SEAGULL CAPITAL SERVICE P.LTD, MUMBAI V. ITO 7(2)(2), MUMBAI

ITA 6472/MUM/2012

• Counselvise Citation: 647219914 RSA 2012
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 10-07-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 23-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADEEP SOURYA ARYA
• Assessee Lawyers: AMREEN MANSURI
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE HONBLE S/SHRI H.L. KARWA, PRESIDENT AND B. R.BASKARAN (AM) . . , . . , ./I.T.A. NO.6472/MUM/2012 ( / ASSESSMENT YEAR :2005-06 ) SEAGULL CAPITAL SERVICES PVT LTD, 5, BALKRISHNA CHAMBER, 1 ST FLOOR, , ISSAJI STREET, MUMBAI-400003 / VS. INCOME TAX OFFICER, 7(2)(2), 6 TH FLOOR, AAYAKAR BHAVAN, M K ROAD, MUMBAI-400020 ( / APPELLANT) .. ( !' / RESPONDENT) ./ #$ ./PAN/GIR NO. : AAECS4089C % / APPELLANT BY : MISS AMREEN MANSURI !' & % /RESPONDENT BY : SHRI PRADEEP SOURYA ARYA ' & ( ) / DATE OF HEARING : 10.7.2014 *+ & ( ) /DATE OF PRONOUNCEMENT : 10. 7.2014 / O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 12.7.2012 PASSED BY LD CIT(A)-13, MUMBAI AND IT REL ATES TO THE ASSESSMENT YEAR 2005-06. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE DISALLOWANCE OF EXPENDITURE OF RS.9,70,693/- CLAIME D BY THE ASSESSEE AGAINST THE INCOME DECLARED UNDER THE HEAD INCOME FROM OTH ER SOURCES. 3. THE FACTS RELATING TO THE CASE ARE STATED IN BRIEF. THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS RELATED TO FUND BASED ACTIV ITIES AND ALSO RELATED TO CREATING DATA BASE OF INDIAN CORPORATE FOR INVESTME NT AND PROJECT ADVICE. I.T.A. NO.6472/MUM/2012 2 DURING THE YEAR UNDER CONSIDERATION, IT HAD EARNED INTEREST INCOME OF RS.4,50,074/- AND OTHER RECEIPTS OF RS.2,75,000/-. AGAINST THE ABOVE REVENUE RECEIPTS, THE ASSESSEE CLAIMED EXPENDITURE OF RS.9, 70,693/-. THE AO ASKED THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNTS, BILLS, VOUCH ERS ETC. SINCE THE ASSESSEE HAS FAILED TO PRODUCE THE DETAILS, THE AO DISALLOWE D THE EXPENDITURE CLAIMED BY THE ASSESSEE. THE LD CIT(A) ALSO CONFIRMED THE SAM E AND HENCE, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. WE HEARD THE PARTIES AND PERUSED THE RECOR D. THE MAIN CONTENTION OF THE ASSESSEE APPEARS TO BE THAT THE LD CIT(A) HAD DISMI SSED THE APPEAL FILED BY THE ASSESSEE WITHOUT CONSIDERING THE EXPLANATIONS FURNI SHED BEFORE HIM PERSONALLY. A PERUSAL OF THE ORDERS PASSED BY THE TAX AUTHORITI ES WOULD SHOW THAT THE ASSESSEE HAS FAILED TO PRODUCE THE BOOKS OF ACCOUNT , VOUCHERS ETC. TO SUPPORT THE CLAIM OF EXPENDITURE. THE GROSS RECEIPTS DECLA RED BY THE ASSESSEE INCLUDES OTHER RECEIPTS OF RS.2,75,000/-. THE ASSESSEE HA S NOT FURNISHED THE DETAILS THEREOF. UNDER THESE SET OF FACTS, THE LD COUNSEL FOR THE ASSESSEE PRAYED THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNITY TO FURNISH THE DETAILS BEFORE THE TAX AUTHORITIES. IN THE INTEREST OF NATURAL JUSTICE, W E ARE OF THE VIEW THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY. ACCORD INGLY, WE SET ASIDE THE ORDER OF LD CIT(A) AND RESTORE THE MATTER TO THE FI LE OF THE ASSESSING OFFICER WITH A DIRECTION TO EXAMINE THE SAME AFRESH AFTER AFFORD ING NECESSARY OPPORTUNITY OF BEING HEARD AND TAKE APPROPRIATE DECISION IN ACCORD ANCE WITH THE LAW. THE ASSESSEE IS ALSO DIRECTED TO FURNISH NECESSARY DETA ILS TO THE AO WITHOUT FAIL. I.T.A. NO.6472/MUM/2012 3 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESS EE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 10TH JULY, 2014 . *+ ' , -. / 0 10TH JULY, 2014 + & 2 3 SD SD ( . . / H.L. KARWA) ( . . , / B.R. BASKARAN ) / PRESIDENT / ACCOUNTANT MEMBER - ' MUMBAI: 10 TH JULY,2014. . . ./ SRL , SR. PS ! ' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. !' / THE RESPONDENT. 3. ' 5( ( ) / THE CIT(A)- CONCERNED 4. ' 5( / CIT CONCERNED 5. 67 2 !(8 , ) 8 , - ' / DR, ITAT, MUMBAI CONCERNED 6. 2 9 : / GUARD FILE. ; ' / BY ORDER, TRUE COPY < # (ASSTT. REGISTRAR) ) 8 , - ' /ITAT, MUMBAI