MITTAL PIGMENTS PVT. LTD., Jaipur V. CIT, Kota

ITA 320/JPR/2014

• Counselvise Citation: 32023114 RSA 2014
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 29-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUBHASH CHANDRA
• Assessee Lawyers: P V MAHESHWARI
• Keywords: Opportunity of being heard; Principle of natural justice; Period of limitation; Bad and doubtful debts; Difference of opinion; Assessment record; Tax effect; Time period of passing order; Change of opinion
• Section: 43B; 143(3); 145; 37; 263

Judgement Text

IN THE INCOMETAX APPELLATE TRIBUNAL JAIPUR BENCH: JAIPUR (BEFORE SHRI R.P. TOLANI AND SHRI T.R. MEENA) I.T.A. NO. 320/JP/2014 ASSTT. YEAR- 2009-10 PAN NO. AABCM 1418 N M/S MITTAL PIGMENTS PVT. LTD., THE C.I.T., 203, ROAD NO. 5, INDRA PRASTH VRS. KOTA. INDUSTRIAL AREA, KOTA, (RAJ.). (APPELLANT) (RESPONDENT) ASSESSEE BY :- SHRI P.V. MAHESHWARI. DEPARTMENT BY :- SHRI SUBHASH CHANDRA. DATE OF HEARING : 14/10/2014 DATE OF PRONOUNCEMENT : 21/11/2014 O R D E R PER: T.R. MEENA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 24/03/2014 OF THE LEARNED CIT, KOTA FOR THE A.Y. 20 09-10. THE EFFECTIVE GROUNDS OF APPEAL ARE AS UNDER:- 1 THAT THE LEARNED COMMISSIONER OF INCOME TAX, KOTA HAVE GROSSLY ERRED IN REVISING/REOPENING THE ASSESSMENT DONE U/S 143(3) BY INVOKING SEC. 263 OF THE I.T. ACT, 1956. 2. THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX U NDER SEC. 263 OF THE I.T. ACT IS INVALID BECAUSE THE ASSE SSEE WAS NOT PROVIDED PROPER OPPORTUNITY OF BEING HEARD FURT HER THE ORDER IS ALSO TIME BARRED, THE SAME HAVING BEEN MAD E AFTER THE LIMITATION PERIOD. ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 2 3. THAT THE COMMISSIONER OF INCOME TAX HAVE GROSSLY E RRED ON LAW AND FACTS IN HOLDING THE ASSESSMENT ORDER ERRONE OUS AND ALSO ERRED IN PROPOSING TO THE A.O. FOR MAKING ADDI TION ON FOLLOWING ISSUES. 3.1 P.F. AMOUNT RS. 12342/- AND ESI RS. 6101/- THO UGH DEPOSITED BEFORE FILING OF I.T. RETURN U/S 139(1). 3.2 INTEREST RS. 5575/- IS ADDED AND RS. 5575/- IS DISALLOWED SIMILARLY INTEREST ON BUYERS CREDIT RS. 8 1652/-. THE CLAIM IS GENUINE AND DETAILS ARE IN THE RECORDS OF THE A.O. 3.3 TCS ON SCRAP RS. 250395/- STATING TO BE NOT DEP OSITED, THOUGH NOT APPLICABLE AND ALSO TO LEVY PENALTY U/S 221. 3.4 BAD DEBTS RS. 180694/- ON ACCOUNT OF M/S UTTAM GALVA STEEL LTD. BEING UNRECOVERABLE HENCE WRITTEN OFF. 3.5 CURRENCY FLUCTUATION AMOUNT OF RS. 586419.00. THE DIFFERENCE IS BOOKED AS PER RATES AS ON 31/03/2008 THAT IS AS PER APPLICABLE ACCOUNTING STANDARDS AS WELL IN COMPL IANCE TO SECTION 145 OF I.T. ACT, 1961. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND T HE GROUND OF APPEAL. 2. THE ASSESSEE IS ENGAGED IN THE MANUFACTURING, TRA DING EXPORT, IMPORT OF CHEMICALS. THE ASSESSEE FURNISHED RETURN D ECLARING INCOME AT RS. 6,21,410/- ON 29/9/2009. THIS CASE WAS SCRUTINIZ ED U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS THE AC T) AND ORIGINAL ASSESSMENT ORDER WAS PASSED ON 28/12/2011 BY THE ASS ESSING OFFICER AND FOLLOWING ADDITIONS WERE MADE (I) JOB WORK CHARGES RS . (II) 27,200/-, (III) ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 3 FREIGHT FORWARDING EXPENSES RS. 27,370/-, FREIGHT TO OTHERS RS. 21,110/-. THE LEARNED C.I.T. HAD ISSUED IN THIS CASE A QUERY L ETTER VIDE NO. CIT/KTA/ITO(TECH)/2013-14/2311 DATED 25/11/2013 ON LATE DEPOSITED P.F., E.S.I., INTEREST PAID AND RECEIVED, SCRAP SEL L, TDS THEREON, BAD DEBT AND PURCHASES MADE FROM EUROPEAN METAL RECYCLING LT D. U.K.. AFTER CONSIDERING THE ASSESSEES REPLY, THE LEARNED CIT H ELD THAT CONTRIBUTION MADE BY THE EMPLOYEE TO PF. WAS RS. 12,342/-, NOT P ROPOSED BY THE OFFICE OF THE CIT AT RS. 26,352/-. ON THE REST OF TH E ISSUE, THE ASSESSING OFFICER HAS NOT APPLIED HIS MIND AND AFTER EXAMINAT IONS OF ASSESSMENT RECORD, REVEALS THAT THE ASSESSING OFFICER COMPLETE D THE ASSESSMENT U/S 143 OF THE ACT IN A ROUTINE MANNER. HE FOUND LACK O F VERIFICATION AND ALSO MISTAKEN VIEW OF LAW. ACCORDINGLY, ORDER HAS BEEN ERR ONEOUS AND PREJUDICE TO THE INTEREST OF THE REVENUE U/S 263 OF THE ACT. HE FURTHER RELIED UPON THE DECISION OF HONBLE DELHI HIGH COUR T IN THE CASE OF GEE VEE ENTERPRISES VS. ADDL. CIT 99 ITR 375 (DEL.), HON BLE MADRAS HIGH COURT DECISION IN THE CASE OF K.A. RAMASWAMY CHETTIA R AND ANR. VS. CIT 220 ITR 657, HONBLE GUJARAT HIGH COURT DECISION IN THE CASE OF CIT VS. MUKUR CORPORATION 111 ITR 312 (GUJ.), TARAJAN TEA CO. PVT. LTD. VS. CIT 205 ITR 45, K. VARMA VS. ITO 44 ITD 331 (AHMADABAD TRIB.), HON'BLE SUPREME COURT DECISION IN THE CASES OF RAMPYARI DEV I SAROGI VS. CIT ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 4 (1968) 67 ITR 84 AND TARA DEVI AGGARWAL VS. CIT (1973) 88 ITR 323. HE FURTHER RELIED UPON THE DECISION IN THE CASE OF DAW JEE DADABHOY & CO. VS. S.P. JAIN (1957) 31 ITR 872 (CAL.HIGH COURT), CIT VS. T. NARAYANA PAID (1975) 98 ITR 422 (KARNATAKA HIGH COURT), CIT VS. G ABRIEL INDIA LTD. (1993) 203 ITR 108/71 (BOMBAY HIGH COURT), AND DECI SION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. SMT. MINAL BEN S. PARIKH (1995) 215 ITR 81/79 TAXMAN 184, CIT VS. EMERY STONE MFG. & C O. 213 ITR 843 (RAJ. HIGH