Income tax Officer,, Nashik v. M/s. Manu Re-Rolling Mill Pvt.Ltd,, Mumbai

ITA 560/PUN/2017 | 2012-2013
Pronouncement Date: 18-03-2021 | Result: Allowed

Appeal Details

RSA Number 56024514 RSA 2017
Assessee PAN AABCM8870C
Bench Pune
Appeal Number ITA 560/PUN/2017
Duration Of Justice 4 year(s) 11 day(s)
Appellant Income tax Officer,, Nashik
Respondent M/s. Manu Re-Rolling Mill Pvt.Ltd,, Mumbai
Appeal Type Income Tax Appeal
Pronouncement Date 18-03-2021
Appeal Filed By Department
Order Result Allowed
Bench Allotted A
Tribunal Order Date 18-03-2021
Date Of Final Hearing 17-03-2021
Next Hearing Date 17-03-2021
Last Hearing Date 17-09-2020
First Hearing Date 17-09-2020
Assessment Year 2012-2013
Appeal Filed On 08-03-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI R.S. SYAL VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI J UDICIAL MEMBER . / ITA NO . 560 /PUN/201 7 / ASSESSMENT YEAR : 20 1 2 - 13 INCOME TAX OFFICER WARD 1(4) NASHIK ...... / APPELLANT / V/S. M/S. MANU RE - ROLLING MILL PVT. LTD. C/O PRITESH SHAH G - 3 GR. FLOOR BARODA STREET MASJID (E) MUMBAI 400009 PAN : AABCM8870C / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SHRI S.P. WALIMBE / DATE OF HEARING : 1 7 - 03 - 2021 / DATE OF PRONOUNCEMENT : 18 - 03 - 2021 / ORDER PER S.S. VISWANETHRA RAVI JM : THIS APPEAL BY THE REVENUE AGAINST THE ORDER DATED 06 - 12 - 2016 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 NASHIK [CIT(A)] FOR ASSESSMENT YEAR 20 1 2 - 13. 2 ITA NO .560/PUN/2017 A.Y. 2012 - 13 2. GROUND NOS. 1 TO 3 RAISED BY THE REVENUE CHALLENGING THE ACTION OF CIT(A) IN DELETING THE ADDITION MADE ON ACCOUNT OF REVALUATION RESERVE SUNDRY CREDITORS AND PROVISION OF INCOME TA X IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. WE FIND NO REPRESENTATION ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION FILED SEEKING ADJOURNMENT. ON PERUSAL OF THE DOCKET WE NOTE THAT THIS APPEAL LISTED FOR THE FIRST TIME ON 09 - 09 - 2019. THEREAFTER TH E APPEAL HAS BEEN ADJOURNED FROM TIME TO TIME FOR NON - APPEARANCE OF ASSESSEE. WE ALSO NOTE THAT THE NOTICES SENT INTIMATING THE DATE OF HEARING TO THE ASSESSEE BY RPAD WERE ALL RETURNED UNSERVED WITH AN ENDORSEMENT OF NOT KNOWN. T ODAY ALSO THE ASSESSE E CALLED ABSENT AND SET EX - PARTE. WE PROCEED TO HEAR APPELLANT - REVENUE AND DISPOSE OF THE APPEAL BASING ON THE MATERIAL AVAILABLE ON RECORD. 4. HEARD SHRI S.P. WALIMBE THE LD. DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF RE - ROLLING MILL AND CONDUCTS ITS BUSINESS UNDER THE NAME AND STYLE OF M/S. MANU RE - ROLLING MILLS PVT. LTD. THE ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME AT NIL ON 14 - 12 - 2012. UNDER SCRUTINY NOTICES U/S. 143(2) A ND 142(1) OF THE ACT WERE ISSUED AND SERVED ON THE ASSESSEE. ACCORDING TO THE AO ALL THE NOTICES WERE SERVED TO THE ASSESSEE THROUGH POSTAL DEPARTMENT AND ACKNOWLEDGEMENTS SHOWING RECEIPT OF SAID NOTICES WERE ON RECORD. FURTHER THE ASSESSEE DID NOT PRES ENT INSPITE OF RECEIPT OF NOTICES WHICH MADE THE AO TO PROCEED TO COMPLETE THE ASSESSMENT U/S. 144 OF THE ACT. 3 ITA NO .560/PUN/2017 A.Y. 2012 - 13 5. WE NOTE THAT THE ASSESSEE HAS SHOWN NO BUSINESS IN THE PROFIT AND LOSS ACCOUNT BUT HOWEVER LIABILITIES WERE NOTICED IN THE BALANCE SHEET UN DER THE HEAD REVALUATION RESERVE SUNDRY CREDITORS AND PROVISION OF INCOME TAX TO AN EXTENT OF RS.4 72 58 041/ - . ADMITTEDLY THERE WAS NO EVIDENCE IN SUPPORT OF ABOVE SAID LIABILITIES WERE FURNISHED IN THE ASSESSMENT PROCEEDINGS. THEREFORE THE AO PROCEE DED TO TREAT ABOVE SAID LIABILITIES AS