Ocimum Industries Private Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-16(2), Hyderabad

ITA 623/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5682 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 18-01-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 05-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Section: 147; 12; 2

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE S MT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S . RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO S . 623 & 624 /H/1 8 ASSESSMENT YEAR S : 20 12 - 13 & 2013 - 14 OCIMUM INDUSTRIES PVT. LTD., HYDERABAD. PAN A AAC O 8438 R VS. DY. COMMISSIONER OF INCOME - TAX, CIRCLE 16(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : S HR I NILANJAN DEY DATE OF HEARING : 1 8 - 0 1 - 201 9 DATE OF PRONOUNCEMENT : 30 - 0 1 - 201 9 O R D E R PER S . RIFAUR RAHMAN, A .M.: BOTH T H E S E APPEAL S OF THE ASSESSEE ARE DIRECTED AGAINST A COMMON ORDE R OF CIT(A) 8 , HYDERABAD, DATED 29 TH JANUARY, 2018 FOR THE AYS 2012 - 13 AND 2013 - 14. 2. INITIALLY BOTH THESE APPEALS WERE POSTED ON 27/07/2018 AND THE SAME WAS ADJOUR NED TO 19/12/2018 AT THE REQUEST OF THE LD. DR AS NONE APPEARED ON BEHALF OF THE ASSESSEE. NOTICE OF HEARING FOR THE SAID DATE WAS SENT TO THE ASSESSEE THROUGH RPAD. SINCE THE BENCH DID NOT FUNCTION ON 19/12/2018, THE CASE WAS ADJOURNED TO 18/01/2019 , THE INTIMATION OF WHICH WAS PLACED ON NOTICE BOARD. WHE N THE APPEAL S CAME FOR HEARING ON 1 8 /01/2019, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR THERE IS A REQUEST FOR ADJOURNMENT OF THE CASE. IN THESE CIRCUMSTANCES, WE ARE OF THE VIEW THAT THE ASSESSEE IS N OT INTERESTED IN PROSECUTING ITS APPEAL S . IT HAS BEEN HELD BY THE HONBLE SUPREME COURT IN THE CASE OF B.N. BHTTACHARGEE & ANR., 118 ITR 461 THAT APPEAL DOES NOT MEAN ONLY FILING OF MEMO OF APPEAL BUT ALSO PURSUING IT EFFECTIVELY. IN C ASES WHERE THE ASSESSEE 2 ITA NO S . 623 & 624 /H/1 8 OCIMUM INDUSTRIES PVT. LTD., HYD. DOES NOT WANT TO PURSUE THE APPEAL, COURT/TRIBUNAL HAVE INHERENT POWER TO DISMISS THE APPEAL FOR NON - PROSECUTION AS HELD BY HONBLE HIGH COURT OF MUMBAI IN THE CASE OF M/S CHEMIPOL VS. UNION OF INDIA IN EXCISE APPEAL NO. 62 OF 2009. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF MULTIPLAN (INDIA) LTD., (38 ITD 320) AND MADHYA PRADESH HIGH COURT IN LATE TUKOJIRAO HOLKAR (223 ITR 480), WE DISMISS TH E S E APPEAL S OF THE ASSESSEE FOR WANT OF PROSECUTION. 5 . EVEN ON MERITS, IN AY 2012 - 13, A SURVEY OPERATION WAS CONDUCTED BY THE INVESTIGATION WING OF THE DEPARTMENT ON 12/03/2015 ON THE ASSESSEE COMPANY. IN VIEW OF THE MATERIAL UNEARTHED DURING THE SURVEY OPERATIONS AND THE STATEMENTS OF THE MD OF THE ASSES SEE COMPANY SHRI B. KRISHNA KISHORE REDDY, ASSESSMENT WAS REOPENED U/S 147 OF THE ACT. THE AO MADE TWO ADDITIONS, ONE ON ACCOUNT OF UNDISCLOSED CASH RECEIPTS OF RS. 1,56,89,950/ - AND THE OTHER BOGUS EXPENDITURE CLAIM OF RS. 36,51,072/ - . 5.1 IN AY 2013 - 14, THE DISALLOWANCE OF EXPENDITURE ON ACCOUNT OF BOGUS EXPENDITURE CLAIMED FOR THE ALLEGED SERVICES TAKEN FROM M/S RR SERVICES AND THE ALLEGED GOODS PURCHASED FROM M/S R.K. STEEL UDYOG LTD. WAS MADE. OUT OF THE TOTAL BOGUS EXPENDITURE CLAIMED O F RS. 2,61,75,332/ - (RS. 17,33,22,652 RS. 14,71,47,320) DISCLOSED DURING THE SURVEY OPERATIONS, ADDITION OF RS. 36,51,072/ - WAS MADE IN AY 2012 - 13 AND THE REMAINING AMOUNT OF RS. 2,25,24,260/ - WAS ADDED IN AY 2013 - 14. 5.2 ON APPEAL, THE CIT(A) CONFIRMED THE ADDITIONS MADE IN BOTH THE YEARS UNDER CONSIDERATION. 6 . SINCE, THERE IS NO REPRESENTATION FROM THE ASSESSEE AND THE FINDINGS OF THE CIT(A ) ARE UNCONTROVERTED, WE UPHOLD THE ORDER OF CIT ( A ) AND DISMISS BOTH THE APPEAL S OF THE ASSESSEE. 3 ITA NO S . 623 & 624 /H/1 8 OCIMUM INDUSTRIES PVT. LTD., HYD. 7 . IN THE R ESULT, THE APPEAL S FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 30 TH JANUARY , 201 9 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 30 TH JANUARY , 2 01 9 . KV COPY TO: - 1) M/S OCIMUM INDUSTRIES PVT. LTD., C/O V.G. RAO & ASSOCIATES, CAS., 306, 3 RD FLOOR, OASIS PLAZA, TILAK ROADS, ABIDS, HYD 500 001. 2) DC IT , CIRCLE 16(2), HYD. 3) CIT(A) 8 , HYDERABAD. 4) PR. CIT 4 , HYD . 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE