Khimjibhai Bhimjibhai Sisodiya, Veraval V. The Income Tax Officer, Ward-1(4), Veraval

ITA 535/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85410 (ITAT-RAJKOT)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-10-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 31-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVINASH KUMAR
• Assessee Lawyers: RD LALCHANDANI
• Section: 143(3); 148

Judgement Text

: : IN THE INCOME TAX APPELLATE TRIBULAL: RAJKOT BENCH: RAJKOT BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ ITA NO.535/RJT/2013 / ASSESSMENT YEAR: 2004-05 KHIMABHAI BHIMABHAI SISODIYA PROP. JAY KHODIYAR TRASNPORT CO., 7- RAVI COMPLEX, JUNAGADH ROAD, VERAVAL PAN : AFWPS 9713 D VS THE INCOME TAX OFFICER, WARD-1(4) VERAVAL / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI R. D. LALCHANDANI, ADVOCATE REVENUE BY : SHRI AVINASH KUMAR, DR / DATE OF HEARING : 09/10/2014 / DATE OF PRONOUNCEMENT: 09/10/2014 / O R D E R PER SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER : THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST OR DER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS)-IV, RA JKOT DATED 21.11.2013, PASSED U/S 143(3) R.W.S. 147 OF THE IN COME-TAX ACT FOR THE ASSESSMENT YEAR 2004-05. 2. THE FACTS AS CULLED OUT FROM THE MATERIAL ON REC ORD ARE AS UNDER: 3. THE ASSESSEE IS AN INDIVIDUAL, STATED TO BE ENGA GED IN THE BUSINESS OF TRANSPORT CONTRACTOR AND ALSO SUPPLIER OF RAW MATERIAL FOR MANUFACTURING OF CEMENT. THE ASSESSEE FILED HIS RE TURN OF INCOME FOR AY 2004-05 ON 01.11.2004, DECLARING TOTAL INCOME AT RS.4,67,940/-. INITIALLY, THE ASSESSMENT WAS FINALIZED U/S 143(3) OF THE ACT ON 30.03.2006 AND THE TOTAL INCOME WAS ASSESSED AT RS. 5,25,640/-. SUBSEQUENTLY, NOTICE U/S 148 OF THE ACT WAS ISSUED AND SERVED UPON THE ASSESSEE ON 23.03.2011 AND THEREAFTER ASSESSMEN T WAS FRAMED U/S 143(3) R.W.S. 147 OF THE ACT AND THE TOTAL INCOME W AS DETERMINED AT ITA NO. 535-RJT-2013 AY 2004-05 KHIMABHAI BHIMABHAI SISODIYA - 2 - RS.56,18,740/-. AGGRIEVED BY THE ORDER OF THE ASSE SSING OFFICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) WHO V IDE ORDER DATED 21.11.2013 DISMISSED THE APPEAL OF THE ASSESSEE. A GGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED VARIOUS GROUNDS. 4. AT THE OUTSET, THE LD. AR SUBMITTED THAT, THOUGH THE ASSESSEE HAS RAISED VARIOUS GROUNDS, THE ONLY ISSUE IS WITH RESP ECT TO ADDITION OF RS.50,93,103/-. 5. DURING THE COURSE OF RE-ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE WAS FOLLOWING MER CANTILE SYSTEM OF ACCOUNTING AND HAD ACCOUNTED THE TRANSPORTATION INC OME OF RS.6,03,11,729/-, WHEREAS AS PER LEDGER ACCOUNT, TH E AMOUNT WAS RS.6,54,04,832/- AND THUS, ACCORDING TO THE ASSESSI NG OFFICER, THE INCOME WAS SHORT CREDITED BY RS.50,93,103/-. THE A SSESSING OFFICER ASKED THE ASSESSEE TO RECONCILE THE DIFFERENCE. THE SUBMISSIONS OF THE ASSESSEE WERE NOT FOUND ACCEPTABLE TO THE ASSESSING OFFICER. HE, THEREFORE, CONSIDERED THE DIFFERENCE AMOUNT OF RS.5 0,93,103/- AS INCOME OF THE ASSESSEE. AGGRIEVED BY THE ORDER OF T HE ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A). THE CIT(A) HAS NOTED THAT SINCE THE ASSESSEE DID NOT COMPLY WI TH THE NOTICES AND AS THERE WAS NO REPRESENTATION FROM THE SIDE OF THE ASSESSEE, HE CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 6. BEFORE US, THE LD. AR SUBMITTED THAT THE CIT(A) HAS PASSED AN EX- PARTE ORDER AS THE ASSESSEE COULD NOT APPEAR BEFORE THE CIT(A). HE, THEREFORE, SUBMITTED THAT THE ASSESSEE BE GRANTED O NE MORE OPPORTUNITY TO PRESENT HIS CASE AND THEREFORE, THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE CIT(A) SO THAT THE ASSESSEE CAN MAKE THE NECESSARY SUBMISSION AND THE MATTER CAN BE DECI DED ON MERITS. THE LD. DR, ON THE OTHER HAND, OBJECTED TO THE SUBMISSI ONS OF THE LD. AR AND SUBMITTED THAT DESPITE VARIOUS OPPORTUNITIES GR ANTED TO THE ITA NO. 535-RJT-2013 AY 2004-05 KHIMABHAI BHIMABHAI SISODIYA - 3 - ASSESSEE, THE ASSESSEE DID NOT APPEAR BEFORE THE CI T(A) AND THEREFORE, CIT(A) WAS FULLY JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER. HE FURTHER SUBMITTED THAT CIT(A) HAS PASSE D THE ORDER ON MERITS AND THEREFORE REQUIRES NO INTERFERENCE. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IN THE PRESENT CASE, WE FIND THAT THE ASSES SING OFFICER CONSIDERED THE DIFFERENCE AMOUNT OF TRANSPORTATION INCOME AS PER THE LEDGER ACCOUNT AND P&L ACCOUNT AS THE INCOME OF THE ASSESSEE. FURTHER, BEFORE THE LD. CIT(A), THERE WAS NON-COMPLIANCE OF THE NOTICES AND THEREFORE, CIT(A) CONFIRMED THE ADDITION MADE BY TH E ASSESSING OFFICER. BEFORE US, THE LD. AR HAS ASSURED THAT IF THE MATTE R IS REMITTED BEFORE THE CIT(A), THE ASSESSEE WOULD BE REPRESENTED TO PR ESENT ITS CASE. CONSIDERING THE SUBMISSION OF LD. AR, WE ARE OF THE VIEW THAT IN THE PRESENT CASE, IN THE INTEREST OF JUSTICE AND FAIRNE SS, THE ASSESSEE IS GRANTED ONE MORE OPPORTUNITY TO PRESENT HIS CASE BE FORE THE CIT(A). WE, THEREFORE, REMIT THE ISSUE TO THE FILE OF CIT(A ) FOR HIM TO DECIDE THE ISSUE DE-NOVO ON MERITS. WE ALSO DIRECT THE LD. AR TO APPEAR SUO-MOTO BEFORE THE CIT(A) WITHIN 30 DAYS OF THE ORDER AND F URNISH ALL THE REQUIRED DETAILS CALLED FOR BY THE CIT(A). IN CASE OF FAILURE ON THE PART OF THE ASSESSEE IN SUBMITTING THE NECESSARY DETAILS , THE CIT(A) SHALL BE FREE TO DECIDE THE ISSUE ON THE BASIS OF MATERIAL O N RECORD. THUS, THE GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON THURSDAY, THE 9 TH OF OCTOBER, 2014 AT RAJKOT. SD/- SD/- (G.C. GUPTA) VICE PRESIDENT ( ANIL CHATURVEDI ) ACCOUNTANT MEMBER AHMEDABAD; DATED /10/2014 *BIJU T. ITA NO. 535-RJT-2013 AY 2004-05 KHIMABHAI BHIMABHAI SISODIYA - 4 - ! / COPY OF ORDER FORWARDED TO:- 1. ! / APPELLANT- KHIMABHAI BHIMABHAI SISODIYA, PROP. J AY KHODIYAR TRANSPORT CO., 7-RAV I COMPLEX, JUNAGADH ROAD, VERAVAL 2. #$ ! / RESPONDENT- THE INCOME TAX OFFICER, WARD-1(4), V ERAVAL 3. &'& ( / CONCERNED CIT/DIT 4. (- / CIT (A)-IV, RAJKOT 5 . +,- #.. , , / DR, ITAT, RAJKOT 6 . -01 23 / GUARD FILE. ' / BY ORDER, TRUE COPY #/$ % ( DY./ASSTT.REGISTRAR) & ' / ITAT, RAJKOT