M/s KKP Marketing India Ltd., Bhuj V. Asstt. Commr. Income Tax, Cen. Cir-2, Rajkot

ITSSA 148/RJT/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5133 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-09-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 14-12-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH SINGH
• Keywords: Validity of assessment
• Section: 143(3); 153A; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE: SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOU NTANT MEMBER [CONDUCTED THROUGH E-COURT AT AH MEDABAD] M/S. KKP MARKETING INDIA LTD., BHUJ PAN: AADCK9674Q (APPELLANT) VS THE ACIT, CENTRAL CIRCLE-2, RAJKOT (RESPONDENT) REVENUE BY: SHRI OM PRAKASH SINGH, SR. D.R. ASSESSEE BY: SHRI KALPESH DOSHI, A. R. DATE OF HEARING : 17-09-2021 DATE OF PRONOUNCEMENT : 22-09- 2021 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THESE THREE APPEALS FILED BY ASSESSEE FOR A.Y. 201 1-12, 2013-14 & 2014-15 ARISE FROM ORDER OF THE CIT(A)-11, AHMEDAB AD DATED 11-09-2017, IN PROCEEDINGS UNDER SECTION 143(3) R.W.S. 153A OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. ALL THE THREE APPEALS FILED BY THE ASSESSEE ARE INTER-CONNECTED THEREFORE FOR THE SAKE OF CONVENIENCE ALL THESE APP EALS OF THE ASSESSEE ARE ADJUDICATED TOGETHER AFTER TAKING ITA NO. 148/RJT/2 017 A.Y. 2011-12 AS A IT(SS)A NOS. 148, 149 & 150/RJT/2017 ASSESSMENT YEAR 2011-12, 2013-14 & 2014-15 I.T(SS)A NOS. 148, 149 & 150/RJT/2017 A.Y. 2011-12, 2013-14 & 2014-15 PAGE NO M/S. KKP MARKETING INDIA LTD. VS. ACIT 2 LEAD CASE AND ITS FINDING WILL BE APPLICABLE TO THE REMAINING APPEALS I.E. 149/RJT/2017 A.Y. 2013-14 AND 150/RJT/2017 A.Y. 201 4-15. IT(SS)A NO. 148/RJT/2017 A.Y. 2011-12 3. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E US AT THE OUTSET, THE LD. COUNSEL HAS CONTENDED THAT HE IS NOT PRESSING T HE GROUND NO. 1 PERTAINING TO THE VALIDITY OF ASSESSMENT U/S. 153A OF THE I.T. ACT, THEREFORE, THE SAME STANDS DISMISSED. GROUND NO. 2 (DISALLOWING CLAIM OF LOSS OF RS. 18,9 4,110/-) 4. ASSESSMENT U/S. 143(3) R.W.S. 153A OF THE A CT WAS FINALIZED ON 14-03- 2016. AT PARA 3 OF THE ASSESSMENT ORDER, THE ASSE SSING OFFICER STATED THAT ASSESSEE WAS ENGAGED IN LAND DEVELOPMENT BUSINESS A ND IT HAD SHOWN LOSS IN THE CURRENT YEAR. IN THIS REGARD, THE ASSESSING O FFICER STATED THAT DURING THE COURSE OF ASSESSMENT ASSESSEE HAS NOT FURNISHED R ELEVANT DETAIL TO JUSTIFY THE CLAIM OF LOSS, THEREFORE, THE SAME WAS DISALLOWED. 5. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE SIM PLY STATING THAT ASSESSEE HAS NOT PROVED THE GENUINENESS OF THE CLAIM OF BUSI NESS LOSS DURING THE COURSE OF ASSESSMENT PROCEEDINGS BEFORE THE ASSESSI NG OFFICER. 6. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E US, THE LD. COUNSEL HAS FILED PAPER BOOK COMPRISING COPIES OF DOCUMENT AND DETAILED SUBMISSION FURNISHED BEFORE THE ASSESSING OFFICER AND LD. CIT( A). THE LD. COUNSEL HAS REFERRED PAGE NO. 19 TO 39 OF THE PAPER BOOK AND SU BMITTED THAT THESE I.T(SS)A NOS. 148, 149 & 150/RJT/2017 A.Y. 2011-12, 2013-14 & 2014-15 PAGE NO M/S. KKP MARKETING INDIA LTD. VS. ACIT 3 DOCUMENTS WERE NOT SPECIFICALLY CONSIDERED BY THE L OWER AUTHORITY BEFORE REJECTING THE CLAIM OF LOSS OF THE ASSESSEE. HE H AS SUBMITTED THAT COPIES OF THESE DOCUMENTS ESTABLISH THAT ASSESSEE HAS CORRECT LY CLAIMED THE LOSS IN THE RETURN OF INCOME. ON THE OTHER HAND, LD. DEPARTME NTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF LOWER AUTHORITIES. 7. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL O N RECORD. THE ASSESSING OFFICER HAS DISALLOWED THE CLAIM OF ASSES SEE STATING THAT ASSESSEE HAS NOT SUBMITTED RELEVANT DETAIL IN SUPPORT OF CLA IM OF LOSS. IN THIS REGARD, IT IS OBSERVED THAT ASSESSEE HAS GIVEN DETAILED SUB MISSION PLACED IN THE PAPER BOOK AS REFERRED ABOVE COMPRISING COPIES OF ITR, P & L A/C, BALANCE SHEET AND COMPUTATION OF INCOME ALONG WITH NOTES AS PART OF THE BALANCE SHEET AND P & L A/C. HOWEVER, NEITHER THE ASSESSING OFFICER NOR THE LD. CIT(A) HAS SPECIFICALLY CONTROVERTED THE SUBMISSION OF THE ASS ESSEE. THEREFORE, IN THE INTEREST OF INTEREST OF JUSTICE, WE OBSERVE THAT IT WOULD BE APPROPRIATE TO RESTORE THIS ISSUE TO THE FILE OF ASSESSING OFFICER FOR DECIDING DE-NOVO AFTER CONSIDERING THE DETAILS AND COPIES OF DOCUMENTS FUR NISHED BY THE ASSESSEE AFTER AFFORDING PROPER OPPORTUNITY TO THE ASSESSEE. THEREFORE, WE RESTORE THIS CASE TO THE FILE OF THE ASSESSING OFFICER FOR DECID ING AFRESH AS DIRECTED ABOVE. ACCORDINGLY, THIS GROUND OF APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. IT(SS)A NO. 149/RJT/2017 A.Y. 2013-14 & 150/RJT/201 7 A.Y. 2014-15 8. GROUND NO. 1:- PERTAINING TO VALIDITY OF ASSESSM ENT U/S. 153A IN BOTH THE APPEALS STAND DISMISSED AFTER APPLYING THE FIND ING OF IT(SS)A 148/RJT/2017 AS THE SAME IS NOT PRESSED BY THE LD. COUNSEL. I.T(SS)A NOS. 148, 149 & 150/RJT/2017 A.Y. 2011-12, 2013-14 & 2014-15 PAGE NO M/S. KKP MARKETING INDIA LTD. VS. ACIT 4 9. GROUND NO. 2:- THIS IS A COMMON GROUND OF APPEA L IN BOTH THE YEARS AND THE SAME IS ALLOWED FOR STATISTICAL PURPOSES AF TER APPLYING THE FINDINGS OF THE GROUND NO. 2 AS ADJUDICATED VIDE IT(SS)A 147/RJ T/2017 A.Y. 2011-12. 8. IN THE RESULT, ALL THE THREE APPEALS FILED BY TH E ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22-09-2021 SD/- SD/- (MAHAVIR PRASAD) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 22/09/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT