SHUBHLABH CHEMICALS P. LTD, MUMBAI V. ITO 7(2)-3, MUMBAI

ITA 760/MUM/2011

• Counselvise Citation: 76019914 RSA 2011
• Duration Of Justice: 2 year(s) 7 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 28-09-2013
• Assessment Year: 2007-2008
• Appeal Filed On: 27-01-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G N MAKWANA
• Assessee Lawyers: PRAKASH K JOTWANI
• Keywords: Additional evidence; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH H, MUMBAI BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER ITA NO. 760/MUM/2011 ASSESSMENT YEAR : 2007-08 SHUBHLABH CHEMICALS PVT. LTD. 410/411, KHATAU HOUSE MOGUL LANE, MAHIM MUMBAI-400 016. PAN NO.AABCS 9453 P VS. INCOME TAX OFFICER WARD 7(2)-3 AAYAKAR BHAVAN M.K. MARG MUMBAI-400 002. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI PRAKASH K. JOTWANI REVENUE BY : SHRI G.N. MAKWANA DATE OF HEARING : 29/08/2013 DATE OF PRONOUNCEMENT : 29 / 0 8 /2013 O R D E R PER B. RAMAKOTAIAH, AM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-13, MUMBAI DATED 22.09.2010 FOR THE ASSESSMENT YEAR 200 7-08 PASSED EXPARTE, CONFIRMING ADDITION MADE BY AO IN THE ASSE SSMENT ORDER U/S. 143(3). IN THE COURSE OF ASSESSMENT, AO DISALLOWED SERVICE CHARGES OF RS.79,422/-, PROFESSIONAL FEES OF RS.6,00,000/- AND COMMISSION OF RS.31,58,143/-. 2. THE LD. CIT(A) IN HIS BRIEF ORDER CONFIRMED THE DISALLOWANCE AFTER RECORDING THE FACT VIDE PARA-1.0 THAT THE ASSESSEE HAS NOT APPEARED INSPITE OF OPPORTUNITIES GIVEN FROM TIME TO TIME. 3. AT THE OUTSET, THE DIRECTOR OF THE ASSESSEE COMP ANY PLACED ON RECORD AN AFFIDAVIT FROM MR. SANTOSH SALUNKE WHO IS GENERAL MANAGER(OPNS.) AND INCHARGE OF ASSESSMENT MATTERS A LSO, TO SUBMIT THAT WHEN THE CASE WAS POSTED BEFORE CIT(A), THEY COULD NOT APPEAR AS THERE WERE APPEALS FOR EARLIER YEARS PENDING, REGISTERED OFFICE BEING SOLD/ ITA NO.760/M/11 A.Y.07-08 2 SHIFTED AND ULTIMATELY ON 21.09.2010 THE GENERAL MA NAGER WAS UNDERGOING MEDICAL TREATMENT AND COULD NOT ATTEND T HEREFORE, CIT(A) PASSED THE ORDER EXPARTE. FURTHER THE DIRECTOR ALSO FILED AN AFFIDAVIT THAT THE ASSESSEE HAD NECESSARY DOCUMENTS IN SUPPORT OF VARIOUS CLAIMS AND THEY COULD NOT BE FILED BEFORE THE LD. CIT(A) AND P LACED ON RECORD BEFORE US A PAPER BOOK CONTAINING PAGES 216, ALONG WITH A PRAYER FOR ADMISSION OF ADDITIONAL EVIDENCE IN THE FORM OF CONFIRMATIONS . IT WAS THE REQUEST THAT THE MATTER MAY BE RESTORED TO THE FILE OF CIT( A) OR TO AO GIVING OPPORTUNITY TO THE ASSESSEE TO SUPPORT THE CLAIMS M ADE BEFORE THE AUTHORITIES. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS AND PERU SING THE ORDERS, WE ARE OF THE OPINION THAT THE ASSESSEE WAS PREVENTED BY REASONABLE CAUSE IN APPEARING BEFORE THE LD. CIT(A). THEREFORE, IN T HE INTEREST OF JUSTICE, ASSESSEE SHOULD GET DUE AND PROPER OPPORTUNITY IN S UPPORT OF VARIOUS CLAIMS MADE. THEREFORE, WITHOUT GOING INTO THE MERI TS OF THE VARIOUS ADDITIONS MADE, WE RESTORE THE MATTER TO THE FILE O F AO FOR FRESH EXAMINATION OF THE ISSUES AS THE ASSESSEE HAS FILED ADDITIONAL EVIDENCE WHICH IN TURN ARE TO BE EXAMINED BY AO ONLY. THEREF ORE, WE SET ASIDE THE ORDERS OF ASSESSING OFFICER AND CIT(A) ON THESE ISS UES AND RESTORE THE ASSESSMENT TO THE FILE OF AO TO EXAMINE THE FACTS A ND TO COMPLETE ASSESSMENT ACCORDING TO LAW. NEEDLESS TO SAY, ASSES SEE SHOULD BE GIVEN PROPER OPPORTUNITY. 5. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH AUGUST, 2013. SD/- SD/- ( DR. S.T.M. PAVALAN ) JUDICIAL MEMBER (B. RAMAKOTAIAH ) ACCOUNTANT MEMBER MUMBAI, DATED: 29/08/2013. JV. ITA NO.760/M/11 A.Y.07-08 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.