VIVAL LABORATORIES, MUMBAI V. DCIT 24(3), MUMBAI

ITA 3586/MUM/2013

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2516 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2008-2009
• Appeal Filed On: 07-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PAWAN KU MAR BEERLA
• Keywords: Opportunity of being heard; Corroborative evidences
• Section: 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE SHRI N.K . BILLAIYA, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER / I .T.A. NO . 3586/MUM/2013 ( / ASSESSMENT YEAR : 2008 - 09 VIVAL LABORATORIES, 7, UDYOG NAGAR, S.V. ROAD, GOREGAON (W), MUMBAI - 400 062 / VS. THE DCIT 24(3), BANDRA KURLA COMPLEX, MUMBAI ./ ./ PAN/GIR NO. : AAAFV 0829N ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY: SHRI NISHIT GANDHI / RESPONDENT BY: SHRI PAWAN KUMAR BEERLA / DATE OF HEARING : 01 . 1 2 .2015 / DATE OF PRONOUNCEMENT : 01 .12 .2015 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A) - 34 , MUMBAI D ATED 5.2.2013 PERTAINING TO ASSESSMENT YEAR 2008 - 09. 2. THE GRIEVANCE OF THE ASSESSEE RELATES TO THE ADDITIONS MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) AMOUNTING TO RS. 79,98,521/ - WHICH RELATED TO UNPROVED CREDITORS FOR GOVERNMENT LIABILITIES AND CREDITORS FOR EXPENSES. ITA. NO. 3586/M/2013 2 3. BRIEFLY STATED THE FACTS OF TH E CASE ARE THAT THE RETURN FOR THE YEAR UNDER CONSIDERATION WAS SELECTED FOR SCRUTINY ASSESSMENT AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED AND SERVICED UPON THE ASSESSEE ALONGWITH A QUESTIONNAIRE . ON RECEIVING NO COMPLIANCE FROM THE ASSESSEE, THE A O DECIDED TO COMPLETE THE ASSESSMENT EX PARTE U/S. 144 OF THE ACT. 3.1. ON SCRUTINIZING THE RETURN OF INCOME, THE AO FOUND THAT THERE WERE UNPROVED LIABILITIES AMOUNTING TO RS. 1,37,42,588/ - AND THERE WERE UNPROVED PURCHASES AND EXPENSES AMOUNTING TO RS. 37,93,395/ - . THE AO ACCORDINGLY DISALLOWED THESE ITEMS AND MADE A TOTAL ADDITION OF RS. 1,75,35,983/ - TO THE INCOME RET URNED. 4. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) AND STRONGLY OBJECTED TO THE ADDITION/DISALLOWANCE MADE BY THE AO. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS, THE LD. CIT(A) REDUCED THE ADDITION ON ACCOUNT OF GOVERNMENT LIABILITIES FROM RS. 60,48,456/ - TO RS. 32,74,038/ - AND CONFIRMED THE BALANCE ADDITION/DISALLOWANCES MADE BY THE AO. 5. AGGRIEVED BY WHICH THE ASSESSEE IS BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO THE COMPUTATION OF INCOME AND POINTED OUT THAT THE ASSESSEE HAS SUO MOTO DISALLOWED RS. 32,874,038/ - ON ACCOUNT OF UNPAID GOVERNMENT LIABILITIES. IT IS THE SAY OF THE LD. COUNSEL THAT THE LD. CIT(A) HAS CONFIRMED AN IDENTICAL AMOUNT WHICH HAS RESULTED INTO DOUBLE ADDITION. IN SO FAR AS OTHER DISALLOWANCES ARE CONCERNED, THE LD. COUNSEL TOOK US TO VARIOUS DETAILS/LEDGER ACCOUNT / CONFIRMATION LETTER FILED DURING THE COURSE OF THE APPELLATE PROCEEDINGS. IT IS THE ITA. NO. 3586/M/2013 3 SAY OF THE LD. COUNSEL THAT ALL THE DETAILS WERE MADE AVAILABLE TO THE FIRST APPELLATE AUTHORITY YET HE HAS NOT CONSIDERED THE SAME AND HAVE CONFIRMED THE ADDITIONS WHICH IS AGAINST THE FACTS OF THE CASE. 7. PER CONTRA, THE LD. DEPARTMENTAL REPRESENATIVE SUPPORTED THE ORDERS OF THE REVENUE AUTHORITIES. 8. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. WE HAVE ALSO CAREFULLY GONE THROUGH THE DOCUMENTARY EVIDENCES PLACED BEFORE US IN THE FORM OF A PAPER BOOK. 8.1. IN SO FAR AS THE ADDITION ON ACCOUNT OF UNPAID GOVERNMENT LIABILITIES IS CONCERNED, WE FIND THAT IN THE COMPUTATION OF INCOME, THE ASSESSEE ITSELF HAS MADE THE ADDITION ON ACCOUNT OF UNPAID GOVERNMENT LIABILITIES. WE, DIRECT THE AO TO VERIFY THE SAME AND IF FOUND CORRECT, NO ADDITION SHOULD BE MADE AS IT WILL AMOUNT TO DOUBLE ADDITION. 8.2. IN SO FAR AS THE OTHER ADDITION/DISALLOWANCES ARE CONCERNED, WE FIND THAT THE SAME ARE SUPPORTED BY DOCUMENTARY EVIDENCES AS PLACED BEFORE US IN THE PAPER BOOK. IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE RESTORE THE ENTIRE ISSUE TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE DOCUMENTARY EVIDENCES FURNISHED BY THE ASSESSEE IN SUPPORT OF I TS CLAIM. THE ASSESSEE IS DIRECTED TO FILE NECESSARY SUPPORTING EVIDENCES BEFORE THE AO . THE AO SHALL EXAMINE THE SAME AFTER GIVING REASONABLE AND FAIR OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA. NO. 3586/M/2013 4 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON 1 ST DECEMBER , 2015 SD/ - SD/ - ( PAWAN SINGH ) (N.K. BILLAIYA) /JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 1 ST DECEMBER , 2015 . . ./ RJ , SR. PS / 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// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI