The ACIT, Circle-6, Ahmedabad V. M/s. Radha Laxmi Cotton Indus., Ahmedabad

ITA 3339/AHD/2010

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2088 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 02-05-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 16-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P VERMA SR D R
• Assessee Lawyers: S N DIVETIA
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH B AHMEDABAD BEFORE SHRI, PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.3339/AHD/2010 & C.O. NO.44/AHD/2011 (A/O. ITA NO.3339/AHD/20100 ASSESSMENT YEAR :2007-08 ASSTT. COMMISSIONER OF INCOME-TAX, CIRCLE-6, 2 ND FLOOR, C.U. SHAH-BUILDIG, ASHRAM ROAD, AHMEDABAD RADHA LAXMI COTTON INDUS. BHOJWA ROAD, VIRAMGAM, AHMEDABAD [ PAN NO. AADFR 4339 C ] V/S . V/S . M/S. RADHA LAXMI COTTON INDS. BHOJA ROAD, VIRAMGAM, AHMEDABAD ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-6, 2 ND FLOOR, C.U SHAH BUILDING, ASHRAM ROAD, AHMEDABAD / APPELLANT .. / RESPONDENT) /BY ASSESSEE SHRI S.N. DIVETIA, A R /BY REVENUE SHRI Y.P. VERMA, SR-DR /DATE OF HEARING 02-05-2013 ! /DATE OF PRONOUNCEMENT 10-05-2013 ' ' ' ' / // / O R D E R PER KUL BHARAT, JUDICIAL MEMBER:- THIS APPEAL BY REVENUE AND CROSS OBJECTION (CO) BY ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOM E-TAX (APPEALS)-XI, AHMEDABAD (CIT(A) FOR SHORT) DATED 04-10-2010 FOR THE ASSESSMENT YEAR (AY) 2007-08. ALL THESE ARE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF COMMON ORDER FOR THE SAKE OF CONVENIENCE. FIRST WE TAKE UP ASSESSEES CO NO.44/AHD/2011. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS:- ITA NO.3339/AHD/2010 & CO NO.44/AHD/2011 A.Y.07-08 ACIT CIR-6 ABD V.M/S. RADHA LAXMI COTTON INDS. PAGE 2 1.1 THE ORDER OF PASSED U/S. 250 ON 04-10-2010 FOR AY 2007-2008 BY CIT(A)- XI, ABAD IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST TH E PRINCIPLES OF NATURAL JUSTICE. 1.2 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN DISPOSIN G OF THE APPEAL EX PARTE WITHOUT GIVING SUFFICIENT AND SPECIFIC OPPORTUNITY TO THE APPELLANT AND THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. THE AP PELLANT SHOULD THEREFORE BE ALLOWED TO ARGUE THE MATTER ON MERITS OF THE CASE. 1.3 THE LD. CIT(A) HAS GRIEVOUSLY FAILED TO APPRECI ATE THAT THERE WAS NON- COMPLIANCE ON THE ATE OF HEARING ON 1-10-2010 ON AC COUNT OF MISUNDERSTANDING ABOUT THE APPELLANTS TO BE HEARD. 1.4 THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT TH E APPELLANT WAS NOT ALLOWED SUFFICIENT OPPORTUNITY IN PAST AND ONLY ONE HEARING WAS FIXED EARLIER. 2.1 THE LD. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND OR ON FACTS IN RESTORING BACK TO ASSESSING OFFICER THE FOLLOWING ADDITION/DI SALLOWANCE: (A) UNDERVALUATION OF CL. STOCK : RS.15,67,2 97 (B) PROCESSING CHARGES U/S. 40(A)(IA) : RS.21,20,000. