M/s J J Glastronics Pvt Ltd , Bangalore V. Income Tax Officer Ward-4(1)(1), Bangalore

ITA 567/BANG/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1076 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 03-09-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 28-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR P V PRADEEP KUMAR
• Assessee Lawyers: SHREEHARI KUSTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH C BEFORE S HRI JASON P BOAZ , ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER I.T . A. NO. 567 /BANG/20 18 (ASSESSMENT YEAR : 20 13 - 14 ) M/S. J J GLASTRONICS PVT. LTD., NO.26 - B, ELECTRONICS C ITY, HOSUR ROAD, BANGALORE - 560 100 . . APPELLANT. PAN AAACJ 4330P VS. INCOME TAX OFFICER, WARD 4(1)(1), BANGALORE. .. RESPONDENT. APPELLANT BY : SHRI SHREEHARI KUSTA, CA R E SPONDENT BY : DR. P. V. PRADEEP KUMAR, ADDL. CIT (D.R) DATE OF H EARING : 03.09.2018. DATE OF P RONOUNCEMENT : 14 .09 .201 8 . O R D E R PER SHRI JASON P BOAZ , A .M . : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 4, BANGALORE DT.27.11.2017 FOR ASST. YEAR 2013 - 14. 2. BRIEFLY STA TED, THE FACTS OF THE CASE ARE AS UNDER : - 2 IT A NO. 567 /BANG/20 18 2.1 THE ASSESSEE, A COMPANY ENGAGED IN THE MANUFACTURE OF ELECTRON GUN PARTS (GLASS RODS AND STEMS), GLASS TO METAL SEALS AND MACHINED COMPONENTS, FILED ITS RETURN FOR A.Y. 2013 - 14 ON 21.9.2013 DECLARING NIL I NCOME UNDER NORMAL PROVISIONS AND BOOK PROFITS U/S.115JB OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT ) AT RS.36,84,680. THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT COMPLETED U/S.143(3) OF THE ACT, VIDE ORDER DT.7.3.2016, WHEREIN THE ASSESS EE S INCOME WAS DETERMINED AT NIL AFTER SETTING OFF BROUGHT FORWARD LOSS FOR A.Y. 2012 - 13 AMOUNTING TO RS.1,04,62,369. IN THIS ORDER OF ASSESSMENT, THE A.O. MADE THE FOLLOWING DISALLOWANCES / ADDITIONS : - (I) DISALLOWANCE U/S.14A : RS.6,73,101. (II) DISALLOWANCE U/S.36(1)(VA) : RS.8,23,521. (III) DISALLOWANCE U/S.36(1)(IB) : RS.1,52,764. 2.2 AGGRIEVED BY THE ORDER OF ASSESSMENT DT.7.3.2016 FOR A.Y. 2013 - 14, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) - 4, BANGALORE WHO DISMISSED THE ASSE SSEE S APPEAL EX - PARTE, FOR NON - PROSECUTION VIDE THE IMPUGNED ORDER DT.27.11.2017. 3 IT A NO. 567 /BANG/20 18 3. THE ASSESSEE, BEING AGGRIEVED BY THE ORDER OF THE CIT(A) - 4, BANGALORE DT.27.11.2017 HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL WHEREIN IT HAS RAISED THE FOLLOWI NG GROUNDS : 4 IT A NO. 567 /BANG/20 18 4. GROUND NOS.1 TO 3 . 4.1 AT THE OUTSET THE LD.AR FOR THE ASSESSEE URGED BEFORE US THE AFORESAID GROUNDS (SUPRA) AND MORE PARTICULARLY GROUNDS 2 & 3. IT WAS SUBMITTED BY THE LD. AR THAT THE IMPUGNED ORDER OF THE LD. CIT(A) DISMISSING THE ASSESSEE S APPEAL WAS PASSED EX - PARTE FOR NON - PROSECUTION AND THAT THIS FACT IS EVIDENT FROM A PERUSAL OF PARA 1 OF THE IMPUGNED ORDER. ACCORDING TO THE LD. AR THE 3 HEARINGS FIXED BY THE LD. CIT(A) WERE ALL WITHIN A SHORT PERIOD OF 3 MONT HS AND THE LAST 2 OF THEM WITHIN A PERIOD OF LESS THAN 2 WEEKS. IT WAS CONTENDED THAT FAILURE ON THE PART OF THE ASSESSEE TO ATTEND HEARINGS BEFORE THE LD. CIT(A) WAS NEITHER DELIBERATE NOR INTENTIONAL AND WAS DUE TO UNAVOIDABLE REASONS. IT WAS PRAYED THAT IN THE INTEREST OF SUBSTANTIAL JUSTICE, THE EX - PARTE ORDER 5 IT A NO. 567 /BANG/20 18 OF THE LD. CIT(A) BE SET ASIDE AND THE MATTER BE RESTORED TO THE FILE OF THE LD. CIT(A) FOR CONSIDERATION AND ADJUDICATION ON THE MERITS OF ISSUES RAISED IN THE APPEAL BEFORE THE LD. CIT(A), AFTER HEARING THE ASSESSEE IN THE MATTER. 4.2 PER CONTRA, THE LD. DR FOR REVENUE SUPPORTED THE IMPUGNED ORDER OF THE LD. CIT(A). 4.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED AND CAREFULLY CONSIDERED THE MATERIAL ON RECORD. BEFORE US, IT WAS NOT DISPUTED THAT THE IMPUGNED ORDER DT.27.11.2017 WAS PASSED BY THE LD. CIT(A) EX - PARTE FOR NON - PROSECUTION. THIS FACT IS EVIDENT FROM A PERUSAL OF PARAGRAPH 1 OF THE IMPUGNED ORDER AS THE LD. CIT(A) HAS UPHELD THE ADDITIONS / DISALLOWANCES BY MER ELY REITERATING AND UPHOLDING THE VIEW OF THE A.O. WITHOUT HAVING THE BENEFIT OF ANY SUBMISSIONS FROM ASSESSEE S SIDE. IN OUR CONSIDERED VIEW, IT IS IMPERATIVE THAT THE INTEREST OF SUBSTANTIAL JUSTICE WOULD BE SERVED ONLY IF THE T RUE AND CORRECT INCOME OF AN ASSESSEE BE BROUGHT TO TAX. THAT IS NOT SO IN THE CASE ON HAND WHERE THE ASSESSEE S APPEAL HAS BEEN DISPOSED OFF BASICALLY ON GROUNDS OF NON - PROSECUTION. IN THE LIGHT OF THE FACTUAL MATRIX OF AND CIRCUMSTANCES OF 6 IT A NO. 567 /BANG/20 18 THE CASE ON HAND, IN OUR CONSI DERED OPINION, IT IS IMPERATIVE IN THE INTEREST OF SUBSTANTIAL JUSTICE THAT THE IMPUGNED ORDER OF THE LD. CIT(A), BASICALLY DISPOSED OFF ON GROUNDS OF NON - PROSECUTION IS LIABLE TO BE SET ASIDE AND DO SO AND CONSEQUENTLY REMAND THE MATTER TO THE FILE OF THE LD. CIT(A) DE NOVO FOR CONSIDERATION AND ADJUDICATION OF THE GROUNDS RAISED BY THE ASSESSEE IN THE APPEAL BEFORE HIM. NEEDLESS TO ADD, THE LD. CIT(A) WILL DISPOSE OFF THE APPEAL ON MERITS OF THE ISSUES RAISED BEFORE HIM ONLY AFTER AFFORDING THE ASSESSEE ADEQUATE OPPORTUNITIES OF BEING HEARD AND TO FILE DETAILS / SUBMISSIONS REQUIRED, WHICH SHALL BE DULY CONSIDERED BEFORE DECIDING THE ISSUE BY WAY OF A SPEAKING AND REASONED ORDER. WE HOLD AND DIRECT ACCORDINGLY. CONSEQUENTLY, GROUND NO S . 1 TO 3 OF THE ASSESSEE'S APPEAL ARE ALLOWED. 5. GROUND NOS.4 TO 7 (ON MERITS) IN VIEW OF OUR FINDINGS RENDERED ON GROUNDS 1 TO 3 OF THIS APPEAL (SUPRA), THERE IS NO REQUIREMENT FOR US TO ADJUDICATE THE OTHER GROUNDS RAISED ON MERITS AT GROUND NOS.4 TO 7. 6. GROUND NOS.8 & 9 ARE GENERAL IN NATURE AND NO ADJUDICATION IS CALLED FOR THEREON. 7 IT A NO. 567 /BANG/20 18 7. IN THE RESULT, THE ASSESSEE S APPEAL FOR A.Y. 2013 - 14 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 14TH DAY OF SEPT., 201 8 . SD/ - ( LALIET KUMAR ) JUDICIAL MEMBER SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER BANGALORE, DT. 14 .09.2018. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.