Raman Electric Trading Co., Barnala V. ACIT, Sangrur

ITA 513/CHANDI/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5435 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 04-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S KEMWAL
• Assessee Lawyers: D K GOYAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.513 /CHD/2010 ASSESSMENT YEAR: 2006-07 RAMAN ELECTRIC TRADING CO. VS. THE A.C.I.T., MES CONTRACTORS CIRCLE SANGRUR. BARNALA. PAN NO. AAHFR 6852 Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K.GOYAL RESPONDENT BY : SHRI S.S.KEMWAL O R D E R PER SUSHMA CHOWLA, JM THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX(A), DATED 25.02.2010 REL ATING TO ASSESSMENT YEAR 2006-07 AGAINST THE ORDER PASSED UNDER SECTION 143(3) OF THE I.T. ACT, 1961. 2. THE GROUND NO.2 RAISED BY THE ASSESSEE READS AS UNDER : 2. THAT THE WORTHY CIT (APPEALS) HAS ERRED WHILE N OT ALLOWING PROPER OPPORTUNITY TO THE APPELLANT FOR PLEADING ITS CASE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSI NG OFFICER WHILE COMPLETING THE ASSESSMENT OBSERVED THAT THE ASSESSE E HAD SHOWN A CHEQUE ISSUED TO M/S JAIN VIDYUT, AMBALA CANTT. WHI CH WAS NOT PRESENTED FOR PAYMENT. HOWEVER, FROM THE COPY OF T HE BANK STATEMENT 2 WITH HDFC BANK, AMBALA CANTT. IT WAS SEEN THAT THE SAID CHEQUE WAS CLEARED ON 31.3.2006. THE ASSESSEE WAS ASKED TO EX PLAIN THE LIABILITY SHOWN AGAINST THE PARTY. THE EXPLANATION OF THE AS SESSEE IN THIS REGARD WAS THAT THE LIABILITY OF M/S JAIN VIDYUT SHOWN PAY ABLE AS ON 31.3.2006 WAS CLEARED PRIOR TO 31.3.2006 AND THE AMOUNT OF RS .7 LACS SHOWN IN THE BALANCE SHEET WAS ACTUALLY RELATED TO LABOUR PAYABL E. THE ASSESSEE CLAIMED THAT THE ACCOUNTANT HAD WRONGLY WRITTEN THE ENTRY IN THE BOOKS OF ACCOUNT. IT WAS FURTHER EXPLAINED THAT THE ASS ESSEE AT THE SAME TIME HAD CREDITED CASH OF RS.7 LACS ON 30.3.2006 ON ACCO UNT OF ENCASHMENT OF THE SAID CHEQUE. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE HAD INTRODUCED THE SAID CHEQUE OUT OF THE UNDISCLOS ED INCOME AND HENCE THE SAME WAS ADDED AS INCOME OF THE ASSESSEE. 4. THE CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER, AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE GRIEVANCE OF THE ASSESSEE IN THIS REGARD IS THAT NO PROPER OPPORTUNITY WAS ALLOWED TO THE ASSESSEE BY THE CIT( A). FROM THE PERUSAL OF THE ORDER OF CIT(A) IT TRANSPIRES THAT T HE SAID ORDER WAS PASSED AFTER REPRESENTATION BY SHRI SURESH JAIN, AD VOCATE. HOWEVER, THE CIT(A) HAS UPHELD THE ORDER OF THE ASSESSING OFFICE R WITHOUT ADDRESSING THE ISSUE ON THE MERITS OF THE CASE. UNDER THE PRO VISIONS OF SECTION 250(6) OF THE ACT IT IS IMPERATIVE UPON THE CIT(A) TO PASS AN ORDER IN WRITING DISPOSING OFF THE APPEAL AND FURTHER THE CI T(A) SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND REASON FOR THE DECISION. IN THE PRESENT CASE WE FIND THAT THE CIT (A) TO HAVE FAILED TO DISCHARGE ITS DUTY IN GIVING THE POINTS FOR DETERMI NATION/DECISION ON THE MERITS OF THE CASE. IN THE INTEREST OF NATURAL JU STICE WE DEEM IT FIT TO RESTORE THE ISSUE BACK TO THE FILE OF THE CIT(A) TO RE-ADJUDICATE THE ISSUE 3 AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING T O THE ASSESSEE. THE GROUND NO.2 RAISED BY THE ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. 6. IN VIEW OF SETTING ASIDE THE MATTER TO THE FILE OF THE CIT(A) WE ARE NOT ADDRESSING THE ISSUE ON MERITS OF THE ADDITION. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 28 TH DAY OF APRIL, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 TH APRIL, 2011 RATI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH