Lotus Polywist Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(4), Surat

ITA 850/AHD/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1822 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-04-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 17-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD BEFORE SHRI S. S. GODARA, JM, & SHRI MANISH BORA D, AM. ITA NO. 850/AHD/2012 ASST. YEAR: 2008-09 M/S LOTUS POLYTWIST PVT. LTD., 603, 6 TH FLOOR JOLY PLAZA, ATHWAGATE CIRCLE, ATHWALINES, SURAT. VS. INCOME-TAX OFFICER, WARD 1(4), SURAT. APPELLANT RESPONDENT PAN AAACL 4072G APPELLANT BY SHRI M. K. PATEL, AR RESPONDENT BY SHRI DINESH SINGH, SR.DR DATE OF HEARING: 4/4/16 DATE OF PRONOUNCEMENT: 6 / 4 /2016 O R D E R PER MANISH BORAD, ACCOUNTANT MEMBER . THIS APPEAL OF ASSESSEE IS DIRECTED AGAINST THE OR DER OF LD. CIT(A) -1, SURAT, DATED 9.2.2012 VIDE APPEAL NO.CAS -1/280/2010-11. ASSESSMENT UNDER SECTION 143(3) OF THE IT ACT, 1961 (IN SHORT THE ACT) WAS FRAMED ON 24.12.2010 FOR ASST. YEAR 2008-0 9 BY ITO, WD- 1(4), SURAT. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF THE INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING ADDITION OF RS.67,748/- ON ACCOUNT OF DISALLOWANCE OF INTEREST PAYMENT TO NBFC U/S.40(A)(IA) FOR NON DEDUCTION OF TDS. ITA NO. 850/AHD/2012 ASST. YEAR 2008-09 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF THE INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING ADDITION OF RS.18,52,742/- ON ACCOUNT OF ESTIMATED SUPPRESSION OF SALES. 3. IT IS THEREFORE PRAYED THAT THE ABOVE ADDITION MAY PLEASE BE DELETED AS LEARNED MEMBERS OF THE TRIBUNAL MAY DEEM IT PROPER. 4. APPELLANT CRAVES LEAVE TO ADD, ALTER OR DELETE ANY GROUND(S) EITHER BEFORE OR IN THE COURSE OF THE HEARING OF THE APPEAL. 2. BRIEFLY STATED FACTS OF THE CASE AS CULLED OUT F ROM THE RECORDS ARE THAT ASSESSEE IS A PRIVATE LIMITED COMPANY ENGA GED IN THE BUSINESS OF MANUFACTURING OF FIBRILLATED PLASTIC YA RN. IT FILED ITS RETURN OF INCOME ON 27.9.2008 SHOWING TOTAL INCOME AT RS.N IL AFTER CLAIMING CARRY FORWARD DEPRECIATION. THE CASE WAS SELECTED F OR SCRUTINY ASSESSMENT AND NECESSARY DETAILS AS ASKED BY LD. A SSESSING OFFICER DURING ASSESSMENT PROCEEDINGS, WERE FURNISHED. ASSE SSMENT WAS COMPLETED BY LD. ASSESSING OFFICER AT AN INCOME OF RS.15,40,297/- AFTER MAKING FOLLOWING TWO ADDITIONS :- 1. ADDITION ON ACCOUNT OF UNDERSTATEMENT OF SALES RS.18,52,742/- 2. ADDITION U/S 40(A)(IA) OF THE ACT RS. 67,748/- RS.19,20,490/- 3. AGGRIEVED, ASSESSEE WENT IN APPEAL BEFORE LD. CI T(A). HOWEVER, ASSESSEE DID NOT RESPOND TO THE NOTICES IS SUED BY LD. CIT(A) FOR HEARING THE ASSESSEE AND DUE TO NON-COMP LIANCE ON THE PART OF ASSESSEE, LD. CIT(A) PASSED AN EX PARTE ORD ER DATED 9.2.2012 DISSMISSING THE GROUNDS OF APPEAL FILED BY THE ASSE SSEE. 4. AGGRIEVED, ASSESSEE IS NOW IN APPEAL BEFORE THE TRIBUNAL. ITA NO. 850/AHD/2012 ASST. YEAR 2008-09 3 5. AT THE OUTSET LD. AR OF THE ASSESSEE REQUESTED F OR SETTING ASIDE THE ORDER BACK TO THE FILE OF LD. CIT(A) AS HE HAS PASSED AN EX PARTE ORDER BECAUSE DUE TO UNAVOIDABLE CIRCUMSTANCES ASSE SSEE COULD NOT APPEAR BEFORE LD. CIT(A) ON THE DATES OF HEARING. 6. LD. DR DID NOT OBJECT TO THE REQUEST MADE BY LD. AR FOR SETTING ASIDE THE MATTER TO THE FILE OF LD. CIT(A). 7. WE, THEREFORE, ARE OF THE VIEW THAT IN THE GIVEN CIRCUMSTANCES AS THE LD. CIT(A) HAS PASSED EX PARTE ORDER AND THE ASSESSEE COULD NOT PUT FORTH HIS SUBMISSIONS IN SUPPORT OF HIS GRO UND FILED AGAINST THE ORDER PASSED BY LD. ASSESSING OFFICER, WE IN THE I NTEREST OF NATURAL JUSTICE ACCEPT THE REQUEST OF THE ASSESSEE AND SET ASIDE THE MATTER BACK TO THE FILE OF LD. CIT(A) WHO AFTER PROVIDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE WILL PASS FRESH APPELLA TE ORDER. 8. ACCORDINGLY THE APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6.4.2016 SD/- SD/- (S. S. GODARA) JUDICIAL MEMBER (MANISH BORAD) ACCOUNTANT MEMBER DATED 6/4/2016 MAHATA/- ITA NO. 850/AHD/2012 ASST. YEAR 2008-09 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, AHMEDABAD 1. DATE OF DICTATION: 4/4/2016 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 6 /04/2016 OTHER MEMBER: 3. DATE ON WHICH APPROVED DRAFT COMES TO THE SR. P. S./P.S.: 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: __________ 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S./P.S.: 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK: 6/4/16 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK: 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: 9. DATE OF DESPATCH OF THE ORDER: