ITO, JANJGIR CHAMPA V. M/S. B.P. ISPAT PVT. LTD., JANJGIR CHAMPA

ITA 35/BIL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8944 (ITAT-RAIPUR)
• Duration Of Justice: 2 year(s) 11 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 09-02-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: O P CHAUDHARY
• Assessee Lawyers: G S AGRAWAL
• Section: 142(1)

Judgement Text

1 ITA NO.35/RPR/2015 C.O. NO.02/RPR/16 ASSESSMENT YEAR : 2010-2011 IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.35/RPR/2015 ASSESSMENT YEAR : 2010-2011 ITO, JANJGIR CHAPMA VS. B.P.ISPAT PVT. LTD. HATRI CHOWK, SAKTI, JANJGIR CHAMPA, PAN/GIR NO. AACCB7644N (APPELLANT ) .. ( RESPONDENT ) CROSS OBJECTION NO.02/RPR/2015 ASSESSMENT YEAR : 2010-2011 B.P.ISPAT PVT. LTD. HATRI CHOWK, SAKTI, JANJGIR CHAMPA, VS. ITO, JANJGIR CHAPMA PAN/GIR NO. AACCB7644N (APPELLANT ) .. ( RESPONDENT ) REVENUE BY : SHRI O.P.CHAUDHARY, DR ASSESSEE BY : SHRI G.S.AGRAWAL, AR DATE OF HEARING : 18/01/ 2018 DATE OF PRONOUNCEMENT : 19/01/ 2018 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE OR DER OF THE CIT(A)- RAIPUR, DATED 07.11.2014 FOR THE ASSESSMENT YEAR 2010- 2011 AND THE ASSESSEE HAS FILED CROSS OBJECTION. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL:- 2 ITA NO.35/RPR/2015 C.O. NO.02/RPR/16 ASSESSMENT YEAR : 2010-2011 1. WHETHER THE LD. COMMISSIONER OF INCOME TAX (APPEAL ) WITHOUT BRINGING ANY MATERIAL ON RECORD IN THE FORM OF BOOKS OF ACCOUNTS AND VOUCHERS WAS JUSTIFIED TO CHANGE THE CONCLUSION DRAWN BY THE AO FOR ESTIMATING THE NET PROFIT. 2. WHETHER THE LD. COMMISSIONER OF INCOME TAX (APPEAL) WAS JUSTIFIED TO DECIDE THE ISSUE WITHOUT AFFORDING THE OPP ORTUNITY TO THE AO AS TO WHY ALL EXPENDITURE IN P&L A/C ARE TO BE ALLOWED. 3. WHETHER THE LD. COMMISSIONER OF INCOME TAX (APPEAL) WAS JUSTIFIED IN PASSING THE CRYPTIC ORDER BY NOT SHOWING TH E ADMISSION OF ANY FRESH EVIDENCE UNDER RULE 46A. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVAT E LIMITED COMPANY ENGAGED IN MANUFACTURING OF STEEL BARS OF DIFFE RENT TYPES FROM INGOTS PURCHASED FROM VARIOUS STEEL PLANTS. RETURN OF INCO ME FOR THE A.Y. 2010-11 WAS FILED ON 06-10-2010 DECLARING TOTAL INCOME AT NIL AND LOSS OF RS. 78.18,680/- CARRIED FORWARD TO NEXT FOLLOWING YEA R. THE CASE WAS SELECTED FOR SCRUTINY AND THEREFORE, THE AO ISSUED NOTICE U/S 143(2) AND 143(1) OR 10-10-2011. DUE TO CHANGE OF INCUMBENT, FRESH NOTICE WA S ISSUED U/S 143(2) AND 142(1) ALONG-WITH QUESTIONNAIRE ON 27 -11-2012. AS PER THE ASSESSING OFFICER, IN RESPONSE TO THE ABOVE NOTICES AND NOTI CES ISSUED ON SUBSEQUENT DATES, THOUGH THE COUNSEL OF THE ASSESSEE APPEARE D FROM TIME TO TIME AND MADE NECESSARY COMPLIANCES BUT BOOKS OF ACCOUNT AND OTHER DOCUMENTS ARE NOT PRODUCED THOUGH CLAIMED TO HAVE BEEN AUDITED, MAINTAINED AND KEPT. IN ABSENCE OF BOOKS OF ACCOUNT AND OTHER DOCUMENTS, THE AO COULD NOT VERIFY THE CORRECTNESS OF THE BOOK RESU LT AND THEREFORE, 3 ITA NO.35/RPR/2015 C.O. NO.02/RPR/16 ASSESSMENT YEAR : 2010-2011 AFTER INVOKING PROVISIONS OF SECTION 145, HE REJECTED TH E BOOKS OF ACCOUNT AND COMPLETED THE ASSESSMENT BY APPLYING G.P. @ 6.99% ON A TURNOVER OF RS. 2 ; 34,88,651/-. 4. AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). THE CIT(A) CONSIDERED THE GROUNDS RAISED BY THE ASSESSEE AND ALSO THE FINDINGS OF THE ASSESSING OFFICER AND DE CIDED THE ISSUE BY MODIFYING THE ORDER OF THE ASSESSING OFFICER AND ALSO THE FACT REMAINS THAT THE CIT(A) HAS CALLED FOR REMAND REPORT AND THE ASSESSEE DID NOT MAKE ANY CROSS OBJECTION TO THE REPORT OF THE ASSESSING OFFICE A S REFERRED IN PAGE 2 OF THE ORDER. THEREFORE, THE CIT(A) PARTLY ALLOW ED THE APPEAL. 5. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 6. LD D.R. SUBMITTED THAT THE CIT(A) HAS ERRED IN ALL OWING THE APPEAL IN PART WITHOUT CONSIDERING THE FACT THAT THE ASSESSEE NEVER PRODUCED THE BOOKS OF ACCOUNT BEFORE THE ASSESSING OFFICER AND THE CIT(A ) HAS NOT PROVIDED AN OPPORTUNITY TO THE ASSESSING OFFICER TO VERI FY THE DOCUMENTS, WHICH THE ASSESSEE RELIED ON IN THE COURSE OF APPELLATE PR OCEEDINGS. 7. LD A.R. SUBMITTED THAT THE ASSESSEE HAS MAINTAINED BOO KS OF ACCOUNT AND PRODUCED THE SAME WHICH IS REFERRED IN THE WRITTEN SUBMISSION DATED 19.3.2013 PAGE 4 & 5 OF PB AND DATED 6.11.2012 AT P AGE 6 & 7. 4 ITA NO.35/RPR/2015 C.O. NO.02/RPR/16 ASSESSMENT YEAR : 2010-2011 7. WE, ON PERUSAL OF THE ASSESSMENT ORDER, FOUND THAT TH E ASSESSING OFFICER HAS GIVEN A CATEGORICAL FINDING THAT THE ASSESSEE H AS MAINTAINED THE BOOKS OF ACCOUNT BUT THEY WERE NOT PRODUCED IN THE COURSE OF ASSESSMENT PROCEEDING AND LD A.R. SUBSTANTIATED THAT BOOKS OF ACCOU NT ARE AVAILABLE. CONSIDERING THE APPARENT FACTS AND MATERIALS ON RECORD , WE ARE OF THE OPINION THAT THE BOOKS OF ACCOUNTS ARE AVAILABLE WITH T HE ASSESSEE AND THE FACT THAT THE REVENUE IS CHALLENGING THE ACTION OF THE CIT(A) IN NOT PROVIDING THE ASSESSING OFFICER TO VERIFY THE BOOKS OF ACCOUNT. IN SUCH CIRCUMSTANCES, WE ARE OF THE SUBSTANTIVE OPINION THAT THE MATTER HAS TO BE REMITTED TO THE ASSESSING OFFICER TO VERIFY AND EXAMINE THE BOOKS OF ACCOUN T OF THE ASSESSEE. THE ASSESSEE SHOULD BE PROVIDED ADEQUATE OPPORTUN ITY OF HEARING. 8. AS WE HAVE REMITTED THE MATTER TO THE FILE OF THE ASSESSING OFFICER IN THE REVENUES APPEAL, THE CROSS OBJECTION OF THE ASSESSEE IS ALSO RESTORED TO THE FILE OF THE ASSESSING OFFICER. 9. IN THE RESULT, APPEAL FILED BY THE REVENUE AND CRO SS OBJECTION FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 19 /01/2018. SD/- SD/- (N.S SAINI) ( PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIALMEMBER 5 ITA NO.35/RPR/2015 C.O. NO.02/RPR/16 ASSESSMENT YEAR : 2010-2011 RAIPUR; DATED 19 /01/2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, RAIPUR 1. THE APPELLANT : ITO, JANJGIR CHAPMA 2. THE RESPONDENT. .P.ISPAT PVT. LTD. HATRI CHOWK, SAKTI, JANJGIR CHAMPA, 3. THE CIT(A)-BILASPUR 4. PR.CIT-BILASPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//