M/s. Orissa Sponge Iron & Steel Ltd, Bhubaneswar V. ACIT, Circle-1(1), Bhubaneswar, Bhubaneswar

ITA 378/CTK/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3817 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 29-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K DAS
• Keywords: Principle of natural justice; Additional evidence; Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.378/CTK/2014 ASSESSMENT YEAR : 2010 - 2011 M/S. ORISSA SPONGE IRON & STEEL LTD., OSIL HOUSE, GANGADHAR MEHER MARG, BHUBANESWAR. VS. ACIT, CIRCLE - 1(1), BHUBANESWAR PAN/GIR NO. AAACO 2568 G (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE RE VENUE BY : SHRI S.K.DAS , CIT DR DATE OF HEARING : 08 /06 / 2017 DATE OF PRONOUNCEMENT : 08 /06 / 2017 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 1, BHUBANESWAR , DATED 21.7.2014 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) IS WHOLLY UNJUSTIFIED TO HOLD THAT THE MINUTES FILED ABOUT RESOLUTION OF DISPUTE BETWEEN THE MANAGEMENT AND REPRESENTATIVES OF NESCO IS AN ADDITIONAL EVIDENCE, AND HIS REFUSAL TO ADMIT SUCH VITAL P IECE OF EVIDENCE WHILE DISALLOWING THE ADDITION OF RS. 1,61,25,813/ - BEING PRIOR PERIOD EXPENSES TANTAMOUNTS TO DENIAL OF JUSTICE ON TECHNICAL GROUNDS AND HIS CONCLUSION THAT THE ELECTRICITY EXPENSES WERE NOT CRYSTALLISED DURING THE IMPUGNED ASSESSMENT YEA R HAS RESULTED IN 2 ITA NO.378/CTK/2014 ASSESSMENT YEAR :2010 - 2011 MISCARRIAGE OF JUSTICE OF HIS SUCH ORDER IS ILLEGAL, BAD IN LAW AND VITIATED BEING AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND SHOULD BE INTERFERED WITH IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ORDER CONFIRMING ADDITION OF RS. 1,61,25,813/ - BEING PRIOR PERIOD EXPENSES CRYSTALLIZED AND FINALIZED DURING THE YEAR IS ARBITRARY, ILLOGICAL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE AND UNSUSTAINABLE IN THE FACTS AND CIRCUMSTANC ES OF THE CASE. 3. FOR THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN LAW AND FACTS TO CONFIRM DISALLOWANCE OF BAD AND DOUBTFUL DEBTS AMOUNTING TO RS.58,03,619/ - WRITTEN OFF DURING THE YEAR ON FLIMSY AND HYPER - TECHNICAL REASONS, IS BAD IN LAW, ARBITRARY AND VITIATED AND SHOULD BE FULLY ALLOWED IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. NOTICE OF HEARING WAS SENT TO THE ASSESSEE COMPANY BY SPEED POST ON 24.5.2017 FIXING THE DATE OF HEARING ON 8.6.2017. NONE WAS PRESENT ON BEHALF OF THE ASSESSEE WHEN THE CASE WAS CALLED FOR HEARING AND NEITHER ANY ADJOURNMENT APPLICATION WAS FILED. HENCE, THE BENCH PROCEEDED TO DISPOSE OF THE APPEAL OF THE ASSESSEE AFTER CONSIDERING THE MATERIALS AVAILABLE ON RECORD AND SUBMISSION OF LD D.R. 4. WE FIND THAT IN GROUND NOS.1 & 2 OF THE APPEAL, THE GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) DID NOT ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE BEFORE HIM WHICH COMPRISED OF COPY OF M INUTES OF REPRESENTATIVES OF NESCO DATED 21.8.2 009 ON THE GROUND THAT SAME WAS NOT SUBMITTED BEFORE THE ASSESSING OFFICER. HENCE, THE PRAYER OF THE ASSESSEE IS TH AT THE SAID ADDITIONAL EVIDENCE SHOULD BE ADMITTED AND THEREAFTER THE APPEAL OF THE ASSESSEE SHOULD BE DECIDED. 5. IN THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT IN ORDER TO RENDER SUBSTANTIAL JUSTICE IN THE MATTER, THE APPEAL OF THE ASSESSEE IS REQUIRED TO BE RE STORED TO THE FILE OF THE CIT(A) WITH A DIRECTIO N T O ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND THEREAFTER ADJUDICATE THE 3 ITA NO.378/CTK/2014 ASSESSMENT YEAR :2010 - 2011 ISSUE AS PER LAW WITH REGARD TO DISALLOWANCE OF RS.1,61,25,813/ - BEING PRIOR PERIOD EXPENSES. 6. AS WE HAVE RESTORED THE ISSUE INVOLVED IN GROUND NOS.1 & 2 OF THE APPEAL TO THE FILE OF THE CIT(A) FOR ADJUDICATION OF THE SAME AFRESH , WE DEEM IT FIT TO RESTORE G ROUND OF THE ASSESSEE REGARDING DISALLOWANCE OF BAD AND DOUBTFUL DEBTS OF RS.58,03,619/ - TO THE FILE OF THE CIT(A) FOR ADJUDICATION OF THE SAME AFRESH. WE DO SO AN D HENCE, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL F ILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCE D IN THE OPEN COURT ON 08 /06 /2017 IN THE PRESENCE OF PARTIES. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 08 /06 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : M/S. ORISSA SPONGE IRON & STEEL LTD., OSIL HOUSE, GANGADHAR MEHER MARG, BHUBANESWAR. 2. THE RESPONDENT. ACIT, CIRCLE - 1(1), BHUBANESWAR 3. THE CIT(A) - 1, BHUBANESWAR 4. PR.CIT - 1, BHUBANESWARFS 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//