DISHANT ORGANICS PVT. LTD., MUMBAI V. ITO 12(2)(1), MUMBAI

ITA 3382/MUM/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8532 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 18-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D G
• Assessee Lawyers: KOMAL TRIVEDI
• Keywords: Bogus purchase; Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 3382/MUM/2018 ASSESSMENT YEAR: 2011 - 12 DISHANT ORGANICS PVT. LTD., OFFICE NO. 22, GROUND FLOOR, GOKUL SHOPPING CENTRE, S.V. ROAD, BORIVALI (WEST), MUMBAI - 400092. VS. INCOME TAX OFFICER - 12(2)(1), AAYAKAR BHAVAN, MAHARSHI KARVE MARG, MUMBAI - 400020. PAN NO. AABCD8378A APPELLANT RESPONDENT ASSESSEE BY : SMT. KOMAL TRIVEDI, AR REVENUE BY : SHRI D.G. PANSARI , DR DATE OF HEARING : 09 /0 7 /2019 DATE OF PRONOUNCEMENT : 10/07/2019 ORDER PER N.K. PRADHAN, AM THIS IS AN APPEAL FILED BY THE ASSESSEE . THE RELEVANT ASSESSMENT YEAR IS 201 1 - 1 2 . THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX - 20 , MUMBAI [IN SHORT CIT(A)] AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) OF THE INCOME TAX ACT 19 61, (THE ACT). 2. IN THE GROUND RAISED IN THIS APPEAL, THE ASSESSEE SUBMITS THAT THE LD. CIT(A) FAILED TO CONDONE THE DELAY IN E - FILING THE APPEAL WHEN THE MANUAL APPEAL WAS FILED IN TIME. WITHOUT PREJUDICE TO THE ABOVE, IT IS FURTHER SUBMITTED BY THE ASSESSEE THAT THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION MADE BY THE ASSESSING OFFICER (AO) OF DISHANT ORGANICS PVT. LTD. ITA NO. 3382/MUM/2018 2 RS.1,37,70,080/ - BEING 25% OF THE ALLEGED BOGUS PURCHASE OF RS.5,50,80,322/ - . 3. BRIEFLY STATED, THE FACTS ARE THAT THE ASSESSEE FILED APPEAL MANUA LLY IN PAPER FORM ON 27.05.2016 BEFORE THE LD. CIT(A) AGAINST THE ORDER DATED 28.03.2016 PASSED BY THE AO U/S 143(3) OF THE ACT. THE LD. CIT(A), REFERRING TO THE NOTIFICATION NO. S.O.637(E) DATED 01.03.2016 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES (CBDT ), NEW DELHI, OBSERVED THAT E - FILING OF APPEAL BEFORE THE APPELLATE COMMISSIONER IS COMPULSORY W.E.F. 01.03.2016 IN RESPECT OF ALL PERSONS WHO ARE REQUIRED TO FURNISH THEIR RETURN OF INCOME ELECTRONICALLY. SINCE THE ASSESSEE IS A COMPANY AND IT FILED ITS A PPEAL AFTER 01.03.2016 NOT ELECTRONICALLY , THE LD. CIT(A) TREATED THE APPEAL FILED MANUALLY AS NON - EST AND DISMISSED THE APPEAL FOR STATISTICAL PURPOSE. 4. BEFORE US, THE LD. COUNSEL OF THE ASSESSEE SUBMITS THAT IN THE INSTANT CASE, THE APPEAL WAS FILED W ITHIN THE TIME PRESCRIBED AS PER THE ACT AND THE E - FILING OF THE SAID APPEAL WAS ONLY A TECHNICAL DEFAULT WHICH WAS SUBSEQUENTLY RECTIFIED BY THE ASSESSEE. IN THIS REGARD, THE LD. COUNSEL FILES A COPY OF THE ORDER OF THE TRIBUNAL IN THE CASE OF PRAGNA MANI SH CHHEDA V. ITO (ITA NO. 1631/MUM/2018 FOR AY 2010 - 11) AND ALL INDIA FEDERATION OF TAX PRACTITIONERS V. ITO (ITA NO. 7134/MUM/2017 FOR AY 2013 - 14). ON THE OTHER HAND, THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT(A). 5. WE HAVE HEARD THE RIVAL SU BMISSIONS AND PERUSED THE RELEVANT MATERIALS ON RECORD. WE FIND THAT THE ABOVE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF THE CO - ORDINATE BENCH IN THE DISHANT ORGANICS PVT. LTD. ITA NO. 3382/MUM/2018 3 AFOREMENTIONED ORDERS. TO RECAPITULATE, IN THE INSTANT CASE, THE ASSESSMENT ORDE R WAS PASSED BY THE AO ON 28.03.2016. THE ASSESSEE FILED AN APPEAL AGAINST THE ORDER OF THE AO BEFORE THE LD. CIT(A) MANUALLY IN PAPER FORM ON 27.05.2016. BEING INFORMED BY THE OFFICE OF THE LD. CIT(A) THAT E - FILING IS MANDATORY W.E.F. 01.03.2016, THE ASSE SSEE E - FILED THE APPEAL ON 28.03.2018. THUS FOLLOWING THE DECISION OF THE CO - ORDINATE BENCH IN THE CASES MENTIONED HEREINABOVE, WE DIRECT THE LD. CIT(A) TO ADMIT THE AFORESAID APPEAL OF THE ASSESSEE AND PASS AN ORDER ON THE MERITS OF THE CASE. NEEDLESS T O SAY, THE ASSESSEE SHOULD BE GRANTED ADEQUATE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10/07/2019 SD/ - SD/ - ( SAKTIJIT DEY ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 10/07/2019 RAHUL SHARMA, SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE . BY ORDER, //TRUE COPY// (SR. PRIVATE SECRETARY) ITAT, MUMBAI