UTKANTHA TRADING LTD, THANE V. ITO WD 7(3)(2), MUMBAI

ITA 3373/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7952 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 13-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V VIDYADHAR LD
• Assessee Lawyers: RAJEEV KHANDALWAL LD
• Keywords: Bogus purchase; Opportunity of being heard; Principle of natural justice
• Section: 69C; 143(3); 2

Judgement Text

ITA.NO.3373/MUM/2016 UTKANTHA TRADING LIMITED ASSESSMENT YEAR-2010-11 IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.3373/MUM/2016 ( / ASSESSMENT YEAR: 2010-11) UTKANTHA TRADING LIMITED C-204, VISHAL APARTMENT TULINJ, TAKI ROAD, NALASOPARA (E) DISTT. THANE THANE- 401 209 / VS. INCOME TAX OFFICER WARD 7(3)(2) ROOM NO.12, AAYKAR BHAWAN M.K.ROAD MUMBAI-400 020 ./ ./PAN/GIR NO. AAACU-6984-E ( ' /APPELLANT ) : ( #$ ' / RESPONDENT ) A SSESSEE BY : RAJEEV KHANDALWAL, LD.AR RE VENUE BY : V.VIDYADHAR, LD. DR / DATE OF HEARING : 29/11/2017 / DATE OF PRONOUNCEMENT : 13/12 /2017 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2010-11 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-3 [CIT(A)], MUMBAI, APPEAL NO.CIT(A)-3/IT/136/2013-14 DATED 21/03/2016 QUA CONFIRMATION OF ADDITION ON ACCOUNT OF BOGUS PURCHASES ITA.NO.3373/MUM/2016 UTKANTHA TRADING LIMITED ASSESSMENT YEAR-2010-11 2 U/S 69C FOR RS.65,48,923/-. THE ASSESSMENT FOR THE IMPUGNED AY WAS FRAMED BY LD. INCOME TAX OFFICER, WARD 7(3)(2), MUM BAI (AO) U/S 143(3) OF THE INCOME TAX ACT,1961 ON 28/03/2013. 2. BRIEFLY STATED THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE ENGAGED IN TRADING WAS ASSESSED FOR IMPUGNED AY AT RS.72.74 LACS AFTER SOLE ADDITION OF BOGUS PURCHASES FOR RS.65.48 LACS AS AGAINST RETURNED INCOME OF RS.7.25 LACS E-FILED BY THE ASSESSEE ON 23/09/2010. 3. AGGRIEVED BY THE STAND OF LD. AO, THE ASSESSEE C ONTESTED THE SAME WITHOUT ANY SUCCESS BEFORE LD. CIT(A) VIDE IMP UGNED ORDER DATED 21/03/2016 WHERE THE ASSESSEE FAILED TO MAKE ANY SU BMISSIONS TO SUBSTANTIATE HIS CLAIM DESPITE BEING PROVIDED WITH SEVERAL OPPORTUNITIES OF BEING HEARD. AGGRIEVED, THE ASSESSEE IS IN FURTH ER APPEAL BEFORE US. 4. THE LD. COUNSEL FOR ASSESSEE [AR] HAS PLEADED FO R RESTORATION OF MATTER BACK TO FIRST APPELLATE AUTHORITY ON THE GRO UNDS OF PRINCIPLE OF NATURAL JUSTICE, WHICH IS OPPOSED BY LD. DEPARTMENT AL REPRESENTATIVE [DR]. 5. HEARD AND PERUSED RELEVANT MATERIAL ON RECORD. A LTHOUGH WE CONCUR WITH REVENUES STAND THAT THE ASSESSEE WAS N EGLIGENT IN ATTENDING THE PROCEEDINGS BEFORE FIRST APPELLATE AU THORITY AND MISERABLY FAILED TO SUBSTANTIATE HIS CLAIM YET IN THE INTERES T OF JUSTICE, WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(A ) TO RE-ADJUDICATE THE SAME AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE, IN TURN, IS DIRECTED TO SUB STANTIATE HIS CLAIM FORTHWITH FAILING WHICH LD.CIT(A) WOULD BE AT LIBER TY TO DISPOSE-OFF THE SAME ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. ITA.NO.3373/MUM/2016 UTKANTHA TRADING LIMITED ASSESSMENT YEAR-2010-11 3 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH DECEMBER, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 13.12 .2017 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #$ ' / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. #&- , - , / DR, ITAT, MUMBAI 6. . / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI