SUN ELECTRONICS ACCUMULATORS PVT LTD, Thiruvalla V. ITO WARD 1, Thiruvalla

ITA 404/COCH/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 52251 (ITAT-COCHIN)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2011
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 20-05-2011
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: R KRISHNA IYER
• Keywords: Depreciation; Unabsorbed depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.G ANESAN, JM I.T.A NO. 404 /COCH/2011 ASSESSMENT YEAR:2006-07 SUN ELECTRIC ACCUMULATORS PVT. LTD., KURUVANKUZHY P.O., PULLAD, THIRVALLA. [PAN:AACCS 4990C] VS. THE INCOME TAX OFFICER, WARD-1, THIRUVALLA. (ASSESSEE-APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI R.KRISHNA IYER, CA REVENUE BY MS. S. VIJAYAPRABHA, JR.DR DATE OF HEARING 28/10/2011 DATE OF PRONOUNCEMENT 31/10/2011 O R D E R THIS THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A-I, TRIVANDRUM. DATED 11.3.2011 AND PERTAINS TO THE AS SESSMENT YEAR 2006-07. 2. THE FIRST ISSUE ARISING FOR CONSIDERATION IS THE DISALLOWANCE OF ` 2 LAKHS TOWARDS EXPENSES. SHRI R.KRISHAN IYER, THE LD. CHARTERED A CCOUNTANT-REPRESENTATIVE SUBMITTED THAT THE ASSESSEE IS MAINTAINING BOOKS OF ACCOUNTS AND ALSO BILLS AND VOUCHERS IN SUPPORT OF THE EXPENDITURE. IN FACT, THE LD. CHARTERED ACC OUNTANT-REPRESENTATIVE SUBMITTED THAT THE BOOKS OF ACCOUNTS AND THE BILLS AND VOUCHERS IN SUPPORT OF THE EXPENDITURE WERE PRODUCED BEFORE THE LOWER AUTHORITIES. THE ASSESSE E IS ALSO READY TO PRODUCE THE SAME BEFORE THE TRIBUNAL. THEREFORE, THE DISALLOWANCE B Y THE ASSESSING OFFICER IS NOT JUSTIFIED. I.T.A. NO.404 /COCH/2011 2 3. ON THE CONTRARY, MS. S. VIJAYAPRABHA, THE LD. DE PARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE HAS PRODUCED ONLY THE A UDITED STATEMENT OF P&L ACCOUNT. HOWEVER, THE ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS, THE BILLS AND VOUCHERS IN SUPPORT OF THE EXPENDITURE INCURRED. IF THE ASSESS EE CLAIMS THAT IT IS MAINTAINING THE BOOKS OF ACCOUNTS, THE BILLS AND VOUCHERS IN SUPPOR T OF THE EXPENDITURE INCURRED, THE DEPARTMENT MAY HAVE NO OBJECTION TO VERIFY THE SAME ONCE AGAIN AND PASS NECESSARY ORDERS. 4. RIVAL SUBMISSIONS OF BOTH THE SIDES WERE CONSIDE RED. ADMITTEDLY THE ASSESSING OFFICER DISALLOWED THE CLAIM ON THE GROUND THAT BOO KS OF ACCOUNTS AND OTHER SUPPORTING MATERIAL FOR THE EXPENDITURE INCURRED WERE NOT PROD UCED BEFORE THE ASSESSING OFFICER. NOW IF THE ASSESSEE IS READY TO PRODUCE THE BOOKS OF ACCOUNTS AND OTHER MATERIAL EVIDENCES IN SUPPORT OF THE EXPENDITURE BEFORE THE DEPARTMENT, THE DEPARTMENT HAS NO OBJECTION TO VERIFY THE SAME. SINCE THE ASSESSEE H AS NOT FURNISHED THE BOOKS OF ACCOUNTS AND OTHER SUPPORTING MATERIAL BEFORE THE LOWER AUTH ORITIES, THIS TRIBUNAL IS OF THE OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED. THEREFORE, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE ENTIRE ISSUE OF EXPENDITURE IS RE MITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RE-EXAMINATION. THE ASSESSING OFFICER SHALL RE-EXAMINE THE ISSUE AFRESH AFTER EXAMINING THE BOOKS OF ACCOUNTS AND OTHER MATERIAL THAT MAY BE PRODUCED BY THE ASSESSEE AND THEREAFTER, DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT IS MADE CLEAR THAT IF THE ASSESSEE FAILS TO PRODUCE THE BOOKS OF ACCOUNTS AND PROPER SUPPORTING MATERIAL FOR THE EXPENDITURE CLAIMED, THE ASSESSING OFFICER IS AT LIBERTY TO PAS S ANY ORDER IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. THE ASSESSEE HAS TAKEN ONE MORE GROUND WITH REGA RD TO BROUGHT FORWARD LOSS AND UNABSORBED DEPRECIATION. THE LD. CHARTERED ACCOUNT ANT-REPRESENTATIVE SUBMITTED THAT ITS MAIN ISSUE OF EXPENDITURE IS REMITTED BACK TO THE F ILE OF THE ASSESSING OFFICER, THIS MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING O FFICER. HOWEVER, THE LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THIS ISSUE DOES NOT A RISE FROM THE ORDER OF THE CIT(A). BY I.T.A. NO.404 /COCH/2011 3 WAY OF REPLY, THE LD. REPRESENTATIVE FOR THE ASSESS EE SUBMITTED THAT EVEN THOUGH A SPECIFIC GROUND WAS RAISED, THE CIT(A) HAS NOT DISPOSED OF THE SAME. 6. RIVAL SUBMISSIONS WERE CONSIDERED. SINCE THE MA IN ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER, THIS TRIBUNAL IS OF THE OPINION THAT THE ASSESSING OFFICER IS TO RECONSIDER THIS ISSUE ALSO RELATING TO BROUGHT F ORWARD LOSS AND UNABSORBED DEPRECIATION GIVING ONE MORE OPPORTUNITY TO THE ASSESSEE TO AGIT ATE THE MATTER ON MERIT BEFORE THE ASSESSING OFFICER MAY NOT PREJUDICE THE INTERESTS O F THE REVENUE IN ANY WAY. THEREFORE, IN THE INTEREST OF JUSTICE, THE ISSUE OF BROUGHT FO RWARD LOSS AND UNABSORBED DEPRECIATION IS ALSO SET ASIDE AND REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER FOR RE-CONSIDERATION. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. SD/- (N.R.S.GANESAN) JUDICIAL MEMBER PLACE: ERNAKULAM DATED: 31ST OCTOBER, 2011 GJ COPY TO: 1. SUN ELECTRIC ACCUMULATORS PVT. LTD., KURUVANKUZH Y P.O., PULLAD, THIRVALLA. 2. THE INCOME TAX OFFICER, WARD-1. THIRUVALLA. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, TRIV ANDRUM. 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .