Aliza International Pvt. Ltd., Bhubaneswar V. DCIT, Circle-2(1), Bhubaneswar

ITA 341/CTK/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0957 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 12-10-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 22-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUNIL KUMAR MISHRA
• Section: 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Aliza International Pvt Ltd.,HIG-22, BDA Housing Colony, Jayadev Vihar, Bhubaneswar. PAN/GIR No. (Appellant Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A)-1, Bhubaneswar assessment year 2. Shri Sunil Kumar Mishra, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue. 3. It was submitted by ld AR that the assessee had entered into contracts with as the purchase rate was fixed, the assessee could not change that rate but at the time of purchase from outsiders for the purpose of meeting the IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.341/CTK/2019 Assessment Year : 2014-15 Aliza International Pvt 22, BDA Housing Colony, Jayadev Vihar, Bhubaneswar. Vs. DCIT, Circle Bhubaneswar PAN/GIR No.AAFCA 9579 A (Appellant) .. ( Respondent Assessee by : Shri Sunil Kumar Mishra, AR Revenue by : Shri M.K.Gautam, Date of Hearing : 13 /10 Date of Pronouncement : 13/10 O R D E R This is an appeal filed by the assessee against the order of the ld 1, Bhubaneswar dated 27.8.2019 in Appeal No. assessment year 2014-15. Shri Sunil Kumar Mishra, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue. It was submitted by ld AR that the assessee had entered into contracts with four buyers for sale of minerals. It was the submission that as the purchase rate was fixed, the assessee could not change that rate but at the time of purchase from outsiders for the purpose of meeting the Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER DCIT, Circle-2(1), Bhubaneswar Respondent) Sunil Kumar Mishra, AR M.K.Gautam, CIT DR 10/2022 10/2022 This is an appeal filed by the assessee against the order of the ld in Appeal No. 0238/16-17 for the Shri Sunil Kumar Mishra, ld AR appeared for the assessee and Shri It was submitted by ld AR that the assessee had entered into four buyers for sale of minerals. It was the submission that as the purchase rate was fixed, the assessee could not change that rate but at the time of purchase from outsiders for the purpose of meeting the ITA No.341/CTK/2019 Assessment Year : 2014-15 Page2 | 4 contract requirements, the cost went higher and consequently, the assessee had incurred loss to the tune of Rs.2,74,26,246/-. It was the submission that the Assessing Officer has disallowed the same on the ground that the assessee has not produced any details in respect of the said loss. It was the submission that the ld CIT(A) has confirmed the order of the Assessing officer on the ground that he was unable to believe that prudent business man in order to maintain its goodwill in the market and to avoid unnecessary litigation would purchase the material at a higher rate than the rate at which the orders were accepted thereby incurring huge loss to the tune of Rs.2,74,26,246/-. It was the submission that the contract had been entered into for the sale of minerals to the parties and it was unfortunate that the cost of purchase had escalated. It was the submission that this was not in the hands of the assessee. Failure on the part of the assessee to meet the terms of the contract would have damaged the reputation of the assessee. He, however, stated that the issue may be restored to the file of the Assessing Officer so that the assessee could produce all the evidences as may be required by the AO to substantiate its claim. 4. In reply, ld CIT DR submitted that no evidence has been produced by the assessee before the Assessing Officer and in the absence of any evidence being produced before the AO, the Tribunal could not consider any of the evidences produced. He vehemently supported the order of the AO and ld CIT(A). ITA No.341/CTK/2019 Assessment Year : 2014-15 Page3 | 4 5. We have considered the rival submissions. A perusal of the assessment order clearly shows that the Assessing Officer has categorically given a finding that the proof of price fluctuation, which has caused the loss to the assessee, has not been produced before him. In such circumstances, in the interest of justice, we are of the view that the issue is required to be restored to the file of the AO for re-adjudication after granting adequate opportunity to the assessee to produce all such evidences, as required, to substantiate its case. Here, we may mention that we are not in agreement with the order of the ld CIT(A) regarding his findings that no prudent business man would purchase material at a higher market rate than the rate at which the orders were accepted thereby incurring huge loss. This finding of the ld CIT(A). If this is true no business man will ever suffer a loss. However, in business, this is not so. In these circumstances, the issue is restored to the file of the AO to re-adjudicate afresh after granting adequate opportunity being heard to the assessee. 6. In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 13/10/2022. Sd/- sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 13/10/2022 B.K.Parida, SPS (OS) ITA No.341/CTK/2019 Assessment Year : 2014-15 Page4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Aliza International Pvt Ltd.,HIG-22, BDA Housing Colony, Jayadev Vihar, Bhubaneswar 2. The Respondent: DCIT, Circle-2(1), Bhubaneswar 3. The CIT(A)-1,Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//