The Sirpur Paper Mills Ltd., Hyd, Hyderabad V. DCIT, Circle-2(3), Hyderabad, Hyderabad

ITA 685/HYD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2673 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-05-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 12-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NARASAMMA
• Keywords: Reopening of assessment; Bad and doubtful debts
• Section: 143(3); 115JB; 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER I.T.A. NO. 685/HYD/2016 ASSESSMENT YEAR: 2007-08 M/S. SIRPUR PAPER MILLS LTD., HYDERABAD [PAN: AAACT7970R] VS THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE FOR REVENUE : SMT. S. NARASAMMA, CIT-DR DATE OF HEARING : 22-08-2017 DATE OF PRONOUNCEMENT : 22-08-2017 O R D E R PER D. MANMOHAN, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE-COMPANY IS DIRECTED AGAI NST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPE ALS)-2, HYDERABAD, DATED 29-01-2016. THOUGH THE APPEAL WAS P OSTED FROM TIME TO TIME, NONE APPEARED ON BEHALF OF THE ASSESSEE. WE THEREFORE, PROCEED TO DISPOSE OF THE APPEAL EX-PARTE, QUA THE ASSESSEE. 2. AT THE OUTSET, IT MAY BE NOTICED THAT BEFORE THE CIT(A), ASSESSEE CHALLENGED THE REOPENING OF ASSESSMENT BY R AISING THE FOLLOWING GROUNDS: I.T.A. NO. 685/HYD/2016 :- 2 - : 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE ASSESSING OFFICER HAS ERRED IN ISSUING THE NOTICE U/S. 148 DT . 12.06.2012 WHICH IS BAD IN LAW AND VOID AB-INITIO AS THERE WAS NO SUPPR ESSION OF THE FACTS AND NO FAILURE ON THE PART OF THE ASSESSEE WHICH AT TRACTS INVOKING U/S. 147 OF THE IT ACT, 1961. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ASSESSING OFFICER HAS ERRED IN RECORDING REASONS FOR REOPENIN G OF THE RECORDS WHICH IS NEITHER NEW INFORMATION NOR ANY NEW MATERIAL ON THE BASIS OF WHICH THE REASON HAS BEEN RECORDED. IT IS SIMPLY THE OMISSIO N OF FACTS/DIFFERENT OPINION AT THE TIME OF ORIGINAL ASSESSMENT. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ASSESSING OFFICER HAS ERRED IN REOPENING AND RE-ASSESSMENT U/ S. 147 OF THE I.T. ACT, 1961 WHICH IS RECORDED ON THE STRENGTH OF POINTS BY THE AUDIT PARTY. 4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE, THE ASSESSING OFFICER HAS ERRED IN PASSING RE-ASSESSMENT ORDER U /S. 143(3) R.W.S. 147 OF I.T. ACT, 1961 WITHOUT APPRECIATING THE FACT THAT N O NEW MATERIAL/INFORMATION PLACED ON THE RECORDS. 3. THOUGH THE SAME WAS RECORDED BY THE CIT(A) IN PAR A 4 OF HIS ORDER, WHILE CONSIDERING THE APPEAL, NO DECISION WAS RENDERED ON THAT ISSUE; IN FACT, IN PARA 5, HE STATED THAT THE ONLY I SSUE INVOLVED IN THIS APPEAL IS WITH REGARD TO AOS ACTION IN ADDING BACK THE PROVISION FOR DOUBTFUL DEBTS, U/S. 115JB OF THE INCOME TAX ACT [ACT]. SINCE THE VALIDITY OF REOPENING OF ASSESSMENT GOES TO THE ROOT OF THE MATTER, THE LD.CIT(A) OUGHT TO HAVE GIVEN A FIND ING ON THAT ISSUE. 4. THUS, THE ASSESSEE PREFERRED AN APPEAL BEFORE US REITERATING THE SAME CONTENTION. APART FROM THAT IT WAS ALSO CONTEND ED THAT THE ENHANCED PROFITS U/S. 115JB OF THE ACT, WITHOUT PROV IDING AN OPPORTUNITY TO THE ASSESSEE-COMPANY, IS BAD IN LAW. 5. WE HAVE HEARD LD.DR, WHO WAS UNABLE TO POINT OUT FROM THE ORDER OF THE CIT(A) ANY DISCUSSION ON THE GROUND CONC ERNING THE I.T.A. NO. 685/HYD/2016 :- 3 - : REOPENING OF ASSESSMENT. WE ARE THEREFORE OF THE VIEW THAT IN THE INTEREST OF JUSTICE, THE ORDER PASSED BY THE CIT(A) DES ERVES TO BE SET ASIDE TO RECONSIDER THE MATTER AFRESH. HE IS DIRECTED TO RECONSIDER ALL THE ISSUES BY GIVING ASSESSEE A REASONABLE OPPO RTUNITY OF BEING HEARD. WITH THESE OBSERVATIONS, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND AUGUST, 2017 UPON CONCLUSION OF HEARING SD/- SD/- (S. RIFAUR RAHMAN) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 22 ND AUGUST, 2017 TNMM COPY TO : 1. M/S. THE SIRPUR PAPER MILLS LTD., 5-9-22/1/1, 1 ST FLOOR, ADARSH NAGAR, OPP: NEW MLA QUARTERS GATE, HYDERABAD . 2. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(3), HYDERABAD. 3. CIT (APPEALS)-2, HYDERABAD. 4. PR.CIT-2, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.