Herrenknecht, New Delhi V. DCIT, International Taxation - Circle1(2), Chennai

ITA 62/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0036 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 04-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: T BANUSEKAR
• Keywords: Depreciation; Principle of natural justice; TDS

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , ! BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER , AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.62/CHNY/2018 /ASSESSMENT YEAR: 2013-14 M/S.HERRENKNECHT A.G, C/O.S-268, LGF GREATER KAILASH-1, NEW DELHI-110 048. VS. THE DY. COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION-CIRCLE- 1(2), CURRENT JURISDICTION, CHENNAI. [PAN: AACCH 4421 M ] ( % /APPELLANT) ( &'% /RESPONDENT) % ( / APPELLANT BY : MR.T.BANUSEKAR, CA &'% ( /RESPONDENT BY : MR. R.CLEMENT RAMESH KUMAR, ADDL.CIT ( /DATE OF HEARING : 27.03.2019 ( /DATE OF PRONOUNCEMENT : 27.03.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI, I N ITA NO.02/CIT(A)- 16/2013-14 DATED 21.09.2017 FOR THE AY 2013-14. 2. MR. R.CLEMENT RAMESH KUMAR, ADDL.CIT., REPRESENT ED ON BEHALF OF THE REVENUE AND MR. T.BANUSEKAR, CA., REPRESENTED O N BEHALF OF THE ASSESSEE. ITA NO.62/CHNY/2018 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT IN THE COURSE OF THE ASSESSMENT, THE AO HAS MADE VARIOUS ADDITIONS REPRESENTING THE DISALLOWANCE OF DEPRECIATION ON ACCOUNT OF THE NON-DEDUCTION OF TDS AND DISALLOWANCE OF HIRE CHARGES AS ALSO BY INVOKING THE PROVISIONS OF SEC.40A(2)(B) OF THE ACT. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESS EE WAS UNABLE TO PRODUCE ALL THE EVIDENCES BEFORE THE AO AS THE ASSE SSEES PARENT COMPANY IN GERMANY WAS CLOSED DURING THE PERIOD. IT WAS A S UBMISSION THAT THE EVIDENCES HAD BEEN PRODUCED BEFORE THE LD.CIT(A) IN THE COURSE OF THE APPELLATE PROCEEDINGS BUT THESE EVIDENCES WERE NOT PRODUCED BEFORE THE AO. THE LD.CIT(A) HAD NOT LOOKED INTO THE SAME AND HAD CONFIRMED THE ADDITIONS MADE IN THE COURSE OF THE ASSESSMENT. IT WAS A SUBMISSION THAT IN THE INTEREST OF NATURAL JUSTICE, THE ASSESSEE MA Y BE GRANTED AN OPPORTUNITY TO PRODUCE THE EVIDENCES BEFORE THE AO. 4. IN REPLY, THE LD.DR DID NOT RAISE ANY SERIOUS OB JECTION IN GRANTING THE ASSESSEE OPPORTUNITY TO PRODUCE THE EVIDENCES B EFORE THE AO. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. 6. AS IT IS NOTICED THAT THE ASSESSEE HAS UNABLE TO PRODUCE THE EVIDENCES AS CALLED FOR BY THE AO IN THE COURSE OF THE ASSESSMENT FOR THE REASONS BEYOND THE CONTROL OF THE ASSESSEE AND AS I T IS NOTICED THAT THE ASSESSEE HAS NOW PRODUCED SUBSTANTIAL PORTION OF TH E EVIDENCES IN THE PAPER BOOK FILED BEFORE US, IN THE INTEREST OF NATU RAL JUSTICE, WE ARE OF THE ITA NO.62/CHNY/2018 :- 3 -: VIEW THAT THE ISSUES IN THIS APPEAL MAY BE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION AND WE DO SO. IN THESE CIRCUMSTANC ES, THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR RE-AD JUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE I TS CASE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 27 TH DAY OF MARCH, 2019 IN CHENNAI. SD/- SD/- ( . ) ( A. MOHAN ALANKAMONY ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 0 /DATED: 27 TH MARCH, 2019. TLN ( &12 32 /COPY TO: 1. % /APPELLANT 4. 4 /CIT 2. &'% /RESPONDENT 5. 2 & /DR 3. 4 ( ) /CIT(A) 6. /GF