METTACO ENGINEERING P.LTD, MUMBAI V. ITO 6(3)(3), MUMBAI

ITA 4274/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8780 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 09-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR LD
• Assessee Lawyers: SNEHAL SHAH LD
• Keywords: Opportunity of being heard; Revised return
• Section: 143(3)

Judgement Text

ITA.NO.4274/MUM/2015 METTACO ENGINEERING PRIVATE LIMITED ASSESSMENT YEAR-2010-11 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI . . , , BEFORE SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.4274/MUM/2015 ( / ASSESSMENT YEAR: 2010-11) METTACO E N GINEERING PRIVATE LIMITED 306,PRAGATI INDUSTRIAL ESTATE, N.M.JOSHI MARG LOWER PAREL(EAST) MUMBAI-400 013 / VS. INCOME TAX OFFICER 6(3)(3) MUMBAI ! ./ ./PAN/GIR NO. AABCM-8653-K ( !# /APPELLANT ) : ( $%!# / RESPONDENT ) A SSESSEE BY : SNEHAL SHAH ,LD.AR RE VENUE BY : SUMAN KUMAR , LD. DR / DATE OF HEARING : 26/10/2017 / DATE OF PRONOUNCEMENT : 01/11/2017 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. THE CAPTIONED APPEAL BY ASSESSEE FOR ASSESSMENT YEAR [AY] 2010-11 ASSAILS THE ORDER OF THE LD. COMMISSIONER O F INCOME-TAX (APPEALS)-21 [CIT(A)], MUMBAI, APPEAL NO. CIT(A)-21/ITO-7(2)(2)/IT- 402/2013-14 DATED 20/03/2015. THE ASSESSMENT FOR IMPUGNED AY WAS ITA.NO.4274/MUM/2015 METTACO ENGINEERING PRIVATE LIMITED ASSESSMENT YEAR-2010-11 2 FRAMED BY LD. INCOME TAX OFFICER 6(3)(3), MUMBAI [AO] U/S 143 (3) OF THE INCOME TAX ACT,1961 ON 05/03/2013. THE ASSESSEE IS AGGRIEVED BY QUANTUM ADDITIONS / ADJUSTMENTS AS CONFIRMED BY LD. CIT(A). 2. FACTS LEADING TO THE SAME ARE THAT THE ASSESSEE BEING RESIDENT CORPORATE ASSESSEE WAS ASSESSED FOR IMPUGNED AY U/S 143(3) ON 05/03/2013 AT RS.70,67,170/- AS AGAINST NIL RETURN FILED BY THE ASSESSEE ON 14/10/2010. THE ASSESSEE, DURING ASSESSMENT PROC EEDINGS, FILED REVISED COMPUTATION OF INCOME AND FINANCIAL STATEME NTS. THE ASSESSEE REFLECTED SALE OF FIXED ASSETS & OTHER INCOME OF RS .106.31 LACS AND CLAIMED AGGREGATE EXPENDITURE OF RS.253.04 LACS AND REFLECTED NET LOSS OF RS.146.72 LACS. HOWEVER, NO DETAILS / DOCUMENTAR Y EVIDENCES WERE FILED BY THE ASSESSEE WHICH RESULTED INTO DISALLOWA NCE OF EXPENDITURE CLAIMED BY THE ASSESSEE AND FINALLY THE INCOME WAS ASSESSED AT RS.70.67 LACS AFTER CERTAIN ADJUSTMENT. 3. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME BEFOR E LD. CIT(A) VIDE IMPUGNED ORDER DATED 20/03/2015 WHERE THE ASSE SSEE AGAIN NEGLECTED TO REPRESENT HIS CASE WHICH RESULTED INTO DISMISSAL OF THE ASSESSEES APPEAL. THE LD.CIT(A) ALSO NOTED THAT TH E ASSESSEE PREPARED UNSUBSTANTIATED PROFIT & LOSS ACCOUNT WITH OUT CARRYING ON ANY BUSINESS ACTIVITY. AGGRIEVED, THE ASSESSEE IS IN FU RTHER APPEAL BEFORE US. 4. THE LD. COUNSEL FOR ASSESSEE [AR] PLEADED FOR AN OTHER OPPORTUNITY TO SUBSTANTIATE HIS CASE BEFORE LOWER AUTHORITIES W HICH WAS VEHEMENTLY OPPOSED BY THE LD. DR ON THE GROUND THAT ADEQUATE O PPORTUNITY WAS ALREADY BEEN GRANTED TO THE ASSESSEE BUT HE FAILED TO AVAIL THE SAME. 5. HEARD AND PERUSED THE MATERIAL ON RECORD. IT IS EVIDENT THAT THE ASSESSEE HAS, IN A VERY CASUAL MANNER, NEGLECTED TO SUBSTANTIATE HIS ITA.NO.4274/MUM/2015 METTACO ENGINEERING PRIVATE LIMITED ASSESSMENT YEAR-2010-11 3 CASE BEFORE LOWER AUTHORITIES. THE LD. CIT(A) HAS N OTED THAT THE ASSESSEE HAS PREPARED UNSUBSTANTIATED FINANCIAL STA TEMENTS TO NULLIFY THE EFFECTS OF CAPITAL GAINS EARNED BY THE ASSESSEE . WE HAVE ALSO NOTED THAT INITIALLY THE BLANK RETURN OF INCOME WAS FILED BY THE ASSESSEE WHICH, DURING SCRUTINY ASSESSMENT, HAS BEEN REVISED ALTOGE THER. NO REVISED RETURN WAS FILED BY THE ASSESSEE DESPITE HAVING SUF FICIENT TIMELINE AVAILABLE WITH HIM. PRIMA FACIE, THE CONDUCT OF THE ASSESSEE DO NOT JUSTIFY GRANTING OF ANOTHER OPPORTUNITY. HOWEVER, T AKING A LENIENT VIEW AND IN THE INTEREST OF JUSTICE, THE MATTER IS RESTO RED BACK TO THE FILE OF LD. AO FOR FRESH ADJUDICATION. NEEDLESS TO SAY THAT ADE QUATE OPPORTUNITY OF BEING HEARD SHALL BE PROVIDED TO THE ASSESSEE, WHO, IN TURN, IS DIRECTED TO SUBSTANTIATE HIS CLAIM FORTHWITH. 6. RESULTANTLY, THE ASSESSEES APPEAL STANDS ALLOWE D FOR STATISTICAL PURPOSES IN TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 01 ST NOVEMBER, 2017. SD/- SD/- (D.T. GARASIA) (MANOJ KUMAR AGGARW AL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 01.11 .2017 SR.PS:- THIRUMALESH ! / COPY OF THE ORDER FORWARDED TO : 1. !# / THE APPELLANT 2. $%!# / THE RESPONDENT 3. + ( ) / THE CIT(A) 4. + / CIT CONCERNED 5. $'- , - , / DR, ITAT, MUMBAI 6. . / GUARD FILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI