D.N.Harshapriya, Bhubaneswar V. ITO, Ward-4(2), Bhubaneswar

ITA 92/CTK/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4943 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 19-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 92 /CTK/201 8 ASSESSMENT YEAR : 201 3 - 2014 D.N.HARSHAPRIYA, PLOT NO.542, MAHADEV TOWER, SAHID NAGAR, BHUBANESWAR. VS. ITO, WARD - 4(2), BHUBANESWAR PAN/GIR NO. AAFGD 0561 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 0 2 /0 8 / 2018 DATE OF PRONOUNCEMENT : 02 /0 8 / 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2, BHUBANESWAR DATED 25.12.2017 FOR THE ASSESSMENT YEAR 2013 - 14. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ASSESSEE HAS FILLED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013 - 14 RELATING TO FINANCIAL YEAR 2012 - 13 AT RS. 10,57,061/ - . 2. DURING THE ASSESSMENT THE AO HAS ADDED THE FOLLOWING EXPENSES AND ASSESSED THE TOTAL INCOME AT RS. 16,37,190/ - 3. LEARNED ASSESSING OFFICER HAS ADDED RS.55, 000/ - SHOWN IN THE ACCOUNTS AS AUDIT FEES WHICH ALSO INCLUDE REIMBURSEMENT OF EXPENSES ON THE GROUND THAT TDS HAS NOT BEEN DEDUCTED. THE ACTUAL AUDIT FEES ARE BELOW THE TDS DEDUCTION LIMIT. 4. LEARNED ASSESSING OFFICER HAS ADDED A SUM OF RS.1, 41,570/ - PAID BY THE ASSESSEE TOWARDS RENEWAL OF AMC OF THE LIFT ON THE GROUND THAT MAINTENANCE CHARGE OF NEW FLATS IS ONE YEAR FREE OF COST. IT WILL NOT BE 2 ITA NO.92/CTK/2018 ASSESSMENT YEAR : 2013 - 2014 ALLOWED AS DEDUCTION AS IT WILL BE TANTAMOUNT TO DOUBLE CLAIM OF DEDUCTION UNDER THE HEAD REPAIR AND MAINTENANCE (AMC). IN FACT THE LIFT WAS INSTALLED IN EARLY CONSTRUCTION AND THE AMC PERIOD WAS OVER BEFORE THE FLAT COMPLETES IN ALL ANGLE. 5. THE ASSESSING OFFICER HAS ADDED AN AMOUNT OF RS.3, 79,210/ - UNDER THE HEAD REPAIRS AND & MAINTENANCE, ON THE GROUND THAT THE BUILDING ON WHICH THE REPAIR IS DONE IS NOT COMPLETED AND A NEW BUILDING. IN FACT THE REPAIR AND MAINTENANCE RELATES TO MACHINERY USED ON CONSTRUCTION NOT TO BUILDING AS PRESUMED BY LEARNED AO. 6. THE ASSESSING OFFICER HAS ADDED AN AMOUNT OF RS. 4,351/ - EXPENDED UNDER THE HEAD PUJA EXPENSES ON THE GROUND THAT PUJA EXPENSES IS NOT RELATED TO BUSINESS OF THE ASSESSEE. 7. HENCE THE ADDITION MADE BY LEARNED AO IS EXCESSIVE BASELESS AND BAD IN LAW . HENCE THE ADDITION SHOULD BE DELETED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE , WHEN THE MATTER WAS CALLED FOR HEARING. AS THE APPEAL CAN BE DECIDED IN THE ABSENCE OF THE ASSESSEE, WE PROCEED TO DISPOSE OF THE SAME AFTER HEARING LD D.R. AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. AFTER CONSIDERING THE SUBMISSIONS OF LD D .R. AND PERUSING THE ORDERS OF LOWER AUTHORITIES, WE FIND THAT THE CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE EXPARTE AS THE ASSESSEE FAILED TO APPEAR BEFORE HIM ON 7.6.2017 AND 27.7.2017 WITHOUT DISCUSSING OR DECIDING THE MERITS OF THE CASE. IT IS A SETTLED POSITION OF LAW THAT THE CIT(A) SHOULD DECIDE THE APPEAL OF THE ASSESSEE ON MERITS EVEN IF THE ASSESSEE FAILS TO APPEAR ON THE DATE OF HEARING. WE , THEREFORE, SET ASIDE THE ORDER OF LD CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE TO ADJUDICATE THE APPEAL OF THE ASSESSEE ON MERITS AFTER ALLOWING REASONABLE AND PROPER OPPORTUNITY OF HEARING TO BOTH THE PARTIES . 3 ITA NO.92/CTK/2018 ASSESSMENT YEAR : 2013 - 2014 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 2 /0 8 /2018. S D/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 02 /0 8 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : D.N.HARSHAPRIYA, PLOT NO.542, MAHADEV TOWER, SAHID NAGAR, BHUBANESWAR. 2. THE RESPONDENT. ITO, WARD - 4(2), BHUBANESWAR 3. THE CIT(A) - 2, BHUBANESWAR 4. PR.CIT - 2, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//