ACIT, Circle - Haldia, Purba Medinipur v. M/s. MSV Laboratories Pvt. Ltd., Purba Medinipur

ITA 1717/KOL/2009 | 2006-2007
Pronouncement Date: 07-05-2010

Appeal Details

RSA Number 171723514 RSA 2009
Assessee PAN AADCM5533C
Bench Kolkata
Appeal Number ITA 1717/KOL/2009
Duration Of Justice 7 month(s)
Appellant ACIT, Circle - Haldia, Purba Medinipur
Respondent M/s. MSV Laboratories Pvt. Ltd., Purba Medinipur
Appeal Type Income Tax Appeal
Pronouncement Date 07-05-2010
Appeal Filed By Department
Bench Allotted A
Tribunal Order Date 07-05-2010
Assessment Year 2006-2007
Appeal Filed On 07-10-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL 'A BENCH : KOLKATA (BEFORE HONBLE SRI D.K.TYAGI J.M. AND HONB LE SRI B.C.MEENA A.M.) I.T.A. NO. 1717 /KOL/2009 ASSESSM ENT YEAR : 2006-07 ACIT CIRCLE-HALDIA VS M/S MSV LABORATORIES (P) LTD. (PAN NO. AADCM 5533 C) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. JYOTI KUMARI. RESPONDENT BY : SRI GAUTAM B ANERJEE. O R D E R PER SHRI B.C.MEENA A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)- XXXIII KOLKATA DATED 29.06.2009 FOR THE ASSESSME NT YEAR 2006-07. 2. GROUND READS AS UNDER : ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A)-XXXIII KOLKATA HAS ERRED IN ACCEPTING ADDITIONAL EVIDENC E WITHOUT REFERRING THE ISSUE TO THE ASSESSING OFFICER IN VIOLATION OF RUL E 46A. HENCE 2 ND APPEAL IS SUGGESTED. 3. THERE WAS A DELAY OF FIVE DAYS IN FILING THE APP EAL. AFTER HEARING BOTH THE SIDES ON THIS ISSUE WE CONDONE THE DELAY AND HEA R THE APPEAL. 4. IN THE REVENUES APPEAL THE ONLY SUBSTANTIAL G ROUND INVOLVED IS VIOLATION OF RULE 46A OF THE INCOME TAX RULES. 5. WHILE PLEADING ON BEHALF OF THE ASSESSEE THE L EARNED A.R. SUBMITTED THAT THE A.O. MADE THE ADDITION WITHOUT ASKING FOR TH E DETAILS AND HE PLEADED THAT THE A.O. HAS STATED THAT THE ASSESSEE FAILED TO PRODUCE ITS SHARE CERTIFICATES. HE SUBMITTED THAT THE SHARES WERE RECEIVED FROM T HE SHAREHOLDERS . HENCE THE ASSESSEE COULD NOT BE ASKED TO SUBMIT THE SHARE CER TIFICATES. HE ALSO PLEADED THAT THE EVIDENCE REGARDING THE ALLOTMENT OF SHARE CERT IFICATE IS AVAILABLE ON THE RECORD. THEREFORE THE CIT(A) HAS NOT VIOLATED RULE 46A . 6. ON THE OTHER HAND THE LEARNED D.R. ARGUED THAT THE PAPERS SUBMITTED BY THE ASSESSEE IN THE PAPER BOOK WERE NOT FILED BEF ORE THE A.O. AND THE CIT(A) 2 HAS NOT ASKED FOR ANY REMAND REPORT IN THIS REGARD . THUS THERE IS A CLEAR VIOLATION OF RULE 46A. INCOME TAX RECORDS BALANCE SHEET TRADING ACCOUNT OF THE SHAREHOLDERS WERE NOT FILED BEFORE THE A.O. NOR THESE WERE SENT FOR REMAND REPORT TO THE A.O. THEREFORE THE GROUND OF THE R EVENUES APPEAL DESERVES TO BE ALLOWED. 7. AFTER HEARING BOTH THE SIDES WE FIND THAT THE CIT(A) HAS ADMITTED THE ADDITIONAL EVIDENCE WITHOUT PROVIDING ADEQUATE OP PORTUNITY TO THE A.O. THE A.RS PLEADING THAT THE A.O. HAS NOT ASKED THE D ETAILS OF THE SHARES IS ALSO UNJUSTIFIED. THE A.O. HAS RECORDED IN THE ORDER THAT THE ASSESSEE FAILED TO FURNISH EVIDENCE REGARDING SHARE CERTIFICATES WHICH HAVE BEEN ISSUED AND THE ASSESSEE ALSO DID NOT FURNISH EVIDENCE FOR THE PAYMENT OF SHARE ACQUISITION MONEY. THE CIT(A) HAS GRANTED RELIEF BY ACCEPTING ASSESSEES STATEMENT WHICH HAS NOT BEEN VERIFIED BY THE A.O. WHICH IS AVAILABLE AT PAGE 6 OF THE PAPER BOOK. THE DOCUMENTS RELATING TO THE SHAREHOLDERS WERE ALSO NO T FILED BEFORE THE A.O. THEY ARE ALSO NOT VERIFIED BY THE A.O. IN THE INTEREST OF JUSTICE AND EQUITY WE FIND THAT THERE WAS A VIOLATION OF RULE 46A. WE SET ASIDE THE ORDER OF THE CIT(A) TO DECIDE THE APPEAL DE NOVO AFTER PROVIDING OPPORTUNITY TO THE A.O. REGARDING THE ADDITIONAL EVIDENCE SUBMITTED BEFORE HIM BY TH E ASSESSEE. 8. IN THE RESULT THE APPEAL OF THE DEPARTMENT IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07.05.2010 SD/- SD/- (D.K.TYAGI ) (B.C.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 07.05.2010 COPY FORWARDED TO :- 1) ACIT CIR. HALDIA. 2) M/S MSV LABORATORIES PVT. LTD. VILL & PO MUG BERIA DIST. PURBA MEDINIPUR. 3) CIT(A) KOLKATA. 4) CIT KOLKATA. 5) D.R. ITAT KOLKATA. BY ORDER BCD ASSISTANT REGISTRAR I.T.AT. KOLKATA. 3