RELIABLE PAPER INDIA LIMITED, MUMBAI V. DEPUTY COMMISSIONER OF INCOME CENTRAL CIRCLE-12, MUMBAI

ITA 5282/MUM/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7537 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 12-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. SREEKAR
• Keywords: Opportunity of being heard; Set aside
• Section: 63; 142(1); 133(6); 143(2); 48; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, JM AND SHRI MANOJ KUMAR AGGARWAL , AM / I .T.A. NO. 5282 /MUM/201 8 ( / ASSESSMENT YEAR: 20 1 5 - 16 ) RELIABLE PAPER INDIA LTD. 93, DADISETH AGIARY L A NE, K ALBADEVI ROAD, MUMBAI - 400002 . / VS. DY. CIT - CENTRAL CIRCLE - 12 8 TH FLOOR, OLD CGO BLDG, ANNEXE, M. K. ROAD, MUMBAI - 400020. ./ ./ PAN/GIR NO. : AAACD9643F ( / APPELLANT ) .. ( / RESPONDENT ) / DATE OF HEARING : 10/02/ 20 20 / DATE OF PRONOUNCEMENT : 19 /03 /2020 / O R D E R PER AMARJIT SINGH, J M: THE ASSESSEE HAS F ILED THE PRESENT APPEAL AGAINST THE ORDER DATED 18 . 06 .201 8 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 48 , MUMBAI [HEREINAFTE R REFERRED TO AS THE CIT(A)] RELEVANT TO THE A.Y. 20 15 - 1 6 . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: - THE FOLLOW ING GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO ONE ANOTHER. I. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. COMMISSIONER OF INCOME TAX (APPEALS) (REFERRED AS CIT(A) ) ERRED IN PASSING EX - PARTE WITHOUT PROVIDING ADDITIONAL OPPORTUNITY OF ASSESSEE BY : NONE REVENUE BY: SHRI V. SREEKAR (DR) ITA NO. 5282 / M/201 8 A.Y.20 1 5 - 1 6 2 HEARING AND BY APPLYING THE CASE OF MULTIPLAN OIL GROUND OR GROUNDS AS CONTAINED IN THE APPELLATE ORDER OR OTHERWISE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) ERRED IN CONFIRMING THE ADDITION OF RS.7,47,53,430/ - ON ACC OUNT OF LOSS ON ACCOUNT OF STOCK VALUATION OIL GROUND OR GROUNDS AS STATED IN THE APPELLATE ORDER OF OTHERWISE. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION ON ACCOUNT OF LOSS ON STOCK VALUATI ON IN - SPITE OF THE FACT THAT THE SAID LOSS IS ARISING ON ACCOUNT OF THE METHOD OF ACCOUNTING AND VALUATION FOLLOWED BY THE APPELLANT ON THE GROUND OR GROUNDS AS STATED IN THE APPELLATE ORDER OR OTHERWISE. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT(A) ERRED IN NOT PROVIDING THE INFORMATION USED BY THE ASSESSING OFFICER U/S 133(6) WHICH HAS BEEN USED BY THE ASSESSING OFFICER WITHOUT PROVIDING ANY OPPORTUNITY OF HEARING IN RESPECT OF THE SAME. 5. THE APPELLANT CRAVE LEAVES TO ADD, AMEND, ALTER, MODIFY AND OR WITHDRAW ANY OF THE ABOVE GROUNDS OF APPEAL, WHICH ARE WITHOUT PREJUDICE TO ONE ANOTHER. THE APPELLANT PRAYS THIS HON'BLE TRIBUNAL TO DIRECT THE A.O. TO DELETE THE ADDITIONS. 3 . THE BRIEF FACTS OF THE CASE ARE THAT TH E ASSESSEE FILED ITS RETURN OF INCOME ON 12 . 10 .20 1 5 DECLARING TO TAL LOSS TO THE TUNE OF RS.( - ) 11,90,72,037/ - . THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S 143(2) OF THE ACT DATED 12.04.2016 WAS ISSUED AND SERVED UPON THE ASSESSEE. THEREAF TER, NOTICE U/S 142(1) OF THE ACT DATED 14 . 11 .201 7 WAS ALSO ISSUED AND SERVED UPON THE ASSESSEE. THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF MANUFACTURER AND TRADER IN PAPER & PAPER PRODUCTS. IT WAS OBSERVED FROM THE PERUSAL OF AUDITED FINANCIALS T HAT THE ASSESSEE COMPANY HAS CLAIMED A DEDUCTION IN SUM OF RS.4,23,23,166/ - TOWARDS INTEREST PAYMENT SHOWN AS UNDER.: - ITA NO. 5282 / M/201 8 A.Y.20 1 5 - 1 6 3 S. NO. NAME OF THE LOAN AMOUNT(RS.) 1 INTEREST ON TERM LOAN 17,88,475 2 INTEREST ON OTHERS 2,73,83,180 3 INTEREST ON LOAN 7,79,717 4 INTEREST ON WORKING CAPITAL 1,23,55,155 4,23,06,527 THE TOTAL INCOME OF THE ASSESSEE WAS ASSESSED TO THE TUNE OF RS. ( - ) 20,12,080/ - . FEELING AGGRIEVED, T HE ASSESSEE FILE D AN APPEAL BEFORE THE CIT(A) 48 , MUMBAI WHO DISMISSED THE APPEAL OF THE ASSESSEE, THEREFORE, THE ASSESSEE HAS FILED THE PRESENT APPEAL BEFORE US. 4. WE HAVE HEARD THE ARGUMENT ADVANCED BY THE LD. REPRESENTATIVE OF THE DEPARTMENT AND HAS GONE THROUGH THE CASE CAREFULLY . THE ASSESSEE DID NOT APPEAR BEFORE US. WE FIND THAT LD. CIT(A) HAS D ISMISSED THE APPEAL FOR NON - PROSECUTION. WE FIND THAT IT IS INCUMBENT UPON THE LD. CIT(A) TO PASS AN ORDER ON THE MERITS OF THE CASE AND SHOULD NOT DISMISS THE APPEAL FOR WANT OF NON - PROSECUTION. 5. FOR THIS PROPOSITION WE PLACE D RELIANCE UPON THE FOLLOWIN G CASE LAWS. ( 1 ) CIT VS. PREMKUMAR ARJUNDAS LUTHRA (HUF) (2017) 154 DTR (BOM) 302 ( 2 ) CIT VS. S CHENNIAPPA MUDALIAR (1969) 74 ITR 1 (SC) 6. ACCORDINGLY IN THE INTEREST OF JUSTICE WE REMIT THE ISSUE RAISED IN THE APPEAL TO THE FILE OF THE LD. CIT(A). LD. CIT(A) IS DIRECTED TO CONSIDER THE ISSUE AFRESH AND PASS AN ORDER ON THE MERI TS OF THE CASE AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH LAW . ITA NO. 5282 / M/201 8 A.Y.20 1 5 - 1 6 4 THEREFORE, IN THE SAID CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ORDER OF THE CIT(A) IS N OT LIABLE TO BE SUSTAINABLE IN THE EYES OF LAW, THEREFORE, WE SET ASIDE THE FINDING OF THE CIT(A) ON ALL THE ISSUES AND RESTORED THE MATTER BEFORE THE CIT(A) TO DECIDE THE MATTER AFRESH BY GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IN ACCORDANCE WITH LAW. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS HEREBY ORDERED TO BE ALLOWED FOR STATISTICAL PURPOSE S . ORDER PRONOUNCED IN THE OPEN COURT ON 19 /03 /2020 SD/ - SD/ - ( MANOJ KUMAR AGGARWAL ) (AMARJIT SINGH) / ACCOUNTANT MEMBER /JUDICIAL MEMBER MUMBAI; DATED : 19 /03 /2020 V IJAY PAL SINGH/SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. / BY ORDER, //TRUE CO PY// / / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI