B & A Multiwall Packaging Limited, Bhubaneswar V. DCIT, Bhubaneswar

ITA 46/CTK/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3732 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-06-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 02-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: PARTHA MUKHOPADHYAY
• Keywords: Opportunity of being heard; Proportionate interest

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAV AN KUMAR GADALE, JM ./ ITA NO. 4 6 / CTK /20 1 5 ( / ASSESSMENT YEAR : 20 0 9 - 20 10 ) B&A PACKAGING INDIA LI MITED, (FORMERLY B&A MULTIWALL PACKAGING LIMITED) C/O MR. SHYAM SUNDAR PATRI, CHARTERED ACCOUNTANT, 1185/1186, TANKAPANI ROAD, BHUBANESWAR - 751018 VS. DCIT, CIRCLE - 1(1), BHUBANESWAR - 751007 ./ ./ PAN/GIR NO. : A A BCB 2140 C ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : SHRI PARTHA MUKHOPADHYAY, AR /REVENUE BY : SHRI D.K.PRADHAN, DR / DATE OF HEARING : 27 / 0 6 /201 7 / DATE OF PRONOUNCEMENT 2 8 / 06 /201 7 / O R D E R PER SHRI PAV AN KUMAR GADALE, JM : TH E ASSESSEE HAS FILED THIS APPEAL AGAINST THE ORDER OF CIT(A) - I , BHUBANESWAR , DATED 3 .11.2014 IN I.T. APPEAL NO. 0062 / 1 3 - 1 4 , PASSED U/S.147/144 OF THE ACT. THE ASSESSEE HAS RAISED SOLE GROUND T HAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.91,661/ - OF INTEREST INCOME MADE BY THE AO. 2 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING MULTIWALL PAPER SACKS AND FLEXI PACKAGING, FILED THE R ETURN OF INCOME ON 29.09.2009 DECLARING TOTAL INCOME AT RS. 9,51,620/ - F OR THE ASSESSMENT YEAR 2009 - 2010 AND THE R ETURN OF INCOME WAS PROCESSED U/S.143(1) OF THE ACT . SUBSEQUENTLY, THE ITA NO. 4 6 /2015 2 ASSESSMENT WAS REOPENED BY ISSUING NOTICE U/S.148 OF THE ACT , HOWEVER, ASSESSE E DID NOT FILE ANY REPLY IN RESPONSE TO THE NOTICE U/S.148. THEREAFTER NOTICE U/S.142(1) WAS ISSUED , THE AO APPL IED THE B EST JUDGMENT ASSESSMENT HAS COMPLETED THE ASSESSMENT . LD. AO FOUND THAT THERE IS A DIFFERENCE OF INTEREST INCOME OFFERED BY THE ASSESSE E ON COMPARISON WITH THE FORM NO.26AS FROM INCOME TAX WEBSITE AND ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE ON 24.12.2012, IN RESPONSE TO THE NOTICE LD. AR FILED WRITTEN SUBMISSION EXPLAINING THE DIFFERENCE . H OWEVER, THE AO WAS NOT SATISFIED WITH THE EXPL ANATION S AND THE ASSESSEE HAS NOT PROVIDED ANY RECONCILIATION OF INTEREST AMOUNT AND THE LD. AO MADE ADDITION OF RS.91,661/ - AND ASSESSED INCOME OF RS.10,43,280/ - AND PASSED THE ASSESSMENT ORDER U/S.147/144, DATED 15.03.2013 . 3 . AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) . LD. CIT(A) CONSIDERING THE FINDINGS OF THE AO AND THE SUBMISSION OF ASSESSEE ON INTEREST INCOME, INFORMATION EVERY YEAR AS ON 31 ST MARCH FOUND THAT THERE IS NO MERIT IN THE EXPLANATION AND THE ASSESS EE HAS TO OFFER THE INTEREST INCOME AS REFLECTED IN THE 26AS FORM AND CONFIRMED THE ADDITION MADE BY THE AO AND DISMISSED THE APPEAL OF THE ASSESSEE. 4 . AGGRIEVED BY THE ORDER OF THE CIT(A) THE ASSESSEE FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. 5 . BEF ORE US, LD. AR ARGUED THAT THE ASSESSEE HAS DISCLOSED THIS INTEREST INCOME IN THE EARLIER YEARS AND IN THE CURRENT ASSESSMENT YEAR THE PROPORTIONATE INTEREST INCOME HAS BEEN OFFERED. THE L D. AR DREW OUR ITA NO. 4 6 /2015 3 ATTENTION TO THE PAGES 20 TO 25 OF THE PAPER BOOK, WH ERE INTEREST HAS BEEN SHOWN IN THE EARLIER AND SUBSEQUENT ASSESSMENT YEARS. ON A QUERY FROM THE BENCH AS TO WHETHER THIS RECONCILIATION STATEMENT WAS FILED AND EXPLAINED BEFORE THE AO, LD. AR COULD NOT GIVE US CONVINCING REPLY. WE , CONSIDERING THE MATERIAL EVIDENCE FILED BEFORE US, ARE OF THE OPINION THAT ONE MORE OPPORTUNITY SHOULD BE PROVIDED TO THE ASSESSEE BEFORE THE ASSESSING AUTHORITY . THEREFORE, IN THE INTEREST OF JUSTICE, WE REMIT THE DISPUTED ISSUE TO THE FILE OF AO TO VERIFY THE INTEREST AMOUNT, T DS CLAIM AND RECONCILIATION OF INTEREST INCOME WITH FORM 26AS AND THE ASSESSEE SHALL BE PROVIDED ADEQUATE OPPORTUNITY OF BEING HEARD AND SHALL COOPERATE IN SUBMITTING THE DETAILS . 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE S. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 28/06 / 201 7 . SD/ - ( N. S. SAINI ) SD/ - ( PA V AN KUMAR GADALE ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 28 / 06 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - B&A PACKAGI NG INDIA LIMITED, (FORMERLY B&A MULTIWALL PACKAGING LIMITED) C/O MR. SHYAM SUNDAR PATRI, CHARTERED ACCOUNTANT, 1185/1186, TANKAPANI ROAD, BHUBANESWAR - 751018 2. / THE RESPONDENT - DCIT, CIRCLE - 1(1), BHUBANESWAR 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//