Khazana Vinimay Pvt. Ltd., Kolkata V. Dy. Commissioner of Income Tax, Central Circle-II, Lucknow

ITSSA 501/LKW/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0416 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 07-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 23-07-2018
• Assessment Year: 2006-2007
• Appeal Filed On: 01-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J S MINHAS
• Assessee Lawyers: A K TIBREWAL
• Section: 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER IT (SS) A NO. 488 TO 494/LKW/2017 ASSESSMENT YEAR: 2005 - 06 TO 2011 - 12 M/S SHYAM VANASPATI OIL S LTD. 5, MANGOE LANE, 2 ND FLOOR ROOM NO.230, KOLKATA V. DCIT CENTRAL CIRCLE II LUCKNOW T AN /PAN : AAICS0341R (APP ELL ANT) (RESPONDENT) IT (SS) A NO. 501 TO 505/LKW/2017 ASSESSMENT YEAR: 2006 - 07 TO 2010 - 11 M/S KHAZANA VINIMAY PVT. LTD. 5, MANGOE LANE, 2 ND FLOOR ROOM NO.230, KOLKATA V. DCIT CENTRAL CIRCLE II LUCKNOW T AN /PAN : AACCK6080B (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI A. K. TIBREWAL, FCA RESPONDENT BY: SHRI J.S. MINHAS, CIT (DR) DATE OF HEARING: 30 08 201 8 DATE OF PRONOUNCEMENT: 07 0 9 201 8 O R D E R PER P ARTHA SARATHI CHAUDHURY, J.M : THIS BUNCH OF 12 APPEALS ARE PREFERRED BY TWO DIFFERENT ASSESSEES AGAINST THE RESPECTIVE ORDERS OF THE LD. CIT(A) AS PER GROUNDS OF APPEAL ON RECORD. 2 . AT THE OUTSET, LD. A.R. OF THE ASSESSEE APPRISED B ENCH THAT IN ALL THESE APPEALS LD. CIT(A) HAS NOT ADJUDICATED ON MERITS WITH REGARD TO ANY GROUNDS OF APPEAL FILED BEFORE HIM AND HAS SUMMARILY DISPOSED OF IT(SS)A NO.488 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 PAGE 2 OF 6 ALL THE APPEALS ON THE GROUND OF NON - PROSECUTION BY THE ASSESSEE. LD. A.R. OF THE ASSESSEE FILED BE FORE US AFFIDAVITS IN RESPECT OF EACH OF THE CASES WHEREIN IT HA S CATEGORICALLY STATED THE REASONS FOR WHICH ASSESSEE WAS UNABLE TO APPEAR FOR HEARING BEFORE THE LD. CIT(A) ON THE GIVEN DATES. LD. A.R. OF THE ASSESSEE FURTHER SUBMITTED THAT SINCE APPEALS WERE NOT ADJUDICATED ON MERITS, THE RIGHTS AND LIABILITIES OF THE ASSESSEE S STILL REMAINS TO BE DETERMINED. HE PRAYED FOR ONE MORE OPPORTUNITY TO PRESENT THEIR CASE S ON MERIT S BEFORE THE LD. CIT(A) AND IN VIEW THEREOF REQUESTED THAT THESE APPEALS MAY BE R EMITTED BACK TO THE FILE OF THE LD. CIT(A) FOR ADJUDICATION ON MERITS. 3 . THE LD. D.R. THOUGH AGREED ON PRINCIPLE ON THE STATEMENT MADE BY THE LD. A.R. OF THE ASSESSEE, HOWEVER, HE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 4 . WE HAVE PERUSED THE CASE RECORD , HEARD THE RIVAL CONTENTIONS AND ANALYSED THE FACTS AND CIRCUMSTANCES IN THESE CASES. WE HAVE ALSO GONE THROUGH THE AFFIDAVIT FILED IN THESE CASES IN WHICH IT IS STATED THAT ASSESSMENTS WERE FRAMED UNDER SECTION 153A AND 153C BY THE DCIT, CENTRAL CIRCLE - II, LUCKNOW IN THE CASES OF THE ASSESSEE - COMPAN IES AND OTHER THREE CONNECTED CASES OF M/S JEDY TAPES PVT. LTD.; M/S SANKAT MOCHAN HOLDING PVT. LTD. AND M/S KHAZANA VINIMAY PVT. LTD. IN CONNECTION WITH SEARCH CONDUCTED UNDER SECTION 132 IN