M/s IJM Concrete Products Pvt. Ltd., Hyderabad v. DCIT, Hyderabad

ITA 1344/HYD/2010 | 2007-2008
Pronouncement Date: 13-01-2011 | Result: Partly Allowed

Appeal Details

RSA Number 134422514 RSA 2010
Assessee PAN AABCI2896J
Bench Hyderabad
Appeal Number ITA 1344/HYD/2010
Duration Of Justice 2 month(s) 18 day(s)
Appellant M/s IJM Concrete Products Pvt. Ltd., Hyderabad
Respondent DCIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 13-01-2011
Assessment Year 2007-2008
Appeal Filed On 25-10-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1344/HYD/2010 ASSESSMENT YEAR 2007-08 M/S IJM CONCRETE PRODUCTS (P) LTD. HYDERABAD (PAN AABCI 2896 J) VS THE DCIT CIRCLE 2(1) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MOHD AFZAL RESPONDENT BY : SHRI K.E. SUNIL BABU O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)-III HYDERABAD DATED 2.9 .2010 AND PERTAINS TO THE ASSESSMENT YEARS 2007-08. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS IN ITS APPEAL: 2. THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.20 50 339/- CLAIMED AS DEPRECIATION IN SPITE OF PRODUCING THE BILLS IN RESPECT OF ADDITIONS TO ASSETS. 3. THE CIT(A) ERRED IN NOT CONSIDERING THE EVIDENC E PRODUCED IN RESPECT OF ADDITIONS TO FIXED ASSETS ASSUMING THAT THE CONDITIONS MENTIONED RULE 46A ARE NOT SATISFIED. 4. THE CIT(A) ERRED IN NOT ADMITTING THE BILLS IN RESPECT OF ADDITIONS TO ASSETS ASSUMING THAT RULE 46A IS A FETTER WHER EAS IT IS ONLY A REGULATORY IN THE MATTER OF ADMISSION OF ADDITIONAL EVIDENCE. 3. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSE E COMPANY IS ENGAGED IN MANUFACTURE OF READY MIXED CONCRETE HAS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2007-08 ON 12.11.200 7 SHOWING INCOME AT RS.93 86 640/-. DURING SCRUTINY OF THE RETURN FRO M THE TAX AUDIT REPORT ITA NO.1344/H/2010 IJM CONCRETE PRODUCTS (P) LTD. HYD. 2 2 U/S 44AB OF THE ACT FILED BY THE ASSESSEE THE ASS ESSING OFFICER NOTICED THAT IT MADE PAYMENTS OF RS.2 47 674/- TOWARDS CONT RIBUTION TO ESI AND OF RS.16 634/- TOWARDS EMPLOYEES CONTRIBUTION TO PF A FTER THE DUE DATE. SINCE REMITTANCE OF SUCH EMPLOYEES CONTRIBUTIONS TO ESI & PF HAVE NOT BEEN MADE BY THE ASSESSEE WITHIN THE DUE DATE THE ASSESSING OFFICER DISALLOWED THE SAID AMOUNTS AGGREGATING TO RS.2 64 308/- U/W 36(1)(VA) R.W.S. 2(24) (X) OF THE ACT. FURTHER IT WAS NOTIC ED THAT THE ASSESSEE MADE AN ADDITION TO THE FIXED ASSETS AT RS.9 87 68 505/ - ON WHICH THE ASSESSEE CLAIMED DEPRECIATION AS WELL AS ADDITIONAL DEPRECIA TION. HOWEVER THE ASSESSEE IS ABLE TO PRODUCE THE EVIDENCE FOR ADDITI ON TO THE EXTENT OF RS.8 68 98 300/- ONLY. THE ASSESSEE FAILED TO PROD UCE THE EVIDENCE REGARDING THE BALANCE AMOUNT. SINCE THE ASSESSEE N OT ABLE TO PRODUCE THE BILLS IN RESPECT OF ADDITIONS TO THE EXTENT OF RS. 1 18 76 205/- THE ASSESSING OFFICER DISALLOWED DEPRECIATION ON THIS A T RS.20 50 339/-. AGAINST THESE ISSUES THE ASSESSEE CARRIED THE APPEA L TO THE CIT(A) WHO ALLOWED THE FIRST ISSUE OF DISALLOWANCE OF RS.2 64 308/- & RS.5 46 991/- WHICH WERE DISALLOWED BY ASSESSING OFFICER U/S 36(1 ) (VA) IN FAVOUR OF THE ASSESSEE. HOWEVER DEPRECIATION ISSUE WAS DECIDED AGAINST THE ASSESSEE THOUGH ASSESSEE PRAYED TO ADMIT ADDITIONAL EVIDENCE REGARDING THE ADDITION OF THESE DISALLOWANCES. 3.1. THE ASSESSEE IS IN APPEAL BEFORE US REGARD ING THE DISALLOWING AN AMOUNT OF RS.20 50 339/- CLAIMED AS DEPRECIATION IN THE ASSESSMENT ORDER. DURING HEARING OF APPEAL THE LEARNED AUTHO RIZED REPRESENTATIVE FOR THE ASSESSEE STATED THAT THE ASSESSEE HAS FILED AN AFFIDAVIT FROM ONE SHRI WONG SIEW MENG DIRECTOR OF THE ASSESSEE COMPANY WH ICH WAS EXECUTED ON 2.9.2010. IN THE AFFIDAVIT THE SAID DIRECTIOR HAS SUBMITTED THAT DURING THE ASSESSMENT PROCEEDINGS THEY HAVE FILED INFORMA TION CALLED FOR BY THE ASSESSING OFFICER. HOWEVER IN RESPECT OF ADDITION TO FIXED ASSETS BILLS FOR AN AMOUNT OF RS.1 18 76 205/- COULD NOT BE PRODUCED AS THEY WERE LYING ITA NO.1344/H/2010 IJM CONCRETE PRODUCTS (P) LTD. HYD. 3 3 AT THEIR BRANCHES AT CHENNAI & BANGALORE. IT WAS F URTHER SUBMITTED THAT FURTHER TIME SOUGHT BY THEM WAS NOT ALLOWED BY THE ASSESSING OFFICER. STATING SUCH VOUCHERS HAVE BEEN OBTAINED FROM THEIR BRANCHES IN THE SAID AFFIDAVIT THE SAID DIRECTOR REQUESTED THAT THE SAM E MAY BE ADMITTED AS ADDITIONAL EVIDENCE FOR CONSIDERING THE ISSUE CONTE STED BEFORE THE CIT(A). THE LEARNED AR SUBMITTED THAT EFFECTIVE OPPORTUNITY WAS NOT GIVEN TO THE ASSESSEE BY THE LOWER AUTHORITIES. HE SOUGHT DIREC TION FROM THE BENCH TO THE LOWER AUTHORITIES TO ADMIT THE EVIDENCE SO AS T O GRANT THE CLAIM OF THE DEPRECIATION ON FIXED ASSETS. THE LEARNED DR SUBMI TTED THAT AMPLE OPPORTUNITY HAS BEEN GIVEN TO THE ASSESSEE BY THE A SSESSING OFFICER WHICH HAS NOT BEEN PROPERLY USED BY THE ASSESSEE AND NO F URTHER OPPORTUNITY HAS TO BE GIVEN TO BUILD UP THE ASSESSEES CASE. H E RELIED ON THE JUDGEMENT OF ALLAHABAD HIGH COURT IN THE CASE OF BI MAL KUMAR ANANT KUMAR VS. CIT (288 ITR 278) (ALLAHABAD HC) 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN OUR OPINION THE REQUEST O F THE ASSESSEE IS TO BE ACCEPTED AS THE ASSESSEE WAS PREVENTED BY SUFFICIEN T CAUSE IN NOT FILING THE ADDITIONAL EVIDENCE SINCE THE EVIDENCE WAS LYING A T THEIR BRANCH OFFICES AT CHENNAI & BANGALORE. EFFECTIVE OPPORTUNITY OF HEAR ING IS REQUIRED TO BE GIVEN TO THE ASSESSEE TO PUT FORTH ITS CASE. THE J UDGEMENT RELIED BY THE DEPARTMENT IN THE CASE OF BIMAL KUMAR ANANT KUMAR V S. CIT (288 ITR 278) (ALLAHABAD HC) HAVE NO RELEVANCE TO THE FACTS OF THE PRESENT CASE. IN THE INTEREST OF JUSTICE WE ACCEDE TO THE REQUEST O F THE ASSESSEES COUNSEL ACCORDINGLY WE ALLOW THE GROUND TAKEN BY THE ASSESS EE TO PRODUCE EVIDENCE/BILLS ON FIXED ASSETS. ACCORDINGLY THE I SSUE IS SET ASIDE TO THE FILE OF ASSESSING OFFICER TO EXAMINE THE SAME IN THE LIG HT OF THE EVIDENCE TO BE PRODUCED BY THE ASSESSEE REGARDING THE ADDITIONS OF THE FIXED ASSETS AND THEREUPON DECIDE THE ISSUE IN ACCORDANCE WITH LAW. ITA NO.1344/H/2010 IJM CONCRETE PRODUCTS (P) LTD. HYD. 4 4 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IN ITA NO.1344/HYD/2010 IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT 13.1.2011 SD/- SD/- N.R.S. GANESAN CHANDRA POOJARI JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 13 TH JANUARY 2011 COPY FORWARDED TO: 1. SHRI MOHD. AFZAL 11-5/465 SHERSONS RESIDENCY F .NO.402 CRIMINAL COURT RD. RED HILLS HYD.4. C/O IJM CONCRETE PRODUCTS (P) LTD. PLOT NO.20&21 H.NO.1- 90/A RBI COLONY MADHAPUR HYDERABAD. 2. THE DCIT CIRCLE 2(1) HYDERABAD 3. CIT(A) -III HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP