ADITYA CONSTRUCTION COMPANY, MUMBAI V. ITO 33(1)(1), MUMBAI

ITA 3766/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9323 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 15-06-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 18-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: N L SHAH
• Section: 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE D.T. GARASIA, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ITA NO.3766/M/2015 ASSESSMENT YEAR: 2007-08 M/S. ADITYA CONSTRUCTION COMPANY, BANGLOW NO.27, AMIT VILLA CHARKOP, KANDIVALI (WEST), MUMBAI 400 067 PAN: AAMFA 8407H VS. ITO 33(1)(1), PRATYAKSHKAR BHAWAN, BKC, BANDRA (E), MUMBAI - 400051 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI N.L. SHAH, A.R. REVENUE BY : MS. POOJA SWAROOP, D.R. DATE OF HEARING : 22.09.2017 DATE OF PRONOUNCEMENT : 26.09.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 27.03.2015 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2007-08. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E FILED THE RETURN OF INCOME ON 23.01.2008 DECLARING THE TOTAL INCOME AT NIL. THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE A O) ISSUED NOTICE U/S 148 TO THE ASSESSEE. BUT NO DETAILS WERE FILED BY THE ASSESSEE ITA NO.3766/M/2015 M/S. ADITYA CONSTRUCTION COMPANY 2 BEFORE THE AO. HENCE, THE ASSESSMENT WAS COMPLETED U/S. 144 OF THE ACT AND MADE ADDITION OF RS.97,04,000/-. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) DISMISSED THE APPEAL OF THE ASSESSEE. 4. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT ASSESSEE DID NOT APPEAR BEFORE THE AO AND BEFORE TH E LD. CIT(A). THEREFORE, THE MATTER WAS DISMISSED AT THE LEVEL OF AO AS WELL AS LD. CIT(A). HE FURTHER SUBMITTED THAT THE ASSESSEES C ASE WAS REOPENED AND NOTICE UNDER SECTION 143(2) WAS ISSUED TO THE A SSESSEE. ASSESSEE FIRM WAS IN FINANCIAL MESS. THEREAFTER, ASSESSEE D ID NOT COMPLY TO VARIOUS NOTICES AND AO HAS CALLED FOR CERTAIN DETAI LS BUT ASSESSEE COULD NOT SUBMIT THE DETAILS AND THE MATTER WAS FIN ALISED. SIMILARLY, BEFORE THE LD. CIT(A) ASSESSEE WAS UNABLE TO SUBMIT ANYTHING. THE ASSESSEE HAS SUBMITTED BEFORE TRIBUNAL THE VARIOUS DOCUMENTS AND AFFIDAVIT WHICH IS BY WAY OF PAPER BOOK FROM PAGE 1 TO 43. THEREFORE, HE SUBMITTED THAT CONSIDERING THIS, THE APPEAL MAY BE RESTORED TO AO TO PASS THE ORDER AFRESH AFTER CONSI DERING ALL THESE DOCUMENTS ON RECORD AND MATTER MAY BE DECIDED AFRES H. 5. THE LD. D.R. OBJECTED TO IT. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE P ARTIES. WE FIND THAT ASSESSEE HAS PURCHASED A LAND FOR CONSIDE RATION OF RS.1,25,00,000/- IN APRIL, 2006 FROM MRS. RAUT & OT HERS FOR DEVELOPMENT. THEREAFTER, THERE WAS ILLEGAL ZOPADPA TTI AND ITA NO.3766/M/2015 M/S. ADITYA CONSTRUCTION COMPANY 3 ENCROACHMENT OF THE PROPERTY. THE ASSESSEE FIRM HA S TO FACE LEGAL BATTLE AGAINST ZOPADPATTIWALA TENANT AND ULTIMATELY THE FINANCIAL CONDITION OF THE ASSESSEE WAS IN MESS. THEREFORE, ASSESSEE COULD NOT REPLY TO SHOW CAUSE NOTICE AND HE COULD NOT REMAIN PRESENT BEFORE THE AO AND THE LD. CIT(A). ASSESSEE HAS PRODUCED V ARIOUS DOCUMENTS BEFORE US BY WAY OF PAPER BOOK. THEREFOR E, IN THE INTEREST OF JUSTICE AND FAIRPLAY, WE RESTORE THIS M ATTER BACK TO THE FILE OF AO AND AO IS DIRECTED TO DECIDE THE MATTER AFRES H AND TO MAKE A DENOVO ASSESSMENT. AO IS ALSO DIRECTED TO GIVE OPP ORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.09.2017. SD/- SD/- (G. MANJUNATHA) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 26.09.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.