THE PREMISES OF T HE ASSESSEE - COMPANY. APPEALS WERE FILED WITH RESPECT TO THESE COMPANIES BEFORE THE LD. CIT(A) - 1, LUCKNOW AND THE LD. CIT(A) - 1, LUCKNOW VIDE HIS ORDER DATED 31/1/2017 HAS DISMISSED THESE APPEALS EX - PARTE FOR NON - PROSECUTION WITHOUT DEALING WITH MERITS OF T HE CASE. WE HAVE ALSO GONE THROUGH THE REASONS MENTIONED IN THE AFFIDAVIT , BECAUSE OF WHICH ASSESSEE - COMPANIES AS APPEARING IN THE CA U SE TITLE IT(SS)A NO.488 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 PAGE 3 OF 6 WERE NOT ABLE TO APPEAR BEFORE THE LD. CIT(A) ON THE GIVEN DATES , WHICH ARE AS UNDER : - ( 1 ) MR. DILIP BANERJEE, KEY P ERSON OF THE GROUP WHO USED TO HANDLE THE ACCOUNTS AND INCOME TAX AFFAIRS, DIED ON 3 RD APRIL 2015. ( 2 ) THE REGISTERED OFFICES OF ALL THE FOUR COMPANIES HAD ALL ALONG BEEN SITUATED AT KOLKATA AND THE CASES WERE CENTRALIZED AT LUCKNOW WHICH MADE THE HANDLING OF THE MATTERS EXTREMELY DIFFICULT AND UNTENABLE FOR THE ASSESSEE COMPANIES SITUATED AT KOLKATA. ( 3 ) VARIOUS CRIMINAL COURT CASES WERE PENDING IN RESPECT OF HUMAN RIGHTS VIOLATIONS, HARASSMENT, ILLEGAL ARREST AND ABUSE OF THE DIRECTORS AND SENIOR EXECUTIVES OF THE MAIN FLAGSHIP, COMPANY I.E. M /S SHYAM VANASPATI OILS LIMITED. 5 . WE MAKE THE AFFIDAVIT AS PART OF THIS ORDER (AS ANNEXURE A1 & A2) FOR READY REFERENCE. WE HAVE ALSO PERUSED THE ORDERS OF THE LD. CIT(A) AND IT IS EVIDENT THAT HE HAS NOT DEALT WITH THE GRO UNDS OF APPEAL ON MERITS AND HAS DISMISSED THE APPEAL S FOR NON - PROSECUTION. WE ARE AWARE THAT TAX LEGISLATION IS A WELFARE LEGISLATION AND, THEREFORE , IN THE INTEREST OF JUSTICE WE, CONSIDERING THE PLEA OF THE ASSESSEE THAT AN OPPORTUNITY SHOULD BE PROVID ED TO THE ASSESSEE SO THAT ITS RIGHTS AND LIABILITIES ARE DETERMINED ON MERITS BEFORE THE LD. CIT(A), SET ASIDE THE RESPECTIVE ORDERS OF THE LD. CIT(A) IN ALL THESE APPEALS AND REMAND THE ENTIRE MATTER BACK TO HIS FILE TO ADJUDICATE ALL THE ISSUES ON MERIT S AND PASS A SPEAKING ORDER AFTER PROVIDING PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE S AND SIMILARLY ASSESSEES ARE ALSO DIRECTED THAT THEY SHOULD PRESENT THEMSELVES BEFORE THE LD. CIT(A) ON RECEIPT OF THIS ORDER ALONG WITH NECESSARY DOCUMENTARY EVIDENC ES AND PRESENT THEIR CASES ON MERITS BEFORE THE LD. CIT(A). ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE IT(SS)A NO.488 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 PAGE 4 OF 6 LD. CIT(A) IN ALL THESE APPEALS AND RESTORE MATTER BACK TO HIS FILE AS INDICATED ABOVE. 6 . IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES IN IT(SS)A NO.4 88 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07 / 0 9 / 201 8 . SD/ - SD/ - [ T.S. KAPOOR ] [PARTHA SARATHI CHAUDHURY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH SEPTEMBER , 201 8 JJ: COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR IT(SS)A NO.488 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 PAGE 5 OF 6 ANNEXURE - A1 IT(SS)A NO.488 TO 494/LKW/2017 & IT(SS)A NO.501 TO 505/LKW/2017 PAGE 6 OF 6 ANNEXURE - A2