Bansari Automobiles P.Ltd.,, Gandhinagar v. The Jt.Commissioner of Income Tax,, Gandhinagar

ITA 3492/AHD/2014 | 2011-2012
Pronouncement Date: 30-11-2017 | Result: Allowed

Appeal Details

RSA Number 349220514 RSA 2014
Assessee PAN AABCV8317R
Bench Ahmedabad
Appeal Number ITA 3492/AHD/2014
Duration Of Justice 2 year(s) 11 month(s)
Appellant Bansari Automobiles P.Ltd.,, Gandhinagar
Respondent The Jt.Commissioner of Income Tax,, Gandhinagar
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags 3492
Order Result Allowed
Bench Allotted A
Tribunal Order Date 30-11-2017
Assessment Year 2011-2012
Appeal Filed On 30-12-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM BEFORE SHRI MAHAVIR PRASAD JUDICIAL MEMBER AND SHRI MANISH BORAD ACCOUNTANT MEMBER I.T.A. NO.3492/AHD/2014 ( / ASSESSMENT YEAR : 2011-12) BANSARI AUTOMOBILES PVT. LTD. PLOT NO.28C NR. GTS SECTOR 30 GANDHINAGAR-382030 VS. THE JCIT GANDHINAGAR RANGE SECTOR - 11 GANDHINAGAR - 382011 ! PAN/GIR NO. : AABCV 8317 R ( ' / APPELLANT ) .. ( #' RESPONDENT ) '$ APPELLANT BY : SHRI M. K. PATEL A.R. #'%$ / RESPONDENT BY : SHRI JAYANT JHAVERI SR. D.R. & '(%)* / DATE OF HEARING 28/11/2017 + -.%)* / DATE OF PRONOUNCEMENT 30/11/2017 / O R D E R PER MAHAVIR PRASAD JUDICIAL MEMBER : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER OF THE COMMISSIONER OF INCOME TAX(APPEALS) - GANDHINAGAR APPEAL NO. CIT(A)GNR/528/2013-14 VIDE ORDER DATED 01/10/2014 F OR THE ASSESSMENT YEAR (AY) 2011-12 ON THE FOLLOWING GROU NDS: (1) THAT ON FACTS AND IN LAW THE LEARNED CIT (A) HAS GRIEVOUSLY ERRED IN DECIDING THE APPEAL EX-PARTE AND IN NOT GRANTING SUFFICIENT OPPORTUNITY OF HEARING. (2) THAT ON FACTS AND IN LAW THE LEARNED CIT(A) HAS G RIEVOUSLY ERRED IN CONFIRMING THE ADDITION RS.7 57 253/- MADE U/S.40A (2)(B) OF THE ACT OUT OF INTEREST PAYMENT. ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 2 - (3) THAT ON FACTS AND IN LAW THE LEARNED CIT(A) HAS G RIEVOUSLY ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 2 12 400/- MADE IN RESPECT OF PAYMENT OF SALARY/REMUNERATION. (4) THAT ON FACTS AND IN LAW THE LEARNED CIT (A) HAS GRIEVOUSLY ERRED IN CONFIRMING THE DISALLOWANCE OF RS.2 16 000/- MADE IN RESPECT OF PAYMENT TO SHILPABEN PATEL AS CAR EXPENSES. (5) THAT ON FACTS AND IN LAW THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN CONFIRMING DISALLOWANCE OF RS.2 10 000/- M ADE IN RESPECT OF PAYMENT TO LILABEN J. PATEL AS DEMO VAN EXPENSES. (6) THAT ON FACTS AND IN LAW THE LEARNED CIT(A) HAS GRIEVOUSLY ERRED IN CONFIRMING DISALLOWANCE OF RS.3 60 000/- MADE RESPECT OF PAYMENT TO SURESHBHAI PATEL AUTHORIZED SERVICE CENTRE DISPATCH VEHI EXPENSES. (7) THAT ON FACTS AND IN LAW THE LEARNED C1T(A) HAS G RIEVOUSLY ERRED IN CONFIRMING THE ADDITION OF RS.4 315/- MADE IN RE SPECT OF PAYMENT INTEREST ON TDS. (8) THAT ON FACTS AND IN LAW THE LEARNED C1T(A) HAS GRIEVOUSLY ERRED IN CONFIRMING THE DISALLOWANCE OF RS.39 426/- MADE IN RESPECT OF DISALLOWANCE U/S 40A(3) OF THE ACT. (9) THE APPELLANT CRAVES LEAVE TO ADD ALTER AMEND ANY GROUND OF APPEAL. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERI ALS ON RECORD ARE AS UNDER:- THE ASSESSEE IS IN THE BUSINESS OF TWO WHEELERS S PARE-PARTS SALES AND SERVICES. THE ASSESSEE IS A DEALER OF BAJAJ TWO WHEELERS. THE TOTAL SALE DURING THE YEAR IS RS.34.38 CRORES AS COMPARED TO RS.17.63 CRORES IN THE PRECEDING YEAR. BESIDES THE ASSESSEE IS ALSO I N RECEIPT OF SERVICE INCOME OF RS.19.71 LAKHS AS COMPARED TO RS.11.34 LA KHS IN THE EARLIER YEAR. THE NET PROFIT AS PER P&L A/C. IS RS.22 03 60 2/- AS COMPARED TO RS.16 13 859/- IN THE PRECEDING YEAR. THE ASSESSMEN T IS COMPLETED AS UNDER: ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 3 - 2.2 INTEREST TO RELATED PARTIES 2.2.1 PERUSAL OF THE AUDIT REPORT SHOWED THAT THE A SSESSEE HAS MADE PAYMENT ON INTEREST TO THE FOLLOWING PARTIES COVERED U/S.40A(2)(B) OF THE ACT. NO. NAME AMOUNT 1. JAYANTIBHAI PATEL 9 23 003 2. VASANTKUMAR J. PATEL 8 31 985 3. SHOBHANA A. PATEL 5 16 771 2.2.2 THE INTEREST HAS BEEN MADE TO THESE PARTIES @ 18% PER ANNUM. WHEN SHOW-CAUSED THE ASSESSEE HAS MADE A WRITTEN SUBMISSION VIDE LETTER DTD.28/01/2014 WHICH IS REPRODUCED AS UNDER : 'WE HAVE PAID INTEREST TO JAYENTIBHAI R. PATE. SHOB HANA A. PATEL AND VASANTBHAI J. PATEL @ AROUND 18% PER ANNUM ON THEIR CREDIT BALANCE IN OUR BOOKS OF ACCOUNTS. WE HAVE PAID INTEREST AT AROUND 18% ON THE CREDIT A MOUNT RECEIVED FROM THE DIRECTOR. THE SAID INTEREST RATE IS EVEN I S EVEN BELOW THE MARKET INTEREST RATE. NORMALLY IN OPEN FINANCE MARKET FIN ANCE IS NOT AVAILABLE EVEN AT 18% INTEREST RATE. EVEN BAJAJ AUTO LTD. COMPANY IS CHARGING INTEREST A T 18% ON LATE PAYMENT AFTER DELIVERY START AT FACTORY. THE COPY O F INTEREST CALCULATION SHEET OF INTEREST PAYABLE TO BAJAJ AUTO LTD. IS ENC LOSED HEREWITH. PLEASE NOTE THAT THIS IS NOT THE PENAL INTEREST. THE SAID INTEREST IS FOR CREDIT GIVEN BY THE COMPANY TO US. THE PRIVATE FINANCIER RUSHAM MARKETING OWNED BY SUD HANSHU JHA HAS INFORMED US THAT THEY ARE GIVING MAXIMUM FINANCE OF RS.1 00 000/-. DUE TO RISK INVOLVED THEY ARE NOT GIVING HIGHER UNS ECURED FINANCE. EVEN PRIVATE BANK IS ALSO CHARGING INTEREST AT 16% TO 21% ON PERSONAL LOAN GRANTED. ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 4 - DEPENDING UPON THE CLIENT'S FINANCIAL CAPABILITIES & OTHER PRUDENTIAL NORMS SATISFIED BY THE CLIENT & HENCE IT IS UNFAIR TO CONSIDER THAT THE COMPANY HAD PAID HIGHER INTEREST ON THE DIRECTOR DE POSIT. INTEREST PAID TO DIRECTOR IS REASONABLE LOOKING TO FINANCIAL MARK ET SENSORY OF INDIA. PLEASE FIND PUNJAB NATIONAL BANK STATEMENT. THE BAN K IS CHARGING INTEREST AT 18.25%. PLEASE NOTE THAT BANK IS CHARGING INTEREST ON MONTH LY BASIS SO EFFECTIVE INTEREST WILL BE 19.86%. PLEASE ALSO NOTE THAT BANK IS TAKING PROCESSING CHARGES AROUND 1% SO EFFECTIVE INTEREST CHARGED BY EVEN BANK IS MORE THAN 20% PER ANNUM. WE ARE PAYING SIMPLE INTEREST O N YEARLY BASIS WHICH IS REASONABLE IS PAYABLE AT 18% PER ANNUM. AS PER SECTION 42 (4) OF THE GUJARAT VALUE ADDED TA X ACT 2003 THE INTEREST YOU ARE ALSO AWARE OF THE FACT THAT SERVIC E TAX DEPARTMENT IS ALSO CHARGING INTEREST AT 18% FROM THE ASSESSEE. SE CTION 75 OF SERVICE TAX ACT.'' 2.2.3 THE ASSESSEE'S COMPARISON WITH INTEREST RATE LEVIED BY STATUTORY AUTHORITIES FOR DEFAULT CANNOT BE CONSTITUTED AS A RATE APPLICABLE FOR BUSINESS TRANSACTIONS. BESIDES THERE IS NO CREDIT RISK AS FAR AS THE LOANS ARE CONCERNED AS THE RELATED PARTIES ARE GIVING TO THEIR OWN COMPANY AS OPPOSED TO PRIVATE DEPOSITS WHICH WARRANT HIGHER I NTEREST RATE. A PERUSAL OF THE LEDGER ALSO SHOWS THAT FUNDS HAVE COME IN AN D GONE OUT MEANING THEREBY THAT IT IS NOT LONG-TERM FINANCE HENCE BY FOLLOWING THE STAND TAKEN BV THE DEPARTMENT IN A.Y.2010-11 INTEREST @1 2% IS ALLOWED TO THE ASSESSEE. THE BALANCE OF 6% BEING EXCESSIVE IS DISA LLOWED AND ADDED BACK TO THE INCOME OF THE ASSESSEE. THUS AMOUNT OF RS.7 57 253/- IS ADDED TO THE INCOME OF THE ASSESSEE. ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 5 - 2.3 REMUNERATION TO DIRECTORS 2.3.1 IN ASST. YEAR 2010-11 THE AO HAD DISALLOWED THE SALARY PAYMENT MADE TO SMT. SHOBHANABEN A. PATEL. DURING THE CURRE NT YEAR THE ASSESSEE HAS PAID A REMUNERATION OF RS.2 12 400/- T O MRS. SHOBHANA A PATEL. THE ASSESSEE WAS ASKED TO JUSTIFY THE SALARY PAYMENT AND SHOW- CAUSE WHY THE SAME SHOULD NOT BE DISALLOWED. VIDE L ETTER DTD.28/01/2014 THE ASSESSEE FURNISHED A DETAILED REPLY. IN VIEW OF THE FINDINGS GIVEN IN THE EARLIER YEAR AND FOLLOWING THE PRINCIPLE OF EAR LIER YEAR A SUM OF RS.2 12 400/- IS DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. PENALTY PROCEEDINGS U/S.271(L)(C) OF THE ACT ARE IN ITIATED FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 2.4 MARUTI VAN EXPENSES 2.4.1 IN A.Y.2010-11 THE AO HAD DISALLOWED MARUTI VAN EXPENSES OF RS.2 16 000/- PAID TO MRS. SHILPABEN PATEL. IN THE CURRENT YEAR ASSESSMENT PROCEEDINGS ALSO THE ASSESSEE WAS ASKED REGARDING THE SAME. THE ASSESSEE HAS GIVEN A REPLY VIDE LETTER DTD.28/0 1/2014: WE HAVE PAID MARUTI VAN EXPENSES OF RS.18000/- PER MONTH TO SHILPABEN PATEL WHO IS NOT RELETIVES OF THE DIRECT OR. THE COPY OF HER CONFIRMATION OF ACCOUNT AND QUOTATION BOOK IS SUBMI TTED AT PAGE SR. NO.1152 TO 1165. VEHICLE IS USED FOR TRAVELLING FOR THE COMPANY'S WORK. THE COPY OF CONFIRMATION OF ACCOUNT INSURANCE POLI CE AND RTO BOOK OF SHILPABEN PATEL IS ENCLOSED. OUR DIRECTORS AND COMP ANY EMPLOYEES ARE USING THIS CAR VISIT OF SUB DEALER OFFICE & OTH ER OFFICIAL WORK. WE ARE GIVING RENT OF VEHICLE. PETROL EXPENSES DRIVER SALARY AND OTHER REVENUE EX PENSES ARE ALSO PAID BY US. WE HAVE TO CONTINUOUSLY VISIT SUB DEALE R OFFICE FOR GIVING GUIDANCE & MOTIVATION. WE HAVE TO COLLECT CHEQUES A ND SETTLE THE ACCOUNT PARTY WISE WITH SUB DEALER ALSO. THE DETAIL S OF LIST FOR SALES ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 6 - THROUGH SUB DEALER IS OF 103 PAGES ARE SUBMITTED HE REWITH AT PAGE SR NO.1403.1 TO 1403.103. PLEASE NOTE THAT MORE THAN 7 500 VEHICLE ARE SOLD THROUGH SUB DEALER. (PAGE NO 1171 1171) TO SET TLE ALL THE ACCOUNT OFFICE. WE HAVE USED VEHICLE OF COMPANY FOR THE COM PANIES BUSINESS SO EXPENSES IS ALLOWABLE EXPENSES 2.4.2 THE SUBMISSION OF THE ASSESSEE HAS BEEN CONSI DERED. HOWEVER THE SAME IS NOT ACCEPTABLE WHICH IS JUST LIKE IN THE LA ST YEAR. THE PAYMENT TO MRS. SHILPABEN PATEL HAVE BEEN MADE IN INTERVALS AN D NOT REGULARLY. AS PER THE DETAILS FILED BY THE ASSESSEE AT PAGE 1488 THE INSURANCE VALUE OF VEHICLE IS ONLY RS.1 50 000/-. THIS PAYMENT OF RENT VALUE OF RS.2 16 000/- FOR AN OLD VEHICLE WHOSE VALUE IS RS.1.50 LAKHS ONL Y IS NOT UNDERSTANDABLE. EVIDENCES FURNISHED BY THE ASSESSEE DO NOT INDICATE WHETHER THE VEHICLE WAS ACTUALLY USED FOR THE PURPO SE OF BUSINESS. THE CONTENTION OF THE ASSESSEE THAT MARUTI OMNI VAN WAS USED BV THE DIRECTORS IS ALSO NOT ACCEPTABLE. DURING THE YEAR THE ASSESSEE HAD VEHICLE OF RS.5 52 165/- AS OPENING BALANCE AS PER DEPRECIA TION SCHEDULE. FURTHER VEHICLE OF RS.2 17 400/- WAS ALSO ACQUIRED AND USED DURING THE YEAR. CONSIDERING THE OVERALL FACTS THE SUM OF RS. 2 16 000/- IS DISALLOWED AND IS ADDED TO THE INCOME OF THE ASSES SEE. PENALTY PROCEEDINGS U/S.271(1)(C) OF THE ACT ARE INITIATED FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 2.5 DEMO VAN EXPENSES 2.5.1 DURING THE COURSE OF ASSESSMENT PROCEEDINGS IT WAS SEEN THAT THE ASSESSEE HAS MADE A PAYMENT OF RS.4 20 000/- AS DEMO VAN EXPENSES TO MRS. LILABEN J PATEL AND THE CORRESPONDING FIGURE F OR LAST YEAR WAS ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 7 - RS.NIL. VIDE QUESTIONNAIRE DTD.05/12/2013 THE ASSE SSEE WAS ASKED TO PROVIDE THE DETAILS OF SUCH EXPENSES AND THE JUSTIF ICATION FOR THE SAME. 2.5.2 THE ASSESSEE HAS FILED A REPLY VIDE LETTER DT D.28/01/2014 AS FOLLOWS: 'DEMO VAN EXPENSES IS PAID TO LILABEN J. PATEL (WIF E OF THE DIRECTOR). THE SAID DEMO VAN IS USED FOR DEMO OF DIFFERENT MOD ELS. THE COPY OF CONFIRMATION OF ACCOUNT IT RETURN QUOTATION INVO ICE OF FY 2010-11 ARE SUBMITTED TO YOU AT PAGE SR NO 1132 TO 1146. PL EASE NOTE THAT WE ARE PAYING DIESEL AND OTHER REVENUE EXPENSES. THE C OPY OF PURCHASE BILL OF DEMO VAN SALE CERTIFICATE OF CARGO MOTORS PVT. LTD. TEMPORARY REGISTRATION CERTIFICATE RTO BOOK INSUR ANCE POLICY OF VEHICLE AND TEN DIFFERENT PHOTOGRAPH OF VEHICLE. PL EASE NOTE THAT THE SAID PHOTOGRAPH IS FOR DEMONSTRATION OF DIFFERENT V EHICLE SOLD BY US. THE DETAILS OF VEHICLES SOLD THROUGH SUB DEALER IS ENCLOSED HEREWITH HAVING TOTAL PAGES 103. (PAGE NO 1 TO 103). PLEASE NOTE THAT WE HAVE SOLD MORE THAN 7500 VEHICLES DURING THE YEAR THROUG H OUR SUB DEALER. (PAGE NO 1171) DEMO VAN EXPENSES IS GENUINE EXPENSE S OF THE COMPANY IT SHALL NOT BE DISALLOWED. WE ARE ISSUING GATE PAS S WHILE SENDING DELIVERY. THE COPY OF 17 GAIT PASS IS ENCLOSED HERE WITH. WE SUBMIT HEREWITH GATE PASS OF 3-11-2010 TO 5-11-2010 FOR TH E DELIVERY OF VEHICLES. THE SAME DATE FOR WHICH YOU HAVE ASKED DE TAIL SALES BILL. WE CAN PRODUCE ALL GATE PASS FOR YOUR VERIFICATION IF NEEDED. DURING THE YEAR 2785 GATE PASSES IS ISSUED THAT MEANS DEMO VAN IS USED MORE THAN 2785 TIMES DURING THE YEAR. AS WE HAVE OUR OWN VEHI CLE WE CAN GIVE DELIVERY AT RIGHT TIME TO OUR SUB DEALER/CUSTOMER.' 2.5.3 THE SUBMISSION OF THE ASSESSEE HAS BEEN CONSI DERED. HOWEVER THE SAME IS NOT ACCEPTABLE:- A) THE PAYMENT TO MRS. LILABEN J PATEL IS NOT MADE REGULARLY. FOR INSTANCE FIRST PAYMENT WAS MADE ON 19/07/2010 AND THE SECOND SUCH PAYMENT WAS MADE ON 09/12/2010. THE REA SONS FOR THE SAME ARE NOT KNOWN. B) IT IS SEEN THAT THE VEHICLE IS A LIGHT COMMERCIA L VEHICLE OF TATA MAKE. AS PER THE RETAIL INVOICE DTD.26/02/2010 THE ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 8 - SAME HAS BEEN PURCHASED BY MRS.LILABEN PATEL ON 26/02/2010 FOR A PRICE OF RS.4 92 098/-. C) THE ASSESSEE IS COMPLETELY SILENT ABOUT THE EXPE NSES BEING RS.NIL IN THE IMMEDIATE PRECEDING YEAR. D) AS PER THE ASSESSEE'S SUBMISSION THE ASSESSEE I S PAYING DIESEL DRIVER'S SALARY REPAIRS AND ALL OTHER REVE NUE EXPENSES RELATED TO THE VEHICLE. HENCE PAYMENT OF ANNUAL RE NT OF RS.4 20 000/- ON A VEHICLE COST ABOUT RS.5 LAKHS IS DEFINITELY BOTH EXCESSIVE AND UNREASONABLE HAVING REGARD TO TH E FAIR MARKET VALUE. E) EVEN AS ON DATE SEDANS COSTING MUCH MORE THAN R S.5 LAKHS ARE AVAILABLE FOR HIRE INCLUDING DRIVER SALARY INS URANCE FUEL REPAIRS ETC.. FOR ABOUT RS.35 000/- PER MONTH. 2.5.4 IN VIEW OF THE ABOVE DISCUSSIONS I HOLD THAT AN ADJUSTMENT U/S.40A(2)(A) IS REQUEST IN RESPECT OF SUCH EXCESSI VE AND UNREASONABLE PAYMENTS. THE REASONABLE PAYMENT IS WORKED OUT AS U NDER: A). AS PER DEPRECIATION SCHEDULE WHERE A MOTOR LOR RY IS USED IN THE BUSINESS OF RUNNING THEM ON HIGHER THE DEPRECIA TION @30% IS ALLOWABLE. THIS WORKS OUT TO RS.1.50 LAKHS APPROXIMATELY. B). INTEREST @12% IS ALLOWED OVER AND ABOVE THE DEP RECIATION TO RECOVER THE FUNDING COST. THIS WORKS OUT TO RS.60 0 00/-. HENCE THE SUM OF RS.2 10 000/- IS ALLOWED TO THE ASSESSEE AND THE BALANCE SUM OF RS.2 10 000/- IS CONSIDERED AS EXCES SIVE AND UNREASONABLE HAVING REGARD TO THE FAIR MARKET VALUE OF THE GOODS AND SERVICES RENDERED. WHILE MAKING THIS DISALLOWANCE I T IS SPECIFICALLY NOTED THAT ALL THE RUNNING EXPENSES RELATED TO THE VEHICL E ARE BORNE BY THE ASSESSEE. THUS RS.2 10 000/- IS ADDED TO THE INCOM E OF THE ASSESSEE. ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 9 - PENALTY PROCEEDINGS U/S.271(L)(C) OF THE ACT ARE IN ITIATED FOR FURNISHING INACCURATE PARTICULARS OF INCOME. 2.6 ASC DISPATCH VEHICLE EXPENSES 2.6.1 PERUSAL OF THE P&L A/C SHOWS THAT A SUM OF RS .3 60 000/- IS CHARGED AS 'ASC DISPATCH VEHICLE EXPENSES'. THE COM PARATIVE EXPENSE OF THIS HEAD DURING THE EARLIER YEAR WAS RS. NIL/-. HENCE VIDE QUESTIONNAIRE DTD.05/12/2013 THE ASSESSEE WAS ASKE D TO GIVE DETAILS OF SUCH EXPENSES AND ALSO THE JUSTIFICATION. THIS ISSU E WAS AGAIN RAISED VIDE ORDER SHEET NOTING DATED 30/12/2013 AND DISCUSSED D URING THE HEARING. VIDE LETTER DTD.20/01/2014 THE ASSESSEE HAS REPLIED AS UNDER: 'OUR DEALERS ARE SPREAD OVER UP TO 35 KMS FROM SHOW ROOM. WHENEVER ANY VEHICLES SOLD WE SHALL HAVE TO GIVE DELIVERY AT SUB DEALER OFFICE. THE SAID DELIVERY OF VEHICLE IS DONE BY THE SURESHBHAI PATEL. DURING THE FY 2010-11 MORE THAN 5000 VEHICLES ARE SOLD THROUGH SUB DEALER NET WORK. WE HAD TAKEN HIS SMALL TRUCK ON RENT OF RS.30000/- PER MONTH. DETAIL SHEET CONTAINING DELIVERY TO DIFFERENT SUB DEALER I S ENCLOSED HEREWITH AT PAGE DR.NO.1171. THE COPY OF CONFIRMATION OF ACCOUN T PAN CARD QUOTATION AND BILL ARE ENCLOSED AT PAGE SR.NO.1186. 3. THE SUBMISSION OF THE ASSESSEE CONSIDERED BUT SA ME WERE NOT ACCEPTABLE. HENCE AN ADDITION OF RS.3 64 691/- MAD E AGAINST THE ASSESSEE. 4. AGAINST THE SAID ORDER ASSESSEE PREFERRED FIRST STATUTORY APPEAL BEFORE THE LD.CIT(A) BUT BECAUSE OF SOME REASON THA T AN EFFECTIVE HEARING BY THE LD. CIT(A) NEITHER AR NOR ASSESSEE COULD AT TAIN THE PROCEEDINGS. THEREFORE APPEAL WAS DECIDED ON THE BASIS OF ASSES SMENT ORDER AND ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 10 - STATEMENT OF THE FACTS OF THE GROUND OF APPEAL FILE D BY THE APPELLANT WITH THE APPEAL NAME AND PASSED AN EX-PARTY ORDER. NOW A PPEAL IS BEFORE US. AT THE OUTSET LD. AUTHORIZED REPRESENTATIVE STATED THAT IN THE INTEREST OF THE JUSTICE THIS CASE MAY REMIT BACK TO THE FILE O F THE CIT(A) AND CIT(A) HAS PASSED AN EX-PARTY ORDER. LD.CIT(A) MENTIONED I N HIS ORDER THAT THERE WAS NO RESPONSE FROM THE APPELLANT ON DESIGNATED DA TE AS WELL AS NO COMMUNICATION AGAIN AND AGAIN AND NOBODY TURNED OVE R NOR ANY ADJUDICATION WAS SOUGHT OR SUBMISSION FILED BY THE ASSESSEE. IN THE INTEREST OF THE JUSTICE WE SET ASIDE THE ORDER OF THE LD.CIT(A) AND REMIT THIS MATTER BACK TO THE FILE OF THE LD.CIT(A). LD. CIT(A) WILL DECIDE THE MATTER AFRESH AFTER GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO CO-OPERATE WITH THE LD . CIT(A) FOR DISPOSAL OF THE MATTER. 5. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS A LLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 30/11/2017 SD/- SD/- EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EKUHK CKSJM EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN EGKOHJ IZLKN YS[KK LNL; U;KF;D LNL; YS[KK LNL; U ;KF;D LNL; YS[KK LNL; U ;KF;D LNL; YS[KK LNL; U ;KF;D LNL; ( MANISH BORAD ) (MAHAVIR PRASA D) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30/11/2017 PRITI YADAV SR. PS ITA NO.3492/AHD /2014 BANSARI AUTOMOBILES PVT. LTD. VS. JCIT ASST.YEAR 2011-12 - 11 - !'#$ %$' COPY OF THE ORDER FORWARDED TO : 1. ' / THE APPELLANT 2. #' / THE RESPONDENT. 3. 012) & 3) / CONCERNED CIT 4. & 3) 45 / THE CIT(A)-GANDHINAGAR 5. 678 )'12 *12. 0 / DR ITAT AHMEDABAD 6. 89:( GUARD FILE. & ' / BY ORDER #6) ) //TRUE COPY // (/' )* ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD