Jyoti Textiles, Kolkata V. JCIT, Range-48, Kolkata, Kolkata

ITA 40/KOL/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4486 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 12-01-2015
• Court: TRIBUNAL
• Department Lawyers: SAURABH KUMAR
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

I.T.A. NO. 40/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER I.T.A. NO. 40 /KOL/ 2015 ASSESSMENT YEAR: 2010-2011 JYOTI TEXTILES,.................................... ....................................APPELLANT 41/1, BHAIRAB DUTTA LANE, HOWRAH-711 106 [PAN : AACFJ 8015 E] -VS.- JOINT COMMISSIONER OF INCOME TAX,.................. ................RESPONDENT RANGE-48, KOLKATA, 3, GOVERNMENT PLACE (WEST), KOLKATA-700 001 APPEARANCES BY: SHRI AMIT AGARWAL, ADVOCATE, FOR THE ASSESSEE SHRI SAURABH KUMAR, JCIT, D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JULY 13, 2016 DATE OF PRONOUNCING THE ORDER : JULY 20, 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXX, KOLKATA D ATED 22.10.2014 PASSED EX PARTE. 2. THE ASSESSEE IN THE PRESENT CASE IS A PARTNERSHI P FIRM, WHICH IS ENGAGED IN THE BUSINESS OF TRADING IN CLOTH. THE RE TURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 23.09.2 010 DECLARING TOTAL INCOME OF RS.3,96,740/-. IN THE ASSESSMENT COMPLETE D UNDER SECTION 143(3) VIDE AN ORDER DATED 22.11.2012, THE TOTAL IN COME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICER AT RS.22,67 ,410/- AFTER MAKING THE FOLLOWING ADDITIONS:- (I) UNDERVALUATION OF CLOSING STOCK.............RS . 4,91,513/-; (II) DISALLOWANCE OF TRADING DISCOUNT..........RS. 3,07,370/-; I.T.A. NO. 40/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 2 OF 3 (III) DISALLOWANCE U/S 40(A)(IA).................. .RS.10,56,783/-; (IV) DISCREPANCIES IN ACCOUNTS.................... ..RS. 15,009/-. THE ASSESSING OFFICER ALSO DID NOT ENTERTAIN THE FR ESH CLAIM MADE BY THE ASSESSEE FOR EXCLUSION OF INCOME OF RS.3,84,105/- O N ACCOUNT OF TRADE DISCOUNT AS THE SAME WAS ALREADY ASSESSED TO TAX IN THE INCOME OF THE ASSESSEE FOR ASSESSMENT YEAR 2009-10 ON THE GROUND THAT SUCH FRESH CLAIM WAS NOT MADE BY THE ASSESESE BY FILING A REVISED RE TURN. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCEE DINGS, THERE WAS NO RESPONSE TO THE NOTICES ISSUED BY THE LD. CIT(APPEA LS) FIXING THE APPEAL OF THE ASSESSEE ON FOUR DIFFERENT DATES. HE, THEREFORE , PROCEEDED TO DISPOSE OF THE APPEAL OF THE ASSESSEE EX PARTE AND DISMISSE D THE SAME BY OBSERVING THAT THERE WAS NO REASON OR BASIS FOR HIM TO INTERFERE WITH THE ORDER OF THE ASSESSING OFFICER MAKING VARIOUS ADDIT IONS TO THE TOTAL INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF T HE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE T RIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COU NSEL FOR THE ASSESSEE HAS SUBMITTED THAT NONE OF THE FOUR NOTICES ISSUED BY THE LD. CIT(APPEALS) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING WAS R ECEIVED BY THE ASSESSEE. HE HAS ALSO FILED AN AFFIDAVIT OF THE ASSESSEE IN S UPPORT OF THIS CONTENTION AND KEEPING IN VIEW THE SAME, I FIND THAT THE APPEA L OF THE ASSESSEE HAS BEEN DISPOSED OF BY THE LD. CIT(APPEALS) BY HIS IMP UGNED ORDER PASSED EX PARTE WITHOUT GIVING PROPER AND SUFFICIENT OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE AND THERE IS A VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. I, THEREFORE, SET ASIDE THE SAID ORDER OF THE LD. CIT( APPEALS) AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF T HE ASSESESE AFRESH ON MERIT AFTER GIVING ONE MORE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE A T THE TIME OF HEARING I.T.A. NO. 40/KOL./2015 ASSESSMENT YEAR: 2010-2011 PAGE 3 OF 3 BEFORE ME, THE ASSESSEE SHALL PURSUE THE MATTER WIT H THE LD. CIT(APPEALS) AND EXTEND ALL POSSIBLE COOPERATION TO THE LD. CIT( APPEALS) IN ORDER TO DISPOSE OF ITS APPEAL EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 20, 2016 . SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA, THE 20 TH DAY OF JULY, 2016 COPIES TO : (1) M/S. JYOTI TEXTILES, C/O. SRIMAL JAIN & CO., 12A, NETAJI SUBHAS ROAD, GROUND FLOOR, ROOM NO. 3, KOLKATA-700 001 (2) JOINT COMMISSIONER OF INCOME TAX, RANGE-48, KOLKATA, 3, GOVERNMENT PLACE (WEST), KOLKATA-700 001 (3) COMMISSIONER OF INCOME TAX (APPEALS)-XXX, KOLK ATA, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.