M/s. Govind Milk and Milk Products Pvt.Ltd, Satara V. Assistant Commissioner of Income-tax, Satara Circle, Satara

ITA 518/PUN/2019

AI Insights

The case involves M/s. Govind Milk and Milk Products Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-4, Pune, for the assessment year 2015-16. The primary issue was the confirmation of additions made by the Assessing Officer (AO) due to the assessee's non-appearance and non-prosecution of the appeal. The AO had made additions to the assessee's income on account of disallowances under section 40(a)(ia) and unverifiable expenses totaling Rs. 1,19,39,544 and Rs. 7,25,000 respectively. The CIT(A) dismissed the appeal citing non-prosecution. The Tribunal found that the CIT(A) had not addressed the merits of the case and thus remanded the matter back for a detailed examination.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 132965 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-10-2022
• Assessment Year: misc
• Appeal Filed On: 01-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 142(1); 40(a)(ia); 143(2)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.518/PUN/2019 निर्ाारण वर्ा / Assessment Year : 2015-16 M/s. Govind Milk and Milk Products Pvt. Ltd., At & PO Kolki, Pune Pandharpur Road, Phaltan, Dist.-Satara – 415523 PAN : AAACG7588A .......अपीलार्थी / Appellant बिाम / V/s. ACIT, Satara Circle, Satara ......प्रत्यर्थी / Respondent Assessee by : Shri Prayag Jha Revenue by : Shri Ramnath P. Murkunde सुिवाई की तारीख / Date of Hearing : 12-10-2022 घोर्णा की तारीख / Date of Pronouncement : 22-11-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 13-03-2019 passed by the Commissioner of Income Tax (Appeals)-4, Pune [‘CIT(A)’] for assessment year 2015-16. 2. The only issue is to be decided is as to whether the CIT(A) is justified in confirming the additions made by the AO on account of ex-parte of assessee. 2 ITA No. 518/PUN/2019, A.Y. 2015-16 3. We note that the assessee is a company engaged in the business of processing of milk and manufacturing of milk products. The assessee filed return of income declaring a total income of Rs.5,97,63,540/-. Under scrutiny notices u/s. 143(2) and 142(1) of the act were issued to the assessee. In response to the said notices, the assessee in compliance appeared through its authorized representative and furnished requisite information for verification. On an examination of such details, the AO concluded the assessment inter alia making additions on account of disallowance u/s. 40(a)(ia) of the Act and unverifiable expenses added of Rs.1,19,39,544/- and Rs.7,25,000/- to the total income of the assessee vide its order dated 07-12-2017 passed u/s. 143(3) of the Act. Having not satisfied with the order of AO, the assessee preferred an appeal before the CIT(A). The CIT(A) dismissed the grounds raised by the assessee for non- prosecution which is evident from para 6 of the impugned order. 4. The ld. AR submits that the assessee is ready to prosecute its grounds raised before the CIT(A) and one more opportunity may be granted to the assessee in remanding the issue to the file of CIT(A). The ld. DR drew our attention to the impugned order at page 3 and argued that the CIT(A) has given ample opportunity to the assessee to prosecute its grounds but the assessee failed to avail the said opportunity. Admittedly, the additions made by the AO requires examination on account of furnishing of evidences and ld. AR undertaken that the assessee is ready to furnish all the said details before the CIT(A). The impugned order also establishes that there was no discussion by the CIT(A) on merits of the issues but however proceeded to dismiss for non-appearance. Therefore, in such peculiar circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of CIT(A). The assessee is 3 ITA No. 518/PUN/2019, A.Y. 2015-16 liberty to file evidences, if any, in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purpose. 5. In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 22 nd November, 2022. Sd/- Sd/- (G.D. Padmahshali) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ददिांक / Dated : 22 nd November, 2022. रवि आदेश की प्रनतनलनप अग्रेनर्त / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-4, Pune 4. The Pr. CIT-3, Pune 5. नवभागीय प्रनतनिनर्, आयकर अपीलीय अनर्करण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ा फ़ाइल / Guard File. //सत्यानपत प्रनत// True Copy// आदेशािुसार / BY ORDER, िररष्ठ विजी सविि / Sr. Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune