M/s. Newage Industries, Wadhwan City, Dist. : Surendranagar V. The Pr. CIT-3, Ahmedabad, Ahmedabad

ITA 86/RJT/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 3384 (ITAT-RAJKOT)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 24-05-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT Before: Ms. Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member [Conducted through E-Court at Ahmedabad] Newag e Industries , Ambawadi Indu strial Estate, Wadhwancity Surendranagar-363001, Gujarat PAN: AACF N369 6B (Appellant) Vs Pr. CIT, Ah med abad-3 (Resp ondent) Asses see by : Shri Deepak Shah, A. R. Revenue by : Shri J ames Kurian, CIT-D. R. Date of hearing : 02-03 -2022 Date of pronouncement : 28-04-2022 आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- This is an appeal filed by the assessee against the order of the ld. Principal Commissioner of Income Tax, Ahmedabad-3 in Appeal no. ITBA/REV/F/REV5/2020-21/1031880709(1) vide order dated 29/03/2021 passed for the assessment year 2015-16. ITA No. 86/Rjt/2021 Assessment Year 2015-16 I.T.A No. 86/Rjt/2021 A.Y. 2015-16 Page No M/s. Newage Industries vs. Pr. CIT-3 2 2. The brief facts of the case are that the assessee had filed its return of income for the A.Y. 2015-16 on 28.09.2015 declaring total income at Rs. 95,17,510/-. Thereafter, the case was selected for Limited scrutiny through CASS. Assessment order was finalized u/s. 143(3) of the Act vide order dated 26.12.2017 assessing total income at returned income of Rs.95,17,510/-. On verification of P&L account, it was noticed that the assessee firm had debited EMD/PBG/SD not recoverable of Rs. 67,22,537/- (bad debt). However, in respect of the above claim, no details were found to be called for or submitted by the assessee in respect of this claim with any cogent evidence before the Ld. Assessing Officer during the course of assessment proceedings. In the absence of such any enquiry by Ld. Assessing Officer and any details/documentary evidences being filed the assessee in respect of the above claim, notice u/s 263 of the Act was issued by Ld. Pr. CIT to disallow the above amount. In response thereto, the assessee filed response dated 26-03-2021 and further reply dated 27-03-2021 before Ld. Pr. Ld. CIT(A). However, the Ld. Pr. CIT rejected the assessee’s contention and held the assessment order as being erroneous and prejudicial to the interests of the revenue. We had heard the matter on 02-03-2022 and kept the file for orders. 3. However, on perusing the file of the assessee while drafting the order, we required clarity on certain factual aspects, and accordingly we fixed the case for clarifications, which was heard on 28-04-2022. However, during the course of hearing, Ld. Counsel for the assessee submitted that pursuant to order passed by Ld. Pr. CIT setting aside the original assessment order directing the Ld. Assessing Officer to pass order after making requisite I.T.A No. 86/Rjt/2021 A.Y. 2015-16 Page No M/s. Newage Industries vs. Pr. CIT-3 3 inquiries and proper verification, the Ld. Assessing Officer in assessment proceedings accepted the stand of the assessee after making due inquiries as directed, and passed assessment order deleting the additions proposed in the order passed u/s 263 of the Act order. Accordingly, the Ld. Counsel for the assessee submitted that the assessee wishes to withdraw the appeal. Ld. Counsel for the assessee also placed on record the assessment order dated 28-03-2022 passed by Ld. Assessing Officer pursuant to directions of the 263 order. The Ld. Departmental Representative also did not object to the withdrawal of appeal. Accordingly, the appeal of the assessee is dismissed as withdrawn. 4. In the result, appeal of the assessee is dismissed as withdrawn. Order pronounced in the open court on 28-04-2022 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDHHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 28/04/2022 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order, Assistant Registrar, Income Tax Appellate Tribunal, Rajkot