M/s Ujala Fashion, Kanpur V. Dy. Commissioner of Income Tax-III, Kanpur

ITA 434/LKW/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1784 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 27-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard

Judgement Text

I.T.A. NO.434 & 435/LKW/2017 ASSESSMENT YEAR:2013-14 & 14-15 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH, LUCKNOW BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NO.434 & 435/LKW/2017 ASSESSMENT YEAR:2013-14 & 14-15 M/S UJALA FASHION, 49/84, GENERAL GANJ, KANPUR. PAN:AABFU 3444 P VS. DY.C.I.T.-III, KANPUR. (APPELLANT) (RESPONDENT) O R D E R PER T. S. KAPOOR, A.M. THESE ARE TWO APPEALS FILED BY THE ASSESSEE AGAINS T SEPARATE ORDERS OF LEARNED CIT(A)-I, KANPUR BOTH DATED 30/05/2017. BOTH THE APPEALS WERE HEARD TOGETHER AND THEREFORE, FOR THE SAKE OF CONVE NIENCE A COMMON AND CONSOLIDATED ORDER IS BEING PASSED. 2. THE GROUNDS OF APPEAL FOR ASSESSMENT YEAR 2013-1 4 INDICATE THAT THE ASSESSEE HAS ONLY ONE GRIEVANCE WHICH IS THE ACTION OF LEARNED CIT(A) BY WHICH HE HAS CONFIRMED AN ADDITION OUT OF INTEREST PAID WHICH THE ASSESSING OFFICER HAD MADE BY RESTRICTING THE INTEREST PAID U /S 40A(2)(B) OF THE ACT FROM 18% TO 17%. BESIDES THE ABOVE GRIEVANCE IN AS SESSMENT YEAR 2014- 15 THE ASSESSEE IS FURTHER AGGRIEVED WITH THE ACTIO N OF LEARNED CIT(A) BY APPELLANT BY SHRI RAKESH GARG, ADVOCATE RESPONDENT BY S MT. PINKI MAHAWAR, D.R. DATE OF HEARING 21/08/2018 DATE OF PRONOUNCEMENT 31 / 08 /2018 I.T.A. NO.434 & 435/LKW/2017 ASSESSMENT YEAR:2013-14 & 14-15 2 WHICH HE HAS CONFIRMED AD HOC ADDITION WHICH THE AS SESSING OFFICER HAD MADE ON AD HOC BASIS. 3. LEARNED A. R., AT THE OUTSET, INVITED OUR ATTENT ION TO THE ORDER OF LEARNED CIT(A) AND SUBMITTED THAT IN RESPECT OF DIS ALLOWANCE U/S 40A(2)(B) THE LEARNED CIT(A) HAS NOT MADE ANY SPECIFIC DECISI ON AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO THE DISCUSSION PART OF CIT(A)S ORDER. 3.1 AS REGARDS THE AD HOC DISALLOWANCE SUSTAINED BY LEARNED CIT(A), LEARNED A. R. SUBMITTED THAT THE ASSESSING OFFICER HAD MADE THE DISALLOWANCE WITHOUT POINTING OUT ANY DEFECT DIN TH E BOOKS OF ACCOUNT AND ALSO WITHOUT REJECTION OF BOOKS OF ACCOUNT. 4. LEARNED D. R. REGARDING THE DISALLOWANCE U/S 40A (2)(B) RELIED ON THE ORDERS OF THE AUTHORITIES BELOW AND AS REGARDS AD H OC DISALLOWANCE SHE SUBMITTED THAT ASSESSEE HAD NOT SUBMITTED BOOKS OF ACCOUNT EVEN BEFORE LEARNED CIT(A) THEREFORE, HE HAS CONFIRMED THE DISA LLOWANCE. 5. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSEE HAD RA ISED THE SPECIFIC GRIEVANCE REGARDING RESTRICTION OF INTEREST FROM 18 % TO 17% WHICH LEARNED CIT(A) HAS NOT ADJUDICATED IN BOTH THE YEARS THEREF ORE, IT IS APPROPRIATE TO REMIT THIS ISSUE BACK TO THE OFFICE OF LEARNED CIT( A) WHO SHOULD READJUDICATE THE ISSUE AFTER AFFORDING A REASONABLE OPPORTUNITY OF BEING HEARD. 6. AS REGARDS THE ISSUE OF AD HOC DISALLOWANCE IN A SSESSMENT YEAR 2014- 15, WE FIND THAT THE ASSESSING OFFICER THOUGH HAS M ADE DISALLOWANCE WITHOUT POINTING OUT ANY MISTAKE OR DEFECT IN THE B OOKS OF ACCOUNT. HOWEVER, AT THE APPELLATE STAGE THE LEARNED CIT(A) WANTED THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNT AND VOUCHERS FOR REEXAMINA TION OF DISALLOWANCE I.T.A. NO.434 & 435/LKW/2017 ASSESSMENT YEAR:2013-14 & 14-15 3 BUT ASSESSEE DID NOT PRODUCE THE SAME THEREFORE, LE ARNED CIT(A) HAS CONFIRMED THE DISALLOWANCE. IN VIEW OF THESE FACTS AND CIRCUMSTANCES, WE DEEM IT APPROPRIATE TO REMIT THIS ISSUE ALSO BACK T O THE FILE OF LEARNED CIT(A) WHO SHOULD DECIDE THE ISSUE OF AD HOC DISALLOWANCE AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSE E IS ALSO DIRECTED TO PRODUCED BOOKS OF ACCOUNT AND VOUCHERS AS REQUIRED BY LEARNED CIT(A) SO THAT A FAIR DECISION CAN BE ARRIVED AT. IN VIEW OF THESE FACTS AND CIRCUMSTANCES, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 31/08/2018) SD/. SD/. (PARTHA SARATHI CHAUDHURY) ( T. S . KAPOOR ) JUDICIAL MEMBER A CCOUNTANT MEMBER DATED:31/08/2018 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW