N K INDUSTRIES, MUMBAI V. ITO 13(1)(4), MUMBAI

ITA 5929/MUM/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92295 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-04-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 24-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOVE KUMAR DR
• Assessee Lawyers: DR P DANIEL
• Keywords: Business income; Opportunity of being heard

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , . , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.5929/MUM/2011 ASSESSMENT YEAR: 2006-07 M/S N.K. INDUSTRIES, 15 YUSUF BUILDING, 9 ABDUL REHMAN STREET, MUMBAI / VS. ITO-13(1)(4), AAYAKAR BHAVAN, MUMBAI-400020 ( '#$% & /ASSESSEE) ( / REVENUE) P.A. NO. AAAFN0808R '#$% & / ASSESSEE BY DR. P. DANIEL. / REVENUE BY SHRI LOVE KUMAR-DR ' '( ) & * / DATE OF HEARING 07/04/2015 ) & * / DATE OF ORDER: 07/04/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 08/07/2011 OF THE LD. FIRST APPELLATE AUTHORITY, MU MBAI, BROADLY ON THE GROUND THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN PASSING AN EX-PARTY ORDER HO LDING M/S N.K. INDUSTRIES . 2 THAT INTEREST INCOME OF RS.3,69,816/- AS INCOME FRO M OTHER SOURCES INSTEAD OF BUSINESS INCOME BY FURTHER HOLDI NG THAT SINCE NO BUSINESS ACTIVITY WAS CARRIED OUT BY THE A SSESSEE, THEREFORE, THE INCOME DERIVED BY WAY OF INTEREST HA S TO BE ASSESSED AS INCOME FROM OTHER SOURCES IGNORING THE TRUE FACTUAL MATRIX. MORE SPECIFICALLY, WHEN THE ASSESSE E INCURRED HUGE EXPENSES TO THE TUNE OF RS.3,23,000/- BY WAY OF SALARY OFFICE ESTABLISHMENT EXPENSES AND OTHER R ELATED EXPENSES AS THE ASSESSEE IS AT ONGOING EXERCISE FOR THE REVIVAL OF THE BUSINESS. 2. DURING HEARING OF THIS APPEAL, DR. P. DANIEL, L D. COUNSEL FOR THE ASSESSEE ADVANCED HIS ARGUMENTS WHI CH ARE IDENTICAL TO THE GROUND RAISED. ON THE OTHER HAND, THE SHRI LOVE KUMAR, LD. DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE ASSESSMENT ORDER AS WELL AS IMPUGNED ORDER. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WITHOUT G OING INTO MUCH DELIBERATION FACT REMAINS THAT AN EX-PARTY ORD ER WAS PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS), THEREFORE, KEEPING IN VIEW, THE PRINCIPLE OF NATURA L JUSTICE THAT NO PERSON SHOULD BE CONDEMNED UNHEARD, WE DIRE CT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) TO EXAMINE THE CLAIM OF THE ASSESSEE AND DECIDE THE APPEAL AFRESH AFTER BEING PROVIDING OPPORTUNITY OF BEING HEARD TO THE A SSESSEE WITH FURTHER LIBERTY TO FURNISH EVIDENCE, IF ANY, I N SUPPORT OF ITS CLAIM. THE LD. COMMISSIONER OF INCOME TAX (APP EALS) IS ALSO TO EXAMINE THE NATURE OF INCOME AND EXPENSES A ND ALSO M/S N.K. INDUSTRIES . 3 THE EFFORTS, IF ANY, MADE BY THE ASSESSEE FOR REVIV AL OF ITS BUSINESS. IF THE LD. COMMISSIONER OF INCOME TAX (AP PEALS) DESIRES HE MAY CALL REMAND REPORT FROM THE ASSESSIN G OFFICER. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. FINALLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR STAT ISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 07/04/2015. SD/- SD/- ( D.KARUNAKARA RAO ) (JOGINDER SINGH) # / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' ( MUMBAI; +' DATED : 07/04/2015 F{X~{T? P.S/. '. . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. ,-./ / THE APPELLANT 2. 01./ / THE RESPONDENT. 3. 2 2 ' 3& ( ,- ) / THE CIT, MUMBAI. P4. 2 2 ' 3& / CIT(A)- , MUMBAI 5. 56 0&'# , 2 ,-* ,# , ' ( / DR, ITAT, MUMBAI 6. $ 7( / GUARD FILE. / BY ORDER, 15-& 0& //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' ( / ITAT, MUMBAI