Steel Expert Industrial (India) Ltd., Indore V. ACIT-5(1), Indore

ITA 629/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0879 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 27-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Keywords: Income from undisclosed sources; Opportunity of being heard; Reasonable cause; Condonation of delay; Set aside

Judgement Text

STEEL EXPERT INDUSTRIAL (INDIA) LTD ITANO.629/IND/2019 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.629/IND/2019 ASSESSMENT YEAR: 2009-10 APPELLANT BY SHRI HARSH VIJAY VARGIYA REVENUE BY SHRI R.P. MOURYA, SR. DR DATE OF HEARING 08.06.2020 DATE OF PRONOUNCEMENT 09.06.2020 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. CIT(A)-II, INDORE DATED 22.02.2019 PERTAINING TO AS SESSMENT YEAR 2009-10. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL: 1. THE ADDITION MADE IN RESPECT OF SUNDRY CREDITORS AS AN INCOME FROM UNDISCLOSED SOURCES OF RS.3663968/- IS INCORRECT AND BAD IN LAW. 2. THE A.O NOT CONSIDER CONFIRMATION OF ACCOUNT O SUND RY CREDITORS GIVEN BY THE CERTAIN PARTIES AND NEGLIGENT THE COPY OF BANK ACCOUNT THAT PROVIDE BY THE BANK. THAT THE CREDITO RS ARE ACTUAL AND GENUINE AND ALL PARTY RELATED TO THE BUSINESS A ND PAYMENT HAD BEEN MADE TO ALL CREDITORS IN SUBSEQUENT YEARS. 3. THE A.O HAS JOT RELY ON BANK STATEMENTS AND CROSS Q UESTION AGAINST GENUINENESS OF BANK STATEMENT, WHICH WERE P ROVIDE BY M/S. STEEL EXPERT INDUSTRIAL (INDIA) LTD, 7, HATHIPALA ROAD, JUNI INDORE VS. ACIT 5(1), INDORE (APPELLANT ) (REVENUE) PAN NO.AAJCS1908H STEEL EXPERT INDUSTRIAL (INDIA) LTD ITANO.629/IND/2019 2 THE BANK. 4. THAT THE A.O HAS NOT GIVEN 2 ND OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE MAKING SUCH HUGE ADDITIONS TO THE I NCOME OF THE ASSESSEE. 2. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE INSTANT APPEAL IS DELAYED BY 6 DAYS. AN APPLIC ATION HAS BEEN FILED SEEKING CONDONATION OF DELAY FOR THE PRESENT APPEAL. IT IS STATED THAT REASON FOR DELAY IN FILING THE APPEAL T HAT THE ASSESSEE HAD INTENDED TO CHANGE HIS EARLIER COUNSEL TO PREPA RE AND SUBMIT APPEAL BEFORE HON'BLE I.T.A.T. IN PLACE OF EARLIER COUNSEL ENGAGED FOR SUBMISSION OF APPEAL BEFORE LD. CIT(A) BUT DUE TO MISUNDERSTANDING BETWEEN THE ASSESSEE AND HIS EARLI ER COUNSEL THERE WAS AN INADVERTENT DELAY OF 6 DAYS FOR FILING APPEAL BEFORE THE TRIBUNAL DUE TO DELAY OF RECEIVING FILES FROM P REVIOUS COUNSEL. IT IS PRAYED ON BEHALF OF THE ASSESSEE THAT DELAY O F 6 DAYS OCCURRED MAY BE CONDONED. HE THEREFORE PRAYED FOR C ONDONING THE DELAY AND ADMIT THE APPEAL FOR ADJUDICATION AND ALSO REQUESTED THAT SINCE LD. CIT(A) HAS DISMISSED THE A PPEAL IN LIMINE FOR NON APPEARANCE, AN OPPORTUNITY MAY BE GRANTED TO APPEAL BEFORE LD. CIT(A) ONCE MORE. 3. ON THE OTHER HAND LD. DEPARTMENTAL REPRESENTATIV E OPPOSED THE SUBMISSIONS FOR CONDONATION OF DELAY AN D SETTING ASIDE THE ISSUES ON MERITS TO CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORDS PLACED BEFORE US. WE FIND THAT THE INSTANT APPEAL IS DELAYED BY 6 DAYS. HOWEVER LOOKING TO THE REASONS MENTIONED IN THE APPLICATION FOR SEEKING CONDONATION OF DELAY, W E ARE SATISFIED THAT THE ASSESSEE HAD A REASONABLE CAUSE FOR THIS D ELAY OF 6 DAYS. STEEL EXPERT INDUSTRIAL (INDIA) LTD ITANO.629/IND/2019 3 WE THEREFORE IN THE INTEREST OF JUSTICE AND THE REA SONABLE CAUSE MENTIONED BEFORE US, CONDONE THE DELAY AND ADMIT TH E APPEAL FOR ADJUDICATION. 5. WE FURTHER FIND THAT THE IMPUGNED ORDER IS EX-PARTE . LD. CIT(A) DISMISSED THE ASSESSEES APPEAL IN LIMINE FOR NON APPEARANCE BUT AS SUBMITTED BY LD. COUNSEL FOR THE ASSESSEE THAT DUE TO CHANGE OF COUNSELS NONE APPEARED BEFORE LD. CIT(A) BUT IF ONE MORE OPPORTUNITY IS PROVIDED THEN THE IS SUES CAN BE ADJUDICATED BY LD. CIT(A) ON MERITS. WE THEREFORE IN THE INTEREST OF JUSTICE AND BEING FAIR TO BOTH THE PARTIES, SET ASIDE ALL THE ISSUES RAISED ON MERITS IN THE INSTANT APPEAL TO TH E FILE OF LD. CIT(A) FOR AFRESH ADJUDICATION AND TO PASS A SPEAKI NG ORDER. NEEDLESS TO MENTION THAT A PROPER OPPORTUNITY OF BE ING HEARD SHOULD BE PROVIDED TO THE ASSESSEE AND THE ASSESSEE SHOULD ALSO BE VIGILANT TO THE NOTICES FOR HEARING AND SHOULD N OT TAKE UNNECESSARY ADJOURNMENT UNLESS OTHERWISE REQUIRED F OR REASONABLE CAUSE. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES ONLY. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 09.06.20 20. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 9 TH JUNE, 2020 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. STEEL EXPERT INDUSTRIAL (INDIA) LTD ITANO.629/IND/2019 4 BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE