Madras Engineering Industries Private Limited, CHENNAI V. ITO Corporate Circle 4(1), CHENNAI

ITTPA 90/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9206 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 02-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 11-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M SRINIVASA RAO
• Assessee Lawyers: S SUNDARRAMAN
• Keywords: Set aside
• Section: 251

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D BENCH, CHENNAI . . . , , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ I.T.(TP)A.NO.90/CHNY/2018 ( [ [ / ASSESSMENT YEAR: 2013-14) M/S. MADRAS ENGINEERING INDUSTRIES PVT. LTD., 14, SATHYA NARAYANA AVENUE, RAJA ANNAMALAIPURAM, CHENNAI 600 028. VS THE INCOME TAX OFFICER, CORPORATE CIRCLE 4(1), CHENNAI. PAN: AAACM4509P ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI S. SUNDARRAMAN, CA / RESPONDENT BY : SHRI M. SRINIVASA RAO, CIT /DATE OF HEARING : 19.12.2019 /DATE OF PRONOUNCEMENT : 02.01.2020 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)8, CHENNAI DATED 28.09.2018 AND PERTAINS TO THE ASSESSMENT YEAR 2013-14. 2. SHRI S. SUNDARRAMAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) DISPOSED THE APPEAL EX-PARTE WITHOUT 2 I.T (TP).A. NO. 90/CHNY/2018 DISCUSSION ANYTHING ON MERIT. REFERRING TO PAGE 5 OF THE IMPUGNED ORDER OF THE CIT(A), THE LD. REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THIS ITAT FOR THE ASSESSMENT YEARS 2010-11, 2011-12 AND 2013-14 HAS ALLOWED THE CLAIM OF THE ASSESSEE. HOWEVER, THE CIT(A) OBSERVED THAT THE ITAT DISALLOWED THE CLAIM OF THE ASSESSEE. THIS SHOWS THE NON-APPLICATION OF MIND ON THE PART OF THE CIT(A). SIMILARLY IN RESPECT OF OTHER ISSUES, THERE WAS NO DISCUSSION ON MERIT. ACCORDING TO THE LD. REPRESENTATIVE, WHETHER THE ASSESSEE APPEARED BEFORE THE CIT(A) OR NOT, THE CIT(A) IS EXPECTED TO RE-APPRECIATE THE MATERIAL AVAILABLE ON RECORD AND DECIDE THE ISSUE ON MERIT BY A SPEAKING ORDER. IN THIS CASE, ACCORDING TO THE LD. REPRESENTATIVE, THE CIT(A) OBSERVED THAT HE WAS CONSTRAINED TO DISALLOW THE CLAIM OF THE ASSESSEE BECAUSE OF NON-APPEARANCE OF THE ASSESSEE. THEREFORE THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE CIT(A). 3. WE HEARD SHRI PAVITHRAN KUMAR, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO. ACCORDING TO THE LD.DR, THERE IS NO MUCH OF DISCUSSION IN THE IMPUGNED ORDER OF THE CIT(A). HOWEVER THE ASSESSEE HAS NOT CO-OPERATED WITH THE CIT(A) INSPITE OF SEVERAL OPPORTUNITIES. THEREFORE THE CIT(A) WAS CONSTRAINED TO DISPOSE OFF THE APPEAL EXPARTE. 3 I.T (TP).A. NO. 90/CHNY/2018 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE CIT(A) HAVE POWER CO- TERMINUS AS THAT OF THE ASSESSING OFFICER UNDER THE SCHEME OF INCOME TAX ACT, 1961 (IN SHORT THE ACT). SECTION 251 OF THE ACT SPECIFICALLY EMPOWER THE CIT(A) TO ENHANCE THE ASSESSMENT. SECTION 250(4) OF THE ACT EMPOWERS THE CIT(A) TO MAKE FURTHER ENQUIRY AS HE DEEMS FIT. THEREFORE THE CIT(A) IS EXPECTED TO CALL FOR THE RECORDS OF THE ASSESSING OFFICER AND RE-APPRECIATE THE MATERIAL AVAILABLE ON RECORD. IN CASE THE ASSESSEE FAILS TO APPEAR BEFORE HIM INSPITE OF RECEIPT OF NOTICE, THE CIT(A) CANNOT IGNORE THE POWER CONFERRED ON HIM UNDER THE SCHEME OF THE ACT. AS RIGHTLY SUBMITTED BY THE LD.REPRESENTIVE OF THE ASSESSEE, EVEN THOUGH A SIMILAR CLAIM WAS ALLOWED BY THE TRIBUNAL, THE CIT(A) FOUND THAT IT WAS DISALLOWED BY THE ITAT. THIS OBSERVATION SHOWS THAT THE MATERIAL AVAILABLE ON RECORD WAS NOT EXAMINED BY THE CIT(A). THEREFORE THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE CIT(A) AFRESH. ACCORDINGLY THE ORDER OF THE CIT(A) IS SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FILE OF THE CIT(A) TO RE-EXAMINE THE ISSUE AFRESH IN THE LIGHT OF THE MATERIAL AVAILABLE ON RECORD AND OTHER MATERIAL THAT MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE 4 I.T (TP).A. NO. 90/CHNY/2018 WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. IT IS MADE CLEAR, IN CASE THE ASSESSEE FAILS TO APPEAR BEFORE THE CIT(A) EVEN AFTER SERVICE OF NOTICE, IT IS OPEN TO THE CIT(A) TO DISPOSE THE APPEAL ON MERIT BY A SPEAKING ORDER AFTER CALLING FOR THE RECORDS FROM THE ASSESSING OFFICER. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STAND ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 2 ND JANUARY, 2020 AT CHENNAI. SD/- SD/- ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, /DATED, THE 2 ND JANUARY, 2020. RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. [ /GF