M/s Fine Blanking Pvt Ltd , Hubli V. Joint Commissioner of Income tax Range-3, Hubli

ITA 2919/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2447 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 24-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SUKUMAR BENGALURU
• Assessee Lawyers: S V RAVISHANKAR
• Keywords: Capital expenditure; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO. 2919/BANG/2018 ASSESSMENT YEAR : 2013-14 M/S. FINE BLANKING PVT. LTD., BLOCK NO.201/2, 202/1 & 202/2, REVADIHAL ROAD, GOKUL VILLAGE, HUBLI 580 030. PAN: AAACF 2752K VS. THE JOINT COMMISSIONER OF INCOME TAX, RANGE-3, HUBLI. APPELLANT RESPONDENT APP LIC ANT BY : SHRI S.V. RAVISHANKAR, ADVOCATE RESPONDENT BY : SHRI S. SUKUMAR , ADDL.CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 17 . 0 6 .2019 DATE OF PRONOUNCEMENT : 21 . 0 6 .201 9 ORDER PER BEENA PILLAI JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 24.08.2018 PASSED BY LD.CIT(APPEALS), HUBBALLI PERT AINING TO ASSESSMENT YEAR 2012-13, ON FOLLOWING GROUNDS OF APPEAL:- ITA NO. 2919/BANG/2018 PAGE 2 OF 4 1. THE ORDER OF THE CIT (A) IN SO FAR AS THEY ARE AGAINST THE APPELLANT ARE OPPOSED TO LAW, EQUITY, AND WEIGHT OF EVIDENCE, PROBABILITIES, FACTS AND CIRCUMSTANCES OF THE CASE. 2. THE APPELLANT DENIES ITSELF LIABLE TO BE ASSESSE D TO A TOTAL INCOME OF RS.85,20,090/- AS AGAINST THE TOTAL INCOM E RETURNED BY THE APPELLANT OF RS. 74,39,526/- FOR THE IMPUGNED A SSESSMENT YEAR 2013-14 ON THE FACTS AND CIRCUMSTANCES OF THE CASE. THE LEARNED CIT(A) WAS NOT JUSTIFIED ON FACTS AND I N LAW, IN STATING THAT THE APPELLANT HAS NOT FILED ANY SUBMISSIONS OR DOCUMENTS, WHICH IS CONTRARY TO TACT, ON THE FACTS AND CIRCUMS TANCES OF THE CASE. 4. THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMI NG THE DISALLOWANCES OF THE CURRENT REPAIRS OF RS. 12,11,1 52/- AS CAPITAL EXPENDITURE BY STATING THAT THE SAME HAD TO BE CAPI TALISED ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. WITHOUT PREJUDICE, THE LEARNED CIT(A) OUGHT TO H AVE APPRECIATED THAT THE EXPENDITURE WAS IN THE NATURE OF CURRENT REPAIRS OF MACHINERY AND NOT CAPITAL EXPENDITURE, THE EXPEN DITURE OUGHT TO HAVE BEEN ALLOWED AS EXPENDITURE UNDER SECTION 37, OF THE ACT. 6. THE LEARNED CIT(A) WAS NOT JUSTIFIED IN NOT PASS ING A SPEAKING ORDER AFTER CONSIDERING THE SUBMISSIONS AN D DOCUMENTS FILED AND HAS PASSED A PERVERSE ORDER ON THE FACTS AND CIRCUMSTANCES OF THE CASE. 7. THE APPELLANT DENIES THE LIABILITY TO PAY INTERE ST UNDER SECTION 234D OF THE ACT IN VIEW OF THE FACT THAT TH ERE IS NO LIABILITY TO ADDITIONAL TAX AS DETERMINED BY THE LEARNED ASSE SSING OFFICER. WITHOUT PREJUDICE THE RATE, PERIOD AND ON WHAT QUAN TUM THE INTEREST HAS BEEN LEVIED ARE NOT DISCERNABLE FROM T HE ORDER AND HENCE DESERVES TO BE CANCELLED ON THE FACTS AND CIR CUMSTANCES OF THE CASE. 8. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, MODIFY , DELETE OR SUBSTITUTE ANY OR ALL OF THE GROUNDS AND TO FILE A PAPER BOOK AT THE TIME OF HEARING THE APPEAL. ITA NO. 2919/BANG/2018 PAGE 3 OF 4 9. IN VIEW OF THE ABOVE AND OTHER GROUNDS THAT MAY BE TAKEN AT THE TIME OF THE HEARING THE APPEAL, THE APPELLAN T PRAYS THAT THE APPEAL BE ALLOWED IN THE INTEREST OF JUSTICE AND EQ UITY. 2. AT THE OUTSET IT HAS BEEN SUBMITTED BY LD. AR TH AT LD. CIT(A) PASSED IMPUGNED ORDER EX PARTE WITHOUT CONSIDERING THE ISSUES BASED UPON THE SUBMISSIONS FILED BEFORE HIM. IN THE STATEMENT FILE D ALONG WITH GROUNDS OF APPEAL BEFORE THIS TRIBUNAL ASSESSEE SUBMITTED THAT NOTICE OF HEARING FIXED ON 27/03/18 WAS RECEIVED BY ASSESSEE BEYOND TIME, H OWEVER, ASSESSEE FILED WRITTEN SUBMISSION, COPIES OF INVOICES, FINAN CIALS WITH SCHEDULES AND CASE LAWS BY WAY OF EMAILS AS WAS REQUIRED IN THE N OTICE. ASSESSEE HAS ALSO ANNEXED THE COPY OF EMAIL. 3. IT HAS BEEN SUBMITTED THAT THE IMPUGNED ORDER PA SSED BY LD. CIT(A) IS WITHOUT REFERRING TO THOSE SUBMISSIONS MADE BY A SSESSEE BY EMAIL. 4. LD.SR.DR, SUBMITTED THAT THE ISSUE MAY BE SET AS IDE TO LD. CIT (A) FOR CONSIDERING THE ISSUE BASED UPON THE SUBMISSION S FILED BY ASSESSEE. 5. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 6. IT IS OBSERVED THAT LD.CIT (A) DID NOT DECIDE TH E ISSUE ON MERITS HAVING REGARD TO THE SUBMISSIONS MADE BY ASSESSEE. 7. WE ARE THEREFORE INCLINED TO SET ASIDE THIS APPE AL BACK TO LD.CIT (A) WITH A DIRECTION TO CONSIDER THE EVIDENCES FILED BY ASSESSEE AND TO DECIDE THE GROUNDS RAISED IN ACCORDANCE WITH LAW. ASSESSEE SHALL ALSO FILE ALL REQUISITE DETAILS BEFORE LD. CIT (A) AS CALLED FOR IN ORDER TO SUPPORT ITS CLAIM. LD. CIT (A) SHALL THEN PASS A DETAILED ORDER ON MERITS. NEEDLESS TO ITA NO. 2919/BANG/2018 PAGE 4 OF 4 SAY THAT, FAIR AND REASONABLE OPPORTUNITY SHALL BE GRANTED TO ASSESSEE IN ACCORDANCE WITH LAW. 8. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT, THE APPEAL BY THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF JUNE, 2019. SD/- ( A.K. GARODIA ) SD/ - ( BEENA PILLAI ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 21 ST JUNE, 2019. / D ESAI S MURTHY / COPY TO: 1. APP LICANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD F ILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE.