN OF INCOME ON 15.10.2001 DECLARING NIL INCOME. THE ASSE SSMENT WAS COMPLETED ON 26.12.2002, U/S. 143(3) OF THE ACT DETERMINING THE INCOME OF TH E ASSESSEE AT RS.1.42 LACS.SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED VIDE NOTICE DATED 10.1. 2008 ISSUED U/S. 148 OF THE ACT.THE AO COMPLETED THE ASSESSMENT ON 30.12.2008, U/S. 147 R. W.S 144 OF THE ACT, COMPUTING THE INCOME OF THE ASSESSEE AT RS.7,15,080/- 3. AGGRIEVED BY THE ORDER OF THE AO, ASSESSEE PREFERR ED AN APPEAL BEFORE THE FAA. THE CASE WAS FIXED FOR HEARING ON FOUR OCCASIONS BUT COULD N OT BE HEARD AS THE ASSESSEE HAD SOUGHT ADJOURNMENTS.THE FAA FIXED THE CASE FOR FINAL HEARI NG ON 27.10.2010 AND NOBODY APPEARED BEFORE HIM. AS PER THE FAA NO REQUEST FOR ADJOURNME NT WAS ALSO FILED BY THE ASSESSEE AND NOTICE CAME BACK AS NOT CLAIMED.IN THESE CIRCUMSTAN CES THE FAA UPHELD THE ORDER OF THE AO. 4. BEFORE US, THE AUTHORISED REPRESENTATIVE (AR) STATE D THAT THE MATTER WAS REPRESENTED BY LATE GAURI SHANKER G. AGARWAL, THAT DUE TO HIS SERI OUS ILL HEALTH AND ULTIMATE DEATH ON 9.7.2010 THE APPEAL COULD NOT BE ATTENDED, THAT LAT ER ON SOME OTHER AR REQUESTED THE FAA TO HEAR THE CASE ALONGWITH THE SISTER CONCERN M/S. BOOM INDUSTRIES, THAT IN THE CASE OF M/S. BOOM INDUSTRIES THE TRIBUNAL HAD DELETED THE ADDITI ON, THAT THE FACTS OF THE CASE WERE IDENTICAL TO THE FACTS OF M/S. BOOM INDUSTRIES. HE REFERRED TO THE DEATH CERTIFICATE OF LATE SHRI GAURI SHANKAR AGARWAL (PAGE 4 OF THE PAPER BOO K) ALONGWITH THE BILL OF HINDUJA HOSPITAL. HE FURTHER STATED THAT ASSESSEE HAD NECE SSARY EVIDENCE TO PROVE THE CLAIM BEFORE THE AO, THAT MATTER COULD BE RESTORED BACK TO THE F ILE OF THE FAA. DEPARTMENTAL REPRESENTTIVE (DR) LEFT THE MATTER TO THE DISCRETIO N OF THE BENCH. ITA NO.2814/M/12ASHISH INDUSTRIES 2 2 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL. WE FIND THAT THE AR REPRESENTING THE ASSESSEE WAS HOSPITALIZED AND ULTI MATELY PASSED AWAY. IN OUR OPINION THERE WAS REASONABLE CAUSE FOR NOT APPEARING BEFORE THE F AA. THEREFORE, IN THE INTEREST OF JUSTICE, WE ARE RESTORING BACK THE MATTER TO THE FILE OF THE FAA FOR FRESH ADJUDICATION. HE WOULD AFFORD A REASONABLE OPPORTUNITY TO THE ASSESSEE. EF FECTIVE GROUND OF APPEAL IS DECIDED IN FAVOUR OF THE ASSESSEE, IN PART. AS A RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED IN PART. ! '#$ %& ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH OCTOBER, 2015. 28 TH , 2015 SD/- SD/- ( / BEENA PILLAI ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI, '# DATE: 28.10.2015 . . . JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR K BENCH, ITAT, MUMBAI / , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI.