M/s. Bharat Agro Industries, Patan V. The Income tax Officer,Ward-2, Patan

ITA 2871/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80308 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 9 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 22-08-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 18-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SINGH SR DR
• Assessee Lawyers: P M MEHTA

Judgement Text

, , , , C, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.2871/AHD/2011 [ASSTT.YEAR : 2005-2006] M/S.BHARAT AGRO INDUSTRIES SIDDHPUR/PATAN. PAN : AAFFB 8414 J /VS. ITO, WARD-2 PATAN. ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 )/ ASSESSEE BY : SHRI P.M. MEHTA + 2 3 )/ REVENUE BY : SHRI M.K. SINGH, SR.DR 5 2 &(*/ DATE OF HEARING : 22 ND AUGUST, 2014 678 2 &(*/ DATE OF PRONOUNCEMENT : 05/09/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2005-2006 IS DIRECTED AGAINST THE OR DER OF THE CIT(A). 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE THE DISPOSAL OF ASSESSEES APPEAL BY THE IMPUGNED APPELLATE ORDE R IS A NULLITY IN LAW AND DESERVES TO BE SET ASIDE FOR RE-ADJUDICATIO N BY THE CIT(A). ITA NO.2871/AHD/2011 -2- 2. WITHOUT PREJUDICE, ON THE FACTS AND IN THE CIRCU MSTANCES OF THE CASE, THE ADDITIONS/DISALLOWANCE UPHELD BY THE CIT( A) DESERVES TO BE DELETED. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE CIT(A) ERRED IN NOT UPHOLDING THE ASSESSEES CHALLENGE TO INTEREST U/S.234B. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT DUE TO ADVERSE CIRCUMSTANCES, THE ASSESSEES PARTNER COULD NOT APP EAR BEFORE THE AO OR CIT(A) OR BEFORE THE TRIBUNAL IN THE FIRST ROUND OF THE APPEAL. HOWEVER, HE SUBMITTED THAT THERE WAS A SUFFICIENT CAUSE FOR NON-APPEARANCE BEFORE THE AUTHORITIES ON THE PART OF THE ASSESSEE, INASMU CH AS, MAIN WORKING PARTNER OF THE ASSESSEE, SHRI DILIP SINGH BHATI WAS ABSCONDING DUE TO MANY COURT PROCEEDINGS AGAINST HIM, AND OTHER PARTN ERS WERE NOT AWARE OF ANY PENDING TAX PROCEEDINGS BEFORE THE AUTHORITIES. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT NOW OTHER PARTNERS HAVE ALREADY INTIMATED CHANGE OF THE ADDRESS AND UNDERTAKE TO COOPERATE WI TH THE DEPARTMENT IN THE MATTER OF FINALIZATION OF THEIR ASSESSMENT, AND IT SHALL BE IN THE INTEREST OF JUSTICE TO GIVE OPPORTUNITY OF HEARING TO OTHER PARTNERS OF THE FIRM. THE LEARNED DR HAS OPPOSED THE SUBMISSION OF THE LEARNE D COUNSEL. HE SUBMITTED THAT ATTENDANCE OF OTHER PARTNERS IN THIS CASE SHOULD BE ENSURED BEFORE THE GIVING SECOND CHANCE TO THE ASSESSEE. H E RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A), AND THE CONTENTS OF THE PARTNERS HIP DEED DATED 8.12.2003 EXECUTED BETWEEN THE PARTNERS OF THE ASSE SSEE FIRM. IN VIEW OF THE ADVERSE CIRCUMSTANCES EXPLAINED BY THE LEARNED COUNSEL FOR THE ASSESSEE, AND THAT MAIN WORKING PARTNER SHRI DILIP SINGH BHATI WAS ABSCONDING DUE TO COURT PROCEEDINGS AND OTHER PARTN ERS WERE NOT AWARE OF ITA NO.2871/AHD/2011 -3- ANY PENDING PROCEEDINGS BEFORE THE TAX AUTHORITIES, WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTICE TO GIVE THE ASSESSEE ONE MORE CHANCE TO LEAD EVIDENCE IN SUPPORT OF ITS CASE. HOWEVER, CON SIDERING THE PAST CONDUCT OF THE ASSESSEE-FIRM, AND TO ENSURE ATTENDA NCE AND COOPERATION OF THE ASSESSEE, WE ARE OF THE CONSIDERED VIEW THAT IT SHALL BE IN THE FITNESS OF THINGS TO RESTORE THE ORDER OF THE CIT(A) TO HIS FI LE WITH DIRECTION TO FRAME A DE NOVO APPELLATE ORDER IN ACCORDANCE WITH LAW AFTER PROVID ING REASONABLE OPPORTUNITY OF HEARING TO BOTH THE PARTI ES. THE ASSESSEE SHALL BE AT LIBERTY TO FILE ANY EVIDENCE TO SUPPORT ITS C ASE BEFORE THE CIT(A). THE ASSESSEE IS DIRECTED TO OBTAIN THE NOTICE OF HE ARING WITHIN A PERIOD OF 30 DAYS FROM THE RECEIPT OF THIS ORDER ON ITS OWN, FROM THE OFFICE OF THE CIT(A), AND SHALL COOPERATE IN THE MATTER OF DISPOS AL OF ITS APPEAL BEFORE HIM. THE CIT(A) IS DIRECTED THAT HE MAY CALL FOR R EMAND REPORT FROM THE AO, IN CASE THE ASSESSEE RELIES ON CERTAIN DOCUMENT S NOT BEFORE THE AUTHORITIES, ON WHICH, THE CIT(A) CONSIDERS IT PROP ER TO OBTAIN COMMENTS OF THE AO. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD