M/s South Kanara Gold Smith Industrial Co-Operative Society Ltd., Mangalore V. ITO, Mangalore

ITA 32/BANG/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95360 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 12-11-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 13-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P K SRIHARI
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE A BENCH, BANGALORE BEFORE SMT ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NOS.32,33 & 34(BNG)/2015 (ASSESSMENT YEARS : 2009-10,2010-11 & 2011-12) M/S SOUTH CANARA GOLD SMITH INDUSTRIAL CO-OP. SOCIE TY LTD. VISHWAS SOUDHA, NH 66, KOTTARA CHOWK, MANGALORE-575 006 PAN NO.AABAS4056N APPELLANT VS THE INCOME-TAX OFFICER, WARD, MANGALORE RESPONDENT ASSESSEE BY : SHRI SURESH MUTHUKRISHNAN, CA REVENUE BY : DR. P.K.SRIHARI, ADDL.CIT DATE OF HEARING : 12-11-201 5 DATE OF PRONOUNCEMENT : 13-11-2015 O R D E R PER SHRI INTURI RAMA RAO, AM : THESE ARE APPEALS BY THE ASSESSEE DIRECTED AGAINST THE COMMON ORDERS OF THE CIT(A), MYSORE DATED 19-08-2014 FOR T HE ASSESSMENT YEARS : 2009-10, 2010-11 & 2011-12 RESPECTIVELY. 2. BRIEFLY THE FACTS ARE THAT THE ASSESSEE A CO-OP ERATIVE SOCIETY ENGAGED IN THE BUSINESS OF EXTENDING CREDIT FACILIT Y TO ITS MEMBERS. IN THIS CASE, THERE WAS A SURVEY U/S 133A OF THE IT ACT, CO NDUCTED AT THE OFFICE 2 ITA NOS.32,33 & 34(B)/2015 PREMISES ON 03-12-2013, TO VERIFY THE COMPLIANCE WI TH THE PROVISIONS OF CHAPTER-XVII-B OF THE IT ACT. DURING THE COURSE OF VERIFICATION, IT WAS FOUND THAT ASSESSEE CO-OPERATIVE SOCIETY HAD FAILED TO DEDUCT TAX AT SOURCE ON THE COMMISSION PAYMENTS MADE TO PYGMY COMMISSION AGENTS AND THE PAYMENTS MADE TO CONTRACTORS WHO CARRIED OUT REPAIR S AND MAINTENANCE/ALTERATION OF BUILDINGS. CONSEQUENTLY, A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE ON 19-03-2014 SEEKING EX PLANATION AS TO WHY THE ASSESSEE CO-OPERATIVE SOCIETY SHOULD NOT BE TRE ATED AS THE ASSESSEE IN DEFAULT AND FINALLY IT WAS HELD BY THE AO THE ASSESSEE IS I N DEFAULT IN TERMS OF SEC.201(1) OF THE IT ACT, AND DEMANDED TAX OF RS .2,20,693/-. IT WAS FOUND THAT THE ASSESSEE HAD NOT RESPONDED TO THE SH OW CAUSE NOTICE ISSUED BY THE AO AND THE ORDER WAS PASSED EX-PARTE. 3. BEING AGGRIEVED, THE ASSESSEE FILED APPEAL BEFOR E THE CIT(A). THE CIT(A) VIDE HIS IMPUGNED ORDER DATED 19-08-2014 DIS MISSED THE APPEALS FILED BY THE ASSESSEE. IT WAS CONTENDED BEFORE T HE CIT(A) THAT DUE TO SHORT NOTICE, ASSESSEE COULD NOT RESPOND TO THE SHOW CAUS E NOTICE. 4. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE STATED SINCE NO 3 ITA NOS.32,33 & 34(B)/2015 EXPLANATION COULD BE FILED BY THE ASSESSEE FOR WANT OF REASONABLE TIME, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE AO F OR DENO-VO CONSIDERATION. 5. LEARNED SENIOR DR HAS NO SERIOUS OBJECTION FOR T HE SAME. ACCORDINGLY, WE ARE OF THE CONSIDERED OPINION, THAT THE INTEREST OF JUSTICE WOULD BE MET, IF THE MATTER IS RESTORED TO THE FILE OF THE AO FOR DENO-VO CONSIDERATION, AFTER AFFORDING A REASONABLE OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE APPEALS FILED BY THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 13 TH NOVEMBER, 2015. SD/- (ASHA VIJAYARAGHAVAN SD/- (INTURI RAMARAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE D A T E D : 13-11-2015 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER, AR,ITAT, BANGALORE