PALAVAKKA MOHAMED HUSSAIN RASHEED KHAN, CHENNAI V. ITO NON CORPORATE WARD 12 (2), CHENNAI

ITA 831/CHNY/2018

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5311 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 08-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CLEMENT RAMESH KUMARADDL
• Assessee Lawyers: D ANAND

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , $ BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 831/CHNY/2018 / ASSESSMENT YEAR : 2014-15 PALVAKKA MOHAMMED HUSSAIN RASHEED KHAN, M.S.R. ENTERPRISES, NO. 5, CHELLA MUTHU LANE, MANNADY, CHENNAI 600 001. [PAN: AAFPR 4388F] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD 12(2), CHENNAI. ( / APPELLANT) ( %&' /RESPONDENT ) ASSESSEE BY : SHRI. D. ANAND, ADVOCATE REVENUE BY : SHRI CLEMENT RAMESH KUMAR, A DDL. CIT 0 /DATE OF HEARING : 23.10.2018 0 /DATE OF PRONOUNCEMENT : 23.10.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI IN ITA NO. 108/CIT(A)-13/2014-15 DATED 12.07.2017 FOR ASSESSME NT YEAR 2014- 15. :-2-: ITA NO. 831/CHNY/2018 2. THE ASSESSEE FILED A PETITION TO CONDONE THE DEL AY OF 171 DAYS IN FILING THE APPEAL. THE AR SUBMITTED THAT THE ASSES SEE WAS SUFFERING FROM GREAT STRESS DUE TO THE BUSINESS LOSS AND RECE IPT OF HUGE DEMAND ORDERS FROM THE DEPARTMENT. DUE TO THE STRESS, HE HAS MISPLACED THE ORDER, DUE TO WHICH HE WAS UNDER THE BONAFIDE BELIE F THAT THE APPEAL HAS ALREADY BEEN FILED BY OFFICE. WHEN THE REVENUE AUTHORITY STARTED COERCIVE STEPS FOR RECOVERY, HE CAME TO UNDERSTAND THE POSITION AND IMMEDIATELY TOOK STEPS TO FILE THE APPEAL. THE DEL AY IS NEITHER WILFUL NOR WANTON AND IN THE INTERESTS OF JUSTICE, IT WAS PLEADED THAT THE DELAY MAY BE CONDONE. 3. WE HEARD THE RIVAL SUBMISSIONS, ON THE ABOVE PLE AS AND IN THE INTERESTS OF JUSTICE, WE CONDONE THE DELAY. 4. THE AR SUBMITTED THAT SHRI. PALVAKKA MOHAMMED HU SSAIN RASHEED KHAN, THE ASSESSEE, A PROPRIETOR OF MSR ENT ERPRISES, WAS DOING EXPORT OF GARMENT BUSINESS FOR THE PAST SEVER AL YEARS. SINCE, HE DID NOT HAVE ADEQUATE ORDERS FOR THE YEAR 2013-14, HE HAD APPROACHED ONE AGENT TO DO THE BUSINESS USING HIS E XPORT LICENSE AND THE BANK ACCOUNT SO THAT HE CAN GET SOME EARNING FR OM THAT AGENT. WHILE MAKING THE ASSESSMENT, THE AO ASKED TO ESTABL ISH THE :-3-: ITA NO. 831/CHNY/2018 GENUINENESS OF THE SUNDRY CREDITORS TOWARDS WHICH H E COULD NOT FURNISH ANY PARTICULARS AT THAT TIME. HENCE, THE A O MADE AN ADDITION. AGGRIEVED, HE FILED AN APPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT(A) DISMISSED THE APPEAL. 5. THE AR SUBMITTED THAT THE TURNOVER OF THE APPELL ANT IS 2.25 CRORES AND IT IS BEYOND BUSINESS POSSIBILITIES TO G ENERATE AN INCOME OF 1.85 CRORES ON A TOTAL TURNOVER OF 2.25 CRORES . T HE LD. CIT(A) FAILED TO SEE THAT THERE IS EQUAL SUNDRY DEBTORS AS MUCH A S SUNDRY CREDITORS. SINCE, THE ASSESSEE HAS COLLECTED THE REQUIRED PART ICULARS ETC AND IT IS BEFORE THE ASSESSEE, HE PLEADED THAT ON AFFORDING O NE MORE OPPORTUNITY, HE CAN EXPLAIN THE SUNDRY CREDITORS SA TISFACTORILY. PER CONTRA, THE LD. DR OPPOSED SUCH PLEA BASED ON THE O RDERS OF THE LOWER AUTHORITIES. 6. WE HEARD THE RIVAL SUBMISSIONS. ON THE FACTS AN D CIRCUMSTANCES SUBMITTED BY THE LD. AR, WE DEEM IT FIT TO SET ASID E THE ORDER OF THE LD. CIT(A) AND REMIT THE ISSUE BACK TO THE AO FOR A FRESH EXAMINATION. THE AO IS AT FULL LIBERTY TO EXAMINE THE CLAIM AND DECIDE THE ISSUES IN ACCORDANCE WITH LAW. TO THIS EXTENT, THE APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. :-4-: ITA NO. 831/CHNY/2018 7. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD OCTOBER, 2018 AT CHENNAI. SD/- ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) ! /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 23 RD OCTOBER, 2018 JPV 0%7898 /COPY TO: 1. ' / APPELLANT 2. %&' /RESPONDENT 3. ; ) ( /CIT(A) 4. ; /CIT 5. 8% /DR 6. /GF