M/s. Karnataka Agrochemical Pvt Ltd , Bangalore V. Additional Commissioner of Income TAx Range-4(1), Bangalore

SA 203/BANG/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6045 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 01-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 27-07-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 271D; 271E; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I TA NO S . 1119 & 1120/ BANG/2 018) (ASSESSMENT YEAR: 2014 - 15) AND SP NOS.203 & 204/BANG/2018 (IN I TA NO S . 11 19 & 1120/ BANG/2 018) (ASSESSMENT YEAR: 2014 - 15) KARNATAKA AGROCHEMICALS PVT. LTD. NO.43C, HOSKOTE INDUSTRIAL AREA, BENGALURU - 562 114. PAN: AAACK 5533 F VS. APPELLANT / PETITIONER ADDL. COMMISSIONER OF INCOME - TAX, RANGE 4(1), BENGA LURU. RESPONDENT ASSESSEE BY : SHRI SREEHARI KUTSA, CA. REVENUE BY : SHRI R.N.SIDDAPPAJI, ADDL.CIT DATE OF HEARING : 16 / 1 0/2018 DATE OF PRONOUNCEMENT : 16 / 1 0 /201 8 O R D E R PER I NTURI RAMA RAO, AM : ITA NOS.1119 & 1120/BANG/2018: THE SE ARE APPEALS FILED BY THE ASSESSEE - COMPANY DIRECTED AGAINST DIFFERENT ORDERS OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) - 4, BENGALURU, DATED 31/03/2018 CONFIRMING THE PENALTY OF RS.43,50,000/ - LEVIED U/S 271D AND RS.43,50,000/ - LEVIED U/S 271E OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] FOR THE ASSESSMENT YEAR 2014 - 15. 2. FROM THE PERUSAL OF THE ORDER OF THE LD.CIT(A), IT IS CLEAR THAT THE ORDERS OF THE LD.CIT(A) ARE EX - PARTE . WE ALSO NOTE FROM THE IMPUGNED ORDERS OF THE LD.CIT(A) THAT THE APPEALS WERE POSTED FOR HEARING FOR THE SP NO S . 203 & 204 AND ITA NOS.1119 & 1120 /BANG/201 8 PAGE 2 OF 3 FIRST TIME FOR 10/03/2018 , ON WHICH DATE , LD.AR OF THE APPELLANT SOUGHT AN ADJOURNMENT AND ACCORDINGLY THE MATTER WAS ADJOURNED FOR 27/03/2018 ON WHICH DATE, LD.AR AGAIN SOUGHT FOR A DJOURNMENT OF HEARING OF THE APPEAL . IT IS CLEAR FROM THE ORDER OF THE LD.CIT(A) THAT THERE IS NOTHING SUGGESTING THAT THE LD.CIT(A) HAD EITHER REJECTED THE ADJOURNMENT PETITION OR GRANTED ANOTHER DATE OF HEARING. HOWEVER, THE IMPUGNED ORDER WAS PASSED O N 31/03/2018 DISMISSING THE APPEAL IN THE CIRCUMSTANCES MENTIONED THEREIN. 3. BEING AGGRIEVED, THE ASSESSEE - COMPANY IS BEFORE US IN THE PRESENT APPEALS. IT WAS URGED THAT THE LD.CIT(A) OUGHT NOT TO HAVE DISMISSED THE APPEALS WITHOUT GRANTING ANOTHER OPPOR TUNITY TO THE ASSESSEE. ON THE OTHER HAND, LD.DR OPPOSED THE REMAND OF THE MATTER TO THE LD.CIT(A) AND SUBMITTED THAT THE ASSESSEE SHOULD NOT BE GIVEN SECOND INNINGS TO IMPROVE HIS CASE AND RELIANCE IN THIS REGARD WAS PLACED ON THE DECISION OF THIS TRIBUN AL IN THE CASE OF ITO VS. M/S.SAFRAN ENGINEERING SERVICES INDIA PVT. LTD., IT(TP)A NO.451/BANG/2015 DATED 20/11/2017. 4. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLITARY ISSUE WHICH COME S UP FOR OUR CONSIDERATION IS WHETHER THE MATTER REQUIRES TO BE REMANDED TO THE FILE OF THE LD.CIT(A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. LEARNED AR OF THE ASSESSEE SOUGHT AN ADJOURNMENT OF HEARING OF APPEAL BEFORE LD.CIT(A) ON 27/03/2018. HOWEVER, THE LD.CIT(A), WITHOUT DECIDING THE FATE OF ADJOURNMENT PETITION, HAD PROCEEDED WITH THE DISPOSAL OF THE MATTER EX - PARTE . THIS APPROACH OF THE LD.CIT(A), IN OUR CONSIDERED OPINION, IS NOT CORRECT. HOWEVER, KEEPING IN VIEW, NON - CO - OPERATIVE ATTITUDE OF THE ASSESSEE BEFORE THE AO, IT IS APP ROPRIATE TO REMAND THE MATTER BACK TO THE FILE OF THE LD.CIT(A) SUBJECT TO PAYMENT OF COST OF RS.10,000/ - . WE ORDER ACCORDINGLY. THE LD.CIT(A) IS DIRECTED TO DISPOS E THE MA T TERS IN ACCORDANCE WITH LAW AFTER AFFORDING DUE OPPORTUNITY OF BEI NG HEARD TO THE AO AS WELL AS THE ASSESSEE. 5. IN THE RESULT, THE APPEALS ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. SP NO S . 203 & 204 AND ITA NOS.1119 & 1120 /BANG/201 8 PAGE 3 OF 3 SP NOS.1119 & 1120/BANG/2018: 6. SINCE THE APPEALS HAVE BEEN DISPOSED OF, THE STAY PETITIONS BECOME INFRUCTUOUS AND ARE ACCORD INGLY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH OCTOBER , 2018 S D/ - SD/ - ( SUNIL KUMAR YADAV ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 16 / 1 0 /201 8 SRINIVASULU, SPS COPY T O : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR IN COME - TAX APPELLATE TRIBUNAL BANGALORE