M/s. Weavetech Engineers, Dadra V. The Income tax Officer,Ward-3, Vapi

ITA 875/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76913 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-07-2014
• Assessment Year: 2004-2005
• Appeal Filed On: 22-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: K N BHATT
• Section: 143(3); 80IB; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD (BEFORE SHRI MUKUL KR. SHRAWAT, J.M. & SHRI ANIL CH ATURVEDI, A.M.) I.T. A. NO. 875 /AHD/2011 (ASSESSMENT Y EAR:2004-05) M/S. WEAVETECH ENGINEERS 1 ST FLOOR, SURVEY NO. 122/1, VAGHDHARA ROAD, DADRA V/S THE I.T.O., WARD-3, VAPI (APPELLANT) (RESPONDENT) PAN: AAAFW5410E APPELLANT BY : SHRI K.N. BHATT, A.R. RESPONDENT BY : SHRI B.L. YADAV, SR. D.R. ( )/ ORDER DATE OF HEARING : 14-07-2014 DATE OF PRONOUNCEMENT : 18 -07-2014 PER SHRI ANIL CHATURVEDI,A.M. 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), VALSAD, DATED 29.11.2010 FOR A.Y. 2004-05. 2. THE FACTS AS CULLED OUT FROM THE MATERIAL ON REC ORD ARE AS UNDER. 3. ASSESSEE IS A FIRM STATED TO BE ENGAGED IN THE B USINESS OF MANUFACTURING TEXTILE MACHINERY AND ITS MANUFACTURING UNIT IS LOC ATED AT UNION TERRITORY OF DAMAN. ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 04-05 ON 29.10.2004 DECLARING NIL INCOME AFTER CLAIMING DEDUCTION OF RS . 43,81,733/- UNDER SECTION 80IB OF THE ACT. THE CASE WAS INITIALLY FINALIZED U /S. 143(3) BUT SUBSEQUENTLY ITA NO 875/A HD/2011 . A.Y. 2004-05 2 THE CASE WAS SET ASIDE BY HONBLE CIT(A) BY ORDER U/S. 263 AND THE CASE WAS RESTORED BACK TO THE FILE OF A.O FOR THE PURPOSE OF REFRAMING THE ASSESSMENT. THEREAFTER ORDER U/S. 143(3) READ WITH SECTION 263 OF THE ACT WAS FRAMED ON 31.12.2009 AND THE TOTAL INCOME WAS DETERMINED AT R S. 58,15,570/-. AGGRIEVED BY THE ORDER OF A.O, ASSESSEE CARRIED THE MATTER BEFORE CIT(A). CIT(A) VIDE ORDER DATED 29.11.2010 UPHELD THE ORDER OF A.O. 4. AGGRIEVED BY THE ORDER OF CIT(A), ASSESSEE IS NO W IN APPEAL BEFORE US AND THE GROUNDS RAISED BY ASSESSEE READS AS UNDER:- 1. IN VIEW OF THE FACT AND CIRCUMSTANCES, THE LD. C IT HAS ERRED IN LAW AND IN FACTS IN PASSING THE ORDER U/S. 263 AND THEREFORE, YOUR APPELLANT PR AYS THAT THE SAME BEING BAD-IN-LAW, BE QUASHED. 2. IN VIEW OF THE FACTES AND CIRCUMSTANCES OF THE C ASE, THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF DEDUCTION U/S. 80IB OF RS. 43,81,73 3/-. 3. IN VIEW OF THE FACTES AND CIRCUMSTANCES OF THE CASE , THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF BROKERAGE EXPENSE OF RS. 14,31,739/ -. 5. BEFORE US AT THE OUTSET, THE LD. A.R. SUBMITTED THAT DUE TO NONE APPEARANCE BY THE ADVOCATE BEFORE CIT(A), THE CASE WAS DISMISS ED EX-PARTE FURTHER LD. CIT(A) HAS NOT DECIDED THE ISSUE ON MERITS. HE FURT HER SUBMITTED THAT THE REASON FOR NONE APPEARANCE BEFORE CIT(A) WAS THAT T HE LD. A.R. WAS OUT OF STATION. HE THEREFORE PRAYED THAT THE ASSESSEE BE G RANTED ONE MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE CIT(A) AND ALSO GAVE AN UNDERTAKING THAT THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE WOULD APPEAR BEFORE CIT(A) FOR THE DISPOSAL OF APPEAL. 6. THE LD. D.R. ON THE OTHER HAND SUBMITTED THAT BE FORE LD. CIT(A) NONE APPEARED DESPITE VARIOUS OPPORTUNITIES BEING GRANTE D TO ASSESSEE AND THEREFORE LD. CIT(A) WAS JUSTIFIED IN DISMISSING TH E APPEAL OF ASSESSEE. HE THUS SUPPORTED THE ORDER OF A.O AND CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT LD. CIT(A) WHILE DISMISSING THE APPEAL HA S NOTED THAT ADVOCATE PLEADED FOR ADJOURNMENTS OF ALL OCCASIONS CITING TH E REASON THAT LD. A.R. WAS ITA NO 875/A HD/2011 . A.Y. 2004-05 3 OUT OF STATION. LD. CIT(A) HAS ALSO NOTED THAT NO W RITTEN SUBMISSIONS WERE FILED ON BEHALF OF ASSESSEE. WE ALSO FIND THAT LD. CIT(A) BY A VERY CRYPTIC ORDER DISMISSED THE APPEAL OF ASSESSEE. BEFORE US, NOW THE LD. A.R. HAS GIVEN AN UNDERTAKING TO APPEAR BEFORE LD. CIT(A). I N VIEW OF THESE FACTS AND IN THE INTEREST OF JUSTICE WE ARE OF THE VIEW THAT THE ASSESSEE BE GRANTED ONE MORE OPPORTUNITY TO PRESENT ITS CASE BEFORE CIT(A). WE THEREFORE REMIT THE MATTER BACK TO THE FILE OF LD. CIT(A) TO CONSIDER T HE SUBMISSIONS OF THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE ON MERITS BY WAY OF A SPEAKING ORDER. NEEDLESS TO STATE, THAT LD. CIT(A) SHALL GRA NT ADEQUATE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. ASSESSEE IS ALSO DIREC TED TO SUO MOTU APPEAR BEFORE CIT(A) WITHIN 30 DAYS OF PASSING OF THIS ORD ER. THUS THIS GROUND OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SINCE THE MATTER HAS BEEN REMITTED TO LD. CIT(A), THE OTHER GROUNDS ARE NOT D ECIDED ON MERITS. 8. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 18 - 07- 2014. SD/- SD/- (MUKUL KR. SHRAWAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD. TRUE COPY RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT ,AHMEDABAD