AKISTEX WORLD WIDE (IMPEX) LTD, MUMBAI v. DCIT CIR. 3(1), MUMBAI

ITA 1616/MUM/2009 | 2005-2006
Pronouncement Date: 22-01-2010 | Result: Allowed

Appeal Details

RSA Number 161619914 RSA 2009
Assessee PAN AAECA3829L
Bench Mumbai
Appeal Number ITA 1616/MUM/2009
Duration Of Justice 10 month(s) 14 day(s)
Appellant AKISTEX WORLD WIDE (IMPEX) LTD, MUMBAI
Respondent DCIT CIR. 3(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 22-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 22-01-2010
Assessment Year 2005-2006
Appeal Filed On 09-03-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH MUMBAI BEFORE SHRI R.K. PANDA AM & SMT. ASHA VIJAYARAGHAVAN JM I.T.A. NO. 1616/MUM/2009 (ASSESSMENT YEAR 2005-06) M/S. AKISTEX WORLD WIDE (IMPEX) LTD. 502 EMBASSY CENTRE 207 NARIMAN POINT MUMBAI-21 PAN: AAECA3829L VS. DY. CIT-CIRC. 3(1) ROOM NO. 603/607 AAYAKAR BHAVAN MUMBAI-20 APPELLANT RESPONDENT APPELLANT BY: MR. M. SUBRAMANIAM RESPONDENT BY: MR. DAYA SHANKAR O R D E R DATE OF HEARING: 20.01.2010 DATE OF ORDER: 22.01.2010 PER R.K. PANDA AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 10 TH OCTOBER 2008 OF THE CIT(A)-XXVII MUMBAI RELATING TO ASSESSMENT YEAR 2005-06. 2. THERE IS A DELAY OF 33 DAYS IN FILING OF THE APPEAL BY THE ASSESSEE. AN AFFIDAVIT HAS BEEN FILED EXPLAINING T HE REASONS FOR CONDONATION OF DELAY WHEREIN IT HAS BEEN MENTIONED THAT MR. RAMESH CHANDRA AGARWAL WHO WAS ONE OF THE DIRECTORS AND LOOKING AFTER ALL THE BUSINESS OF THE COMPANY EXPIRED ON 17 TH OCTOBER 2008. THE OTHER DIRECTOR WAS BUSY WITH THE REQUIRED RELIG IOUS FORMALITIES AND LEGAL MATTERS FOR WHICH THERE WAS DELAY IN FILI NG OF THE APPEAL. AFTER HEARING BOTH THE SIDES WE FIND THERE WAS A R EASONABLE CAUSE ON THE PART OF THE ASSESSEE FOR FILING OF THE APPEA L BEYOND THE STIPULATED TIME. WE THEREFORE CONDONE THE DELAY AND THE APPEAL IS ADMITTED FOR HEARING. I.T.A. NO. 1616/MUM/2009 M/S. AKISTEX WORLD WIDE (IMPEX) LTD. =========================== 2 3. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER PASSED U/S. 144 OF THE IT ACT 1961 IS INVALID AND BAD IN LAW. 2. WITHOUT PREJUDICE TO GROUND NO. 1 AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW TH E LEARNED CIT(A) ERRED IN APPROVING THE ORDER OF THE AO WITHOUT FULLY AND PROPERLY APPRECIATING THE FACT OF THE CASE. 3. WITHOUT PREJUDICE TO GROUND NO. 1 AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW TH E LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF TH E AO IN TREATING THE AMOUNT OF RS.22729045/- AS UNEXPLAINED CASH CREDIT U/S.68 OF THE IT ACT 1961. 4. WITHOUT PREJUDICE TO GROUND NO. 1 AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW TH E LEARNED CIT(A) ERRED IN CONFIRMING THE ACTION OF TH E AO IN TREATING THE AMOUNT OF RS.4538426/- AS INTEREST INCOME ON ADVANCES. 5. WITHOUT PREJUDICE TO GROUND NO. 1 AND ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW TH E LEARNED CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF THE EXPENSES AT RS.4441887/-. 4. AFTER HEARING BOTH THE SIDES AND ON PERUSAL OF THE ORDERS OF THE REVENUE AUTHORITIES AS WELL AS THE STATEMENT OF FACTS WE FIND THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE IMPUGNE D ASSESSMENT YEAR ON 24 TH MARCH 2006 DECLARING THE TOTAL INCOME AT RS.18 62 509. IN RESPONSE TO THE NOTICE ISSUED BY THE ASSESSING O FFICER THE AR WHO ATTENDED FROM TIME TO TIME BEFORE THE ASSESSING OFF ICER SUBMITTED THAT THE ASSESSEES BUSINESS IS CLOSED AT PRESENT A ND THE OFFICE PREMISES OF THE ASSESSEE WAS SEALED BY THE BANK AND THEREFORE NO BOOKS OF ACCOUNT WERE AVAILABLE WITH THE ASSESSEE. IT WAS FURTHER SUBMITTED THAT DUE TO VARIOUS ACTIONS TAKEN BY THE EXCISE DEPARTMENT MR. RAMESH CHANDRA AGARWAL THE DIRECTO R OF THE ASSESSEE COMPANY WAS PUT BEHIND BARS FOR A MONTH. MR. RAMESH CHANDRA AGARWAL ALSO MENTIONED ABOUT HIS ILL HEALTH AND ADDUCED I.T.A. NO. 1616/MUM/2009 M/S. AKISTEX WORLD WIDE (IMPEX) LTD. =========================== 3 EVIDENCE IN THE FORM OF VARIOUS MEDICAL CERTIFICATE S. SINCE THE ASSESSEE FAILED TO SUBMIT THE DETAILS AS PER THE QU ESTIONNAIRE THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S. 144 OF THE ACT AND MADE ADDITION OF RS.2 27 29 045 ON ACCOUNT OF UNEXP LAINED CASH CREDIT RS.35 38 426 ON ACCOUNT OF INTEREST INCOME AND RS.44 41 887 ON ACCOUNT OF OUT OF EXPENSES. 5. IN APPEAL SINCE NOBODY APPEARED THE LEARNED CIT(A ) DISMISSED THE APPEAL OF THE ASSESSEE BY UPHOLDING T HE ORDER OF THE ASSESSING OFFICER. 6. WE FIND THE CIT(A) PASSED THE ORDER ON 10 TH OCTOBER 2008. FROM THE AFFIDAVIT FILED BY SHRI SANJAY AGARWAL DI RECTOR OF THE ASSESSEE COMPANY WE FIND MR. RAMESH CHANDRA AGARWA L WHO APPEARED BEFORE THE ASSESSING OFFICER EXPIRED ON 17 TH OCTOBER 2008. THE FACT OF HIS ILL HEALTH WAS ALSO BEFORE T HE ASSESSING OFFICER WHO HAS MENTIONED THE SAME IN THE ASSESSMENT ORDER. WE THEREFORE ARE OF THE CONSIDERED OPINION THAT THERE WAS A REASONABLE CAUSE ON THE PART OF THE ASSESSEE FOR NON APPEARANC E BEFORE THE CIT(A). SINCE THE OFFICE PREMISES WAS SEALED BY TH E BANK AND SHRI RAMESH CHANDRA AGARWAL WAS PUT BEHIND BARS DUE TO E XCISE DUTY VIOLATION THEREFORE NO DETAILS WERE FURNISHED BEF ORE THE ASSESSING OFFICER. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE WE DEEM IT PROPER TO RESTORE T HE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE WITH DO CUMENTARY EVIDENCE TO THE SATISFACTION OF THE ASSESSING OFFIC ER REGARDING THE INCOME DECLARED BY THE ASSESSEE. NEEDLESS TO SAY T HE ASSESSING OFFICER SHALL GIVE ADEQUATE OPPORTUNITY OF BEING HE ARD TO THE ASSESSEE AND DECIDE THE ISSUE AS PER LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE AR E ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. I.T.A. NO. 1616/MUM/2009 M/S. AKISTEX WORLD WIDE (IMPEX) LTD. =========================== 4 7. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 22 ND JANUARY 2010. SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (R.K. PANDA) ACCOUNTANT MEMBER MUMBAI DATED 22 ND JANUARY 2010 COPY TO: (1) THE APPELLANT (2) THE RESPONDENT (3) THE CIT(A)-XXVII MUMBAI (4) THE CIT-3 MUMBAI (5) THE DR A BENCH ITAT MUMBAI. //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI BENCHES MUMBAI TPRAO