ACIT, Chandigarh V. Sh. Amrit Pal Singh, Chandigarh

ITA 669/CHANDI/2011

• Counselvise Citation: 66921514 RSA 2011
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-02-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 10-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Principle of natural justice; Additional evidence
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.669/CHD/2011 ASSESSMENT YEAR: 2007-08 ACIT, C-2(1), V SHRI AMRIT PAL SINGH CHANDIGARH. SCO 67, SECTOR 17D, CHANDIGARH. PAN: ABXPS-6454J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH RESPONDENT BY : SHRI PARIKSHIT AGGARWAL DATE OF HEARING : 29.02.2012 DATE OF PRONOUNCEMENT : 29.02.2012 ORDER PER MEHAR SINGH, AM THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A) PASSED U/S 250 OF THE INCOME-TAX AC T,1961 (IN SHORT 'THE ACT') DATED 21.03.2011 RELATING TO ASSES SMENT YEAR 2007-08. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLO WING GROUNDS OF APPEAL: 1. THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITI ON OF RS.22,73,178/- ON ACCOUNT OF DISCOUNT ALLOWED TO CUSTOMERS. 2. IT IS PRAYED THAT THE ORDER OF THE LD. CIT(A) B E CANCELLED AND THAT OF AO BE RESTORED. 3. APPELLANT CRAVES TO ADD OR AMEND ANY GROUND OF APPEAL AT A LATER STAGE OR DURING THE APPEAL PROCEEDINGS. 2 3. IN GROUND NO.1, THE REVENUE CONTENDED THAT CIT(A ) ERRED IN DELETING ADDITION OF RS.22,73,178/- ON ACCOUNT O F DISCOUNT ALLOWED TO CUSTOMERS. IN THE COURSE OF PRESENT APP ELLATE PROCEEDINGS, LD. 'DR' REFERRED TO THE REMAND REPORT FILED BY THE AO VIDE LETTER NO.5224 DATED 27.1.2011 IN RESPONSE TO CIT(A) LETTER DATED 12.1.2011. HE TOOK US THROUGH THE SAI D REMAND REPORT SUBMITTED BY THE AO WHEREBY IT IS OBSERVED B Y THE AO THAT THE FINDINGS IN THE ASSESSMENT ORDER ARE FOUND ED ON NON- PRODUCTION OF ANY DOCUMENTARY EVIDENCE BY THE ASSES SEE TO JUSTIFY THE CLAIM OF DISCOUNT INCLUDING THE GENUINE NESS THEREOF. 4. LD. 'AR', ON THE OTHER HAND, SUBMITTED THAT CIT( A) HAS AFFORDED OPPORTUNITY TO THE AO IN RESPECT OF THE DO CUMENTS FILED BEFORE THE CIT(A) AS ADDITIONAL EVIDENCE UNDE R RULE 46A OF THE INCOME-TAX RULES,1962 ( IN SHORT THE RULES ). 5. WE HAVE CAREFULLY PERUSED THE FACT-SITUATION OF THE CASE, RELEVANT SUBMISSIONS AND FOUND THAT THE EVIDENCE PE RTAINING TO THE CLAIM OF DISCOUNT WERE FILED BEFORE THE CIT( A). THE CIT(A) ADMITTED SUCH EVIDENCE UNDER RULE 46A OF THE RULES. LD. CIT(A) WAS OF THE OPINION THAT ASSESSEE WAS NOT AFFORDED REASONABLE OPPORTUNITY TO PRODUCE THE ORIGINAL SALE INVOICES. ON THE SAME ANALOGY AND HAVING REGARD TO THE FACT-S ITUATION OF THE CASE, THE AO SHOULD ALSO BE AFFORDED PROPER OPP ORTUNITY. IT IS EVIDENT THAT THE AO SUBMITTED ITS REMAND REPORT, ON 27.01.2011, IN RESPONSE TO DIRECTIONS CONTAINED BY THE CIT(A) IN LETTER DATED 12.1.2011 AND THUS, HE HAD ONLY 15 DAYS TIME, INCLUDING HOLIDAYS, FOR THE PURPOSE OF MAKING INVE STIGATIONS, AS TO THE ELIGIBILITY OF SUCH EXPENSES AND GENUINEN ESS THEREOF. 3 THEREFORE, IT IS PERTINENT TO HIGHLIGHT THAT THE CO NCEPT OF NATURAL JUSTICE IS APPLICABLE TO BOTH, THE ASSESSEE AS WELL AS TO THE REVENUE, BEING PARTY TO THE APPEAL IN QUESTION. 6. HAVING REGARD TO THE FACT-SITUATION OF THE PRESE NT CASE, WE DEEM IT FIT TO RESTORE THE ISSUE RAISED IN GROUN D NO.1 TO THE FILE OF THE AO, FOR THE PURPOSE OF MAKING NECESSARY ENQUIRIES, AS DEEMED FIT, IN ACCORDANCE WITH LAW AND ADJUDICAT E THE ISSUE AFRESH. AO SHOULD ALSO PROVIDE PROPER AND ADEQUATE OPPORTUNITY TO THE ASSESSEE IN THE MATTER. 7. GROUND NOS. 2 AND 3 ARE GENERAL IN NATURE AND NE ED NO ADJUDICATION. 8. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH FEB.,2012. SD/- SD/- (H.L.KARWA) (MEHA R SINGH) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 29 TH FEB.,2012. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), CIT,DR ASSISTANT REGISTRAR ITAT, CHANDIGARH