Soubhagya Projects (P) Limited, Ravulapalem V. The Assistant Commissioner of Income Tax, Circle-1, , Rajahmundry

ITA 307/VIZ/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5712 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 17-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K SONOWAL
• Keywords: Principle of natural justice; Additional evidence
• Section: 201; 22; 147; 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM , . . , BEFORE SHRI N.K.CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HONBLE ACCOUNTANT MEMBER ./ I.T. A.NO. 306 & 307 /VIZ/20 19 ( / A SSESSMENT Y EAR : 201 0 - 11 ) M/S SOUBHAGYA PROJECTS (P) LTD. D.NO.8 - 243, RAVULAPALEM MAIN ROAD, OPP.POLICE STATION EAST GODAVARI DIST. [PAN : AAECS2802H] VS. ASST.COMMISSIONER OF INCOME TAX CIRCLE - I RAJAMAHENDRAVARAM ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI G.V.N.HARI, AR /REVENUE BY : S HRI D.K.SONOWAL, CIT(DR) / DATE OF HEARING : 09 .0 9 .2021 / DATE OF PRONOUNCEMENT : 17 .0 9 .2021 / O R D E R P ER BENCH : THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) [CIT(A)], RAJAMAHENDRAVARAM IN APPEAL NO. 0012/2013 - 14/CIT(A)/RJY DATED 14.02.2019 AND ITA NO.10276/2016 - 17/CIT(A)/RJY DATED 22.02.2019 FOR THE ASSESSMENT YEAR (A.Y.) 2010 - 11. SINCE THE FACTS ARE IDENTICAL, THESE APPEALS ARE CLUBBED, HEARD TOGETHER AND A COMMON ORDER IS BEING PASSED FOR THE SAKE OF CONVENIENCE AS UNDER. 2 ITA NO. 306 & 307/VIZ/2019 , A.Y.20 1 0 - 11 M/S SOUBHAGYA PROJECTS (PVT.) LTD.,RAVULAPALEM 2. ASSESSMENT IN THIS CASE FOR THE A.Y.2010 - 11 WAS COMPLETED U/S 144 R.W.S. 147 OF THE INCOME TAX ACT, 1961 (IN SHORT ACT) B Y AN ORDER DATED 28.12.2016 ON TOTAL INCOME OF RS.11,18,48,449/ - . FOR THE SAME A.Y IN APPEAL NO.306/VIZ/2019, THE ASSESSMENT WAS COMPLETED U/S 144 OF THE ACT, BY ORDER DATED 14.02.2013 ON TOTAL INCOME OF RS.5,73,22,480/ - . THE ASSESSEE FILED APPEALS BEFO RE THE CIT(A) AND THE LD.CIT(A) DISPOSED OF THE APPEALS BY COMMON ORDER DATED 14.02.2019 DISMISSING BOTH THE APPEALS. 3. AGAINST WHICH THE ASSESSEE FILED APPEALS BEFORE THIS TRIBUNAL. WHEN THESE APPEALS ARE TAKEN UP FOR HEARING, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE BEFORE THE LD.CIT(A) WHO IN TURN FORWARDED THE SAME TO THE ASSESSING OFFICER (AO), CALLING FOR THE REMAND REPORT IN BOTH THE CASES AND THE TIME LIMIT WAS GIVEN TO THE AO FOR F URNISHING THE REMAND REPORT TILL 22 . 02 . 2019 AND WITHOUT WAITING FOR THE REMAND REPORT, THE LD.CIT(A) HA D PASSED THE ORDER ON 14.02.2019 IN THE CASE OF REGULAR ASSESSMENT MADE U/S 144 AND IN THE CASE OF REASSESSMENT U/S 144 R.W.S. 147 ON 22.02.2019 . IN BOTH THE APPEALS, THE LD.AR SUBMITTED THAT THE LD.CIT(A) DID NOT CONSIDER THE ADDITIONAL EVIDENCE FURNISHED BY THE ASSESSEE THOUGH ADMITTED AND CALLED FOR REMAND REPORT FROM THE AO . THEREFORE, SUBMITTED THAT THE APPEAL ORDERS PASSED BY THE LD.CIT(A) MAY 3 ITA NO. 306 & 307/VIZ/2019 , A.Y.20 1 0 - 11 M/S SOUBHAGYA PROJECTS (PVT.) LTD.,RAVULAPALEM BE REMITTED BACK TO THE FILE OF THE LD.C IT(A) FOR RE - ADJUDICATION AFTER CONSIDERING THE ADDITIONAL EVIDENCE SUBMITTED BY THE ASSESSEE. 4. ON THE OTHER HAND, THE LD.DR FAIRLY EXPRESSED NO OBJECTION FOR REMITTING THE MATTER BACK TO THE FILE OF THE LD.CIT(A). 5. WE HAVE HEARD BOTH THE PARTIES A ND PERUSED THE MATERIAL PLACED ON RECORD. IN THE INSTANT CASE, THE ASSESSEE HAS SUBMITTED ADDITIONAL EVIDENCE TO THE LD.CIT(A) DURING THE PENDENCY OF APPEAL PROCEEDINGS. THE LD.CIT(A) AFTER HAVING ADMITTED THE ADDITIONAL EVIDENCE FORWARDED THE SAME TO THE AO FOR SUBMISSION OF REMAND REPORT. THOUGH ON EARLIER OCCASIONS, THE ASSESSEE COULD NOT COMPLY WITH THE NOTICES GIVEN BY THE AO, AS A LAST CHANCE, THE LD.CIT(A) HAS DIRECTED THE AO TO SUBMIT THE REMAND REPORT ON OR BEFORE 22/02/2019. HAVING GIVEN TIME F OR SUBMISSION OF THE REMAND REPORT THE AO OUGHT TO HAVE WAITED TILL THE LAST DATE. THE CORRECT PROCEDURE IS AFTER THE RECEIPT OF REMAND REPORT THE LD.CIT(A) REQUIRE D TO GIVE OPPORTUNITY TO THE ASSESSEE AND THEN DECIDE THE APPEAL .WITHOUT WAITING FOR THE RE MAND REPORT AND GIVING OPPORTUNITY TO THE ASSESSEE TO SUBMIT ITS COMMENTS ON THE REMAND REPORT THE LD.CIT(A) DECIDED THE APPEALS , WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE.. THEREFORE, IN THE INTEREST OF JUSTICE, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUES NEEDS TO BE 4 ITA NO. 306 & 307/VIZ/2019 , A.Y.20 1 0 - 11 M/S SOUBHAGYA PROJECTS (PVT.) LTD.,RAVULAPALEM REMITTED THE BACK TO THE FILE OF THE LD.CIT(A) FOR ADJUDICATION A FRESH ON MERITS. ACCORDINGLY WE, DIRECT THE LD.CIT(A) TO DECIDE THE ISSUE AFRESH AFTER GIVING OPPORTUNITY TO THE AO FOR SUBMISSION OF THE REMAND REPORT AND ALSO GIVE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, APPEALS OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER, 2021. SD/ - SD/ - ( ) ( . . ) (N.K.CHOUDHRY) (D.S.SUNDER SINGH) / JUDICIAL MEMBER / ACCOUNTANT MEMBER DATED : 17 .0 9 .2021 L.RAMA, SPS 5 ITA NO. 306 & 307/VIZ/2019 , A.Y.20 1 0 - 11 M/S SOUBHAGYA PROJECTS (PVT.) LTD.,RAVULAPALEM / COPY OF THE ORDER FORWARDED TO : - 1 . / THE REVENUE - ASST.COMMISSIONER OF INCOME TAX , CIRCLE - I, RAJAMAHENDRAVARAM 2 . / THE ASSESSEE - M/S SOUBHAGYA PROJECTS (P) LTD., D.NO.8 - 243, RAVULAPALEM, MAIN ROAD, OPP.POLICE STATION, EAST GODAVARI DIST. 3. THE PR.COMMISSIONER OF INCOME TAX , RAJAMAHENDRAVARAM 4. THE COMMISSIONER OF INCOME TAX (APPEALS) , RAJAMAHENDRAVARAM 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM