M/s. Prachi Industries Ltd., Ahmedabad V. The Income Tax Officer, Ward-3(1)(4), Ahmedabad

ITA 71/AHD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5772 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2009-2010
• Appeal Filed On: 09-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P M MEHTA
• Section: 143(3); 69; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH AHMEDABAD BEFORE, SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA NO. 71/AHD/2017 (ASSESSMENT YEAR : 2011-12) PRACHI INDUSTRIES LTD., 1 ST FLOOR, MANIPRABHU APARTMENT, NR. NAVRANG HIGH SCHOOL, SARDAR PATEL COLONY, AHMEDABAD APPELLANT VS. ITO, WARD 3(1)(4), AHMEDABAD RESPONDENT PAN: AADCP5280H & ITA NO. 72/AHD/2017 (ASSESSMENT YEAR : 2012-13) NISHANT INFRASTRUCTURE PVT. LTD., 1 ST FLOOR, MANIPRABHU APARTMENT, NR. NAVRANG HIGH SCHOOL, NAVRANGPURA, AHMEDABAD APPELLANT VS. ITO, WARD 3(1)(1), AHMEDABAD RESPONDENT PAN: AACCN2769E ITA NOS. 71 & 72/AHD/17 [PRACHI INDUSTRIES LTD. & A NR. VS. ITO ] A.YS. 2011-12 & 2012-13 - 2 - / BY ASSESSEE : SHRI P. M. MEHTA, A.R. / BY REVENUE : SHRI PRASOON KABRA, SR. D.R. /DATE OF HEARING : 15.03.2018 /DATE OF PRONOUNCEMENT : 28.03.2018 ORDER PER S. S. GODARA, JUDICIAL MEMBER THESE TWO APPEALS PERTAIN TO AS MANY ASSESSEES NAMEL Y PRACHI INDUSTRIES LTD. AND NISHANT INFRASTRUCTURE PVT. LTD. FOR ASSESSM ENT YEARS 2009-10 & 2012- 13 ARISE AGAINST CIT(A)-9, AHMEDABADS SEPARATE EX P ARTE ORDERS DATED 17.11.2016 & 18.11.2016, IN CASE NOS. CIT(A)-9/173/ ITO WD.3(1)(4)/15-16 & CIT(A)-9/180/ITO-WD.3(1)(1)/15-16, IN PROCEEDINGS U/ S. 143(3) R.W.S. 147 R.W.S. 144 & U/S. 143(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. LEARNE D AUTHORIZED REPRESENTATIVE STATES AT THE PAR THAT THESE TWO APP EALS ARE CONNECTED CASES TO BE ADJUDICATED VIDE A COMMON ORDER. LEARNED DEPARTMENT AL REPRESENTATIVE IS FAIR ENOUGH IN NOT DISPUTING THE SAME. 2. WE NOTICE AT THE OUTSET IN THE FORMER APPEAL THA T THE CIT(A)S LOWER APPELLATE ORDER HAS BEEN PASSED EX PARTE THEREBY AF FIRMING ASSESSING OFFICERS ACTION INTER ALIA DISALLOWING/ADDING SHARE APPLICAT ION MONEY OF RS.3,62,826/-, INTEREST INCOME OF RS.3,32,804/-, ADDITION OF RS.30 ,59,835/- AFTER ESTIMATING PROFIT @ 2.5% OF THE TURNOVER AND ESTIMATED @ 5% CO MING TO RS.2,47,650/- AS WELL AS SECTION 69 ADDITION OF RS.5,08,86,420/- IN RESPECT OF CASH DEPOSITS MADE IN UCO BANK ACCOUNT; RESPECTIVELY. ITA NOS. 71 & 72/AHD/17 [PRACHI INDUSTRIES LTD. & A NR. VS. ITO ] A.YS. 2011-12 & 2012-13 - 3 - 3. LEARNED COUNSEL REPRESENTING ASSESSEE SUBMITS AT THE OUTSET THAT THE ASSESSEE HAD ALWAYS BEEN READY AND WILLING TO APPEA R BEFORE THE ASSESSING OFFICER AS WELL AS THE CIT(A). HE THEN PLEADS THAT THERE ARE TWO DIRECTORS IN ASSESSEE COMPANY SMT. SHITAL MANISH PATEL AND SMT. NITABEN PRABHUDAS PATEL. FORMER DIRECTORS HUSBAND SHRI MANISH PRABHUDAS PAT EL IS STATED TO HAVE BEEN LOOKING AFTER ASSESSEES BUSINESS AFFAIRS. WE THEN INFORMED THAT SHRI PATEL SUDDENLY EXPIRED ON 26.12.2014 DUE TO CARDIAC PROBL EMS WHICH HAS FORMED THE MAIN REASON FOR ASSESSEES NON APPEARANCE BEFORE TH E ASSESSING OFFICER AS WELL AS CIT(A). MR. MEHTA UNDERTAKES ON ASSESSEES BEHE ST THAT IT SHALL NOW PURSUE ITS CASE DELICATELY IF AWARDED ONE MORE INNINGS. TH E ABOVE FACTUAL POSITION HAVE GONE UNREBUTTED FROM THE REVENUE SIDE. 4. WE HAVE HEARD RIVAL CONTENTIONS ON THE FORMER AS PECT OF EX PARTE PROCEEDINGS FINALIZED IN ASSESSMENT AS WELL AS LOWE R APPELLATE PROCEEDINGS AGAINST THE ASSESSEE. THE ABOVE NARRATED FACTS MAKE IT CLEAR THAT THE ASSESSEES NON APPEARANCE IS ATTRIBUTABLE TO THE DEATH OF ITS IN-CHARGE PERSON (SUPRA). WE THUS DEEM IT APPROPRIATE TO REMIT ALL THE REMAINING ISSUES ON MERITS BACK TO THE ASSESSING OFFICER FOR AFRESH ADJUDICATION AS PER LA W AFTER AFFORDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESS EE SHALL APPEAR BEFORE THE ASSESSING OFFICER ALONGWITH A COPY OF OUR ORDER WIT HIN EIGHT WEEKS OF GETTING ITS CERTIFIED COPY FOR FURTHER PROCEEDINGS. IT SHALL B E AT LIBERTY TO PLACE ALL NECESSARY DETAILS IN CONSEQUENTIAL PROCEEDINGS TO BE CONSIDER ED AS PER LAW. FORMER ASSESSEES APPEAL ITA NO.71/AHD/2017 IS ACCEPTED FO R STATISTICAL PURPOSES. 5. LEARNED COUNSEL THEN INFORMS US THAT LATTER ASSES SEES APPEAL ITA NO. 72/AHD/2017 ALSO RAISES TWO SUBSTANTIVE GROUNDS CHA LLENGING AS MANY ADDITIONS OF UNSECURED LOANS AND DIFFERENCE IN OPENING BALANC E OF UNSECURED LOAN AS PER LEDGER ACCOUNT AMOUNTING TO RS.45,63,974/- AND RS.1 4,19,806/-; RESPECTIVELY. WE HAVE ALREADY REMITTED THE FORMER ASSESSEES APPE AL INVOLVING IDENTICAL FACTS BACK TO THE ASSESSING OFFICER. WE THEREFORE FOLLOW THE VERY COURSE OF ACTION ITA NOS. 71 & 72/AHD/17 [PRACHI INDUSTRIES LTD. & A NR. VS. ITO ] A.YS. 2011-12 & 2012-13 - 4 - HEREIN AS WELL TO RESTORE THE INSTANT LIS BACK TO A SSESSING OFFICER WITH THE SAME DIRECTIONS. THIS LATTER APPEAL ITA NO.72/AHD/2017 IS ALSO TREATED AS ACCEPTED FOR STATISTICAL PURPOSES. 6. THESE TWO ASSESSEES APPEALS ARE ALLOWED FOR STAT ISTICAL PURPOSES. [PRONOUNCED IN THE OPEN COURT ON THIS THE 28 TH DAY OF MARCH, 2018.] SD/- SD/- ( AMARJIT SINGH ) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 28/03/2018 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + ,--. . /0 / DR, ITAT, AHMEDABAD 1 + 23 / GUARD FILE. BY ORDER / . // . /0