VIVITA INDIA LTD., MUMBAI V. ITO, MUMBAI

ITA 2832/MUM/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 3297 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 18-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation; Corroborative evidences; Non compliance
• Section: 142(1); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY , JUDICIAL MEMBER AND SHRI M ANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO. 2832/MUM/2016 ( ASSESSMENT YEAR : 2010 11 ) M/S. VIVITA INDIA LTD., 201, NEW BHARAT BUILDING GHORUPDEO CROSS LANE NO.1 OFF. RAMBHAU BHOGLE MARG BYCULLA (E) MUMBAI 400 033 PAN NO:AAACG2415Q . APPELLANT V/S ITO, AAYAKAR BHAVAN M.K.ROAD, MUMBAI 400 020 . RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI RAJEEV G UBGOTRA . DATE OF HEARING 07/08/2018 DATE OF ORDER 23.08.2018 O R D E R PER SAKTIJIT DEY, J.M. THIS IS AN APPEAL BY THE ASSESSEE AGAINST ORDER DATED 27/01/2016 OF LD. CO MMISSIONER OF INCOME TAX (APPEALS) 24, MUMBAI FOR THE ASSESSMENT YEAR 2010 11. 2. BRIEFLY THE FACTS ARE , THE ASSESSEE COMPANY FILED ITS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 27/1/2016 DECLARING TOTAL INCOME O F ` . 8,34,561/ . THE RETURN OF INCOME FILED BY THE 2 ITA N O. 2832/MUM/2016 M/S. VIVITA INDIA LTD. ASSESSEE WAS SELECTED FOR SCRUTINY AND THE ASSESSING OFFICER , AS EVIDEN T FROM THE ASSESSMENT ORDER , ISSUED A NUMBER OF STATUTORY NOTICE S UNDER SECTION. 142(1) AND 143(2) OF THE ACT CALLING UPON THE ASSESSEE TO FURNISH VARIOUS DETAILS IN SUPPORT OF ITS CLAIM MADE IN THE RETURN OF INCOME. AS OBSERVED BY THE ASSESSING OFFI CER, IN SPITE OF SERVICE OF STATUTORY NOTICE S , THERE WAS NO COMPLIANCE FROM ASSESSEES SIDE. ULTIMATELY, VIDE LETTER DATED 15/10/2012, THE ASSESSEE WITHOUT FURNISHING ANY INFORMATION / DETAIL CALLED FOR SIMPLY REQUESTED THE ASSESSING OFFICER TO COMPLETE TH E ASSESSMENT BY ACCEPTING THE RETURN. DUE TO NON COMPLIANCE OF THE QUERIES MADE , THE ASSESSING OFFICER PROCEEDED TO COMPLETE THE ASSESSMENT TO THE BES T OF HIS JUDGMENT UNDER SECTION 144 OF THE ACT ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER OBSERVED , THE ASSESSEE HAS NOT SUBSTANTIATED THE CLAIM OF LOSS OF ` .8,34,561/ HENCE, HE DISALLOWED THE SAME. FURTHER, HE OBSERVED THAT THE CLAIM OF DEPRECIATION AMOUNTING TO ` .2,11,30,309/ CANNOT BE ALLOWED IN ABSENCE OF THE TAX AUDIT REPORT AND THE VERIFICATION OF THE EXISTING ASSETS. FURTHER, THE ASSESSING OFFICER HELD THAT SUNDRY CREDITORS OF ` .7,76,790/ CANNOT BE ACCEPTED IN ABSENCE OF CON FIRMATION FROM THE CONCERNED PARTIES. THUS, HE COMPLETED THE ASSESSMENT DETERMINING THE TOTAL INCOME AT ` .2,19,07,099/ . 3 ITA N O. 2832/MUM/2016 M/S. VIVITA INDIA LTD. 3. B EING AGGRIEVED OF THE A DDITIONS MADE IN THE ASSESSMENT ORDER, ASSESSEE PREFERRED APPEAL BEFORE C OMMISSIONER (A PPEALS ). BEFORE THE FIRST APPELLATE AUTHORITY ALSO, THE ASSESSEE DID N OT APPEAR TO REPRESENT ITS CASE. THEREFORE , THE C OMMISSIONER (A PPEALS ) DISPOSED OF THE APPEAL EX PARTE CONFIRMING THE DISALLOWANCE S / ADDITION S MADE BY THE ASSESSING OFFICER IN ABSENCE OF ANY SUPPORTING EVIDENCE FILED BY THE ASSESSEE TO JUSTIFY ITS CLAIM. 