GAUTAM HIRAALAL GANDHI, MUMBAI V. ADDL CIT CIR5 18(2), MUMBAI

ITA 5892/MUM/2011

• Counselvise Citation: 589219914 RSA 2011
• Duration Of Justice: 2 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 28-08-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 23-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: KAMLESH VIKAMSEY
• Keywords: Depreciation; Principle of natural justice
• Section: 80IB

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G , BENCH MUMBAI , BEFORE : SHRI H.L.KARWA, PRESIDENT AND SHRI R.C.SHARMA, AM ITA NO. 5 892 / MUM/20 11 ( ASSESSMENT YEAR :200 7 - 0 8 ) SHRI GAUTAM HIRALAL GANDHI , 104, TURF ESTATE, SHAKTI MILL LANE, OFF. E MOSES ROAD, MAHALAXMI, MUMBAI - 11 VS. AD.CIT 18(2), MUMBAI PAN/GIR NO. : A A BPG 7684 F ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : SHRI KAMLESH VIKAMSEY /REVENUE BY : SHRI RAVI PRAKASH DATE OF HEARING : 1 2 TH FEBRUARY , 201 4 DATE OF PRONOUNCEMENT : 19 TH FEBRUARY , 201 4 O R D E R PER R.C.SHARMA ( A .M.) : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST EX - PARTE ORDER OF CIT(A) DATED 24 - 5 - 2011 FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2 . AT THE OUTSET, IT WAS ARGUED BY TH E LEARNED AR THAT THE EX - PARTE ORDER HAS BEEN PASSED BY CIT(A) WITHOUT GIVING OPPORTUNITY OF PERSONAL HEARING. IT WAS FURTHER CONTENDED THAT DUE TO UNAVOIDABLE REASONS, AR COULD NOT APPEAR BEFORE CIT(A). AS PER LD. AR, THE CIT(A) WAS NOT JUSTIFIED IN DISAL LOWING TELEPHONE EXPENSES ESSENTIALLY INCURRED FOR THE PURPOSE OF BUSINESS ON THE WRONG NOTION AND TREATING THE SAME AS PERSONAL IN NATURE. IT WAS FURTHER CONTENDED THAT THE MOTOR CAR ITA NO. 5892 /20 1 1 2 EXPENSES WERE INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINE SS, THEREFORE, THE LOWER AUTHORITIES WERE NOT JUSTIFIED IN DISALLOWING THE CLAIM OF ASSESSEE ON ACCOUNT OF MOTOR CAR EXPENSES AND DEPRECIATION. THE AOS ACTION FOR REALLOCATING EXPENDITURE FROM UNIT I TO UNIT II, THEREBY REDUCING CLAM UNDER SECTION 80IB WA S ALSO ALLEGED TO BE WRONG . 3 . ON THE OTHER HAND, LEARNED DR RELIED UPON THE ORDER OF LOWER AUTHORITIES. 4 . WE HAVE CONSIDERED RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT THE ASSESSEE IS ENG AGED IN MANUFACTURING OF PLASTIC GOODS. DURING THE COURSE OF SCRUTINY ASSESSMENT, DISALLOWANCES WERE MADE ON ACCOUNT OF TELEPHONE EXPENSES, CAR EXPENSES, ASSESSEES CLAIM OF DEDUCTION UNDER SECTION 80IB ETC. IN APPEAL FILED BY THE ASSESSEE BEFORE THE C IT (A ), THE CIT(A) PASSED THE ORDER EX - PARTE QUA ASSESSEE. AS PER OUR CONSIDERED VIEW, NOBODY SHOULD BE CONDEMNED UNHEARD. THEREFORE, KEEPING IN VIEW THE INTEREST OF NATURAL JUSTICE, AND W ITHOUT GOING INTO THE MERITS OF THE ADDITION AND DISALLOWANCE MADE BY T HE AO , WE DEEM IT APPROPRIATE TO RESTORE THE APPEAL TO THE FILE OF THE CIT(A) FOR GIVING DUE OPPORTUNITY TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH. ASSESSEE IS ALSO DIRECTED TO FILE NECESSARY DOCUMENTARY EVIDENCE BEFORE THE CIT(A) AND COOPERATE HIM FOR E ARLY DISPOSAL OF THE APPEAL. ITA NO. 5892 /20 1 1 3 5 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH FEB . 201 4 . 19 TH FEB,2014 SD/ - SD/ - ( ) ( H.L.KARWA ) ( ) ( R.C.SHARMA ) / PRESIDENT / ACCOUNTANT MEMBER MUMBAI ; DATED 19 / 02/ 2014 /PKM , PS COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) - X, MUMBAI. 4. / CIT 5. / DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//