Sangamnath Agro Industries , Gadag V. Income Tax Officer Ward-2 , Gadag

ITA 3256/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4992 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TSHERING ONGDA
• Assessee Lawyers: R CHANDRASHEKAR
• Keywords: Opportunity of being heard; Tax effect; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC-A BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 32 56 / BANG/201 8 ASSESSMENT YEAR : 20 1 4 - 1 5 M/S. SANGAMNATH AGRO INDUSTRIES, YELAMALI PLOT, KASHI VISHWANATH NAGAR, NEAR APMC, POST: GADAG 582 101. PAN: AA EFS0020Q VS. THE INCOME TAX OFFICER, WARD II, GADAG. APPELLANT RESPONDENT APPELLANT BY : SHRI R. CHANDRASHEKAR, ADVOC A TE RESPONDENT BY : SHRI TSHERING ONGDA, JCIT (DR) DATE OF HEARING : 1 5 .0 5 .201 9 DATE OF PRONOUNCEMENT : 31 .0 5 .201 9 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT (A), HUBBALLI DATED 25.09.2018 FOR ASSESSMENT YEAR 2014-15. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. GROUNDS OF APPEAL TAX EFFECT RELATING TO EACHGROUND OF APPEAL (SEE NOTE BELOW) 1. THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOMETAX (APPEALS) IS ILLEGAL, BASELESS AND OPPOSED TO THE FACTSOF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ADDITION OF 4,58,357 TOWARDSINTEREST EXPENDITURE. RS. 1,79,490 3. THE LEARNED CIT APPEALS HAS CONFIRMING AN ADDITION OF RS. 43,663 AS CASH PAYMENTS EXCESS OF RS.20000 AS PER SECTION40A (3) OF THE INCOME TAX ACT. RS. 17,098 4. THE LEARNED CITAPPEALS HAS ERRED CONFIRMED AN ADDITION OFRS. 1,12,171 AS GROSS PROFIT DECLARED AT THE TIME OF SURVEY. RS. 43,926 ITA NO.3256/BANG/2018 PAGE 2 OF 3 5. THE ASSESSEEPRAYS LEAVE TO ADD ANY MORE GROUNDS OF APPEALBEFORE OR AT THE TIME OF HEARING. TOTAL TAX EFFECT (SEE NOTE BELOW) RS . 2,40,514 3. AT THE VERY OUTSET, IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT THE ORDER OF CIT (A) IS EX-PARTE QUA THE ASSESSEE. IT IS ALSO SUBMITTED THAT AS NOTED BY CIT (A) IN PARA 3 OF HIS ORDER, SIX DATES OF HEARING WERE FIXED BY CIT (A) AND THE ASSESSEE COULD NOT MAKE COMPLIANCE. IN THIS REGARD, HE SUBMITTED THAT ON PAGES 24 & 25 OF PAPER BOOK IS THE AFFIDAVIT OF SHRI JAYADEV TOTAPPA YELAMALI, ONE OF THE PARTNERS OF THE ASSESSEE FIRM IN WHICH HE EXPLAINED THAT HE HAS APPEARED BEFORE CIT (A) ALONG WITH HIS AUDITOR AND PRESENTED THE CASE OF THE ASSESSEE AND WRITTEN SUBMISSIONS WERE ALSO FILED. IT IS ALSO STATED IN THE AFFIDAVIT THAT LD. CIT (A) SAID THAT NO NEW EVIDENCES WILL BE ENTERTAINED AT THE APPELLATE STAGE AND IN SPITE OF THIS, IT WAS SUBMITTED BY ASSESSEE BEFORE CIT (A) THAT ASSESSEE HAS ALREADY FILED ALL THE DETAILS BEFORE THE AO AND WHAT THEY ARE FILING IS ONLY EXTRACTS FROM THE BOOKS OF ACCOUNTS OF THE FIRM WHICH WERE PRODUCED BEFORE THE AO FOR VERIFICATION. HE ALSO POINTED OUT THAT IT IS ALSO STATED IN THE AFFIDAVIT THAT IT WAS EXPLAINED BEFORE CIT(A) ORALLY THAT THE BUSINESS HAS BEEN CLOSED AND ANY FURTHER COMMUNICATION BE SENT TO THE AUDITOR OF THE ASSESSEE FIRM AND AFTER THAT, NO NOTICE WAS RECEIVED BY THE ASSESSEE. HE SUBMITTED THAT IN THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF CIT(A) FOR FRESH DECISION. THE LD. DR OF REVENUE SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT THIS IS NOTED BY CIT (A) IN PARA 3 OF HIS ORDER THAT SIX DATES OF HEARING WERE FIXED BY HIM BUT IT IS STATED BY CIT (A) IN THIS PARA THAT ASSESSEE FAILED TO APPEAR OR MAKE ANY SUBMISSION. AS AGAINST THIS, AS PER THE AFFIDAVIT OF THE PARTNER OF THE ASSESSEE FIRM, IT IS STATED THAT HE HAD APPEARED BEFORE CIT(A) ALONG WITH THE AUDITOR AND FILED WRITTEN SUBMISSION ALSO AND EXPLAINED THE CASE. COPY OF WRITTEN SUBMISSIONS SAID TO HAVE BEEN FILED BEFORE CIT (A) ARE AVAILABLE ONTHE PAPER BOOK. CONSIDERING ALL THESE FACTS, I FEEL IT PROPER THAT IN THE INTEREST OF JUSTICE, THE ASSESSEE SHOULD BE PROVIDED ONE MORE OPPORTUNITY FOR PROPER COMPLIANCE AND HENCE, I SET ASIDE THE ORDER OF CIT (A) AND RESTORE THE MATTER BACK TO THE FILE OF CIT (A) FOR FRESH DECISION AFTER PROVIDING ITA NO.3256/BANG/2018 PAGE 3 OF 3 ADEQUATE OPPORTUNITY OF BEING HEARD TO BOTH SIDES. IN VIEW OF THIS, NO ADJUDICATION ON MERIT IS CALLED FOR AT THE PRESENT STAGE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- (ARUN KUMAR GARODIA) ACCOUNTANT MEMBER BANGALORE, DATED, THE 31 ST MAY, 2019. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.