Sonata Ceramica Pvt. Ltd., Sabarkantha V. The Dy, CIT, Sabarkantha Circle, Himatnagar

ITA 987/AHD/2016

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2000 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2008-2009
• Appeal Filed On: 19-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINOD TALWANI
• Assessee Lawyers: T P HEMANI
• Keywords: Principle of natural justice
• Section: 143(3); 145

Judgement Text

ITA NO. 987/AHD/2016 SONATA CERAMIA PVT LTD VS. DCIT ASSESSMENT YEAR: 2008-09 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH, AHMEDABAD [CORAM: JUSTICE P P BHATT, PRESIDENT AND PRAMOD KUM AR, VICE PRESIDENT] ITA NO. 987/AHD/2016 ASSESSMENT YEAR: 2008-09 SONATA CERAMICA PVT LTD ..................A PPELLANT AT & PO : GADHODA, TALOD ROAD, NR. SABAR DAIRY, HIMMATNAGAR, SABARKANTHA-383001 [PAN : AAGCS 4523 D] VS. DY. COMMISSIONER OF INCOME-TAX ............................ RESPONDENT SABARKANTHA CIRCLE, HIMMATNAGAR APPEARANCES BY: T P HEMANI, FOR THE APPELLANT VINOD TALWANI, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 30.10.2018 DATE OF PRONOUNCING THE ORDER : 16.11.2018 O R D E R 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AND IS D IRECTED AGAINST THE ORDER DATED 22 ND DECEMBER 2015 PASSED BY THE CIT(A)-7, AHMEDABAD IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE INCOME-TAX A CT, 1961, FOR THE ASSESSMENT YEAR 2008-09. 2. THE APPEAL IS TIME BARRED BY 22 DAYS; BUT THE AS SESSEE HAS MOVED A CONDONATION PETITION DULY SUPPORTED BY AFFIDAVIT DA TED 31.05.2018. IT IS CONTENDED THAT THE DELAY OCCURRED DUE TO LAPSE ON THE PART OF THE ASSESSEE TO PASS ON THE IMPUGNED ORDER OF THE CIT(A) TO THE CHARTERED ACCOUNTANT FOR PREPARING APPEAL AGAINST THE SAME. 3. HAVING PERUSED THE CONDONATION PETITION AND HAVI NG HEARD THE RIVAL CONTENTIONS ON THE SAME, WE ARE INCLINED TO CONDONE THE DELAY. THE DELAY IS CONDONED. ACCORDINGLY, WE ADMIT THE APPEAL AND PROCEED TO TAKE UP THE SAME ON MERITS. ITA NO. 987/AHD/2016 SONATA CERAMIA PVT LTD VS. DCIT ASSESSMENT YEAR: 2008-09 PAGE 2 OF 3 4. GRIEVANCES RAISED BY THE ASSESSEE ARE AS FOLLOWS :- 1. THE LEARNED CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN CONFIRMING THE ACTION OF AO IN REOPENING THE ASSESS MENT U/S 147 OF THE ACT, ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LEARNED CI T(A) OUGHT TO HAVE HELD THAT THE ACTION OF REOPENING IS WITHOUT JURISDICTION AND NOT PERMISSIBLE EITHER IN LAW OR ON FACTS. 2. THE LEARNED CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN CONFIRMING THE ACTION OF AO IN REJECTING BOOKS OF A CCOUNTS U/S 145 OF THE INCOME- TAX ACT, 1961. 3. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN CONFIRMING THE ACTION OF LEARNED AO THAT THE APPELLANT HAS SUPPRES SED SALES AMOUNTING TO RS.1,99,70,820/-. 4. THE LEARNED CIT(A) HAS ERRED BOTH IN LAW AND ON THE FACTS OF THE CASE IN CONFIRMING AN ADDITION OF RS.21,32,884/- AFTER APPL YING NET PROFIT RATE OF 10.68% ON ALLEGED SUPPRESSED SALES. 5. BOTH THE LOWER AUTHORITIES HAVE PASSED THE ORDER S WITHOUT PROPERLY APPRECIATING THE FACT AND THAT THEY FURTHER ERRED I N GROSSLY IGNORING VARIOUS SUBMISSIONS, EXPLANATIONS AND INFORMATION SUBMITTED BY THE APPELLANT FROM TIME TO TIME WHICH OUGHT TO HAVE BEEN CONSIDERED BEFORE PASSING THE IMPUGNED ORDER. THIS ACTION OF THE LOWER AUTHORITIES IS IN CLEAR BR EACH OF LAW AND PRINCIPLES OF NATURAL JUSTICE AND THEREFORE DESERVES TO BE QUASHE D. 5. WHEN THIS APPEAL WAS TAKEN UP FOR HEARING ON MER ITS, IT WAS POINTED OUT THAT THE IMPUGNED ADDITIONS WERE MADE ON THE BASIS OF FINDIN GS IN THE COURSE OF EXCISE PROCEEDINGS AND THAT A CO-ORDINATE BENCH OF THIS TR IBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2005-06 & 2006-07 HAS REMITTED THE MATTER TO THE FILE OF THE CIT(A), IN THAT ASSESSMENT YEARS, FOR FRESH ADJUDICATION IN THE LIGHT OF FINAL OUTCOME IN THE EXCISE PROCEEDINGS BASED ON WHICH THE PRESENT ADDIT IONS WERE MADE. WE ARE URGED TO FOLLOW THE SAME APPROACH AND REMIT THE MATTER TO TH E FILE OF THE LEARNED CIT(A) FOR FRESH ADJUDICATION IN THE LIGHT OF FINAL OUTCOME OF THE P ROCEEDINGS IN THE EXCISE MATTER. LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT SERIOUS LY DISPUTE THE PRAYER OF THE LEARNED COUNSEL FOR THE ASSESSEE, BUT MERELY PLACED RELIANCE ON THE STAND OF THE AUTHORITIES BELOW. 6. RESPECTFULLY FOLLOWING THE CO-ORDINATE BENCH DEC ISION IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2005-06 & 2006-07 (ITA NOS. 20 76/AHD/2012 & 2077/AHD/2012, ORDER DATED 01.03.2016), WE DEEM IT FIT AND PROPER TO REMIT THE MATTER TO THE FILE OF THE ITA NO. 987/AHD/2016 SONATA CERAMIA PVT LTD VS. DCIT ASSESSMENT YEAR: 2008-09 PAGE 3 OF 3 LEARNED CIT(A) FOR RE-ADJUDICATION IN THE LIGHT OF FINAL OUTCOME IN THE EXCISE PROCEEDINGS IN ASSESSEES CASE. ORDERED, ACCORDINGLY. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES IN THE TERMS INDICATED ABOVE. PRONOUNCED IN THE OPEN COURT TODAY ON THE 1 6 TH NOVEMBER, 2018 SD/- SD/- JUSTICE P P BHATT PRAMOD KUMAR (PRESIDENT) (VICE PRESIDENT) AHMEDABAD, THE 16 TH DAY OF NOVEMBER, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: .......ATTACHED 2 PAGES DICT ATION PAD 08.11.2018... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 09.11.2018..... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: 16.11.2018... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: . 16.11.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 16.11.2018. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......