DCIT 1(1)(1), MUMBAI V. CONCORDE MOTORS (I) LTD, MUMBAI

ITA 4575/MUM/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 0886 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 06-08-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RAMAN MANI
• Keywords: Opportunity of being heard; Additional evidence; Bad and doubtful debts

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES C, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ITA NO.4575/MUM/2015 ASSESSMENT YEARS: 2006-07 DCIT-1(1)(1), 579, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI-400020 / VS. M/S CONCORDE MOTORS (I) LTD 3 RD FLOOR, NANAVATI MAHALAYA, 18, HOMI MODY STREET, MUMBAI-400001 ( / REVENUE) ( ! /ASSESSEE) PAN. NO. AACCM0154A ! / ASSESSEE BY SHRI RAMAN MANI / REVENUE BY SHRI RAJAT MITTAL-DR ' # $ ! % / DATE OF HEARING : 26/04/2017 $ ! % / DATE OF ORDER: 26/04/2017 ITA NO.4575/MUM/2015 M/S CONCORDE MOTORS (I) LTD. 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 28/05/2015 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, DELETING THE PENALTY OF RS.10,25,125/- IMPOSED U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. DURING HEARING, SHRI RAMAN MANI, LD. COUNSEL FO R THE ASSESSEE, CONTENDED THAT THE QUANTUM APPEAL HAS BEEN ALLOWED BY THE TRIBUNAL, THEREFORE, THE PENALTY MAY BE DELETED. THE LD.COUNSEL ALSO PRODUCED THE ORDER OF THE TRIBUNAL (ITA NO.235/MUM/2013). ON THE OTHER HAND, SHRI RAJAT MITTAL, LD. DR, DEFENDED THE PENALTY IMPOSED BY THE LD. ASSESSING OFFICER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN VIEW O F THE ASSERTION OF THE LD. COUNSEL FOR THE ASSESSEE, WE A RE REPRODUCING HEREUNDER THE RELEVANT PORTION FROM THE AFORESAID ORDER OF THE TRIBUNAL DATED 05/12/2016 FO R READY REFERENCE AND ANALYSIS:- THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS DIR ECTED AGAINST THE ORDER OF THE LD. CIT(A)-4, MUMBAI DATED 4.10.20 12 PERTAINING TO A.Y.2006-07. 2. THE ISSUE RAISED GROUND NO.1 IS WITH REGARD TO U PHOLDING THE DISALLOWANCE OF BAD DEBTS WRITTEN OFF OF RS.30,57,4 13/- BY CIT(A). ITA NO.4575/MUM/2015 M/S CONCORDE MOTORS (I) LTD. 3 3. AT THE OUTSET, SHRI F V IRANI, SR. STANDING COUN SEL DREW OUR ATTENTION TO THE APPLICATION DATED 29.11.2006 WHERE IN THE BENCH HAS BEEN REQUESTED TO ADMIT THE ADDITIONAL SUPPORTI NG DOCUMENTARY EVIDENCES WHICH ARE NECESSARY AND PERTI NENT FOR THE PURPOSE OF ADJUDICATING THE ISSUE INVOLVED IN T HE GROUND NO.1 RAISED BY THE ASSESSEE. 4. AFTER HEARING BOTH THE PARTIES ON THE ISSUE OF A DMISSION OF ADDITIONAL EVIDENCES, WE FIND THAT THE ADDITIONAL E VIDENCE AS FILED BY THE ASSESSEE HAS SUBSTANTIAL BEARINGS ON T HE ISSUE INVOLVED AND RAISED BY THE ASSESSEE. WE, THEREFORE, IN THE INTEREST OF JUSTICE INCLINED TO ADMIT THE SAME. WE FURTHER FIND THAT THESE EVIDENCES ARE REQUIRED TO BE EXAMINED AN D EVALUATED AT THE END OF THE AO. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD.CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE AO FOR APPRECIATION OF EVIDENCES AS MAY BE FILED BY THE AS SESSEE AND ADJUDICATION OF THE ISSUE DENOVO AS PER FACTS AND L AW AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE A SSESSEE. WE FIND THAT BEFORE US THE LD. COUNSEL FOR THE ASSE SSEE CLAIMED THAT THE QUANTUM APPEAL HAS BEEN ALLOWED IN FAVOUR OF THE ASSESSEE. HOWEVER, WE FIND THAT THE ADDITION AL EVIDENCE, FILED BY THE ASSESSEE WAS ADMITTED AND RE STORED TO THE FILE OF THE ASSESSING OFFICER FOR APPRECIATION OF EVIDENCE AND THEREAFTER FOR FRESH ADJUDICATION AFTER PROVIDI NG DUE OPPORTUNITY OF HEARING TO THE ASSESSEE, MEANING THE REBY, THE ADDITION HAS NOT BEEN DELETED AND MERELY RESTORED T O THE FILE OF THE LD. ASSESSING OFFICER. SINCE, THE QUANTUM AP PEAL OF THE ASSESSEE HAS BEEN RESTORED TO THE FILE OF THE A SSESSING OFFICER BY THE TRIBUNAL, IN ALL FAIRNESS, WE ARE OF THE VIEW THAT THE PENALTY APPEAL ALSO DESERVES TO BE SENT TO THE FILE OF THE LD. ASSESSING OFFICER AS THE SAME WILL BE DEPEN DENT ITA NO.4575/MUM/2015 M/S CONCORDE MOTORS (I) LTD. 4 UPON THE OUTCOME OF THE QUANTUM APPEAL, THEREFORE, THIS PENALTY APPEAL OF THE REVENUE IS RESTORED TO THE FI LE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. THE ASSES SEE BE GIVEN OPPORTUNITY OF BEING HEARD, RESULTANTLY, THIS APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. FINALLY, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 26/04/2017. SD/- SD/- ( RAMIT KOCHAR ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' # MUMBAI; ' DATED : 26/04/2017 F{X~{T? P.S / ( %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. )*+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / ' 0! ( )* ) / THE CIT, MUMBAI. 4. / / ' 0! / CIT(A)- , MUMBAI 5. 23 -! , / )*% ) 4 , ' # / DR, ITAT, MUMBAI 6. 5 6# / GUARD FILE. / BY ORDER, .2*! -! //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' # / ITAT, MUMBAI,