Haldia Petrochemicals Limited, Kolkata V. ACIT, Circle - 7(1), Kolkata, Kolkata

ITA 744/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5052 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 10-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: HARKAMAL CHAKRAVORTY
• Keywords: Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.744/KOL/2019 ( / ASSESSMENT YEAR: 2014-15) HALDIA PETROCHEMICALS LTD. BENGAL ECO INTELLIGENT PARK, BLOCK-EM, PLOT NO. 3, SECTOR-V, SALT LAKE, KOLKATA VS. ACIT, CIRCLE-7(1), KOLKATA ./ ./PAN/GIR NO.: AAGCB 2001 F (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI HARKAMAL CHAKRAVORTY, A.R. RESPONDENT BY : SMT. RANU BISWAS, ADDL. CIT / DATE OF HEARING : 31/10/2019 /DATE OF PRONOUNCEMENT : 22/11/2019 / O R D E R PER BENCH: THE CAPTIONED APPEAL FILED BY THE ASSESSEE, PER TAINING TO ASSESSMENT YEAR 2014-15, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-4, KOLKATA IN APPEAL NO. 700/CIT(A)-4/16-1 7, WHICH IN TURN ARISES OUT OF AN ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 16/12/2016. 2. THE GROUND OF APPEAL RAISED BY THE ASSESSEE ARE AS FOLLOWS: I) THAT THE LD. CIT(A) ERRED BY UPHOLDING THE ADDIT ION OF INTEREST OF RS. 14,01,653/- UNDER THE HEAD INCOME FROM OTHER SOURCE S. HALDIA PETROCHEMICALS LTD. ITA NO.744/KOL/2019 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 2 22 2 3. AT THE OUTSET ITSELF, THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE ISSUE RELATED TO THE INTEREST ON INCOME TAX REFUND HAS NE ITHER BEEN EXAMINED BY THE ASSESSING OFFICER NOR BY THE LD. CIT(A). THEREFORE, THE LD. COUNSEL PRAYED THE BENCH THAT ONE MORE OPPORTUNITY TO BE GIVEN TO THE ASSESSEE TO PRESENT HIS CASE BEFORE THE ASSESSING OFFICER. 4. WE HEARD BOTH THE PARTIES AND CAREFULLY GONE THR OUGH THE SUBMISSION PUT FORTH ON BEHALF OF THE ASSESSEE ALONG WITH THE DOCUMENTS FURNISHED AND THE CASE LAWS RELIED UPON, AND PERUSED THE FACT OF THE CASE INCLU DING THE FINDINGS OF THE LD CIT(A) AND OTHER MATERIALS AVAILABLE ON RECORD. WE NOTE THAT THE LD. CIT(A) PASSED THE ORDER ON THE IMPUGNED ISSUE OBSERVING TH E FOLLOWING: GROUND NO. 2 RELATES TO ADDITION OF RS. 14,01,653 /- ON ACCOUNT OF UNDISCLOSED INTEREST INCOME. FROM THE ASSESSMENT ORDER, IT IS N OTED THAT THE ASSESSEE HAS EARNED RS. 14,01,653/- AS INTEREST ON INCOME TAX RE FUND WHICH WAS NOT INCLUDED IN THE INCOME OF THE ASSESSEE FOR THE YEAR UNDER CONSI DERATION. DURING THE APPELLATE PROCEEDINGS, THE LD. A.R. WAS ASKED AS TO WHETHER T HE COMPANY HAS EARNED THIS INTEREST INCOME OR NOT. THE LD. A.R. SHOWED HIS INA BILITY TO RECONCILE THE EXACT FIGURE RECEIVED BY THEM AS INTEREST U/S 244A. HOWEV ER, HE ACCEPTED THAT INTEREST ON INCOME TAX REFUND WAS RECEIVED BY THE COMPANY DU RING THE YEAR UNDER CONSIDERATION. SINCE, THE A/R HAS FAILED TO NEGATE TO FINDINGS OF THE ASSESSING OFFICER ABOUT THE INTEREST INCOME EARNED BY THE ASS ESSEE ON INCOME TAX REFUND. THIS GROUND OF APPEAL IS HEREBY DISMISSED. WE NOTE THAT THE ISSUE RELATING TO INCOME TAX REFUN D HAS NEITHER BEEN EXAMINED BY THE ASSESSING OFFICER NOR BY THE LD. CIT(A). THE L D. COUNSEL FOR THE ASSESSEE SUBMITTED BEFORE THE BENCH THAT THE ASSESSEE IS REA DY TO EXPLAIN THE ISSUE BEFORE THE ASSESSING OFFICER PROVIDED ONE MORE OPPORTUNIT Y IS GIVEN TO ASSESSEE TO REPRESENT HIS CASE BEFORE THE ASSESSING OFFICER. WE NOTE THAT THE ISSUE ON INCOME TAX REFUND HAS NEITHER BEEN EXAMINED BY THE ASSESSI NG OFFICER NOR BY THE LD. CIT(A) AS STATED ABOVE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY WE THINK IT FIT AND PROPER TO REMIT THIS ISSUE BACK TO THE FILE OF ASSESSING OFFICER FOR HIS EXAMINATION AND TO ADJUDICATE THE ISSUE IN ACCORDAN CE TO LAW. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMIT THIS IS SUE BACK TO THE FILE OF ASSESSING OFFICER FOR DE NOVO ADJUDICATION. HALDIA PETROCHEMICALS LTD. ITA NO.744/KOL/2019 ASSESSMENT YEAR:2014-15 P PP PA AA AG GG GE EE E | || | 3 33 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 22. 11.2019 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA; / DATE: 22/11/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. HALDIA PETROCHEMICALS LTD. 2. ACIT, CIRCLE-7(1), KOLKATA 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES