M/s. Prudential Management Advisors Pvt. Ltd., , Kolkata V. DCIT, Circle - 3(1), Kolkata , Kolkata

ITA 872/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4735 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDAR
• Assessee Lawyers: MANOJ KATARUKA
• Keywords: Opportunity of being heard
• Section: 143(3); 68

Judgement Text

ITA NO. 872/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S. PRUDENTIAL MANAGEMENT ADVISORS PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 872/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S. PRUDENTIAL MANAGEMENT ADVISORS PVT. LIMITED,.. .............APPELLANT SUITE NO. 10, 5 TH FLOOR, 8, CAMAC STREET, SHANTINIKETAN, KOLKATA-700 017 [PAN: AAECP 2505 Q] -VS.- DEPUTY COMMISSIONER OF INCOME TAX,................. ......................RESPONDENT CIRCLE-3(1), KOLKATA, AAYAKAR BHAWAN, 3 RD FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI MANOJ KATARUKA, A.R., FOR THE APPELLANT SHRI SANKAR HALDAR, CIT, D.R. , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : FEBRUARY 8, 2019 DATE OF PRONOUNCING THE ORDER : FEBRUARY 8, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ):- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA DAT ED 27.03.2018 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESS EE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, WHICH IS ENGAGED IN THE BUSINESS OF SHARE BROKING AND CONSULTANCY. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 29. 10.2014 DECLARING A LOSS OF RS.7,88,26,077/-. IN THE ASSESSMENT COMPLET ED UNDER SECTION 143(3) VIDE AN ORDER DATED 07.03.2016, THE TOTAL IN COME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICER AT RS.23,79 ,35,377/- AFTER ITA NO. 872/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S. PRUDENTIAL MANAGEMENT ADVISORS PVT. LIMITED 2 DISALLOWING THE ASSESSEES CLAIM FOR LOSS ON SALE O F INVESTMENT AMOUNTING TO RS.6,34,50,000/- AND ADDING THE ENTIRE AMOUNT OF SUNDRY CREDITORS/SUNDRY ADVANCES AGGREGATING TO RS.25,33,0 0,386/- UNDER SECTIONS 68 AND 41 OF THE ACT. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO SATISFACTORY CO MPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DIS MISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 27.03.2 018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS POINTED O UT BY THE LD. COUNSEL FOR THE ASSESSEE FROM THE RELEVANT PORTION OF THE I MPUGNED ORDER OF THE LD. CIT(APPEALS), APPLICATIONS WERE DULY FILED BY T HE ASSESSEE SEEKING ADJOURNMENT OF THE HEARINGS FIXED BY THE LD. CIT(AP PEALS) ON 12.03.2018 AND 19.03.2018. HE HAS CONTENDED THAT THE LD. CIT(A PPEALS), HOWEVER, GAVE A VERY SHORT ADJOURNMENT AND FIXED THE HEARING OF APPEAL ON 26.03.2018, WHICH COULD NOT BE ATTENDED AS THE AUTH ORIZED REPRESENTATIVE OF THE ASSESSEE WAS BUSY IN MARCH EN DING WORK. HE HAS ALSO SUBMITTED THAT EVEN THE ASSESSING OFFICER DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS HAD NOT GIVEN PROPER AND SUF FICIENT OPPORTUNITY TO THE ASSESSEE TO EXPLAIN ITS CLAIM FOR LOSS ON SA LE OF INVESTMENT AMOUNTING TO RS.6,34,50,000/- AND THE ENTIRE AMOUNT OF SUNDRY CREDITORS/SUNDRY ADVANCES AMOUNTING TO RS.25,33,00, 386/- WAS ALSO ADDED BY HIM TO THE TOTAL INCOME OF THE ASSESSEE OV ERLOOKING THE FACT THAT MOST OF THE SAID SUNDRY CREDITORS/SUNDRY ADVANCES W ERE PERTAINING TO THE EARLIER YEARS AND THE SAID LIABILITY HAD NOT CEASED TO EXIST. HE HAS URGED THAT THE MATTER MAY, THEREFORE, BE SENT BACK TO THE ASSESSING OFFICER FOR ITA NO. 872/KOL/2018 ASSESSMENT YEAR: 2013-2014 M/S. PRUDENTIAL MANAGEMENT ADVISORS PVT. LIMITED 3 GIVING SUCH OPPORTUNITY TO THE ASSESSEE. SINCE THE LD. D.R. HAS ALSO NOT RAISED ANY OBJECTION IN SENDING THE MATTER BACK TO THE ASSESSING OFFICER, WE SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. C IT(APPEALS) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFF ICER FOR DECIDING THE SAME AFRESH AFTER GIVING THE ASSESSEE PROPER AND SU FFICIENT OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON FEBRUARY 08, 2019. SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VICE -PRESIDENT (KZ) KOLKATA, THE 8 TH DAY OF FEBRUARY, 2019 COPIES TO : (1) M/S. PRUDENTIAL MANAGEMENT ADVISORS PVT. LIMITED, SUITE NO. 10, 5 TH FLOOR, 8, CAMAC STREET, SHANTINIKETAN, KOLKATA-700 017 (2) DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), KOLKATA, AAYAKAR BHAWAN, 3 RD FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-1, KOLKATA , (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.