RIDDHI SIDDHI CONSTRUCTION P. LTD, MUMBAI V. ITO 9(3)(4), MUMBAI

ITA 6647/MUM/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62565 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 01-05-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 15-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C G K NAIR
• Assessee Lawyers: JITENDRA SINGH
• Keywords: Bogus purchase; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: MUMBAI BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA NO.6647/MUM/2010 (ASSESSMENT YEAR: 2005-06) RIDDHI SIDDHI CONSTRUCTION PVT. LTD., 7, SANGRILA L.T. ROAD, BORIVALI (WEST), MUMBAI -400 103 ..... APPELLANT VS INCOME-TAX OFFICER -9(3)(4), MUMBAI .... RESPONDENT PAN : AAACR 2243 K APPELLANT BY: S/SHRI K. GOPAL & JITENDRA SINGH RESPONDENT BY: SHRI C.G.K. NAIR DATE OF HEARING: 01.05.2012 DATE OF PRONOUNCEMENT: 15.06.2012 O R D E R PER P.M. JAGTAP, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT (A)-20, MUMBAI DATED 25.05.2010 PASSED EX PARTE . 2. THE ASSESSEE, IN THE PRESENT CASE IS A COMPANY W HICH IS ENGAGED IN THE CONSTRUCTION BUSINESS. THE RETURN OF INCO ME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 26.10.2005 DECLARI NG TOTAL INCOME OF ` 7,11,640/-. IN THE ASSESSMENT COMPLETED U/S.143(3) BY AN ORDER DATED 26.10.2007, THE TOTAL INCOME OF THE ASSESSEE WAS DE TERMINED BY THE A.O. AT ` 9,84,041/- AFTER MAKING ADDITION OF ` 13,817/- ON ACCOUNT OF BOGUS PURCHASES AND ` 2,58,584/- ON ACCOUNT OF BOGUS LABOUR CHARGES. 3. AGAINST THE ORDER PASSED BY THE A.O. U/S.143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT (A) CH ALLENGING BOTH THE ITA NO.6647/MUM/2010 RIDDHI SIDDHI CONSTRUCTION PVT. LTD. 2 ADDITIONS MADE BY THE A.O. TO ITS TOTAL INCOME. DU RING THE COURSE OF APPELLATE PROCEEDINGS, THE NOTICES ISSUED BY THE LD . CIT (A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FROM TIME TO TIM E WERE RETURNED BACK BY THE POSTAL AUTHORITIES WITH THE REMARKS LEFT. THE LD. CIT (A), THEREFORE, PROCEEDED TO DISPOSE OFF THE APPEAL OF T HE ASSESSEE EX PARTE AND CONFIRMING BOTH THE ADDITIONS MADE BY THE A.O. ON ACCOUNT OF BOGUS PURCHASES AND BOGUS LABOUR CHARGES, HE DI SMISSED THE SAID APPEAL. AGGRIEVED BY THE ORDER OF THE LD. CIT (A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AT THE TIME OF HE ARING BEFORE US, AN AFFIDAVIT MADE BY THE DIRECTOR OF THE ASSESSEE COMP ANY HAS BEEN FILED BY THE LEARNED COUNSEL FOR THE ASSESSEE AND AS STAT ED THEREIN, THE PLACE OF THE BUSINESS OF THE ASSESSEE COMPANY HAD SHIFTED TO NEW ADDRESS WHEN THE APPELLATE PROCEEDINGS WERE GOING ON BEFORE THE LD. CIT (A). AS FURTHER STATED IN THE SAID AFFIDAVIT, THE ASSESSEE, HOWEVER, FAILED TO INTIMATE INADVERTENTLY, CHANGE IN ADDRESS TO THE LD . CIT (A) WHICH RESULTED IN NON-RECEIPT OF NOTICES BY THE ASSESSEE AND DISPOSAL OF ITS APPEAL BY THE LD. CIT (A) EX PARTE . KEEPING IN VIEW THE SUBMISSIONS MADE ON BEHALF OF THE ASSESSEE BY WAY OF AN AFFIDAV IT, WE ARE OF THE VIEW THAT NON-COMPLIANCE ON THE PAT OF THE ASSESSEE BEFO RE THE LD. CIT (A) WAS NOT INTENTIONAL AND THE ASSESSEE DESERVES ONE M ORE OPPORTUNITY OF BEING HEARD TO BE GIVEN BY THE LD. CIT (A) IN THE I NTEREST OF JUSTICE. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT (A) PASSED EX PARTE AND REMIT THE MATTER BACK TO HIM WITH A DIRECTION TO DISPOSE OFF THE APPEAL OF THE ASSESSEE AFRESH AFTER GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.6647/MUM/2010 RIDDHI SIDDHI CONSTRUCTION PVT. LTD. 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 1 5TH JUNE 2012. SD/- ( AMIT SHUKLA ) JUDICIAL MEMBER SD/- ( P.M. JAGTAP ) ACCOUNTANT MEMBER MUMBAI, DATE: 15TH JUNE 2012 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A) 20, MUMBAI. 4) THE CIT-9, MUMBAI. 5) THE D.R. D BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN