K K TEX ENTERPRISES, BHIWANDI V. INCOME TAX OFFICER WARD-1(2), KALYAN

ITA 5272/MUM/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0519 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2004-2005
• Appeal Filed On: 11-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Income from undisclosed sources
• Section: 143(3); 132; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER ITA NOS.5272 & 5273/M/2017 ASSESSMENT YEARS: 2004-05 & 2005-06 M/S. K.K. TEX ENTERPRISES, FLAT NO.24/2, PALS COMPOUND, KALYAN ROAD, BHIWANDI. PAN: AAGFK8890C VS. INCOME TAX OFFICER, WARD -1(2), KALYAN (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : MS. DINKLE HARIYA, A.R. REVENUE BY : MS. N. HEMALATHA, D.R. DATE OF HEARING : 01.01.2018 DATE OF PRONOUNCEMENT : 30.01.2018 O R D E R PER D.T. GARASIA, JUDICIAL MEMBER: THE PRESENT APPEALS HAVE BEEN PREFERRED BY THE ASSE SSEE AGAINST THE COMMON ORDER DATED 16.06.2017 OF THE COMMISSION ER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A )] RELEVANT TO ASSESSMENT YEARS 2004-05 & 2005-06. 2. THE SHORT FACTS OF THE CASE ARE THAT A SEARCH AN D SEIZURE ACTION UNDER SECTION 132 OF THE INCOME TAX ACT, 1961 WAS C ARRIED OUT ON 12/07/2007. THE RETURN OF INCOME HAS BEEN FILED ALO NG WITH COMPUTATION OF INCOME ON 02/05/2008 DECLARING TOTAL INCOME AT RS.22,078/ -. THE ASSESSMENT WAS COMPLETED U/S 15 3A R.W.S. 143(3) OF THE I.T. ACT 1961 ON 30-12-2009 DETERMINING TOTA L INCOME AT RS.10,49,770/-. THE FOLLOWING ADDITIONS HAVE BEEN M ADE BY THE ITA NOS.5272 & 5273/M/2017 M/S. K.K. TEX ENTERPRISES 2 ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE A O) WHILE COMPLETING THE ASSESSMENT. (A) UNACCOUNTED INCOME RS. 9,64,185/- (B) INFLATION OF LABOUR CHARGES RS. 63,510/- TOTAL ADDITION RS. 10,27,695/- AGGRIEVED BY THE ORDER OF THE AO, ASSESSEE PREFERRE D APPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT(A) HAS CONFIR MED THE ADDITION MADE ON ACCOUNT OF THE UNACCOUNTED INCOME DETERMINED BY THE AO AND DISALLOWANCE ON ACCOUNT OF JOB CHARGES. FURTHER, THE ASSESSEE PREFERRED AN APPEAL TO THE ITAT AGAINST TH E ORDER OF THE CIT(A) WHO HAVE DELETED THE ADDITION MADE ON ACCOUN T OF THE UNACCOUNTED INCOME OF RS. 9,64,185/- AND RESTORED T O THE FILE OF THE AO TO DECIDE THE ISSUE AFRESH IN RESPECT OF INFLATI ON OF LABOUR CHARGES. THE AO HAS ALLOWED AN AMOUNT OF RS.3/- PE R METER TOWARDS LABOUR CHARGES WHICH WORKED OUT TO RS.20,50,737/- A ND DISALLOWED THE BALANCE AMOUNT OF RS.63,510/- OUT OF TOTAL EXPE NSES OF RS.21,14,247/-. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS DISMISSED THE CLAIM OF THE ASSESSEE. 4. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT THE ASSESSEE DID NOT REMAIN PRESENT BEFORE THE LD. CIT( A) AND THE ORDER WAS PASSED EX-PARTE BY THE LD. CIT(A) AND IT IS A C OMMON ORDER FOR A.Y. 2004-05 & A.Y. 2005-06. THE LD. A.R. SUBMITTE D THAT ITA NOS.5272 & 5273/M/2017 M/S. K.K. TEX ENTERPRISES 3 ASSESSEE NOW WANTED TO APPEAR BEFORE THE LD. CIT(A) AND APPEAL MAY BE DECIDED ON MERIT. 5. THE LD. D.R. SUBMITTED THAT DURING THE COURSE OF HEARING NEITHER THE ASSESSEE REMAINED PRESENT NOR ANY DOCUM ENTARY EVIDENCE WAS SUBMITTED. THEREFORE, EX-PARTE ORDER WAS PASSE D. HE FURTHER SUBMITTED THAT ASSESSEE WAS GIVEN SEVERAL OPPORTUNI TIES STILL HE REMAINED ABSENT. 6. HAVING HEARD BOTH THE PARTIES AND LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT ASSESSEE DUE TO UNAVOIDABLE CIRCUMSTANCES WAS UNABLE TO REMAIN PRESENT BEFORE T HE LD. CIT(A). THE ASSESSEE WANTED TO PURSUE THESE APPEALS ON MERI T. THEREFORE, IN THE INTEREST OF JUSTICE AND FAIRPLAY, I ALLOW BOTH THE APPEALS. ASSESSEE IS DIRECTED TO REMAIN PRESENT BEFORE THE LD. CIT(A) WITHIN TWO MONTHS FROM THE RECEIPT OF THIS ORDER. THE LD. CIT (A) IS DIRECTED TO DECIDE THESE APPEALS ON MERIT AFTER GIVING OPPORTUN ITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30.01.2018. SD/- (D.T. GARASIA) JUDICIAL MEMB ER MUMBAI, DATED: 30.01.2018. * KISHORE, SR. P.S. ITA NOS.5272 & 5273/M/2017 M/S. K.K. TEX ENTERPRISES 4 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.