M/s Model Financial Corporation Limited, Hyderabad v. ACIT, Hyderabad

ITA 165/HYD/2010 | 2004-2005
Pronouncement Date: 13-01-2011 | Result: Partly Allowed

Appeal Details

RSA Number 16522514 RSA 2010
Assessee PAN AABCM6458Q
Bench Hyderabad
Appeal Number ITA 165/HYD/2010
Duration Of Justice 11 month(s) 11 day(s)
Appellant M/s Model Financial Corporation Limited, Hyderabad
Respondent ACIT, 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 2004-2005
Appeal Filed On 02-02-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S.GANESAN JUDICIAL MEM BER AND SHRI AKBER BASHA ACCOUNTANT MEMB ER ITA NO.165/HYD/2010 : A SSESSMENT YEAR 2004-05 M/S. MODEL FINANCIAL CORPORATION LTD. HYDERABAD. ( PAN- AABCM 6458 Q ) V/S ASST. COMMISSIONER OF INCOME- TAX CIRCLE 16(3) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI Y.V.BHANU NARAYAN RAO RESPONDENT BY : SMT. VASUNDHARA SINHA O R D E R PER AKBER BASHA ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORD ER OF THE CIT(A)-V HYDERABAD DATED 26.11.2009 FOR THE ASSESSMENT YEAR 2004-05. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPEAL READ AS FOLLOWS- '1. .. 2. THE LEARNED CIT(A) OUGHT TO HAVE ALLOWED THE ASSE SSEE'S CLAIM OF RS.4 96 74 416 TOWARDS BAD DEBTS WRITTEN O FF AS THE SAME HAS BEEN DEBITED/CHARGED TO THE PROFIT & LOSS ACCOUNT FOR THE YEAR UNDER CONSIDERATION WHICH WAS AVAILABL E ON RECORD. 3. THE LEARNED CIT(A) OUGHT TO HAVE SUSTAINED THE ADDITION OF RS.1 87 84 455 MADE BY THE ASSESSING OFFICER TOWARD S PRIOR PERIOD ADJUSTMENTS.' 3. LEARNED COUNSEL FOR THE ASSESSEE REITERATING THE CONTENTIONS URGED BEFORE THE LOWER AUTHORITIES SUBMITT ED THAT THE ADDITIONS SUSTAINED BY THE CIT(A) BY THE IMPUGNED ORD ER ARE WITHOUT ITA.NO.165/HYD/2010 M/S. MODEL FINANCIAL CORPORATION LTD.HYD 2 PROPER APPRECIATION OF THE MATERIAL AVAILABLE ON RECO RD AND WITHOUT GIVING THE ASSESSEE PROPER OPPORTUNITY TO ADDUCE NECESSARY EVIDENCE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE ON TH E OTHER HAND RELYING ON THE ORDERS OF THE LOWER AUTHORITIES SUBMITTED THAT THE LOWER AUTHORITIES HAVE GIVEN AMPLE OPPORTUNITY TO TH E ASSESSEE TO ADDUCE EVIDENCE IN SUPPORT OF ITS CASE BUT THE ASSESSEE FAIL ED TO AVAIL THE SAME AND AS SUCH THERE IS NO MERIT IN THE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE IMP UGNED ASSESSMENT ORDER HAS BEEN PASSED BY THE ASSESSING OFFICER UNDER S.14 4 OF THE ACT AND EVEN BEFORE THE CIT(A) NONE APPEARED ON BEHALF OF THE ASSESSEE. IMPUGNED ADDITIONS ON ACCOUNT OF BAD DEBTS WRITTEN OFF AS WELL AS PRIOR PERIOD EXPENSES HAVE BEEN MADE ONLY ON ACCOUNT OF ABSEN CE OF ANY EVIDENCE ADDUCED BY THE ASSESSEE IN SUPPORT OF ITS CLAIM. CONSIDERING TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE INCLUDI NG THE SUBSTANTIAL AMOUNTS OF ADDITIONS INVOLVED AND IN VIEW OF THE GRIEVANCE OF THE ASSESSEE IN THE PRESENT APPEAL AS TO THE INADEQUACY OF OPPORTUNITY GIVEN BY THE LOWER AUTHORITIES TO PUT FO RTH ITS CASE WE ARE OF THE CONSIDERED OPINION THAT ENDS OF JUSTICE WOULD BE MET IF THE ASSESSEE IS GIVEN ONE MORE OPPORTUNITY TO PUT FORTH ITS CASE BEFORE THE ASSESSING OFFICER. WE ACCORDINGLY SET ASIDE THE IMPUGN ED ORDERS OF THE LOWER AUTHORITIES AND RESTORE THE MATTER TO T HE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO REFRAME THE ASSESSMENT DE NOVO AFTER GIVING ONE MORE REASONABLE OPPORTUNITY TO THE ASSESSEE TO PUT FORTH ITS CASE IN RELATION TO THE ABOVE TWO ADDITIONS. ITA.NO.165/HYD/2010 M/S. MODEL FINANCIAL CORPORATION LTD.HYD 3 7. IN THE RESULT ASSESSEE'S APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 13.1.2011 SD/- SD/- (N.R.S.GANESAN) (AKBER BASHA) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 13TH JANUARY 2011 COPY FORWARDED TO: 1. M/S. MODEL FINANCIAL CORPORATION LTD. 6TH FLOOR MODEL HOUSE PANJAGUTTA HYDERABAD. 2. ASST COMMISSIONER OF INCOME-TAX CIRCLE 16(3) HYDERABA D 3. CIT(A) V HYDERABAD 4. COMMISSIONER OF INCOME-TAX VI HYDERABAD 5. THE D.R. ITAT HYDERABAD. B.V.S.