COURT) AND INDIA TEXTILES VS. CIT 157 ITR 1 12 (MADRAS) AND CONCLUDED THAT THE ASSESSEE HAD DEPOSITED PF LATE O N EMPLOYEES CONTRIBUTION AS PER SCHEDULE AT RS. 12,342/-, WHICH SHOULD HAVE BEEN CONSIDERED BY THE ASSESSING OFFICER AT THE TIME OF ORIGINAL ASSESSMENT. SIMILARLY, THE ASSESSEE COMPANY HAD DEPOSITED ESI L ATE AS PER SCHEDULE, WHICH IS ALSO WAS TO BE CONSIDERED BY THE ASSESSING O FFICER AT THE TIME OF ORIGINAL ASSESSMENT. FURTHER, HE FOUND THAT THE ASS ESSEE HAD PAID INTEREST OF RS. 28,403/- AND RECEIVED INTEREST AT RS. 5,575/ - FROM BANK OF RAJASTHAN BUT HAS ALSO BEEN DEBITED. THEREFORE, THE ASSESSEE HAD TAKEN DOUBLE BENEFIT AS ACTUALLY, IT SHOULD BE CREDITED T HE INTEREST OF ACCOUNT. THE COMPANY HAD MADE PROVISIONS FOR THE PAYMENT OF I NTEREST BUT NOT PAID U/S 43B OF THE ACT BEFORE THE DUE DATE OF RETU RN, WHICH SHOULD HAVE ALSO BE DISALLOWED BY THE ASSESSING OFFICER. DURING THE YEAR UNDER ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 5 CONSIDERATION, THE ASSESSEE HAD SHOWN SCRAP SALE OF RS. 2,50,39,512/-. SCRAP SALES ATTRACT TCS @ 1% AS PER PROVISIONS OF THE ACT. THE ASSESSEE HAD NOT DEDUCTED ANY TDS ON SCRAP, THEREFORE, THE AS SESSEES INCOME UNDER CHARGE OF INCOME BY RS. 2,50,39,512/- AND CON SEQUENT TAX EFFECT OF RS. 2,50,395/-. FURTHER, PENALTY U/S 221 MAY ALSO B E IMPOSED SINCE THE ASSESSEE COMPANY HAD NOT DEPOSITED THE TAX OF RS. 2 ,50,395/- WITHIN THE PRESCRIBED TIME LIMIT. THE ASSESSEE COMPANY HAD SHOWN BAD DEBTS OF RS. 1,80,694/- FROM UTTAM GALVA STEEL LTD., WHICH HAD BE EN INCURRED DURING THE YEAR BUT THE ASSESSEE HAS A CREDITOR OF COMPANY M/S UTTAM GALVA STEEL LTD. AND HAD A OUTSTANDING BALANCE OF RS. 1.2 0 CRORES, THEREFORE, THE COMPANY M/S UTTAM GALVA STEEL LTD., WAS THE CREDITOR OF M/S MITTAL PIGMENTS PVT. LTD.. THEREFORE, THE AMOUNT OF BAD DEB T OF RS. 1,80,694/- WAS NOT ALLOWABLE AND WAS TO CONSIDER AS THE INCOME OF THE COMPANY U/S 41(1) OF THE ACT. THE ASSESSEE HAD MADE PURCHASED O N 21/1/2009 FROM EUROPEAN METAL RECYCLING LTD. U.K. CONSISTING OF RS . 1,49,97,386/- AND NO PAYMENT FOR THE PURCHASES HAD BEEN MADE TILL THE YE AR END BUT ON 31/03/2009, THE ASSESSEE HAD DEBITED A SUM OF RS. 4 ,92,692/- ON ACCOUNT OF CURRENCY FLUCTUATION WHILE NO PAYMENT HAD BEEN MA DE TO THE PARTY, WHICH IS ALSO NOT ALLOWABLE AS LIABILITY HAD NOT BEE N ACCRUED AT ALL. SIMILARLY ON 01/4/2008, THE ASSESSEE HAD A DEBIT BA LANCE OF RS. 3,53,065/- ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 6 IN THE CASE OF HINDAF METAL MINING (T) LTD. AND DUR ING THE YEAR, THE COMPANY HAD NOT MADE ANY PAYMENT TO M/S HINDAF MET AL MINING (T) LTD. BUT ON 31/3/2009, A SUM OF RS. 93,727/- HAD BEEN DE BITED AS CURRENCY FLUCTUATION, WHICH IS ALSO NOT LIABLE TO BE ALLOWAB LE U/S 37 OF THE ACT. THE LEARNED CIT HELD THAT LOOKING TO THE ABOVE FACT, THE LEARNED ASSESSING OFFICER PASSED AN ORDER, WHICH IS FOUND TO BE ERRONE OUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE. THE LEAR NED ASSESSING OFFICER MADE ASSESSMENT WITHOUT PROPER INQUIRY/INVESTIGATION AS HE CANNOT REMAIN PASSIVE IN THE FACE OF A RETURN, WHICH IS APP ARENTLY IN ORDER BUT CALLS FOR FURTHER INQUIRY. THEREFORE, THE FACTS AND CIRCUMSTANCES OF THE CASE, CONSIDERED IT FIT TO BE SET ASIDE THE ASSESSM ENT WITH A DIRECTION TO THE ASSESSING OFFICER TO FRAME IT DE NOVO AFTER MAK ING PROPER INQUIRY AND VERIFICATION OF BOOKS OF ACCOUNT AND OTHER RECORDS/ DOCUMENTS AND AFTER FOLLOWING THE DIRECTIONS GIVEN IN THIS ORDER. 3. NOW THE ASSESSEE IS IN APPEAL BEFORE US. THE LEARN ED A.R. FOR THE ASSESSEE SUBMITTED THAT NOTICE HAS BEEN ISSUED U/S 263, THE APPELLANT SUBMITTED DETAILED REPLY RAISED ON VARIOUS ISSUES B Y THE LEARNED CIT, KOTA FOR P.F. AND E.S.I.. IT WAS CLAIMED THAT PAYMENTS WER E MADE BEFORE DUE DATE OF RETURN, WHICH IS ALLOWABLE AS PER LAW BY CONSI DERING THE VARIOUS DECISIONS OF THE JURISDICTIONAL HIGH COURT. AN F.D. R. OF RS. 56 LACS WAS ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 7 MADE ON 31/3/2008 AND A OVER DRAFT (OD) OF RS. 53 L ACS HAD BEEN MADE AGAINST THIS FDR, WAS AVAILED OR SAME DATE. FURTHER ON 07/4/2008, THE ABOVE FDR WAS ADJUSTED WITH OD AND INTEREST OF RS. 5, 575/- WAS CHARGED BY THE BANK ON OD AND BALANCE AMOUNT OF RS. 2,94,42 5/- CREDITED IN THE BANK ACCOUNT, THEREFORE, INTEREST OF RS. 5,575/- WAS INTEREST EXPENDITURE ON OD AGAINST FDR AND IT HAS BEEN CORRECTLY CLAIMED IN THE INTEREST PAID ACCOUNT. THE DETAIL OF INTEREST ACCOUNT IS AVAILABLE WITH ASSESSING OFFICER SINCE THE TIME OF PROCEEDING U/S 143(3) OF THE ACT. THE COMPANY MAINTAINED ITS ACCOUNT ON MERCANTILE SYSTEM OF ACCO UNTANCY, THEREFORE, THE INTEREST PAYABLE ON BUYERS CREDIT FOR PREVIOUS YEAR WAS PROVIDED FOR UNDER THE HEAD PROVISION FOR INTEREST ON BUYERS CR EDIT. INTEREST PAYABLE ON BUYERS CREDIT WAS PAID NEXT YEAR AND COPY OF LED GER HAS BEEN ENCLOSED WITH PAPER BOOK. FURTHER ACCORDING TO THE C ONCEPT OF ACCRUAL/MERCANTILE SYSTEM OF ACCOUNTING, THE INCOME AND EXPENDITURE RELATED TO CURRENT YEAR SHOULD BE PROVIDED IN SAME YEAR, THEREFORE, EXPENDITURE ON INTEREST PAYABLE IS ALLOWABLE. THE COM PANY IMPORTED LEAD SCRAP AS PER ISRI (THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES) RADIO