M/s. Ram Construction Co., Surat V. The Dy.CIT.,Circle-2, Surat

ITA 3/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89366 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 24-04-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 03-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: M K PATEL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHRI SHAILENDRA KR. YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER M/S. RAM CONSTRUCTION CO., 202, KINJAL APARTMENT, KAILASH NAGAR, SAGRAMPURA, SURAT PAN: AAHFR9233K (APPELLANT) VS DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE- 2,SURAT. (RESPONDENT) ASSESSEE BY: SHRI M.K. PATEL, A.R. REVENUE BY: SMT. SONIA KUMAR, SR.D.R. DATE OF HEARING : 24-04-2015 DATE OF PRONOUNCEMENT : 30-04-2015 / ORDER PER : SHAILENDRA KR. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE E X-PARTE ORDER OF LD. CIT(A)-II, SURAT DATED 10-11-2010 ON T HE FOLLOWING GROUNDS:- ITA NO. 03/AHD/2011 ASSESSMENT YEAR 2007-08 I.T.A NO. 03/AHD/2011 A.Y. 2007-08 PAGE NO M/S. RAM CONSTRUCTION CO. VS. DCIT 2 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONE R OF THE INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING TH E ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS 3,74,086/- ON ACCOUNT OF NON SHOWING OF CLOSING STO CK AT THE END OF THE YEAR. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONE R OF THE INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING TH E ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS 47,15,350/- OUT OF TOTAL CARTING EXPENSES OF RS. 1,88,61,482/- AS UNEXPLAINED EXPENSES I.E. (25% OF 1,88,61,402/- TOTAL CARTING EXPENSE). 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONE R OF THE INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING TH E ACTION OF THE ASSESSING OFFICER IN MAKING ADDITION OF RS 42,99,505/- AS UNVERIFIABLE LABOUR EXPENSES OUT OF TOTAL LABOUR EXPENSES OF RS. 1,71,98,021/- AS UNJUSTIFIED LABOUR EXPENSES I.E. (25% OF RS. 1,71,98,021/- TOTA L LABOUR EXPENSE). 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS AGAINST TH E EX- PARTE ORDER PASSED BY CIT(A). LD. AUTHORIZED REPRE SENTATIVE SUBMITTED THAT MATTER WAS ADJOURNED AT THE REQUEST OF ASSESSEE FOR FEW DATES AND IT WAS FIXED ON 3 RD NOVEMBER, 2010 AND THE SAME WAS DECIDED EX-PARTE SINCE NONE APPEAR ED ON BEHALF OF ASSESSEE. IN THIS REGARD, STAND OF ASSE SSEE HAS BEEN THAT DUE TO DIWALI FESTIVAL HIS OFFICE WAS NOT OPEN ED SO DUE TO COMMUNICATION GAP HE COULD NOT ATTEND THE PROCEEDIN GS AND REQUEST TO SET ASIDE EX-PARTE ORDER. ON THE OTHER HAND, LD. DR I.T.A NO. 03/AHD/2011 A.Y. 2007-08 PAGE NO M/S. RAM CONSTRUCTION CO. VS. DCIT 3 SUPPORTED THE ORDER OF CIT(A) ON PRELIMINARY ISSUE AS WELL AS MAIN ISSUE. 3. AFTER GOING THROUGH RIVAL SUBMISSION AND MATERIA L ON RECORD, WE FIND THAT MATTER WAS ADJOURNED ON CERTAI N DATES AND FINALLY IT WAS ADJOURNED TO 3 RD NOVEMBER, 2010 AND EX- PARTE ORDER WAS PASSED BY CIT(A) BECAUSE NONE ON BE HALF OF ASSESSEE APPEARED. WE CANNOT ENCOURAGE THE APATHY TOWARDS PROCEEDINGS BEFORE AUTHORITIES BELOW. HOWEVER, AT T HE TIME DUE OPPORTUNITY OF HEARING IS ALSO ESSENTIAL FOR JUSTIC E. SO, IN THE INTEREST OF JUSTICE, ORDER OF CIT(A) IS SET ASIDE S UBJECT TO PAYMENT OF COST OF RS. 20,000/- TO BE DEPOSITED IN LEGAL AID OF GUJARAT HIGH COURT. THE MATTER IS RESTORED TO CIT( A) WITH DIRECTION TO DECIDE THE SAME AS PER FACT AND LAW AF TER PROVIDING DUE OPPORTUNITY TO THE ASSESSEE. 4. SINCE WE ARE RESTORING THE MATTER TO CIT(A) ON PRELIMINARY ISSUE, WE ARE REFRAINING TO COMMENT ON MERIT OF THE ISSUE AT HAND. 5. AS A RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE AS INDICATED ABOVE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE I.E. 30/04/2015 SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KR . YADAV) ACCOUNTANT MEMBER JUDICIAL ME MBER AHMEDABAD : DATED 30/04/2015 I.T.A NO. 03/AHD/2011 A.Y. 2007-08 PAGE NO M/S. RAM CONSTRUCTION CO. VS. DCIT 4 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,