INCOME OF THE ASSESSEE AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE VIDE THIS ORDER DATED 27 - 03 - 2015 PASSED U/S. 144 OF THE ACT. 6. HAVING AGGRIEVED THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). REGAR DING THE ADDITION MADE ON ACCOUNT OF REVALUATION RESERVE OF RS.4 35 44 383/ - IT WAS SUBMITTED THAT THE ASSESSEE HAD REVALUED ITS ASSETS BY CREDITING REVALUATION RESERVE AND DEBITING ASSETS SUCH AS LAND ETC. RS.4 35 44 383/ - . IT WAS CONTENTION OF THE ASSES SEE WHICH IS EVIDENT FROM PAGE NO. 5 OF THE ORDER OF CIT(A) THAT THE ASSESSEE HAD NOT EARNED ANY INCOME AND THE ADDITION MADE BY THE AO IS NOT JUSTIFIED. SUPPORTING THE SAME THE ASSESSEE FILED COPY OF AUDITED FINANCIAL STATEMENT OF ACCOUNTS ALONG WITH AUD IT REPORT. CONSIDERING THE SAME THE CIT(A) WITHOUT SEEKING ANY REMAND REPORT FROM THE AO DELETED THE SAID ADDITION. 7. THE CONTENTION OF THE LD. DR SHRI S.P. WALIMBE IS THAT THE CIT(A) ACCEPTED THE CONTENTION OF ASSESSEE AND ADMITTED THE EVIDENCES WITHOUT GIVING AN OPPORTUNITY TO THE AO. THE AO HAS NO OCCASION TO EXAMINE THE FACTS ALONG WITH THE EVIDENCES ON THE ISSUE ON HAND AND IT IS CLEAR THE 4 ITA NO .560/PUN/2017 A.Y. 2012 - 13 CIT(A) VIOLATED THE RULE 46A OF THE INCOME TAX RULES. AS DISCUSSED ABOVE REGARDING AUDITED FINANCIAL STATEMENTS OF ACCOUNTS AND AUDIT REPORT WERE NOT BEFORE THE AO AND IT WAS FILED BEFORE THE CIT(A) FOR THE FIRST TIME. AS RIGHTL Y POINTED BY THE LD. DR THERE WAS NO OPPORTUNITY FOR THE AO TO EXAMINE THE SAME IN SUPPORT OF THE CLAIM OF ASSESSEE. THEREFORE WE FIND FORCE IN THE ARGUMENTS OF LD. DR THAT WITHOUT GIVING AN OPPORTUNITY TO THE AO THE CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY ACCEPTING THE ASSESSEES CONTENTION WITHOUT GIVING OPPORTUNITY TO THE AO. THEREFORE IN OUR OPINION THE CIT(A) SHALL AFFORD AN OPPORTUNITY TO THE AO FOR VERIFICATION OF FACTS UNDER REMAND REPORT. SINCE THERE WAS NO REMAND REPORT THE A DDITION MADE ON ACCOUNT OF REVALUATION RESERVE WHICH WAS DELETED BY THE CIT(A) IS LIABLE TO BE SET ASIDE AND ACCORDINGLY THE ISSUE IS REMAND BACK TO THE FILE OF AO FOR ITS FRESH VERIFICATION. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES IF ANY IN SUPPORT OF ITS CLAIM AND THE AO SHALL GIVE AN OPPORTUNITY TO THE ASSESSEE. 8. REGARDING THE OTHER ISSUES IN RESPECT OF SUNDRY CREDITORS AND PROVISION OF INCOME TAX WE NOTE THAT THE CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE BY ACCEPTING ASSESSEES CONTEN TION WITHOUT GIVING AN OPPORTUNITY TO THE AO. THEREFORE THE VIEW EXPRESSED BY US IN THE ABOVE MENTIONED PARAGRAPH IS APPLICABLE TO THE THESE ISSUES ALSO THEREFORE THE ISSUES IN QUESTION REGARDING THE SUNDRY CREDITORS AND PROVISION OF INCOME TAX REQUIRE S TO BE EXAMINED BY THE AO AND ASSESSEE SHALL PRODUCE EVIDENCES IF ANY BEFORE THE AO. THUS THE ISSUES REGARDING THE SUNDRY CREDITORS AND PROVISION OF INCOME TAX ARE REMAND ED TO THE FILE OF AO FOR ITS FRESH VERIFICATION. THE ASSESSEE SHALL PRODUCE EVID ENCE IF ANY IN SUPPORT 5 ITA NO .560/PUN/2017 A.Y. 2012 - 13 OF ITS CLAIM. THUS IN ALL GROUNDS ON THREE ISSUES COVERING REVALUATION RESERVE SUNDRY CREDITORS AND PROVISION FOR INCOME TAX ARE ALLOWED FOR STATISTICAL PURPOSES. 9. IN THE RESULT THE APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH 202 1 . SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 18 TH MARCH 202 1 . RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 2 NASHIK 4. THE PR. CIT - 1 NASHIK 5. / DR ITAT A BENCH PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER / PRIVATE SECRETARY / ITAT PUNE