ASST CIT CIR 6(1), MUMBAI V. BCL FORGINGS LTD, NASHIK

ITA 6855/MUM/2013

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2899 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 27-11-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D G
• Keywords: Principle of natural justice; Additional evidence
• Section: 143(3)

Judgement Text

1 ITA.NO.6855/MUM/2013 BCL FORGINGS LIMITED ASSESSMENT YEAR 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI , , BEFORE HONBLE SHRI MAHAVIR SINGH, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./I.T.A. NO.6855/MUM/2013 ( / ASSESSMENT YEAR: 2009-10) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-6(1) ROOM NO.506, 5 TH FLOOR AAYKAR BHAVAN, M.K. ROAD MUMBAI-400 020 / VS. BCL FORGINGS LIMITED 67, MIDC SATPUR NASIK-422 007 ./ ./PAN/GIR NO. AAACB-1637-M ( ! /APPELLANT ) : ( '#! / RESPONDENT ) ASSESSEE BY : NONE RE VENUE BY : D.G. PANSARI, LD. DR / DATE OF HEARING : 17/10/2018 / DATE OF PRONOUN CEMENT : 02/11/2018 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2009-10 CONTEST THE ORDER OF THE LD. COMMISSIONER OF INCOME -TAX (APPEALS)- 14, MUMBAI, [CIT(A)], APPEAL NO.CIT(A)-14/ACIT-6(1)/IT-127/2011-12 2 ITA.NO.6855/MUM/2013 BCL FORGINGS LIMITED ASSESSMENT YEAR 2009-10 DATED 27/09/2013 ON VARIOUS GROUNDS OF APPEAL, ONE OF WHICH IS VIOLATION OF RULE 46A . THE ASSESSMENT FOR IMPUGNED AY WAS FRAMED BY LD. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-6( 1), MUMBAI [AO] U/S 143(3) OF THE INCOME TAX ACT, 1961 ON 29/12/2011 WHEREIN THE LOSS OF THE ASSESSEE HAS BEEN DETERMINED AT RS. 264.78 LACS AFTER CERTAIN ADDITIONS / DISALLOWANCES AS AGAINST RETURN ED LOSS OF RS.652.53 LACS E-FILED BY THE ASSESSEE ON 29/09/2009. THE SOLE SUBJECT MAT TER OF THE REVENUES APPEAL IS DISALLOWANCE U/S 36(1)(I II). DURING IMPUGNED AY, THE ASSESSEE BEING RESIDENT CORPORATE ENTITY WAS ENGAGED AS MANUFACTURER OF CARBON AND ALLOY STEEL FORGINGS AND MACHINED COMPONENTS AND S.G. IRON CASTING. 2. NONE HAS APPEARED FOR ASSESSEE AND NO VALID ADJO URNMENT APPLICATION IS ON RECORD. LEFT WITH NO OPTION, WE P ROCEED TO DISPOSE-OFF THE SAME IN TERMS OF RULE 25 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULES, 1963 ON THE BASIS OF MATERIAL AVAILABLE ON RECORD AND AF TER HEARING LD. DEPARTMENTAL REPRESENTATIVE, SHRI D.G.PANSARI WHO HAS DRAWN ATTENTION TO THE FACT THAT ADDITIONAL EVIDENC ES HAVE BEEN ADMITTED BY FIRST APPELLATE AUTHORITY WITHOUT CONFR ONTING TO THE SAME TO THE LD. AO. 3. DURING ASSESSMENT PROCEEDINGS IT WAS NOTED THAT THE ASSESSEE ADVANCED CERTAIN INTEREST FREE LOANS AND ADVANCES F OR RS.14.71 CRORES WHEREAS IT CLAIMED INTEREST EXPENDITURE OF R S.4.51 CRORES AND FINANCE CHARGES OF RS.1.45 CRORES. THEREFORE, LD. A O DISALLOWED 3 ITA.NO.6855/MUM/2013 BCL FORGINGS LIMITED ASSESSMENT YEAR 2009-10 INTEREST OF RS.176.59 LACS U/S 36(1)(III), COMPUTED @12% OF RS.14.71 CRORES. AGGRIEVED, THE ASSESSEE CONTESTED THE SAME WITH SUCCESS BEFORE LD. CIT(A) VIDE IMPUGNED ORDER DATED 27/09/2 013 WHEREIN LD. CIT(A), AFTER CONSIDERING THE SUBMISSIONS AND DOCUM ENTARY EVIDENCES, DELETED THE SAME. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 4. UPON CAREFUL CONSIDERATION, WE FIND THAT THE STA ND OF FIRST APPELLATE AUTHORITY DERIVES STRENGTH FROM DOCUMENTA RY EVIDENCES SUBMITTED BY THE ASSESSEE DURING APPELLATE PROCEEDI NGS. HOWEVER, THE SAID SUBMISSIONS OR DOCUMENTARY EVIDENCES WERE NOT CONSIDERED BY LD. AO AND ALSO NOT CONFRONTED TO LD. AO DURING APPELLATE PROCEEDINGS, WHICH IS IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. THEREFORE, WITHOUT DELVING MUCH DEEPER INTO THE ISS UE, WE DEEM IT FIT TO RESTORE THE MATTER BACK TO THE FILE OF LD. FIRST APPELLATE AUTHORITY TO CONFRONT THE ADDITIONAL EVIDENCES AS SUBMITTED BY T HE ASSESSEE UNDER RULE 46A TO LD. AO. THE ASSESSEE IS DIRECTED TO PROVIDE THE REQUISITE DETAILS / EVIDENCES TO SUBSTANTIATE ITS CLAIM. 5. THE APPEAL STANDS ALLOWED FOR STATISTICAL PURPOS ES IN TERMS OF OUR ABOVE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND NOVEMBER, 2018. SD/- SD/- (MAHAVIR SINGH) (M ANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 02/11/2018 SR.PS:-THIRUMALESH/JV,SR.PS 4 ITA.NO.6855/MUM/2013 BCL FORGINGS LIMITED ASSESSMENT YEAR 2009-10 ! / COPY OF THE ORDER FORWARDED TO : 1. ! / THE APPELLANT 2. '#! / THE RESPONDENT 3. * ( ) / THE CIT(A) 4. * / CIT CONCERNED 5. +, '%- , - , / DR, ITAT, MUMBAI 6. ,./0 / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI