M/S. RIVIERA CREATIONS, MUMBAI v. THE ACIT 24(1), MUMBAI

ITA 2799/MUM/2008 | 2003-2004
Pronouncement Date: 14-05-2010 | Result: Allowed

Appeal Details

RSA Number 279919914 RSA 2008
Bench Mumbai
Appeal Number ITA 2799/MUM/2008
Duration Of Justice 2 year(s) 21 day(s)
Appellant M/S. RIVIERA CREATIONS, MUMBAI
Respondent THE ACIT 24(1), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 14-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 14-05-2010
Date Of Final Hearing 01-04-2010
Next Hearing Date 01-04-2010
Assessment Year 2003-2004
Appeal Filed On 23-04-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI R.S. SYAL (AM) AND SMT. ASHA VIJAYARAG HAVAN (JM) ITA NO. 2799/MUM/2008 ASSESSMENT YEAR-2003-04 RIVERA CREATIONS C/O SHARMA EXPORTS PATEL ESTATE PATEL ENGG. COMPOUND OFF. S.V. ROAD JOGESHWARI MUMBAI-400 102 PAN-AAFFR 19728R VS. THE ACIT 24(1) PRATYAKSHKAR BHAVAN BANDRA-KURLA COMPLEX BANDRA (E) MUMBAI -400 051 (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI M.P. MAKHIJA RESPONDENT BY: SHRI T.T. JACOB O R D E R PER SMT. ASHA VIJAYARAGHAVAN (JM) THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DT. 18.2.2008 PASSED BY THE LD. CIT(A)-XXIV MUMBAI FOR THE ASSESSMENT YEAR 2003-04. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PARTNERSHIP FIRM AND IS ENGAGED IN THE BUSINESS OF MANUFACTURE EXPO RT OF READYMADE GARMENTS. THE ASSESSEE IS 100% EXPORTER AND DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAD CLAIMED DEDUCTION U/ S. 80HHC AMOUNTING TO RS. 35 27 118/- AFTER SHOWING THE NET PROFIT AT RS. 71 64 955/-. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HAD CALLED FOR VARIOUS DETAILS WHICH INCLUD ED PARTYWISE DETAILS OF PURCHASES MORE THAN RS. 20 000/- AND PARTYWISE DETA ILS OF LABOUR ITA NO. 2799/M/08 2 CHARGES PAID MORE THAN 20 000/- WHICH DETAILS WERE FURNISHED BY ASSESSEES AUTHORIZED REPRESENTATIVE VIDE LETTER DT . 25.8.2005. THE LD. AO MADE ENQUIRIES BY ISSUING NOTICES U/S. 133(6) TO SO ME OF THE PARTIES FROM WHOM PURCHASES WERE MADE AND TO WHOM LABOUR CHARGES WERE PAID AND ACCORDING TO THE AO IN RESPECT OF SOME OF THE PARTI ES REPLIES WERE RECEIVED AND SOME PARTIES DID NOT REPLY AND IN CERT AIN CASES THE LETTERS WERE RETURNED UNSERVED BY THE POSTAL AUTHORITIES. 4. THE LD. AO REJECTED THE AUDITED BOOKS OF ACCOUNT AND ESTIMATED THE NET PROFIT OF THE ASSESSEE @ 24.65%. FURTHER HE MADE AN ADDITION OF RS. 12 41 542 U/S. 68 OF THE I.T. ACT AND A SUM OF RS. 23 22 865/- U/S. 69C OF THE I.T. ACT. 5. AGGRIEVED BY THE ORDER OF THE AO THE ASSESSEE P REFERRED AN APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) PARTLY ALLOW ED THE APPEAL OF THE ASSESSEE AND CONFIRMED CERTAIN ADDITIONS/DISALLOWAN CE MADE U/S. 69C AND U/S. 68 OF THE I.T. ACT. THE LD. CIT(A) FURTHE R CONFIRMED THE NET PROFIT AT 11.47% AFTER TAKING INTO ACCOUNT THE ADD ITIONS CONFIRMED BY HIM. 6. AGGRIEVED ASSESSEE PREFERRED AN APPEAL BEFORE U S. THE LD. COUNSEL FOR THE ASSESSEE SHRI M.P. MAKHIJA SUBMITTE D THAT THE AO OUGHT TO HAVE GIVEN THE ASSESSEE FIRM AN OPPORTUNITY TO P RODUCE FURTHER MATERIAL IN SUPPORT OF ITS TRANSACTION AND THEREFOR E THE MATTER MIGHT BE SENT BACK TO THE AO FOR RECONSIDERING THE ISSUE IN VOLVED. 7. THE LD. DEPARTMENTAL REPRESENTATIVE POINTED OUT THAT THE AO HAD GIVEN A REASONABLE OPPORTUNITY TO THE ASSESSEE IN T HE REMAND PROCEEDING AND SENT REPORTS DT. 28.9.2007 AND 30.1.2008 TO THE LD. CIT(A). ITA NO. 2799/M/08 3 8. WE FIND FROM THE RECORD THAT IN THE CASE OF SOME OF THE PARTIES THE AO RECEIVED REPLIES WHICH ACCORDING TO HIM INDICATE D VARIATION IN THE TRANSACTION WITH THE FIGURES SUBMITTED BY THE ASSES SEE WHILE IN THE CASE OF SOME OTHER PARTIES LETTERS WERE RETURNED UNSERVE D. 9. WE THEREFORE DIRECT THE AO TO GIVE AN OPPORTUNIT Y TO THE ASSESSEE TO EXPLAIN THE VARIATION IN THE TRANSACTION. FURTHER THE AO SHALL ISSUE NOTICES TO THE PARTIES U/S. 133(6) FOR FURTHER VERI FICATION AND CALL FOR SUCH OTHER DOCUMENTARY EVIDENCES IN ORDER TO SATISFY HI MSELF THAT THE ADDITION/ DISALLOWANCES DESERVE TO BE CONFIRMED. I N THESE CIRCUMSTANCES WE SET ASIDE THE ISSUE TO THE FILE O F THE AO TO REDO THE SAME IN ACCORDANCE WITH LAW. 10. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 14 TH DAY OF MAY 2010 SD/- SD/- (R.S. SYAL) ( ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED 14 TH MAY 2010 RJ COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR I.T.A.T MUMBAI ITA NO. 2799/M/08 4 DATE INITIALS 1 DRAFT DICTATED ON: 10.5.2010 SR. PS/PS 2. DRAFT PLACED BEFORE AUTHOR: 10.5.2010 ______ SR. PS/PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER: _________ ______ JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER: _________ ______ JM/AM 5. APPROVED DRAFT COMES TO THE SR. PS/PS: _________ ______ SR. PS/PS 6. KEPT FOR PRONOUNCEMENT ON: _________ ______ SR. PS/ PS 7. FILE SENT TO THE BENCH CLERK: _________ ______ SR. PS/PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK: _________ ______ 9. DATE OF DISPATCH OF ORDER: _________ ______