SJR COMMODITIES & CONSLUTANCIES P.LTD, MUMBAI V. DCIT CIR 8(3), MUMBAI

ITA 2973/MUM/2013

• Counselvise Citation: 297319914 RSA 2013
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 28-07-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 17-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS V J MENON
• Assessee Lawyers: RAJESH SHAH
• Keywords: Opportunity of being heard
• Section: 143(3); 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE S/SHRI A.D.JAIN (JM) AND RAJENDRA (AM) . . , , ./ I.T.A. NO. 29 73 / MUM/20 1 3 ( / ASSESSMENT YEAR : 200 7 - 08 ) M/S SJR COMMODITIES AND CONSULTANCIES PVT. LTD., 151/152/153, C WING, MITTAL COURT, NARIMAN POINT, MUMBAI - 400021 / VS. THE ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 8(3), MUMBAI . ( / APPELLANT ) .. ( / RESPONDENT ) ./ ./PAN/GIR NO. : AAACS9779H / APPELLANT BY SHRI RAJESH SHAH / RESPONDENT BY MRS.V J MENON / DATE OF HEARING : 2 8 . 7 . 201 5 / DATE OF PRONOUNCEMENT : 28.7 . 201 5 / O R D E R PER A D JAIN ( J M) THIS IS ASSESSEES APPEAL FOR THE ASSESSMENT YEAR 200 7 - 08 , CONTENDING THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE PEN ALTY U/S 271(1)(C) OF THE ACT BEING RS.7 , 09 , 259/ - . 2. BRIEFLY STATED , THE RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND DEALING IN DIAMONDS AND SEMI - PRECIOUS STONES. THE A SSESSEE FILED THE RETURN OF INC OME DECLARING THE TOTAL INCOME OF RS. 30,63,530/ - AFTER CLAIMING THE SET OFF OF BROUGHT FORWARD LOSSES OF EARLIER YEARS AMOUNTING TO RS. 20,72,683/ - . THE A SSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT AND THE ASSESSED INCOME OF THE ASSESSEE WAS DETERMINED AT RS.1,59,92,260/ - . DURING THE ASSESSMENT PROCEEDINGS, THE AO MADE CERTAIN ITA NO. 29 73 / MUM/20 1 3 2 DISALLOWANCES , I . E . , (I) DISALLOWANCE OF INTEREST OF RS. 95,85,467/ - ; (II) DISALLOWANCE OF RS. 6,50,350/ - U/S 14A READ WITH RULE - 8D; AND (III) ADDITION OF RS. 21,07,126/ - U/S 41(1) OF THE ACT. ACCORDINGLY, THE AO INITIATED PENALTY PROCEEDINGS U/S 271 (1)( C ) OF THE ACT AND LEVIED PENALTY OF RS.39,35,726/ - . IN THE FIRST APPELLATE PROCEEDINGS, THE LD.CIT(A) REDUCED IT TO RS.7,09,259/ - . 3. BEFORE US, AT THE OUTSET, THE LD. COUNSE L APPEARING FOR THE ASSESSEE SUBMITTED THAT THE QUANTUM ADDITION MADE BY THE AO WAS CHALLENGED BEFORE THE CIT(A) AND THE LD.CIT(A) , WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE CONFIRMED THE ADDITIONS MADE BY THE AO. IN THE SECOND APP EAL BEFORE THE TRIBUNAL , THE TRIBUNAL , VIDE ORDER DATED 5.6.2013 , PASSED IN ITA NO.7971/MUM/2010 (AY - 2007 - 08) , HAS SET ASIDE THE ORDER OF LD.CIT(A) BEING EX - PARTE AND HAS RESTORE D THE SAME TO HIS FILE , WITH A DIRECTION TO DECIDE THE ISSUES DE - NOVO AFTER G IVING A REASONABLE AND PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. THE LD. DR DID NOT CONTROVERT THE ABOVE SUBMISSIONS MADE BY THE LD. COUNSEL OF THE ASSESSEE. 5 . SINCE THE ISSUE OF QUANTUM ADDITION HAS BEEN RESTORED TO THE FILE OF THE LD. CI T(A), THE ISSUE PERTAINING TO THE LEVY OF PENALTY ALSO NEEDS TO BE RESTORED TO THE FILE OF THE LD.CIT(A) , BEING PREMATURE . ACCORDINGLY, WE SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE THE ISSUE TO HIS FILE TO DECIDE THE SAME IN ACCORDANCE WITH LAW. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 28TH JULY , 2015. 28 TH JULY , 2015 SD SD ( / RAJENDRA) ( . . , / A.D. JAIN ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI: 28TH JULY ,2015 . ITA NO. 29 73 / MUM/20 1 3 3 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - CONCERNED 4. / C IT CONCERNED 5. , , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , /ITAT, MUMBAI