M/S FLEXITUFF INTERNATIONAL LTD., Dhar V. THE Pr. CIT-1, Indore

ITA 488/IND/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1226 (ITAT-INDORE)
• Duration Of Justice: 2 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-03-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 10-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice; Revised return
• Section: 143(3); 263

Judgement Text

FLEXITUFF INTERNATIONAL LTD ITA NO. 488/IND/2016 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.488/IND/2016 ASSESSMENT YEAR 2011-12 REVENUE BY SMT. ASHIMA GUPTA, CIT ASSESSEE BY SHRI MANJ EE T SACHDEVA & AVI NASH GAUR, ADVOCATES DATE OF HEARING 1 8 .03 .2019 DATE OF PRONOUNCEMENT 22 .0 3 .2019 O R D E R PER MANISH BORAD. THE ABOVE CAPTIONED APPEAL IS FILED AT THE INSTANC E OF ASSESSEE PERTAINING TO ASSESSMENT YEAR 2011-12 AND IS DIRE CTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)- 1 (IN SHORT LD.CIT(A)], INDORE DATED 21.3.2016 WHICH IS ARIS ING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(IN SHOR T THE ACT) DATED 31.3.2014 FRAMED BY DCIT-1(1), INDORE. M/ S. FLEXITUFF INTERNATIONAL LTD, C-41-50, SEZ SECTOR, PITHAMPUR, DIST. DHAR (M.P) VS. PR. COMMISSIONER OF INCOME TAX-I, INDORE ( APPELLANT ) (RESPONDENT ) PAN NO. A AACN5986H FLEXITUFF INTERNATIONAL LTD ITA NO. 488/IND/2016 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL; 1. THAT THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED PR. COMMISSIONER OF INCOME TAX WAS WRONG IN INVOKING TH E POWER OF REVISION U/S 263 OF THE INCOME TAX ACT. 2(1) THAT, THE LEARNED PR. COMMISSIONER OF INCOME T AX-I, INDORE FAILED TO APPRECIATE THAT THE NECESSARY DOCUMENTS PERTAINING TO THE CLAIM OF DEDUCTION WERE BEFORE THE ASSESSING OFFICER. 2(B) THAT, THE LEARNED ASSESSING OFFICER AFTER APPL YING HIS MIND AND AFTER CONSIDERING THE PAST ASSESSMENTS COMPLETED BY HIM A LLOWED THE DEDUCTION. 03. THAT THE ASSESSEE COMPANY CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY GROUNDS OF APPEAL. 3. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE RELYI NG ON THE JUDGMENT OF JURISDICTIONAL HIGH COURT IN THE CASE O F ACME FABRIK PLAST CO. V/S INCOME TAX OFFICER & ORS. (1995) 125 CTR (MP) 339 SUBMITTED THAT NO OPPORTUNITY FOR MAKING ORAL SUBMI SSION WAS PROVIDED BY THE LD. PR. COMMISSIONER OF INCOME TAX BEFORE GIVING DIRECTIONS TO THE LD. A.O TO FRAME FRESH ASSESSMENT ORDER IN THE ORDER U/S 263 OF THE ACT. HE REQUESTED FOR GRANTIN G ONE MORE OPPORTUNITY TO APPEAR BEFORE THE LD. PR. CIT FOR TH E PROCEEDINGS U/S 263 OF THE ACT. FLEXITUFF INTERNATIONAL LTD ITA NO. 488/IND/2016 3 4. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE THOUG H SUPPORTED THE ORDERS OF PR. CIT BUT DID NOT OPPOSE THE REQUES T OF PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. 6. THROUGH THIS APPEAL ASSESSEE HAS CHALLENGED THE ACTION OF LD. PR. CIT INVOKING POWER AND REVISION U/S 263 OF THE ACT. ASSESSEE BEING LIMITED COMPANY FILED E-RETURN ON 26.9.2011 F OLLOWED BY REVISED RETURN FILED ON 18.10.2012. ASSESSMENT U/S 143(3) OF THE ACT WAS COMPLETED ON 31.03.2014. SUBSEQUENTLY PR. CIT INITIATED THE PROCEEDINGS U/S 263 OF THE ACT OBSERVING THAT T HE ORDER PASSED BY THE LD. ASSESSING OFFICER IS ERRONEOUS AND PREJU DICIAL TO THE INTEREST OF REVENUE AS NO PROPER ENQUIRY WAS MADE A ND THE ORDER WAS FRAMED WITHOUT APPLICATION OF MIND AND SUFFICIE NT MATERIAL. SHOW CAUSE NOTICE WAS ISSUED ON 11.03.2016. WRITTE N REPLY WAS SUBMITTED ON 189.03.2016. IT IS NOT IN DISPUTE THA T NO OPPORTUNITY FOR GIVING ORAL SUBMISSION WAS PROVIDED TO THE ASS ESSEE BEFORE FRAMING THE ORDER U/S 263 OF THE ACT ON 21.03.2016. FLEXITUFF INTERNATIONAL LTD ITA NO. 488/IND/2016 4 7. REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE FOR PROVIDING ONE MORE OPPORTUNITY OF BEING HEARD GOES UNOPPOSED BY L D. DEPARTMENTAL COUNSEL. 8. HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF ACME FABRIK PLAST CO. V/S INCOME TAX OFFICERS & ORS (SUPRA) HAS OBSERVED THAT EVEN THOUGH PETITIONER HAD TAKEN PRECAUTIONS TO FI LE WRITTEN SUBMISSIONS, THIS WAS NOT ENOUGH TO ASSUME THAT ORA L HEARING IS NOT REQUIRED TO BE GIVEN AND THIS IS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE, AS CIT HAS GIVEN DIRECTION IN POSITIVE TER MS TO DECIDE IN A PARTICULAR MANNER. 9. WE, THEREFORE RESPECTFULLY FOLLOWING THE JUDGMEN T OF HON'BLE HIGH COURT AND IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, ACCEPT THE REQUEST OF LD. COUNSEL FOR THE ASSESSEE FOR SETTING ASIDE THE ISSUE RAISED IN THIS APPEAL TO THE FILE OF LD. PR. CIT WHO WILL PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO MAK E ORAL SUBMISSION AND IF REQUIRED TO MAKE FURTHER WRITTEN SUBMISSION IN ORDER TO COMPLETE THE PROCEEDINGS U/S 263 OF THE AC T. NEEDLESS TO MENTION THAT PROPER OPPORTUNITY OF BEING HEARD SHOU LD BE PROVIDED TO THE ASSESSEE. FLEXITUFF INTERNATIONAL LTD ITA NO. 488/IND/2016 5 10. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.03.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 22 MARCH, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE