Income Tax Officer, V. M/s coalesce Investmnets Pvt. Ltd.,

ITA 67/RAN/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 8590 (ITAT-RANCHI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2014
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 07-02-2014
• Court: TRIBUNAL
• Department Lawyers: SHR CHOUDH ARY ORAMJCITLD
• Assessee Lawyers: VINAY KUMAR JALANFCALD
• Section: 6

Judgement Text

1 ITA NOS.67 & 123/RAN/14 M/S. COALESEC INV. P.LTD INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH, RANCHI BEFORE HON'BLE SHRI H.L. KARWA, PRESIDENT , AND HON'BLE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO S . 67 & 123/ RAN/201 4 A.Y S . 200 6 - 07 & 2007 - 08 I.T.O WARD 1 ( 1 ), RANCHI VS. M/S. COALESEC INVESTMENT P.LTD PAN:AA A CC6599H ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : SHR CHOUDH ARY ORAM,JCIT/LD.DR FOR THE RESPONDENT : SHRI VINAY KUMAR JALAN,FCA/LD . A R DATE OF HEARING : 0 4 - 12 - 2014 DATE OF PRONOUNCEMENT: 0 4 - 12 - 2014 O R D E R SHRI B.R. BASKARAN, ACCOUNTANT MEMBE R : THE REVENUE HAS FILED BOTH THE APPEALS CHALLENGING THE ORDERS PASSED BY LD CIT(A), RANCHI AND THEY RELATE TO THE ASSESSMENT YEARS 2006 - 07 AND 2007 - 08. 2. IN BOTH THE APPEALS, THE LD D.R SUBMITTED THAT THE LD CIT(A) HAS VIOLATED THE PROVISIONS OF RULE 46A OF THE IT RULES WITHOUT PROVIDING OPPORTUNITY TO THE ASSESSING OFFICER . 3. THE LD D.R SUBMITTED THAT THE LD CIT(A), IN FACT, CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER WHILE ADJUDICATING THE APPEAL FILED BY THE ASSESSEE FOR AY 200 6 - 07. THE ASSESSING OFFICER SUBMITTED THE REPORT ON 28.11.2003 , BUT THE LD CIT(A) PASSED THE ORDER ON 29 - 11 - 2003 WITHOUT 2 ITA NOS.67 & 123/RAN/14 M/S. COALESEC INV. P.LTD CONSIDERING THE SAME . THE LD D.R SUBMITTED THAT THE FIRST APPELLATE AUTHORITY WAS NOT JUSTIFIED IN NOT CONSIDER ING THE REMAND REPORT FURNISHED BY THE AO. THE LD D.R FURTHER SUBMITTED THAT THE ASSESSEE DID NOT FURNISH THE DETAILS THAT WERE CALLED FOR BY THE AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS RELATING TO THE ASSESSMENT YEEAR 2007 - 08 AND HENCE THE AO WAS CONSTRAINED TO MAKE TH E ADDITIONS. HOWEVER, THE LD CIT(A) HAS GRANTED RELIEF WITHOUT EXAMINING THE DETAILS , BUT BY SIMPLY RELYING ON THE ORDER PASSED BY THE LD CIT(A) IN RESPECT OF THE ASSESSMENT YEAR 2005 - 06. THE LD D.R SUBMITTED THAT THE SAID ACTION OF THE LD CIT(A) IS NOT SUSTA INABLE, SINCE THE EXPENSES CLAIMED BY THE ASSESSEE NEEDS TO BE EXAMINED EVERY YEAR INDEPENDENTLY. 4. ON THE CONTRARY, THE LD A.R SUBMITTED THAT THE LD CIT(A) HAS PROPERLY EXAMINED THE ISSUES URGED BEFORE HIM AND ACCORDINGLY GRANTED RELIEF TO THE ASSESSEE. 5. HAVING HEARD RIVAL SUBMISSIONS, WE FIND MERIT IN THE SUBMISSIONS MADE BY LD A.R. IN ASSESSMENT YEAR 2006 - 07, ADMITTEDLY, THE LD CIT(A) DID NOT CONSIDER THE REMAND REPORT FURNISHED BY THE AO WHILE FINALISING THE ORDER, EVEN THOUGH HE CALL ED FOR THE SAME FROM THE ASSESSING OFFICER. HENCE, CLEARLY THERE IS VIOLATION OF RULE 46A. IN ASSESSMENT YEAR 2007 - 08, THE LD CIT(A) SEEMS TO HAVE GRANTED RELIEF TO THE ASSESSEE BY PLACING RELIANCE ON THE ORDER PASSED BY HIM FOR AY 2005 - 06. HOWEVER, AS SUBMITTED BY LD D.R, THE EXPENDITURE DETAILS NEED TO BE EXAMINED EVERY YEAR TO FIND OUT THE VERACITY OF THE CLAIM. ACCORDINGLY, WE ARE OF THE VIEW THAT THE LD CIT(A) WAS NOT JUSTIFIED IN GRANTING RELIEF WITHOUT CAUSING EXAMINATION OF THE EXPENDITURE CLAI MS. ACCORDINGLY, WE ARE OF THE VIEW 3 ITA NOS.67 & 123/RAN/14 M/S. COALESEC INV. P.LTD THAT THE ENTIRE ISSUES CONTESTED IN BOTH THE APPEALS NEED TO BE EXAMINED AFRESH AFTER AFFORDING NECESSARY OPPORTUNITY TO THE ASSESSING OFFICER, EITHER BY WAY OF CALLING FOR REMAND REPORT OR IN ANY OTHER MANNER AS THE LD CIT(A) MAY DEEM IT FIT. ACCORDINGLY, WE SET ASIDE THE ORDERS OF LD CIT(A) IN BOTH THE YEARS AND RESTORE THEM TO HIS FILE FOR FRESH ADJUDICATION OF ALL THE ISSUES. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE REVENUE ARE TREATED AS ALLOWED FOR STA TISTICAL PURPOSES. PRONOUNCED ACCORDINGLY ON 0 4 - 12 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DT. 0 4 - 12 - 2014 PLACE : RANCHI PP, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : 2 THE RESPONDENT: 3..THE CIT, 4.THE CIT(A), 5.DR, ITAT CIRCUIT BENCH, RANCHI 6. GUARD FILE. TRUE COPY, BY ORDER, ASSTT. REGISTRAR 4 ITA NOS.67 & 123/RAN/14 M/S. COALESEC INV. P.LTD 1. DATE OF DICTATION ............ ORDER DRAFTED BY HON'BLE.MEMBER 04 - 12 - 2014....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER ........................OTHER MEMBE R ..... 02 - 12 - 2014........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT................................ 0 4 - 12 - - 201 4................................................... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ....................................... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................................................................................................. 9. DATE OF DESPATCH OF THE ORDER ..............................................................