M/s Nopany Investments Pvt. Ltd., Kolkata V. DCIT, CC-XI, KOLKTA, Kolkata

ITA 371/KOL/2008

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78343 (ITAT-KOLKATA)
• Duration Of Justice: 6 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2014
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2004-2005
• Appeal Filed On: 20-03-2008
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: N O N E
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

, B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE , /AND , ! ) [BEFORE SHRI MAHAVIR SINGH, JM & SHRI SHAMIM YAHYA, AM] ' / I.T.A NO.371/KOL/2008 #$ %&/ ASSESSMENT YEAR: 2004-05 M/S. NOPANY INVESTMENTS PVT. LTD. VS. DEPUTY COM MISSIONER OF INCOME-TAX, (PAN: AAACN8354R) C.C. XI, KOLKATA (() /APPELLANT ) (*+()/ RESPONDENT ) DATE OF HEARING: 24.06.2014 DATE OF PRONOUNCEMENT: 04.07.2014 FOR THE APPELLANT: N O N E FOR THE RESPONDENT: SMT. RANU BISWAS, JCIT, SR. DR / ORDER PER SHRI MAHAVIR SINGH, JM : THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), CENTRAL-I/III, KOLKATA IN APPEAL NO. 291/CC-XI/CIT(A),C-I/06-07 DATED 31.12.2 007. ASSESSMENT WAS FRAMED BY DCIT, C.C-XI, KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2004-05 VIDE HIS ORDER DA TED 28.12.2006. 2. THE FIRST ISSUE RAISED BY ASSESSEE IN THIS GROUN D OF APPEAL IS AGAINST THE DISALLOWANCE OF 50% EXPENSES ON THE FOLLOWING ITEMS AND ALSO ENHANC ED BY CIT(A) OF SUCH DISALLOWANCE AT 100%. FOLLOWING IS THE GROUND RAISED BY ASSESSEE: 1. FOR THAT IN VIEW OF THE FACTS AND IN THE CIRCUM STANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AO IN DISALLOWING EXPENSES INCURRED BY THE APPELLANT UNDER THE FOLLOWING HEADS: A) 50% OUT OF SALARY AND BONUS BEING RS.4,83,921/- B) 50% OUT OF MISCELLANEOUS EXPENSES BEING RS.15,795/- C) 50% OUT OF TELEPHONE CHARGES BEING RS.46,581/- D) 50% OUT TRAVELLING AND CONVEYANCE BEING RS.1,58,684 /- AND E) 50% OUT OF OFFICE MAINTENANCE CHARGES BEING RS.1,01 ,569/-. FOR THAT IN VIEW OF THE FACTS AND IN THE CIRCUMSTAN CES OF THE CASE THE LD. CIT(A) IS ALSO UNJUSTIFIED IN ENHANCING SUCH DISALLOWANCE TO 100% OF THE EXPENSES INCURRED WITHOUT GIVING ANY OPPORTUNITY TO THE APPELLANT AND IN VIOL ATION OF THE LAW AND NATURAL JUSTICE AND IN VIEW OF THE FACTS AND IN THE CIRCUMSTANCES IT MA Y KINDLY BE HELD ACCORDINGLY. 2 ITA NO. 371/K/2008 M/S. NOPANY INVESTMENTS P. LTD. AY 2004-05 3. AT THE OUTSET, LD. SR. DR CONTENDED THAT THE ASS ESSEE IS EARNING RENTAL INCOME AND DIVIDEND INCOME AND CLAIMED THESE EXPENSES AGAINST THE SAME. THE ASSESSEE HAS CLAIMED THESE EXPENSES AGAINST RENTAL INCOME. ACCORDING TO LD. S R. DR, THESE ARE NOT AT ALL ALLOWABLE AGAINST RENTAL INCOME. ACCORDING TO HER, CIT(A), HAS RIGHT LY ENHANCED THE ASSESSMENT. ON THE OTHER HAND, NONE WAS PRESENT TO REPRESENT THE CASE OF THE ASSESSEE. SINCE NO. OF ADJOURNMENTS WAS ASKED BY ASSESSEE ON VARIOUS OCCASIONS AND THIS APP EAL PERTAINS TO AY 2004-05 AND FILED IN 2008. SINCE THIS BEING A VERY OLD APPEAL, WE ARE L EFT WITH NO OTHER ALTERNATIVE BUT TO DECIDE THIS APPEAL. LD. SR. DR STATED THAT LET THE ISSUE BE EX AMINED AFRESH BY CIT(A) AS ENHANCEMENT SHOULD BE ANSWERED BY ASSESSEE. WE FEEL THAT THE P LEA OF THE LD. SR. DR IS QUITE REASONABLE BECAUSE THE ASSESSEE SHOULD BE ALLOWED OPPORTUNITY AS HE IS NOT INTERESTED IN PROSECUTING BEFORE US, WE FEEL THAT THE CIT(A) SHOULD GIVE ONE MORE OP PORTUNITY TO THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE GROUNDS RAISED BY ASSESSEE TO THE FIL E OF CIT(A) FOR FRESH DECISION. APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER IS PRONOUNCED IN THE OPEN COURT ON 04.07.2 014. SD/- SD/- , ! , (SHAMIM YAHYA ) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 04 TH JULY, 2014 ,- #./ 0 JD.(SR.P.S.) 1 *2 3 2%4- COPY OF THE ORDER FORWARDED TO: 1 . () / APPELLANT M/S. NOPANY INVESTMENTS PVT. LTD., C/O, SALARPURIA JAJODIA & CO. 7, CHITTARANJAN AVENUE, KOLKATA-700 0 72 2 *+() / RESPONDENT DCIT, CC.XI, KOLKATA. 3 . # ( )/ THE CIT(A), KOLKATA 4. 5. # / CIT KOLKATA 2:; *# / DR, KOLKATA BENCHES, KOLKATA +2 */ TRUE COPY, #