M/s Bharat Fashions & Apparels, Bangalore V. DCIT, Bangalore

ITA 9/BANG/2012

• Counselvise Citation: 921114 RSA 2012
• Duration Of Justice: 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 03-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FARHAT HUSSAIN QURESHI CITI
• Assessee Lawyers: SIDDAREDDY
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI N.BARATHVAJA SANKAR, VICE PRESIDENT AND SHRI N.V.VASUDEVAN, JUDICIAL MEMBER ITA NO.1021(B)/2011 (ASSESSMENT YEAR : 2004-05) M/S BHARAT FASHIONS & APPARELS THE DCIT, NO.7/1, I FLOOR, K.H.ROAD, CIR CLE-21), BANGALORE-560 072 BANGALORE PAN NO.AADFB 0871B VS APPELLANT RESPONDENT ASSESSEEE BY : SHRI SIDDAREDDY, ADVOCATE REVENUE BY : SHRI FARHAT HUSSAIN QURESHI, CIT-I DATE OF HEARING : 07-08-2012 DATE OF PRONOUNCEMENT : 31-08-2012 O R D E R PER SHRI N.V.VASUDEVAN, JM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 25-10-2011OF CIT(A)-I, BANGALORE, RELATING TO AY: 2 008-09. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE REA DS AS FOLLOWS; 1. THE HONBLE CIT(A) ERRED IN DISMISSING THE APPEAL AS INFRUCTUOUS. 2. ALTERNATIVELY AND WITHOUT PREJUDICE THE HONBLE CIT(A) OUGHT TO HAVE DECIDED THE APPEAL ON MERITS. ITA NO.9(B)/2012 2 3. THE HONBLE CIT(A) OUGHT TO HAVE ALLOWED DEDUCTION U/S 10B OF THE ACT AS CLAIMED BY THE APPELLANT. 4. THE APPELLANT CRAVES FOR LEAVE TO, ADD TO, DELETE FROM OR AMEND THE GROUNDS OF APPEAL. 3. THE ASSESSEE IS A FIRM ENGAGED IN MANUFACTURE AN D EXPORT OF READYMADE GARMENTS AND ALLIED PRODUCTS. THE ASSESSE FILED RETURN OF INCOME DECLARING A TOTAL INCOME OF RS.13,65,410/ - AFTER CLAIMING DEDUCTION U/S 10B OF THE ACT OF A SUM OF RS.7,23,84,798/-. THE AO ALLOWED DEDUCTION U/S 10B OF THE ACT ONLY TO THE EXTENT OF RS.5,72,33,321/-. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). 4. IN THE PROCEEDINGS BEFORE THE CIT(A) N OTICES OF HEARINGS WERE SERVED ON THE APPELLANT ON 28-7-2011, 9-8-2011, 16- 9-2011 & 30- 9-2011 FIXING THE DATES OF HEARING ON 9-8-2011, 29- 08-2011, 29- 9-2011 & 25-10-2011 RESPECTIVELY & ADJOURNMENTS GIV EN AS PER ASSESSEES REQUEST LETTERS DATED 8-8-2011, 9-9-2011 & 28-9-2011. THOUGH, ON ONE OCCASION SRI B.P.RAMKRISHNAN, CA, AR APPEARED & FILED POWER, NO ARGUMENTS WERE PUT FORWARD ON THE GROUNDS OF APPEAL. ACCORDING TO CIT(A) THE APPROACH OF THE ASS ESSEE REFLECTED THAT THE ASSESSEE WAS NOT SERIOUS AND DESIROUS OF P URSUING THE APPELLANT PROCEEDINGS. HE HELD THAT MERE FILING O F AN APPEAL IS NOT ENOUGH. IT SHOULD ALSO BE PURSUED EFFECTIVELY WHICH WAS LACKING IN THE CASE OF THE ASSESSEE. THE CIT(A) TH EREFORE DISMISSED THE APPEAL OF THE ASSESSEE AS INFRUCTUOUS . AGGRIEVED BY HE AFORESAID ORDER OF THE CIT(A), THE ASSESSEE H AS PREFERRED AN APPEAL BEFORE THE TRIBUNAL. ITA NO.9(B)/2012 3 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. IN OUR VI EW, THE REASONS ASSIGNED BY THE CIT(A) FOR DISMISSING THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION ARE NOT SUFFICIENT. THE LAST DATE OF HEARING OF THE APPEAL WAS ON 25-10-2011. EVEN ON THIS DATE IT APP EARS THAT THE ASSESSEE WAS REPRESENTED THROUGH ITS AUTHORIZED REP RESENTATIVE BEFORE CIT(A). IN SUCH CIRCUMSTANCES, IT CANNOT BE SAID THAT THE ASSESSEE WAS NOT SERIOUS AND DESIROUS OF PURSUING T HE APPEAL BEFORE THE CIT(A). THEREFORE, WE SET ASIDE THE OR DER OF THE CIT(A) AND DIRECT THE CIT(A) TO HEAR THE APPEAL OF THE ASS ESEEE ON MERITS. THE CIT(A) WILL AFFORD AN OPPORTUNITY OF BEING HEAR D TO THE ASSESSEE AND THEREAFTER DECIDE THE APPEAL OF THE ASSESSEE ON MERITS. 6. FOR STATISTICAL PURPOSES, THE APPEAL OF THE ASS ESSEE IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 31 ST AUGUST, 2012. SD/- SD/- (N.BARATHVAJA SANKAR) (N.V.VASUDEV AN) VICE PRESIDENT JUDICIAL MEMBER BANGALORE: D A T E D : 31-08-2012 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-I, BANGALORE. 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE (1+1) BY ORDER SENIOR PRIVATE SECRETARY, ITAT, BANGALORE