4. BEING AGGRIEVED BY THE AFORESAID DECISION OF THE LD. C OMMISSIONER (A PPEALS ), THE ASSESSEE HAS FILED THE APPEAL BEFORE US. HOWEVER, AS COULD BE SEEN FROM THE MATERIAL ON RECORD, IN NONE OF THE DATES FIXED FOR HEARING EARLIER BEFORE THE TRIBUNAL, THE ASSESSEE EITHER APPEARED OR SOUGHT ANY ADJOURNMENT. THUS, ULTIMATELY, THE BENCH DIRECTED THE LD. DR TO SERVE THE NOTICE OF HEARING ON THE ASSESSEE AND THE APPEAL WAS ULTIMATELY FIXED FOR HEARING ON 07/08/2018. WH EN THE APPEAL WAS CALLED FOR HEARING TODAY, AS USUAL , NO ONE WAS PRESENT ON BEHALF OF THE ASSESS EE. ON A QUERY MADE TO THE LD. DR, HE SUBMITTED THAT HEARING NOTICE ISSUED BY THE TRIBUNAL WAS SERVED ON THE ASSESSEE ON 10/07/2018, C OPY OF THE REPORT OF THE ASSESSING OFFICER ALONG WITH ACKNOWLEDGEMENT FOR SERVICE OF NOTICE WAS PLACED BEFORE THE BENCH. T HUS, FROM THE AFORESAID FACTS, IT IS CRYSTAL CLEAR THAT THE ASSESSEE IS A HABITUAL DEFAULTER WITH REGARD TO APPEARANCE IN TAX PROCEEDINGS NOT ONLY BEFORE THE DEPARTMENTAL A U THORITIES BUT BEFORE THE TRIBUNAL ALSO . 4 ITA N O. 2832/MUM/2016 M/S. VIVITA INDIA LTD. THEREFORE, WE HAVE NO OTHER ALTERNATIVE BUT TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE AFTER HEARING LEARNED DR AND ON THE BASIS OF MATERIAL ON RECORD. 5. WE HAVE H EARD LEARNED DR AND PERUSED MATERIAL ON RECORD. 6. AS COULD BE SEEN FROM RECORD, DESPITE ISSUANCE OF SEVERAL STATUTORY NOTICES THE ASSESSEE NEITHER APPEARED BEFORE THE ASSESSING OFFICER NOR FURNISHED ANY SUPPORTING EVIDENCE T O JUSTIFY VARIOUS CLAIMS MADE I N THE RETURN OF INCOME. AS IT APPEARS , THE ASSESSEE DID NOT EVEN FURNISH THE TAX AUDIT REPORT . THEREFORE, IN ABSENCE OF ANY SU PPORTING EVIDENCE, THE ASSESSING OFFICER DISALLOWED THE CLAIM OF LOSS AND DEPRECIATION. FURTHER , HE ALSO ADDED BACK UNC ONFIRMED SUNDRY CREDITORS. TH E SITUATION REMAINS THE SAME BEFORE THE C OMMISSIONER (A PPEALS ) AND AS WELL AS BEFORE US. AT NO STAG E THE ASSESSEE CA ME FORWARD TO FILE ANY SUPPORTING EVIDENCE TO JUSTLY THE CLAIMS MADE IN THE RETUR N OF I N COME A N D CONTROVER T THE FI N DI N G OF THE ASSESSING OFFICER. THEREFORE, IN ABSENCE OF ANY SUPPORTI N G MATERIAL / EVIDENCE, FURNISHED BY THE ASSESSEE, THE DISALLO WANCE / ADDITIONS MADE BY THE ASSESSING OFFICER CANNOT BE DELETED. THE GROUN DS RAISED ARE DISMISSED. 7. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23.08. 2 0 18 SD/ - MANOJ KUMAR AGGARWAL ACCOUNTANT MEMBER SD/ - SAKTIJIT DEY JUDICIAL MEMBER 5 ITA N O. 2832/MUM/2016 M/S. VIVITA INDIA LTD. MUMBAI, DATED: COPY OF THE ORDER FORWARDED TO : ( 1 ) THE ASSESSEE; ( 2 ) THE REVENUE; ( 3 ) THE CIT(A); ( 4 ) THE CIT, MUMBAI CITY CONCERNED; ( 5 ) THE DR, ITAT, MUMBAI; ( 6 ) GUARD FILE . TRUE COPY BY ORDER KARUNA SR. P.S. (SR. PRIVATE SECRETARY) ITAT, MUMBAI