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AS WELL AS IN LAW, THE LD. CIT(A) OUGHT NOT TO HAVE RESTORED AFORESAID ADDITIO N/DISALLOWANCE TO FILE OF AO FOR VERIFICATION ONLY. 3. BRIEFLY STATED FACTS ARE THAT ASSESSEE IS A PART NERSHIP FIRM AND ENGAGED IN THE BUSINESS OF TRADING AND PROCESS OF COTTON. T HE CASE OF ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMEN T WAS FINALIZED U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT) THEREBY THE ASSESSING OFFICER MADE ADDITION IN RESP ECT OF UNDER-VALUATION OF CLOSING STOCK, NON-DEDUCTION OF TDS IN RESPECT OF P ROCESSING CHARGES AND MADE DISALLOWANCE OF EXPENSES U/S. 40(A)(IA) OF THE ACT. THE ASSESSEE FILED APPEAL BEFORE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSION PARTLY ALLOWED. 4. BEFORE THIS TRIBUNAL BOTH THE ASSESSEE AND THE R EVENUE HAVE FILED CO AND APPEAL RESPECTIVELY. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE GRIEVANCE OF THE ASSESSEE IN CO IS THAT THE ASSESSEE WAS NOT GIVEN SUFFICIENT OPPORTUNITY FOR E XPLAINING ITS CLAIM. AFTER CONSIDERING ALL ASPECTS OF THE MATTER WE FEEL IN TH E INTEREST OF JUSTICE, THE ITA NO.3339/AHD/2010 & CO NO.44/AHD/2011 A.Y.07-08 ACIT CIR-6 ABD V.M/S. RADHA LAXMI COTTON INDS. PAGE 3 ASSESSEE SHOULD BE GIVEN ANOTHER OPPORTUNITY. HENCE , WE SET SIDE THE IMPUGNED ORDER OF LD. CIT(A) AND REMIT THE CO OF AS SESSEE TO HIS FILE FOR FRESH ADJUDICATION IN TERMS OF DIRECTION ABOVE. THIS GROU ND OF ASSESSEES CO IS ALLOWED FOR STATISTICAL PURPOSES IN TERMS OF DIRECT ION ABOVE. 6. IN THE RESULT, ASSESSEES CO IS ALLOWED FOR STAT ISTICAL PURPOSES. COMING TO REVENUES APPEAL IN ITA NO.3339/AHD/2010. 7. AS THE ASSESSEES CO IS ALLOWED AND THE ORDER OF LD. CIT(A) IS SET ASIDE FOR FRESH DECISION THE APPEAL OF REVENUE HAS BECOME INFRUCTUOUS AND SAME IS DISMISSED AS INFRUCTUOUS. 8. IN COMBINED RESULT, CO OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES AND THAT OF REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE. SD/- SD/- (PRAMAD.KUMAR) (KUL BHARAT) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) AHMEDABAD, *DKP #$%- 10/05/2013 ,-. / ' ' ' ' 001 001 001 001 21 21 21 21 / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. $.$04 5 / CONCERNED CIT 4. 5- / CIT (A) 5. 1 78 0004, 04!, ,-. / DR, ITAT, AHMEDABAD 6. 8;< => / GUARD FILE. BY ORDER/ ' , /TRUE COPY/ ?/, $ 04!, ,-. / ITA NO.3339/AHD/2010 & CO NO.44/AHD/2011 A.Y.07-08 ACIT CIR-6 ABD V.M/S. RADHA LAXMI COTTON INDS. PAGE 4 STRENGTHEN PREPARATION & DELIVERY O F ORDERS IN THE ITAT 1) DATE OF TAKING DICTATION 07/05 2) DIRECT DICTATION BY MEMBER STRAIGHT ON COMPUTER/LAPTOP/DRAGON DICTATE NO 3) DATE OF TYPING & DRAFT ORDER PLACE BEFORE MEMBER 07/05 4) DATE OF CORRECTION 09/05 5) DATE OF FURTHER CORRECTION 10/05 6) DATE OF INITIAL SIGN BY MEMBERS 10/05 7) ORDER UPLOADED ON 10/05 8) ORIGINAL DICTATION PAD-PART HAS BEEN ENCLOSED IN THE FILE YES 9) FINAL ORDER AND 2 ND COPY SEND TO BENCH CLERK ON 10/05