AND SOLD IN THROUGH HIGHSEAS SALES. THE MATERIAL WAS AN I NDUSTRIAL RAW MATERIAL AND NOT SCRAP WITHIN THE MEANING OF EXPLANA TION (B) TO SECTION 206C. THE IMPORTED MATERIAL WAS, LEAD SCRAP AS PER I SRI RADIO WHICH IS ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 8 DEFINED BY ISRI. THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES, IT IS A INDUSTRIAL RAW MATERIAL AND SCRAP WORK IS USED DUE TO PRE-DEFINED TERMINOLOGY OF ISRI. FURTHER, THE LEAD SCRAP AS PER ISRI RADIO SOLD BY COMPANY WAS NOT GENERATED FROM THE MANUFACTURE OF ME CHANICAL WORKING OF MATERIAL AND, THEREFORE, IT WAS NOT SCRAP WITHIN T HE MEANING OF EXPLANATION (B) TO SECTION 206C. THE MATERIAL WAS SO LD THROUGH HIGHSEAS SALES, THEREFORE, THE SALES WAS MADE BEFORE THE MATE RIAL ENTER IN INDIAN TERRITORIES. HE ALSO DESCRIBED THE DEFINITION OF BU YER AS PER SECTION 206(C) OF THE ACT. THEREFORE, TDS WAS NOT LIABLE TO BE DEDUCT ED ON IT. THE AMOUNT OF RS. 1,80,694/- WAS CLAIMED AS BAD DEBT, WAS RELATED TO F.Y. 2006-07. THE COMPANY RAISED INVOICE OF RS. 1,80,694 /- ON 19/4/2006 TO UTTAM GALVA STEEL LTD. FOR JOB WORK OF CONVERSION O F HG ZINC ALLOYS. THE UTTAM GALVA STEEL LTD. REJECT THE JOB WORK DONE BY ASSESSEE AND AFTER SEVERAL TIMES REMINDERS THROUGH TELEPHONE AND LETTE R NOT RESPOND AND NOT MAKING ANY PAYMENT, THEREFORE, AMOUNT WAS CLAIMED AS BAD DEBTS. THERE WAS CREDIT IN THE ASSESSEES ACCOUNT IN THE NAME OF M/S UTTAM GALVA STEEL LTD. FOR THE PURPOSES OF RAW MATERIAL BUT IT CANNOT BE ADJUSTED THE OUTSTANDING PENDING JOB WORK BILL AMOUNT WITHOUT CONS ENT OF SUPPLIER DUE TO TERMS AND CONDITIONS OF PURCHASES. FOR WHICH, THE ASSESSEE HAS RELIED UPON THE DECISION OF HON'BLE SUPREME COURT IN THE C ASE OF TRF LTD. VS. ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 9 CIT 232 ITR 397 (SC). THE ASSESSEE IS A COMPANY AND PR EPARED ITS BALANCE SHEET AS PER THE COMPANY LAW. AS PER THE ACC OUNTING STANDARD AS-11, THE EFFECTS OF CHARGES IN FOREIGN EXCHANGE R ATES, IT REQUIRES TO REPORT IN MONETARY ITEMS, THEREFORE, THE EFFECT OF CHANGE IN CURRENCY RATE GIVEN IN ACCOUNT OF M/S EUROPEAN METAL RECYCLING LT D. UK AND HINDAF METAL MINING (Y) LTD.. THE ASSESSEE SUBMITTED THAT ALL THE ABOVE DETAILS WERE FILED BEFORE THE ASSESSING OFFICER AT THE TIME OF ASSESSMENT U/S 143(3) OF THE ACT AND AFTER CONSIDERING ALL THE DET AILS, THE ORDER PASSED U/S 143(3) AS SUCH TO LOOK INTO ALL THESE DETAILS A GAIN IS CHANGE OF OPINION ON THE ALLOWABILITY IS NOT ALLOWED U/S 263 OF THE ACT . IT IS THE REVIEW OF OWN ORDER, WHICH IS NOT ALLOWED IN LAW. IT IS FURTHER SUBMITTED THAT ON THE BASIS OF AUDIT OBSERVATION, THE RECORDS U/S 263 CAN NOT BE TAKEN AS ALL THESE DETAILS WERE CALLED UP ON THE BASIS OF AUDIT O BSERVATION. THEREFORE, ORDER PASSED BY THE LEARNED CIT IS LIABLE TO BE QUA SHED. THE ASSESSEE WAS NOT PROVIDED REASONABLE OPPORTUNITY OF BEING HEARD BY THE LEARNED CIT, WHICH IS AGAINST THE PRINCIPLES OF NATURAL JUSTICE. FURTHER THE ORDER IS ALSO BARRED BY LIMITATION AS PASSED AFTER LIMITATION PER IOD. FOR GROUND NO. 2, IT HAS BEEN SUBMITTED THAT SHOW CAUSE NOTICE U/S 263 O F THE ACT BY THE LEARNED CIT FIXING THE CASE FOR HEARING ON 10/1/201 4 AND THEN CASE WAS AGAIN FIXED ON 13/2/2014. MEANWHILE, THE APPELLANT A PPROACHED THE ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 10 LEARNED CIT, KOTA IN HIS OFFICE, AFTER CERTAIN DISC USSIONS HE FILED WRITTEN SUBMISSIONS ON 05/2/2014 ALONGWITH SUPPORTING DOCUME NTS, EVIDENCES, COPY OF ACCOUNTS ETC. AFTER 05/2/2013, THERE WAS NO NOTICE FROM THE LEARNED CIT, KOTA. HOWEVER, THE LEARNED CIT MADE THE ORDER ON 24/3/2014 AND IN COLUMN PRESENT FOR THE ASSESSEE, H E WROTE NONE (WRITTEN SUBMISSION FILED). THERE WAS NO QUESTION OF NON-PRES ENCE EVEN THE ASSESSEES AR HAS SUBMITTED HIS REPLY IN ANTICIPATI ON ON 13/2/2014. THE ORDER DATED 24/3/2014 WAS DELIVERED ON 07/4/2014, IT SHOULD BE ISSUED ON OR BEFORE 31/3/2014, THEREFORE, REVISIONARY IS BAD IN THE EYES OF LAW. HE RELIED UPON VARIOUS DECISIONS. THE ORDER SHOULD HAVE BEEN PRONOUNCED BEFORE THE DUE DATE OF LIMITATION, IT SHOULD NOT HA VE BEEN KEPT IN THE FILE. 4. AT THE OUTSET, THE LEARNED CIT DR VEHEMENTLY SUP PORTED THE ORDER OF THE LEARNED CIT, KOTA. 5. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. AS DISCUSSED ABOVE, THE LEARNED ASSESSING OFFICER MADE ADDITIONS IN ORIGINAL ASSESS MENT UNDER THREE HEADS. HE ISSUED QUESTIONNAIRE ON 01/6/2011 IN ORIG INAL ASSESSMENT WHEREIN QUERY ON 24 POINTS WERE RAISED BY HIM AND CAS E WAS FIXED FOR HEARING ON 28/6/2011. THE ASSESSEE REPLIED ON 15/12/ 2011 ON BAD DEBTS OF RS. 6,21,069/-, EXCISE DUTY, TDS/TCS, EXCISE DUTY CASES AND ENCLOSED ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 11 THE COPY OF INTEREST ACCOUNT. THE COPY OF PROVISION FOR INTEREST ON BUYERS CREDIT, COPY OF LEAD SCRAP (TRADING), COPY OF HIGHS EAS SALES CONTRACT DATED 25/1/2009, COPY OF ACCOUNT OF HIGHSEAS SALES CONTRA CT DATED 03/3/2009, 09/3/2009, 13/3/2009 AND 21/3/2009. ON VERIFICATION OF FACTS, BOTH THE PARTIES I.E. REVENUE AS WELL AS APPELLANT ARE SILENT WHETHER THESE ENCLOSURES WERE FURNISHED BY THE APPELLANT BEFORE TH E ASSESSING OFFICER AND CONSIDERED THESE EVIDENCES BEFORE PASSING THE O RDER U/S 143(3) OF THE ACT. IT IS TRUE THAT THE LEARNED ASSESSING OFFI CER MADE QUERY AS PER FOLLOWING ITEMSWISE:- (3) DETAILS OF ALL BANK ACCOUNTS ALONGWITH COPY OF STATEMENTS. (9) DETAILS OF FOREIGN CURRENCY LOAN SHOWN AT RS. 1 `,96,75,136/-. (10) DETAILS OF SECURED LOAN SHOWN AT RS. 1,16,46,1 65/-. PLEASE FURNISH DETAILS FROM WHOM THE LOAN WAS OBTAINED. (12) YOU HAVE SHOWN UNSECURED LOAN FROM BANKS AT R S. 19,92,071/-. (17) DETAILS OF BAD DEBTS CLAIMED AT RS. 6,21,069/ - (19) DETAILS OF INTEREST PAID AND RATE AT A\WHICH P AID. (20) YOU HAVE SHOWN SUNDRY DEBITORS AT RS. 10,40,41 2/-. PLEASE FURNISH DETAILS WITH COPY OF ACCOUNT OVER RS. 50,000 /-. ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 12 (21) DETAILS OF LOAN AND ADVANCES SHOWN AT RS. 10, 15,22,609/-. PLEASE STATE WHETHER ANY INTEREST HAS BEEN CHARGED, IF SO THE RATE OF INTEREST CHARGED. (22) YOU HAVE SHOWN SUNDRY CREDITORS AT RS. 27,45,1 6,219/-. PLEASE FURNISH DETAILS WITH COPY OF ACCOUNT OVER RS. 50,000/-. AS HELD BY THE VARIOUS COURTS THAT THE ASSESSING OF FICER IS A QUASI JUDICIAL AUTHORITY AS WELL AS INVESTIGATOR OF THE CASE. HE SI MPLY DOES NOT PUT IT ON RECORD THE DETAILS ON RECORD BUT MAKE PROPER INQUIR Y BEFORE PASSING ORDER U/S 143(3) OF THE ACT, WHICH IS NOT REFLECTED FROM T HE ORDER ITSELF AS HE HAS NOT APPLIED HIS MIND EVEN HE HAS NOT MENTIONED DATE OF ORDER IN THE ORDER ITSELF, WE FEEL THAT THERE WAS A LACK OF INQUIR Y AND LEARNED ASSESSING OFFICER MADE THIS ASSESSMENT WITHIN 15 DAYS FROM THE REPLY SUBMITTED BY THE ASSESSEE EVEN QUERY LETTER WAS ISSUED BY HIM ON 01/6/2011. THE LEARNED ASSESSING OFFICER COMPLETED THIS ASSESSMENT BECAUSE IT WAS BARRED BY LIMITATION BY 31 ST DECEMBER, 2011WITHOUT APPRECIATING THE FACT OF THE CASE. THE LEARNED CIT HAS PROVIDED REASONABLE OPPORTUNITY OF BEING HEARD AND ORDER WAS PASSED WITHIN TIME BY THE LEARNED CIT UNDER SUB- SECTION (2) OF SECTION 263 OF THE ACT, THEREFORE, WE CONFIRM THE ORDER OF THE LEARNED CIT, KOTA. WE ALSO FOUND THE ORDER OF TH E ASSESSING OFFICER IS ITA 320/JP/2014 MITTAL PIGMENTS PVT. LTD. VS. CIT 13 ERRONEOUS AND PREJUDICE TO THE INTEREST OF THE REVE NUE. ACCORDINGLY WE DISMISS THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 21/11/2014. SD/- SD/- (R.P. TOLANI) (T.R. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR, DATED : 21 ST NOVEMBER, 2014 * RANJAN COPY FORWARDED TO :- 1. M/S MITTAL PIGMENTS PVT. LTD., KOTA. 2. THE CIT, KOTA. 3. THE CIT (A) 4. THE CIT 5. THE D/R GUARD FILE (I.T.A. NO. 320/JP/2014) BY ORDER, AR ITAT JAIPUR.