M/s. Amar Steel Corporation, Kolkata V. I.T.O., Ward-40(1), Kolkata, Kolkata

ITA 345/KOL/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 5684 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2010
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 16-02-2010
• Court: TRIBUNAL
• Department Lawyers: PIYUSH KOLHE
• Assessee Lawyers: A N KESHARI
• Keywords: Reasonable cause
• Section: 143(3)

Judgement Text

1 , B , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH- B , KO LKATA [ . . . . . .. . , ,, , . .. . ! ! ! !. .. . , , , , '# ] BEFORE SHRI B.R.MITTAL, JUDICIAL MEMBER & SRI C.D. RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO. 345 (KOL) OF 2010 %& '( / ASSESSMENT YEAR 2004-05 M/S. AMAR STEEL CORPORATION , KOLKATA. (PAN-AAEFA5624L) INCOME-TAX OFFICER, WARD-40(1), KOLKATA. (+, / APPELLANT ) - % - - VERSUS - (/0+,/ RESPONDENT ) +, 1 2 '/ FOR THE APPELLANT: / SRI A.N. KESHARI /0+, 1 2 ' / FOR THE RESPONDENT: / SRI PIYUSH KOLHE '3 / ORDER ( . . . . . .. . ), (B.R.MITTAL), JUDICIAL MEMBER : THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT YEAR 2004-05 AGAINST THE ORDER OF LD. C.I.T.(A)-XXXII, KOLKATA DATED 17/09/2009 ON THE FOLLOWING GROUNDS :- 1) THAT THE LEARNED CIT(A)-XXXII ERRED IN DISMISSING THE APPEAL FILED BY THE APPELLANT FIRM MERELY ON THE GROUND OF FAILURE TO A PPEAR ON ONE OCCASION ONLY I.E. 15.09.2009 DUE TO UNAVOIDABLE CIRCUMSTANCES CONSTRA INING COUNSEL TO APPEAR ON THE SCHEDULED DATE OF HEARING ON 15.09.2009. 2) THAT LEARNED CIT(A) ERRED IN NOT INT ERFERING WITH THE DECISION OF THE AO AND CONFIRMING THE ADDITION OF RS. 8,44,433/- ON ACCOUN T OF UNDERVALUATION OF CLOSING STOCK AS ALLEGED TO THE SUM OF RS. 2,09,820/- AND R S. 29,337/- ON A/C OF PERSONAL USE OF MOTOR CAR EXPENSES AS ALLEGED TO THE SUM OF RS. 29,337/-. THE CIT(A) ERRED IN DISMISSING THE APPEAL IN TOTAL INSTEAD OF PARTLY AL LOWING THE APPEAL. 3) THAT THE LEARNED AO AS WELL AS CIT( A) ERRED IN ARBITRARILY COMPUTING THE VALUE OF CLOSING STOCK OF 74,931.3 KGS AT RS. 16,54,253=34 A S AGAINST RS. 8,09,820=00 TAKEN BY THE ASSESSEE INSPITE OF THE FACTS THAT THE BOOKS OF ACCOUNTS WERE DULY AUDITED UNDER SECTION 44AB OF I.T.ACT,1961. 4) THAT THE LEARNED CIT(A) ERRED IN NO T CONSIDERING AND ADMITTING THE GENUINENESS GROUNDS OF APPEAL FILED BY THE APPELLANT ONLY ON TH E GROUND OF NON APPEARANCE BY A/R OF THE APPELLANT DUE TO CIRCUMSTANCES BEYOND CO NTROL OF THE APPELLANT. 2 5) THAT THE ABOVE GROUNDS OF APPEAL WI LL BE ARGUED IN DETAILS DURING THE CASE OF HEARING AND THE APPELLANT CRAVES TO LEAVE, ADD, ALTER AND/O R MODIFY AND GROUND/S DURING OR AT ANY TIME BEFORE THE HEARING. 6) THAT THE IMPUGNED ORDER DATED 17.09 .2009 IS BAD IN LAW, ILLEGAL AGAINST FACTS OF THE CASE ON RECORD AND/OR OTHERWISE PERVERSE TO THE EXT ENT OF ABOVE ADDITIONS. 2. THE ASSESSEE FILED ITS RETURN FOR THE ASSESSMEN T YEAR UNDER APPEAL SHOWING INCOME OF RS.23,160/-. THE ASSESSMENT WAS COMPLETED U/S. 143(3) OF THE ACT ON A TOTAL INCOME OF RS.8,96,970/-, ADDING THEREBY AMOUNT OF U NDERVALUED CLOSING STOCK OF RS.8,44,433/- AND EXPENSES DISALLOWED ON ACCOUNT OF MOTOR CAR OF RS.29,377/-. THE ASSESSEE APPEALED TO THE LD. C.I.T.(A). HOWEVER, O N THE DATE OF HEARING BEFORE HIM, DESPITE SERVICE OF NOTICE, THERE WAS NO COMPLIANCE ON BEHALF OF THE ASSESSEE. THE LD. C.I.T.(A), THEREFORE, DISPOSED OF THE APPEAL EX PARTE QUA THE ASSESSEE ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD. HE CONFIRMED THE ADD ITION OF RS.8,44,433/- ON ACCOUNT OF UNDERVALUATION OF CLOSING STOCK (ALTHOUGH SUM OF RS .2,09,820/- IS MENTIONED IN THE IMPUGNED ORDER) AND RS.29,337/- ON ACCOUNT OF PERSO NAL USE OF MOTOR CAR. BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 3. AT THE TIME OF HEARING BEFORE US, THE ASSESSEE S LEARNED COUNSEL SUBMITTED THAT DURING APPELLATE PROCEEDINGS, THE ASSESSEE COULD NO T PRODUCE REQUISITE EVIDENCES BEFORE THE LD. C.I.T.(A) DUE TO COUNSELS NON-COOPERATION. THEREFORE, THE LD. C.I.T.(A) ALSO PASSED THE EX PARTE ORDER WITHOUT HEARING THE ASSESSEE AND CONSIDERING THE EVIDENCES THE ASSESSEE WAS HAVING IN SUPPORT OF ITS CLAIM. T HE LEARNED COUNSEL FURTHER SUBMITTED THAT THERE WAS A REASONABLE CAUSE FOR NOT PUTTING I N APPEARANCE BEFORE THE LD. C.I.T.(A). HE, THEREFORE, REQUESTED TO RESTORE THE MATTER BACK TO THE FILE OF LD. C.I.T.(A) FOR FRESH ADJUDICATION AFTER HEARING THE ASSESSEE. 4. THE LD. DEPARTMENTAL REPRESENTATIVE POINTED OUT THAT IN LAST PARA OF THE ORDER OF LD. C.I.T.(A), THERE IS A TYPOGRAPHICAL MISTAKE IN MENTIONING THE AMOUNT OF ADDITION ON ACCOUNT OF UNDERVALUATION OF CLOSING STOCK. HE ALS O SUBMITTED THAT HE HAS NO OBJECTION IF THE ISSUE IS RESTORED BACK TO THE LD. C.I.T.(A) FOR HIS FRESH ADJUDICATION AFTER GIVING OPPORTUNITIES TO THE PARTIES. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATER IAL PLACED BEFORE US. IT WAS STATED BY THE ASSESSEE THAT THE LD. C.I.T.(A) PASSE D THE APPELLATE ORDER WITHOUT HEARING 3 THE ASSESSEE AND CONSIDERING THE EVIDENCES IN SUPPO RT OF ITS CLAIM AND THIS WAS BECAUSE OF NON-COOPERATION OF ITS COUNSEL. IN THIS VIEW OF THE MATTER AND CONSIDERING THE SUBMISSIONS OF THE LEARNED REPRESENTATIVES OF THE P ARTIES, WE ARE OF THE CONSIDERED OPINION THAT IT WOULD MEET THE ENDS OF JUSTICE IF T HE MATTER IS RESTORED BACK TO THE FILE OF LD. C.I.T.(A). WE, THEREFORE, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND REMIT THE MATTER TO THE FILE OF LD. C.I.T.(A) FOR FRESH ADJUD ICATION OF THE ISSUES RAISED BEFORE HIM AFTER CONSIDERING SUCH MATERIAL AS MAY BE PRODUCED BY THE ASSESSEE BEFORE HIM AND ALSO AFTER GIVING DUE OPPORTUNITY OF HEARING TO THE PART IES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. 4 '3 #5' 6 5% 7 48 THIS ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( . .. . ! ! ! !. .. . ) '# ( . . . . . .. . ) (C.D.RAO) , ACCOUNTANT MEMBER (B.R.MITTAL) , JUDICIAL MEMBER ( (( (!# !# !# !#) )) ) DATE: 13-09-2010 '3 1 /9 :'9';- COPY OF THE ORDER FORWARDED TO : 1. +, / THE APPELLANT : M/S. AMAR STEEL CORPN, 200A, SATIN SEN SARANI, KOLKATA 7 00 054. 2 /0+, / THE RESPONDENT : I.T.O., WARD-40(1), KOLKATA. 3. 3% () : THE CIT(A)-XXXII, KOLKATA. 4. 3%/ THE CIT, KOL- 5 ?7 /% / DR, ITAT, KOLKATA BENCHES, KOLKATA 6 GUARD FILE . 09 // TRUE COPY, '3%5/ BY ORDER, (DKP) @ A / DEPUTY REGISTRAR .