Marck Biosciences Ltd., Ahmedabad V. The Addl.CIT.,Range-4, Ahmedabad

ITA 887/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80424 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-10-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 24-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: S N DIVETIA

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD 0 00 0 0 00 0 , , , , ! '# ! '# ! '# ! '#, , , , $ $ $ $ BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NOS. 886 & 887/AHD/2011 ASSESSMENT YEARS: 2002-03 & 2006-07 MARCK BIOSCIENCES LTD. FORMERLY MARK PARENTERALS (INDIA) LTD., 5 TH FLOOR, HERITAGE, OFF ASHRAM ROAD, AHMEDABAD. PAN: AABCM0336P VS. ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-4, AHMEDABAD. %& / APPELLANT '(%& / RESPONDENT REVENUE BY : SHRI B.L. YADAV, SR. DR ASSESSEE(S) BY : SHRI S.N. DIVETIA, AR !) * #+/ // / DATE OF HEARING : 08/10/2014 -./ * #+ / DATE OF PRONOUNCEMENT: 17/10/2014 0 0 0 0/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THESE ARE THE APPEALS FILED BY THE ASSESSEE AGAIN ST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) BOTH DATED 02.11.2010. 2. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE S UBMITTED THAT IN ITA NO. 887/A/2011 WHICH IS THE APPEAL RELATING TO ASSESSMENT YEAR 2006- ITA NOS 886 & 887/AHD/2011 MARCH BIOSCIENCES LTD., AHMEDABAD AYS 2002-03 & 2006-07. - 2 - 07, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS OB SERVED THAT A NOTICE OF HEARING WAS ISSUED ON 08.09.2010 FIXING THE CASE FO R HEARING ON 28.09.2010 WHEN NONE APPEARED ON BEHALF OF THE ASSESSEE AND NE ITHER ANY ADJOURNMENT PETITION WAS FILED. AGAIN ON 14.10.2010 NOTICE OF HEARING WAS ISSUED FIXING THE HEARING ON 29.10.2010 AND THERE WAS NO COMPLIAN CE. THEREAFTER, THE COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT IN THE ABOVE FACTS, IT IS CLEAR THAT THE ASSESSEE IS NOT SERIOUS ABOUT THE APPEAL AND IS DELAYING THE PROCEEDINGS BY NOT COMPLYING WITH THE NOTICES. HEN CE, THE APPEALS ARE DECIDED EX-PARTE ON MERITS ON THE BASIS OF MATERIAL S AVAILABLE ON RECORD. THEREAFTER, THE COMMISSIONER OF INCOME TAX (APPEALS ) CONFIRMED THE DISALLOWANCE/ADDITIONS MADE BY THE ASSESSING OFFICE R BEING RS 5,25,000/- ON ACCOUNT OF INTEREST FREE LOANS, DISALLOWANCE ON ACCOUNT OF PRELIMINARY EXPENSES OF RS 34,08,629/- AND DISALLOWANCE ON ACCO UNT OF DIMINUTION IN VALUE ON INVESTMENT OF RS 37,750/- AND DISALLOWANCE OF RS 2,24,732/- BEING DEBIT CREDIT BALANCE WRITTEN OFF. THE AUTHORIZED R EPRESENTATIVE OF THE ASSESSEE POINTED OUT FROM PAGES 9 & 10 OF THE PAPER BOOK FILED BY IT THAT THE WRITTEN SUBMISSION DATED 28.10.2010 OF THE ASSE SSEE ON THE SAME WERE FILED BEFORE THE COMMISSIONER OF INCOME TAX (APPEAL S) ON 28.10.2010. THE ORDER HAS BEEN PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) ON 02.11.2010 AND IN THE ORDER SO PASSED, THE WRITTEN SUBMISSIONS OF THE ASSESSEE WERE NOT CONSIDERED. THEREFORE, IT WAS HI S PRAYER THAT THE MATTER SHOULD BE REMANDED BACK TO THE FILE OF THE COMMISSI ONER OF INCOME TAX (APPEALS) FOR ADJUDICATION OF THE APPEAL OF THE ASS ESSEE AFRESH AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE. 3. SIMILARLY, IT WAS SUBMITTED BY THE AUTHORIZED R EPRESENTATIVE OF THE ASSESSEE THAT APPEAL IN ITA NO. 886/AHD/2011 OF THE ASSESSEE WHICH RELATES TO THE LEVY OF PENALTY OF RS 13,43,801/- U/ S. 271(1)(C) OF THE ACT THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE VERY S AME REASONS AS WERE GIVEN WHILE DECIDING THE APPEAL OF THE ASSESSEE IN ASSESSMENT YEAR 2006- 07, LEVY OF PENALTY BY THE ASSESSING OFFICER WAS CO NFIRMED BY HIM IN ITA NOS 886 & 887/AHD/2011 MARCH BIOSCIENCES LTD., AHMEDABAD AYS 2002-03 & 2006-07. - 3 - ASSESSMENT YEAR 2002-03. IT WAS THEREFORE HIS PRAY ER THAT THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE COMMISSI ONER OF INCOME TAX (APPEALS) FOR ADJUDICATING THE APPEAL OF THE ASSESS EE AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE. 4. THE DEPARTMENTAL REPRESENTATIVE ARGUED THAT SUF FICIENT OPPORTUNITY WAS GRANTED BY THE COMMISSIONER OF INCO ME TAX (APPEALS) WHICH WERE NOT AVAILED BY THE ASSESSEE AND THEREFOR E THE PLEA OF THE ASSESSEE FOR RESTORING BACK THE ISSUE TO THE FILE O F THE COMMISSIONER OF INCOME TAX (APPEALS) SHOULD NOT BE ACCEPTED AND THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) NEEDS TO BE CO NFIRMED. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PER USING THE ORDERS OF LOWER AUTHORITIES AND MATERIAL ON RECORD, WE FIN D THAT THE COMMISSIONER OF INCOME TAX (APPEALS) FIXED THE ABOVE APPEALS OF THE ASSESSEE FOR HEARING ON TWO DATES I.E. 28.09.2010 AND 29.10.2010 AND THE REAFTER, PROCEEDED TO DECIDE THE APPEAL EX-PARTE TO OTHER PARTY. WE, FUR THER OBSERVE FROM THE PAPER BOOK FILED BY THE ASSESSEE THAT THE ASSESSEE HAD FILED WRITTEN SUBMISSIONS BEFORE THE COMMISSIONER OF INCOME TAX ( APPEALS) ON 28.10.2010 WHICH WERE NOT TAKEN INTO CONSIDERATION ALTHOUGH THE ORDER WAS PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) ON 02.11.2010. WE ARE OF THE CONSIDERED OPINION THAT IN THE INTEREST OF SUBSTANTIAL JUSTICE, IT WILL BE JUST AND FAIR TO RESTORE THE MATTER BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR ADJUDICATING THE APPEALS O F THE ASSESSEE ON MERITS AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE COMM ISSIONER OF INCOME TAX (APPEALS) WHEN THE APPEALS ARE FIXED FOR HEARING AN D FILE ALL THE RELATED DOCUMENTS AND PAPERS ON WHICH IT WISHES TO RELY DUR ING THE COURSE OF ITA NOS 886 & 887/AHD/2011 MARCH BIOSCIENCES LTD., AHMEDABAD AYS 2002-03 & 2006-07. - 4 - HEARING OF THESE APPEALS. THUS, BOTH THE APPEALS O F THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 17 TH OF OCTOBER, 2014 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED /10/2014 GHANSHYAM MAURYA TRUE COPY 0 * '#1 21/# 0 * '#1 21/# 0 * '#1 21/# 0 * '#1 21/#/ COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT 2. '(%& / THE RESPONDENT. 3. # !3 / CONCERNED CIT 4. !3() / THE CIT(A)-III, AHMEDABAD 5. 1'6 '# , , / DR, ITAT, AHMEDABAD 6. 678 9) / GUARD FILE. 0! 0! 0! 0! / BY ORDER, : :: :/ // / ; ; ; ; ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD