Dekinsons Associates, Sangli V. Pr. Commissioner of Income-tax : 1, Kolhapur

ITA 727/PUN/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1792 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-11-2018
• Assessment Year: 2012-2013
• Appeal Filed On: 18-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S B PRASAD
• Assessee Lawyers: N O N E
• Section: 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 727 /P U N/201 6 / ASSESSMENT YEAR : 20 12 - 13 DEKINSONS ASSOCIATES, 1137/14, HARBHAT ROAD, SANGLI 416416 PAN : AAEFD7988G ....... / APPELLANT / V/S. COMMISSIONER OF INCOME TAX - 1, KOLHAPUR / RESPONDENT ASSESSEE BY : N O N E REVENUE BY : SHRI S.B. PRASAD / DATE OF HEARING : 1 5 - 11 - 201 8 / DATE OF PRONOUNCEMENT : 19 - 1 1 - 201 8 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF PR. COMMISSIONER OF INCOME TAX - 1, KOLHAPUR DATED 07 - 03 - 2016 PASSED U/S. 263 O F THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR THE ASSESSMENT YEAR 2012 - 13. 2 ITA NO . 727/PUN/2016, A.Y. 2012 - 13 2. NOTICE OF HEARING OF THE APPEAL WAS DULY SERVED ON THE ASSESSEE. DESPITE SERVICE OF NOTICE , NONE APPEARED TO REPRESENT THE ASSESSEE NOR ANY LETTER OF ADJOURNMENT HAS BEEN FILED. A PERUSAL OF CASE FILE SHOWS THAT THE FIRST NOTICE OF APPEAL WAS SENT TO THE ASSESSEE THROUGH RPAD FOR 09 - 04 - 20 18. ON THE SAID DATE NONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPEAL WAS ADJOURNED TO 20 - 06 - 2018. FRESH NOTICE OF APPEAL WAS SENT TO THE ASSESSEE THROUGH RPAD. THE NOTICE OF APPEAL WAS DULY SERVED AS IS EVIDENT FROM THE ACKNOWLEDGMENT CARD AVAILABL E ON RECORD. HOWEVER, ON 20 - 06 - 2018 THE BENCH DID NOT FUNCTION AND THE APPEAL WAS ADJOURNED TO 12 - 09 - 2018. ON 12 - 09 - 2018 AGAIN NONE APPEARED ON BEHALF OF THE ASSESSEE TO DEFEND THE APPEAL. THE APPEAL WAS ADJOURNED TO 15 - 11 - 2018 AND FRESH NOTICE OF HEARI NG WAS ISSUED TO THE ASSESSEE. THE NOTICE OF HEARING OF APPEAL FOR 15 - 11 - 2018 WAS SENT TO THE ASSESSEE THROUGH RPAD ON 26 - 09 - 2018. THE ACKNOWLEDGMENT CARD AVAILABLE ON RECORD INDICATES THAT THE NOTICE WAS DULY SERVED. HOWEVER, DESPITE SERVICE OF NOTICE TODAY AGAIN NONE IS PRESENT TO REPRESENT THE ASSESSEE. IT SEEMS THAT THE ASSESSEE IS NOT KEEN TO PROSECUTE THE APPEAL. UNDER SUCH CIRCUMSTANCES WE ARE CONSTRAINED TO TAKE UP THE APPEAL OF ASSESSEE FOR HEARING WITH THE ASSISTANCE OF LD. DR AND MATERIAL AV AILABLE ON RECORD. 3. THE BRIEF FACTS OF THE CASE AS EMANATING FROM RECORDS ARE : THE ASSESSEE IS A WHOLESALE DISTRIBUTOR OF MEDICINES. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 01 - 05 - 2013 DECLARING TOTAL INCOME OF RS.4 ,46,800/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY THROUGH CASS , ACCORDINGLY STATUTORY NOTICE U/S. 143(2) OF THE ACT WAS ISSUED TO THE ASSESSEE ON 02 - 09 - 2014. THE ASSESSING OFFICER VIDE ASSESSMENT ORDER DATED 17 - 03 - 2015 AFTER MAKING ADDITION O F RS.1,30,000/ - ASSESSED THE TOTAL INCOME OF THE ASSESSEE AS RS.5,76,800/ - . 3 ITA NO . 727/PUN/2016, A.Y. 2012 - 13 THEREAFTER, PR. COMMISSIONER OF INCOME TAX INVOKED THE PROVISIONS OF SECTION 263 AND ISSUED NOTICE TO THE ASSESSEE ON 25 - 08 - 2015. THE PR. COMMISSIONER OF INCOME TAX VIDE IMPUGNED ORDER HELD THAT THE ASSESSING OFFICER HAS ERRED IN NOT DISALLOWING ASSESSEES CLAIM OF SALES PROMOTION AND EVEN T EXPENSES RS. 36,51,200/ - AS THE SAME ARE IN VIOLATION OF CBDT CIRCULAR NO. 5/2012 DATED 01 - 08 - 2012. THE PR. COMMISSIONER OF INCOME TAX FURTHER OBSERVED THAT EXCESS REMUNERATION TO THE PARTNERS RS.2,06,222/ - HAS BEEN ALLOWED . THE COMMISSIONER OF INCOME TAX HELD THE ASSESSMENT ORDER DATED 17 - 03 - 2015 PASSED U/S. 143(3) AS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. AGAINST THE ORDER OF PR. COMMISSIONER OF INCOME TAX PASSED UNDER REVISION JURISDICTION THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. SHRI S.B. PRASAD REPRESENTING THE DEPARTMENT SUBMITTED THAT THE ASSESSEE WAS NON - COOPERATIVE BEFORE THE PR. COMMISSIONER OF INCOME TAX , A S WELL. SEVERAL NOTICES WERE ISSUED TO THE ASSESSEE, HOWEVER, NO ONE BOTHERED TO ATTEND HEARING ON BEHALF OF THE ASSESSEE. THERE WAS LACK OF CO - OPERATION FROM THE ASSESSEE IN COMPLETING THE PROCEEDINGS U/S. 263 OF THE ACT. THE LD. DR VEHEMENTLY DEFENDED THE ORDER OF PR. COMMISSIONER OF INCOME TAX AND TO FURTHER SUPPORT THE SAME PLACED RELIANCE ON THE FOLLOWING DECISIONS : I . MALABAR INDUSTRIAL CO. LTD. VS. COMMISSIONER OF INCOME TAX, 243 ITR 83 (SC); II . VIRBHADRA SINGH (HUF) VS. PRINCIPAL COMMISSIONER OF INCOM E TAX, 400 ITR 530 (HP); III . GOPISONS DEVELOPERS PVT. LTD. VS. ACIT IN ITA NO. 356/PN/2012 FOR ASSESSMENT YEAR 2006 - 07 DECIDED ON 03 - 07 - 2013. 4 ITA NO . 727/PUN/2016, A.Y. 2012 - 13 5. W E HAVE HEARD THE SUBMISSIONS MADE BY LD. DR AND HAVE PERUSED THE IMPUGNED ORDER . THE RE IS NO MATERIAL ON RECORD CONTROVERTING THE FINDINGS OF PR. COMMISSIONER OF INCOME TAX. UNDER SUCH CIRCUMSTANCES WE UPHOLD THE IMPUGNED ORDER AN D DISMISS THE APPEAL OF ASSESSEE. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON MONDAY, THE 19 T H DAY OF NOVEMBER, 2018 . SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 19 TH NOVEMBER, 2018 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE PR. COMMISSIONER OF INCOME TAX 1, KOLHAPUR 4 . , , , / DR, ITAT, A BENCH, PUNE. 5 . / GUARD FILE. / / // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE