Om Art Print, Vijayawada V. ITO, Vijayawada

ITA 491/VIZ/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8830 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 11-09-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P S MURTHY
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNA L VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO. 491 / VIZ /201 7 (ASST. YEAR: 20 07 - 0 8 ) M/S. OM ART PRINT, D.NO. 27 - 22 - 60, J.D. HOSPITAL ROAD, GOVERNORPET, VIJAYAWADA. V S . IT O , WARD - 2 (1), VIJAYAWADA . PAN NO. AAAFO 3163 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI P.S. MURTHY SR. DR DATE OF HEARING : 26 / 12 /201 8 . DATE OF PRONOUNCEMENT : 28 / 12 /201 8 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , KURNOOL , DATED 22 /0 6 /201 7 FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME BY ADMITTING TOTAL INCOME OF RS. 97,346/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HE REINAFTER REFERRED TO AS 'ACT') BY MAKING ADDITION OF RS.8,40,580/ - TOWARDS UNSECURED LOANS. IN THE ASSESSMENT ORDER, 2 ITA NO. 491 / VIZ/2017 ( OM ART PRINT ) THE ASSESSING OFFICER HAS NOTED THAT ON VERIFICATION OF THE UNSECURED LOANS, IT IS FOUND THAT THERE ARE 12 NEW CREDITORS TO THE EXTENT OF RS. 8,2 6 ,000/ - , BESIDES ADDITIONAL AMOUNT OF RS.4,36,000/ - INTRODUCED BY SMT. B. L. SUJATHA, OLD CREDITOR. THE ASSESSEE WAS ASKED TO SUBMIT THE DETAILS OF FRESH LOANS, CONFIRMATION WITH SOURCE S AND EVIDENCE FROM THE NEW CREDITOR S ON 05/10/2009 ALONG WITH O THER INFORMATION. THE ASSESSEE VIDE ITS LETTER DATED 05/11/2009 , STAT ED TO HAVE FILED CONFIRMATIONS FROM THE CREDITORS, BUT ACTUALLY THEY WERE NOT ENCLOSED EXCEPT IN THE CASE OF SMT. B.L. SUJATHA . ON 05/11/2009 , THE ASSESSEE WAS AGAIN A S KED TO FURNISH THE CONFIRMATIONS FROM THE REST OF THE CREDITORS. THOUGH, THE ASSESSEE WAS GIVEN AMPLE OPPORTUNITY TO FILE THE EVIDENCE FOR THE CREDITS , NO SUCH INFORMATION WAS FORTHCOMING. AS SUCH, THE ENTIRE LOANS INTRODUCED DURING THE YEAR AMOUNTING TO RS. 8,26,000/ - ALONG WITH INTEREST CLAIMED OF RS.14,580/ - IS ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. 3 . ON APPEAL, LD. CIT(A) DIRECTED THE ASSESSEE TO APPEAR BEFORE HIM ON 18/04/2013. NONE APPEARED. ANOTHER NOTICE WAS ISSUED TO THE ASSESSEE FOR HEARING ON 28/05/2014. IN RESPONSE TO THE NOTICE ISSUED, THE ASSESSEE FILED AN AD JOURNMENT LETTER. THE CASE WAS POSTED FOR HEARING ON 26/03/2015. AGAINST CA S E WAS POSED FOR HEARING ON 05/07/2016. IN RESPO NSE TO THE NOTICE ISSUED, THE 3 ITA NO. 491 / VIZ/2017 ( OM ART PRINT ) ASSESSEE FILED ADJOURNMENT APPLICATION. FURTHER NOTICE WAS ISSUED TO THE ASSESSEE TO APPEAR ON 16/06/2017 . THE ASSESSEE NEITHER APPEARED NOR FILED ANY WRITTEN SUBMISSIONS , T HEREFORE, LD. CIT(A) PASSED AN EXPARTE ORDER. 4 . BEFOR E US, THE ASSESSEE HAS RAISED A GROUND THAT LAST NOTICE DATED 16/06/2017 HAS NOT RECEIVED BY THE ASSESSEE, THEREFORE, HE COULD NOT APPEAR BEFORE THE LD. CIT(A) AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO SUBSTANTIATE HIS CASE. 5. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDERS PASSED BY TH E AUTHORITIES BELOW. 6 . I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD . THE LD. CIT(A) PASSED AN EXPARTE ORDER BY CONFIRMING THE ORDER OF THE ASSESSING OFFICER. THE CASE OF THE ASSESSEE IS TH A T ON 16/06/2017, THE DATE ON WHICH THE CASE IS POSED FOR HEARING BY THE LD. CIT(A) , THAT NOTICE IS NOT RECEIVED BY HIM , T HEREFORE, HE MAY BE GIVEN ONE MORE OPPORTUNITY TO SUBSTANTIATE HIS CASE BEFORE THE LD. CIT(A) BY F I LING RELEVANT DETAILS. I FIND THAT THER E IS A MERIT IN THE ARGUMENT OF THE LD.COUNSEL FOR THE ASSESSEE . T HEREFORE , BY CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE , I AM OF THE OPINION THAT ONE M ORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBSTANTI AT E HIS CASE BEFORE THE LD. CIT(A). ACCORDINGLY, THE ORDER PASSED BY THE 4 ITA NO. 491 / VIZ/2017 ( OM ART PRINT ) LD. CIT(A) IS SET ASIDE AND REMIT THE MATTER BACK TO THE LD. CIT(A) TO ADJUDICATE AFRESH AFTER CONSIDERING THE RELEVANT DETAILS FILED BY THE ASSESSEE. IT IS ALSO DIRECTED THE ASSESSEE TO FILE THE NECESSARY DETAILS ON THE DATE GIVEN BY THE LD. CIT(A) FOR ADJUDICATING THE APPEAL . THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 8 T H DAY OF DEC., 201 8 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 2 8 T H DEC. , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE M/S. OM ART PRINT, D.NO. 27 - 22 - 60, J.D. HOSPITAL ROAD, GOVERNORPET, VIJAYAWADA. 2. THE REVENUE ITO, WARD - 2(1), VIJAYAWADA. 3. THE PR. CIT , VIJAYAWADA. 4. THE CIT(A) , KURNOOL. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.