M/s. Duli Chand Narender Kumar Export (P) Ltd, New Delhi v. Addl. CIT, New Delhi

ITA 4339/DEL/2009 | 2006-2007
Pronouncement Date: 18-02-2010 | Result: Allowed

Appeal Details

RSA Number 433920114 RSA 2009
Bench Delhi
Appeal Number ITA 4339/DEL/2009
Duration Of Justice 3 month(s) 4 day(s)
Appellant M/s. Duli Chand Narender Kumar Export (P) Ltd, New Delhi
Respondent Addl. CIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 18-02-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 18-02-2010
Date Of Final Hearing 18-02-2010
Next Hearing Date 18-02-2010
Assessment Year 2006-2007
Appeal Filed On 13-11-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMEBR AND SHRI R.C. SHARMA ACCOUNTANT MEMBER I.T.A NO. 4339/DEL/09 ASSESSMENT YEAR 2006-07 DULI CHAND NARENDER KUMAR EXPORT (P) LTD. E-254 GREATER KAILASH PART-II NEW DELHI 110 005 VS. ADDL. CIT RANGE-10 ROOM NO. 404 C.R. BUILDING I.P. ESTATE NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. KRISHNAN ADVOCATE RESPONDENT BY : SHRI MANISH GUPTA DR ORDER PER RAJPAL YADAV JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE ORD ER OF LD. CIT(A) DATED 30 TH SEPTEMBER 2009 PASSED FOR ASSTT. YEAR 2006-07. IN THE FIRST GROUND OF APPEAL ASSESSEE HAS PLEADED THA T LD. CIT(A) HAS DISMISSED ITS APPEAL WITHOUT PROVIDING REASONABLE O PPORTUNITY OF HEARING. ITA NO. 4339/DEL/09 ASSTT. YEAR 2006-07 2 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 31.12.2006 DECLARING AN INCOME OF RS. 2 4 1 80 469/- ACCORDING TO THE ASSESSEE IT HAS BEEN MANUFACTURING RICE AFTER PROCURING PADDY SEMI FINISHED RICE AND THEREAFTER IT EXPOR T THE RICE. THE ASSESSEE CLAIMED DEDUCTION U/S 80IB AMOUNTING TO RS . 1 03 68 922/-. LD. AO DISALLOWED THIS CLAIM OF ASSESSEE ON THE GRO UND THAT CONVERSION OF RICE FROM THE PADDY DOES NOT AMOUNT MANUFACTURIN G OF ANY NEW PRODUCT. HENCE IT IS NOT ENTITLED TO DEDUCTION U/S 80IB OF THE ACT. THE AO MADE DISALLOWANCE OF RS. 1 03 68 922/-. HE FURTHER DISALLOWED A SUM OF RS. 1 29 000/- WITH THE AID OF SECTION 40(A) (I) OF THE ACT ON THE GROUND THAT ASSESSEE FAILED TO PRODUCE EVIDENCE EXHIBITING THE PAYMENT OF TDS IN TIME IN THE GOVT. ACCOUNT. IN THIS WAY LD. AO HA S DETERMINED THE TOTAL TAXABLE INCOME OF ASSESSEE AT RS. 3 46 78 391/-. 3. DISSATISFIED WITH THE ADDITIONS ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). ACCORDING TO THE ASSE SSEE THE APPEAL WAS LISTED ON 30 TH SEPTEMBER 2009. IT WAS THE LAST DATE FOR SUBMISSI ON THE RETURN. THEREFORE ITS TAX CONSULTANT WAS PREOCCUPIE D IN FILING THE RETURN OF OTHER ASSESSES. HE SENT HIS ARTICLE ASSISTANCE SHI R MANOJ KUMAR FOR TAKING AN ADJOURNMENT. THE LD. CIT (A) WAS NOT AVAI LABLE AT 10.15 AM ON 30 TH SEPTEMBER 2009. THEREAFTER THE ARTICLE ASSISTANT WENT TO ATTEND OTHER IMPORTANT WORK WHEN HE AGAIN WENT IN THE EVEN ING TO ENQUIRE ITA NO. 4339/DEL/09 ASSTT. YEAR 2006-07 3 ABOUT THE STATUS OF THE APPEAL. THEN LD. CIT(A) WA S NOT IN THE OFFICE. ASSESSEE SENT SHRI MANOJ KUMAR ON THE NEXT DAY WITH AN APPLICATION FOR ADJOURNMENT. BUT BY THAT TIME APPEAL HAS ALREADY BE EN DISPOSED OFF. LD. CIT(A) WITHOUT MAKING MUCH DISCUSSION ON THE ISSUE STRAIGHTWAY UPHELD THE FINDING OF THE AO. 4. LD. COUNSEL FOR THE ASSESSEE PLACED ON RECORD CO PY OF THE ADJOURNMENT APPLICATION WHICH WAS RECEIVED IN THE O FFICE OF LD. CIT(A) ON 1 ST OCTOBER 2009. HE PRAYED THAT PROPER OPPORTUNITY W AS NOT GRANTED TO THE ASSESSEE. THEREFORE ORDER OF THE LD. CIT(A) BE SET ASIDE. ON THE OTHER HAND LD. DR RELIED UPON THE ORDER OF AO. HE S UBMITTED THAT ADJOURNMENT APPLICATION WAS RECEIVED IN THE OFFICE OF LD. CIT(A) ON 1 ST OCTOBER 2009. HE FURTHER CONTENDED THAT AS FAR AS ALLEGATION OF ASSESSEE IN RESPECT OF NON AVAILABILITY OF LD. CIT (A) IN THE OFFICE AT 10.15 AM AS WELL AS 5 PM ON 30 TH SEPTEMBER 2009 ARE CONCERNED THERE IS NO SUPPORTING MATERIAL WITH THIS ASSERTION. HE P RAYED THAT SUCH A PLEA BE REJECTED AND THE APPEAL OF ASSESSEE DESERVES TO BE DISMISSED. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTION AND GO NE THROUGH THE RECORD CAREFULLY. IT IS DIFFICULT TO ASCERTAIN THE VERACITY OF THE CLAIM MADE BY ASSESSEE IN RESPECT OF DEPUTATION OF SHRI M ANOJ KUMAR ARTICLE ASSISTANT FOR ATTENDING THE PROCEEDING BEFORE LD. CIT(A). THIS IS THE ONE ASPECT OF THE MATTER. THE OTHER ASPECT IS THAT ORDE R OF LD. CIT(A) IS A ITA NO. 4339/DEL/09 ASSTT. YEAR 2006-07 4 VERY BRIEF ORDER WHEREIN HE HAS HELD THAT ON THE BA SIS OF STATEMENT OF FACTS PLACED ON RECORD BY ASSESSEE WITH THE APPEAL MEMO THE FINDING OF THE AO CANNOT BE REVERSED BECAUSE IN THAT SITUATION THE FINDING OF THE AO APPEARS TO BE MORE REASONABLE. TAKING INTO CONSI DERATION THIS LINE OF REASONING DISCERNABLE FROM THE LD. CIT(A)S ORDER W E ARE OF THE OPINION THAT ADEQUATE AND PROPER OPPORTUNITY WAS NOT GRANTE D TO THE ASSESSEE MORE SO WHEN 30 TH SEPTEMBER WAS THE LAST DATE FOR FILING OF THE RETU RN. ON THIS DATE THE TAX CONSULTANTS ARE PRE OCCUPIED I N FILING OF THE RETURN AND LD. CIT(A) OUGHT TO HAVE CONSIDERED THIS ASPECT WHILE DECIDING THE APPEAL EX PARTE. KEEPING IN VIEW ALL THESE FACTORS WE ALLOW THE APPEAL OF ASSESSEE SET ASIDE THE ORDER OF LD. CIT(A) RESTORE THE ISSUES TO THE FILE OF LD. FIRST APPELLATE AUTHORITY FOR READJUDICATION . IT IS NEEDLESS TO SAY THAT LD. FIRST APPELLATE AUTHORITY WILL PROVIDE DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. ORDER PRONOUNCED IN THE OPEN COURT ON 18.2.2010 [R.C. SHARMA] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER VEENA DATED: ITA NO. 4339/DEL/09 ASSTT. YEAR 2006-07 5 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT