SHREE RAMKRISHNA ELECTRO CONTROLS LTD, MUMBAI V. DCIT RG 8(3), MUMBAI

ITA 7543/MUM/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 8853 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2007-2008
• Appeal Filed On: 03-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GIRIJA DAYAL
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E, MUMBAI BEFORE SHRI DINESH KUMAR AGARWAL (J.M.) AND SHRI N.K. BILLAIYA (A.M.) ITA NO. 7543/MUM/2010 ASSESSMENT YEAR : 2007-08 M/S. SHREE RAMKRISHNA ELECTRO CONTROLS LTD. LAXMI GOVIND SADAN, BAMAN WADA, BEHIND BANK OF BARODA COLONY, VILE PARLE(E), MUMBAI-400 099 PAN NO : AAACS 5963 M VS. DCIT, RANGE 8(3), ROOM NO.204, AAYKAR BHAVAN, M. K. ROAD, MUMBAI-400 020 (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE DEPARTMENT BY : SHRI GIRIJA DAYAL DATE OF HEARING : 10.09.2012 DATE OF PRONOUNCEMENT : 12-09-2012 O R D E R PER DINESH KUMAR AGARWAL, J.M. THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE EXPARTE ORDER DATED 20.08.2010 PASSED BY THE LD. CIT(A) FOR THE A.Y. 2007-08. 2. AT THE TIME OF HEARING NON ATTENDS ON BEHALF OF THE ASSESSEE NOR FILED ANY APPLICATION FOR THE ADJOURNMENT OF THE CASE, IT WAS, THEREFORE, DECIDED TO DISPOSE OF THE APPEAL EXPARTE QUA THE ASSESSEE ON M ERITS AFTER HEARING THE LD. DR. ITA NO. 7543/MUM/2010 M/S. SHREE RAMKRISHNA ELECTRO CONTROLS LTD . 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE IS ENGAGED IN THE BUSINESS AS AN ELECTRIC CONTRACTOR. THE RETURN WAS FILED DECLARING TOTAL INCOME OF RS.39,76,671/- AND BOOK PROFIT AT RS.34,2 3,459/- U/S.115JB OF THE INCOME TAX ACT, 1961 (THE ACT). HOWEVER, THE A SSESSMENT WAS COMPLETED AT AN INCOME OF RS.2,76,39,700/- INCLUDIN G THE DISALLOWANCE OF EXPENSES FOR RAISING SHARE CAPITAL RS.1,85,033/-, A DDITION U/S.68 IN RESPECT OF SHARE CAPITAL RS.1,01,60,000/- AND ADDITION U/S. 68 IN RESPECT OF LOANS RECEIVED RS.1,33,18,000/-, VIDE ORDER DATED 31.12.2 009 PASSED U/S.143(3) OF THE ACT. 4. ON APPEAL, THE LD. CIT(A) PROVIDED VARIOUS OPPOR TUNITIES TO THE ASSESSEE. HOWEVER, IN THE ABSENCE OF ANY EFFECTIVE COMPLIANCE BY THE ASSESSEE, THE LD. CIT(A) WHILE CONFIRMING THE DISAL LOWANCE / ADDITIONS MADE BY THE A.O. DISMISSED THE ASSESSEES APPEAL. 5. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US CHALLENGING IN ALL THE GROUNDS THE EXPARTE ORDER PASSED BY THE LD. CIT(A) AND SUSTENANCE OF ADDITIONS MADE BY THE A.O. 6. AT THE TIME OF HEARING THE LD. DR WHILE RELYING ON THE ORDER OF THE A.O. AND LD. CIT(A) SUBMITS THAT HE HAS NO OBJECTION IF THE ISSUE IS SET ASIDE TO THE FILE OF THE A.O. ITA NO. 7543/MUM/2010 M/S. SHREE RAMKRISHNA ELECTRO CONTROLS LTD . 3 7. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. DESPITE REPEATED OPPORTUNITIES GIVEN TO THE ASSESSEE, THERE WAS NO APPEARANCE PUT IN BY THE ASSESSEE AND HENCE THE LD. CIT(A) CONFIRMED THE ADDITIONS. WE D O AGREE THAT THE ASSESSEE DOES NOT DESERVE ANY CLEMENCY YET, THE MATTER BEING QUITE CONTENTIOUS AND THE AMOUNT INVOLVED BEING QUITE HIGH, IT WOULD BE B ETTER IF WE HAVE THE BENEFIT OF THE ENQUIRIES AND WISDOM OF THE LOWER AU THORITIES. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE LD. CIT(A) DIRECTING HIM TO GIVE ONE MO RE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO PROVE ITS CASE. IT IS MAD E CLEAR THAT IF THE ASSESSEE REMAINS RECALCITRANT, THE LD. CIT(A) SHALL BE AT LI BERTY TO DRAW ADVERSE INFERENCE AS HE DEEMS FIT AND DECIDE THE ISSUES ACC ORDINGLY. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH SEPT. 2012. SD/- (N.K. BILLAIYA) ACCOUNTANT MEMBER SD/- (DINESH KUMAR AGARWAL) JUDICIAL MEMBER MUMBAI, DATED : 12-9-2012 ROSHANI ITA NO. 7543/MUM/2010 M/S. SHREE RAMKRISHNA ELECTRO CONTROLS LTD . 4 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)- 37, MUMBA I 4. COMMISSIONER OF INCOME TAX CENTRAL -1 MUMBAI 5. DEPARTMENTAL REPRESENTATIVE, BENCH J, MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI