AAREY DRUGS AND PHARMACEUTICAL LTD , MUMBAI V. DEPUTY CIT 2(3), MUMBAI, MUMBAI

ITA 820/MUM/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6069 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 27-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Period of limitation
• Section: 147; 144; 143(3); 14A; 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, MUMBAI BEFORE SHRI PRAMOD KUMAR, VICE PRESIDENT & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 820/Mum/2022 (A.Y: 2013-14) Aarey Drugs and Pharmaceuticals Ltd, 103, Sahakar Bhavan, 340/348/ Narsi natha Street, Masjid Bunder, Mumbai -400069. Vs. DCIT, Circle – 2(3) 8 th Floor, Pratishta Bhavan, Mumbai-400 020 PAN/GIR No. AAACA5253A Appellant .. Respondent Appellant by : None Respondent by : Shri Krishna Kumar.DR Date of Hearing 19.07.2022 Date of Pronouncement 22.07.2022 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of Commissioner of Income Tax (Appeals)-48, Mumbai passed u/s 144 r.w.s 147 and 250 of the Act. The assessee has filed an application for condonation of delay of 68 days in filing the appeal before the Hon’ble Tribunal and explained that due to Covid pandemic, the filling was delayed and relied on the ITA No. 820/Mum/2022 Aarey Drugs and Pharmaceuticals Ltd., Mumbai. - 2 - decision of Hon’ble Supreme Court in respect of extension of period of limitation and the Ld.DR has no specific objections. We found the facts mentioned are reasonable and accordingly we condone the delay and admit the appeal. The assessee has raised the following grounds of appeal: 1) The Learned Commissioner of Income Tax (Appeals)-48 has erred in disposing off the Appeal Petition based on a Appeal Withdrawal Letter wrongly filed before him. The said letter accompanied all documents showing the withdrawal was towards another appeal for same year. 2) The Learned Commissioner of Income Tax (Appeals)-48 has erred in confirming disallowances made by the Asst. Commissioner of Income Tax, Central Circle 2(3) under Depreciation of Rs. 4042099/-, perquisites of Rs. 9,94,581/- and Donation of Rs. 7500/-. 3) The Learned Commissioner of Income Tax (Appeals)-48 has erred in confirming Interest levied u/s. 234A, B and C. 4) Your Applicant Craves right to add, amend, alter, substitute the above grounds of appeal on or before the time of hearing. ITA No. 820/Mum/2022 Aarey Drugs and Pharmaceuticals Ltd., Mumbai. - 3 - 2. The brief facts of the case are that the assessee company is engaged in the business of trading, processing and manufacturing of Bulk Drugs, pharmaceuticals, chemicals and solvents. The assessee has filed the return of income for the A.Y 2013-14 on 30.09.2013 disclosing a total income of Rs. 86,91,930/-. Subsequently the case was selected for scrutiny and notice u/s 143(2) of the Act was issued. The Assessing Officer (A.O) has finalized the assessment and passed the order u/s 143(3) of the Act with additions in respect of disallowance of depreciation, expenses and disallowance u/s 14A of the Act and passed order U/sec143(3) of the Act dated 30-03-2016 determining the total income of Rs.1,01,33,340/- Subsequently the A.O. has received the information that the assessee has claimed excess expenditure and has reason to believe that the income has escaped assessment and issued notice u/s 148 of the Act. The A.O found that in spite of issuing notice and providing adequate opportunity of hearing there was no response from the assessee. Finally the A.O. based on the information available on record has framed the Assesseement and made disallowance of ITA No. 820/Mum/2022 Aarey Drugs and Pharmaceuticals Ltd., Mumbai. - 4 - depreciation on Plant & Machinery of Rs. 40,42,099/-, perquisites provided to the directors u/sec40(A)(2)(b) of the Act of Rs.9,94,581/- and disallowance of donation of Rs. 7,500/- and assessed the total income of Rs.1,49,74,630/- and passed the order u/sec144 of the Act dated 1-11-2019. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A), the CIT(A) considered the grounds of appeal, submissions on the withdrawal of appeal by the assessee and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal. 4. At the time of hearing, none appeared on behalf of the assessee and the assessee has challenged the additions made by the assessing officer and the action of the CIT(A) in dismissing the appeal were the letter of withdrawal was filed towards another appeal for same year and the Ld.DR has supported the order of the CIT(A). ITA No. 820/Mum/2022 Aarey Drugs and Pharmaceuticals Ltd., Mumbai. - 5 - 5. We heard the Ld. DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the assessee appeal considering the fact that the assessee has filed a withdrawal letter dated 24-03- 2021 mentioning that the assessee has opted for VSVS2020. We find that the assessee has raised grounds of appeal challenging the additions of the assessing officer and action of the CIT(A) in wrongly dismissing the appeal based on the letter of the assessee. Whereas, the assessee in the grounds of appeal has mentioned that the letter of withdrawal is supported with the documents pertains to another appeal for the same Assesseement year. Hence, We considering the facts, circumstances and principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case before the CIT(A) along with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early ITA No. 820/Mum/2022 Aarey Drugs and Pharmaceuticals Ltd., Mumbai. - 6 - disposal of the appeal and allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22.07.2022. Sd/- Sd/- (PRAMOD KUMAR) (PAVAN KUMAR GADALE) VICE PRESIDENT JUDICIAL MEMBER Mumbai, Dated 22.07.2022 KRK, PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A) 4. Concerned CIT 5. DR, ITAT, Mumbai 6. Guard file. आदेशान ु सार/ BY ORDER, //True Copy// 1. ( Asst. Registrar) ITAT, Mumbai