MANAN TRADING CO. PVT. LTD., MUMBAI V. DCIT ,CC-1, MUMBAI

ITA 3748/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7909 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I MUMBAI BEFORE SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 3748/MUM/2015 ASSESSMENT YEAR: 2010 - 11 M/S MANAN TRADING CO. PVT. LTD. 203, 2 ND FLOOR, 25 RAMKRIPA PAREKH STREET, PRARTHANA SAMAJ MUMBAI - 400006 VS. DCIT - 1 AAYAKAR BHAVAN MUMBAI - 400020. PAN NO. AADCM5896 J (APPELLANT) (RESPONDENT) ASSESSEE BY : MR. MANI JAIN, AR REVENUE BY : MR. SAURABH KUMAR RAI, DR DATE OF HEARING : 21 /09/2017 DATE OF PRONOUNCEMENT : 13/12/2017 ORDER PER N.K. PRADHAN, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 2010 - 11. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISS IONER OF INCOME TAX (APPEALS) - 36 , MUMBAI AND ARISES OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961, (THE ACT). 2. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF DEALING IN DIAMONDS. IT FILED ITS RETURN OF INCOME FOR THE AY 2010 - 11 ON 11.10.2010 DECLARING TOTAL INCOME OF RS. NIL. FOR THE YEAR UNDER CONSIDERATION, THE ASSESSEE - M/S MANAN TRADING CO. LTD. ITA NO. 3748/MUM/2015 2 COMPANY HAS DECLARED BUSINESS INCOME OF RS.10,43,177/ - WHICH HAS BEEN SET OFF AGAINST THE BROUGHT FORWARD LOSSES OF EARLIER YEAR AND THEREBY REDUCING THE TOTAL INCOME TO RS.NIL. THE ASSESSING OFFICER (AO) HAS MADE ADDITION OF RS.44,60,433/ - AS INCOME FROM BUSINESS AND RS.61,43,151/ - AS FOREIGN EXCHANGE FLUCTU ATION GAIN TO THE INCOME OF RS.10,43,177/ - SHOWN BY THE ASSESSEE. THUS THE AO COMPUTED THE TOTAL INCOME AT RS.1,06,03,584/ - . 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS MENTIONED AT PARA 3 OF THE APPELLATE ORDER DATED 17.09.2014 PASSED BY HER THAT THE ASSESSEE DID NOT APPEAR NOR SOUGHT ADJOURNMENT IN RESPONSE TO THE NOTICE U/S 250 ISSUED . THEREFORE, SHE HAS DISMISSED THE APPEAL FILED BY THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIALS ON RECORD. WE FIND THAT THE LD. CIT(A) HAS NOT MENTIONED IN THE APPELLATE ORDER PASSED BY HER , THE DATE ON WHICH NOTICE U/S 250 WAS ISSUED AND WHETHER THE SAME WAS RECEIVED BY THE ASSESSEE OR NOT. THERE IS NO BASIS TO DI SMISS THE APPEAL FILED BY THE ASSESSEE ON THE GENERAL GROUND THAT NEITHER THE ASSESSEE APPEARED NOR SOUGHT ADJOURNMENT IN RESPONSE TO NOTICE U/S 250. THERE IS NO MENTION IN THE APPELLATE ORDER WHETHER A SECOND NOTICE U/S 250 WAS SENT TO THE ASSESSEE. IN V IEW OF THE ABOVE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO HIM/HER TO PASS AN ORDER AFTER GIVING REASONABLE OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE. WE DIRECT THE ASSESSEE TO FILE BEFORE THE LD. CIT(A) THE RELEVANT DOCUMENTS/EV IDENCE. M/S MANAN TRADING CO. LTD. ITA NO. 3748/MUM/2015 3 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13/12/2017. SD/ - SD/ - (MAHAVIR SINGH) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 13/12/2017 RAHUL SHARMA, SR. P.S. 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