U.P State Construction and Infrastructure Developement Corporation Ltd. (Erstwhile : U.P Samaj Kalyan Nirman Nigam Ltd.), Lucknow V. DY. Commissioner of Income Tax, Lucknow

ITA 329/LKW/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5239 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 08-10-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 22-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Assessee Lawyers: ASHOK RANJAN ACCOUNTANT
• Keywords: Principle of natural justice; Set aside
• Section: 143(3); 201; 142(2A); 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI. N .S. SAINI , ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO. 329 & 330/LKW/2017 ASSESSMENT YEAR: 2009 - 10 & 2010 - 11 U.P. STATE CONSTRUCTION AND I NFRASTRUCTURE DEVELOPMENT CORPORATION LTD. TC - 46/V, VIBHUTI KHAND GOMTI NAGAR, LUCKNOW V. DCIT RANGE 6 LUCKNOW T AN /PAN : AAACU1932C (APP ELL A NT) (RESPONDENT) APP ELL ANT BY: SHRI ASHOK RANJAN, ACCOUNTANT RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE O F HEARING: 08 10 201 8 DATE OF PRONOUNCEMENT: 09 10 201 8 O R D E R PER P ARTHA SARATHI CHAUDHURY, J.M : THESE APPEALS ARE PREFERRED BY THE ASSESSEE AGAINST SEPARATE ORDERS OF THE THE LD. CIT(A) II, LUCKNOW DATED 24/3/2017 FOR ASSESSMENT YEAR 2009 - 10, AND DATED 29/3/2017 FOR ASSESSMENT YEAR 2010 - 11, AS PER GROUNDS OF APPEAL ON RECORD. 2 . SINCE THE FACTS AND THE ISSUES IN VOLVED IN BOTH THESE CASES ARE SIMILAR AND COMMON, THEREFORE, BOTH THESE APPEALS ARE DISPOSED OF IN THIS CONSOLIDATED ORDER. AS A MATTER OF C ONVENIENCE, WE TAKE UP THE FACTS AS APPEARING IN ITA NO.329/LKW/2017 FOR ASSESSMENT YEAR 2009 - 10. 3 . THE ASSESSEE FILED ITS RETURN OF INCOME SHOWING TOTAL INCOME OF RS.6,57,71,080/ - . ASSESSMENT WAS COMPLETED BY THE DCIT, RANGE - VI, ITA NO.329 & 330/LKW/2017 PAGE 2 OF 4 LUCKNOW ON AN ASSESSED INCO ME OF RS.117,84,65,436/ - VIDE ORDER PASSED UNDER SECTION 143(3) OF THE ACT BY MAKING VARIOUS ADDITIONS/DISALLOWANCES AS APPEARING IN THE ASSESSMENT ORDER. THEREAFTER THE MATTER TRAVELL ED UPTO THE FIRST APPELLATE STAG E AND AS PER DETAILED REASONS AND FINDI NGS RECORDED BY THE LD. CIT(A), APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED. 4 . WE HAVE PERUSED THE CASE RECORD AND HEARD THE RIVAL CONTENTIONS. WITH REGARD TO ITA NO329/LKW/2017, GROUND NO.3 RAISED BY THE ASSESSEE IS FOLLOWS: - 3. THAT THE LD. CIT(A) WAS IN NO T DECIDING THE SPECIFIC GROUNDS TAKEN BEFORE HIM : - 1) THE LD. A.O. WAS WRONG AND UNJUSTIFIED IN REJECTING THE BOOKS OF ACCOUNTS BY WRONGLY HOLDING THAT THE BOOKS OF ACCOUNTS DO NOT REFLECT CORRECT PROFIT OF APPELLATE AND HENCE, NOT RELIABLE. 2) THAT THE L D. A.O. WAS WRONG IN INVOKING SECTION 145(3) WITHOUT HOLDING THAT THE BOOKS ARE NOT CORRECT OR INCOMPLETE AND THE INCOME WAS NOT COMPUTABLE IN ACCORDANCE WITH THE SYSTEM OF ACCOUNTING REGULARLY EMPLOYED BY THE APPELLANT. 3) THAT THE TAX AUTHORITIES WERE WR ONG IN NOT APPRECIATING THE FACT THAT THE BOOKS OF ACCOUNTS MAINTAINED IN THE SAME MANNER AS IN EARLIER YEARS CONSISTENTLY AND WERE ACCEPTED BY THE DEPARTMENT AND THUS THE AUTHORITIES WERE WRONG IN TAKING AN ADVERSE VIEW OF THE MATTER. 5 . IT IS CONTENDED BY THE ASSESSEE IN THE GROUNDS OF APPEAL THAT THESE GROUNDS WERE NOT DECIDED SPECIFICALLY BY THE LD. CIT(A). ON THESE GROUNDS, THE LD. CIT(A) HAS HELD AS UNDER: - 4(2) I FIND THAT THESE GROUNDS OF APPEAL RELATE TO THE ACTION OF THE ASSESS ING OFFICER IN REJECT ING THE BOOKS OF ACCOUNTS UNDER SECTION 145 OF THE ACT. THESE GROUNDS OF APPEA L ARE COMMON TO THE OTHER GROUNDS O F APPEAL WHERE THE ADDITIONS MADE BY THE ASSESSING ITA NO.329 & 330/LKW/2017 PAGE 3 OF 4 OFFICER AFTER REJECTION OF THE BOOKS OF A CCO UNTS UNDER SECTION 145 OF THE ACT ARE BEING CONT ESTED. THESE GROUNDS OF APPEAL ARE THEREFORE DISCUSSED WITH SPECIFIC GROUNDS OF APPEA L AND DO NOT REQUIRE SPECIFIC AND SEPARATE COMMENTS AS SUCH . 6 . IT IS, THEREFORE, APPARENT THAT THESE GROUNDS WERE NOT SPECIFICALLY AND SEPARATELY DECIDED BY THE LD. CIT(A) AND THERE IS NO REASONING ADHERED TO THESE GROUNDS IN THE ORDER OF THE LD. CIT(A). THEREFORE, I N THE INTEREST OF NATURAL JUSTIC E WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE TO ADJUDICATE EACH AND EVERY GROUND RAISED BE FORE HIM BY THE ASSESSEE IN CONSONANCE WITH THE PRINCIPLES OF NATURAL JUSTICE AND ALSO AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ACCORDINGLY ITA NO 329/LKW/2017 IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN SIMILAR FACTS AND CIRCUMSTANC ES , IN ITA NO.330/LKW/2017 GROUND NO.6 RAISED BY THE ASSESSEE READS AS UNDER: - 6. THAT THE LD. CIT(A) IS WRONG IN NOT GIVING ANY FINDING ON THE FOLLOWING GROUNDS TAKEN BEFORE HIM : - (A) 'THAT THE ASSESSMENT ORDER IS VITIATED IN AS MUCH AS IT IS BASED ON TH E OBSERVATIONS AND OPINION RENDERED BY THE SPECIAL AUDITOR WITHOUT APPLICATION OF MIND BY THE LD. A.O. AND DISREGARDING THE SUBMISSION AND DOCUMENTS FILED BY THE APPELLANT DURING THE COURSE OF ASSESSMENT PROCEEDINGS. (B)THAT IT IS WRONG ON THE PART OF THE LD. A.O. TO STATE THAT THE ASSESSEE HAD FAILED TO GET HIS ACCOUNTS AUDITED UNDER SECTION 44AB OF THE INCOME TAX ACT WITHIN DUE DATE WHEREAS SUCH REPORTS WERE FILED ALONG WITH THE ORIGINAL RETURN WHICH IS PART OF MATERIAL LYING WITH LD. A.O.' 8 . THE CONTENTION OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS NOT GIVEN ANY FINDING ON THESE GROUNDS. THE ORDER OF THE LD. CIT(A) ON THESE GROUNDS ARE AS UNDER: - ITA NO.329 & 330/LKW/2017 PAGE 4 OF 4 (2) I FIND THAT THESE GROUNDS OF APPEAL APART FROM BEING ROUTINE AND GENERAL, ALSO RELATE T O THE ACTION OF THE ASSESSING OFFICER IN REJECTING THE BOOKS OF ACCOUNTS UNDER SECTION 145 OF THE ACT AND THE ADDITIONS MADE ON THE BASIS OF COMMENTS OF THE SPECIAL AUDITOR IN REPORT SUBMITTED UNDER SECTION 142(2A) OF THE ACT. THESE GROUNDS OF APPEAL ARE COMMON TO THE OTHER GROUNDS OF APPEAL WHERE THE ADDITIONS MADE BY THE AO AFTER REJECTION OF THE BOOKS OF ACCOUNTS UNDER SECTION 145 OF THE ACT ARE BEING CONTESTED. THESE GROUNDS OF A P PEAL ARE THEREFORE DISCUSSED WITH SPECIFIC GROUNDS OF APPEAL AND DO NOT REQUIRE SPECIFIC SE P A RATE COMMENTS AS SUCH. 9 . WE OBSERVE THAT IN THIS CASE ALSO NO SPECIFIC FINDING HAS BEEN GIVEN BY THE LD. CIT(A) AND IN CONSISTENCY WITH THE VIEW ALREADY TAKEN IN ITA NO.329/LKW/2017, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER BACK TO HI S FILE FOR FRESH ADJUDICATION . THE LD. CIT(A) IS DIRECTED TO COME OUT WITH SPECIFIC REASONING AND FINDING FOR EACH OF THE GROUND TAKEN BEFORE THE LD. CIT(A) BY THE ASSESSEE. ACCORDINGLY ITA NO.330/LKW/2017 IS ALSO ALLOWED FOR STATISTICAL PURPOSES. 10 . IN THE RESULT, BOTH THE APPEALS IN ITA NO.329 & 330/LKW/2017 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09 / 10 / 201 8 . SD/ - SD/ - [ N .S. SAINI ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 9 TH OCTO BER , 201 8 JJ: 0810 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR