M/s. Drona & Jigar Enterprises Pvt.Ltd., Baroda v. The Income tax Officer,Ward-1(2),, Baroda

ITA 713/AHD/2011 | 2001-2002
Pronouncement Date: 25-11-2014 | Result: Allowed

Appeal Details

RSA Number 71320514 RSA 2011
Assessee PAN AAACD7405R
Bench Ahmedabad
Appeal Number ITA 713/AHD/2011
Duration Of Justice 3 year(s) 8 month(s) 19 day(s)
Appellant M/s. Drona & Jigar Enterprises Pvt.Ltd., Baroda
Respondent The Income tax Officer,Ward-1(2),, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 25-11-2014
Date Of Final Hearing 07-10-2014
Next Hearing Date 07-10-2014
Assessment Year 2001-2002
Appeal Filed On 07-03-2011
Judgment Text
A IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH . .. . . .. . !' !' !' !' #$ #$ #$ #$ # ## #. .. .# ## #. . . . % % % % &' ( & ' &' ( & ' &' ( & ' &' ( & ' BEFORE S/SHRI G.C. GUPTA VICE-PRESIDENT AND N.S. SAINI ACCOUNTANT MEMBER) ITA NO.713/AHD/2011 [ASSTT.YEAR : 2001-2002] M/S.DRONA & JIGAR ENTERPRISES P. LTD. F-8 MEHUL JAIN SOCIETY NO.2 SUBHANPURA BARODA. PAN : AAACD 7405 R /VS. ITO WARD-1(2) BARODA. ( (( ( *+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) ./ 0 1 & / ASSESSEE BY : SHRI MILIN MEHTA ( 0 1 & / REVENUE BY : SHRI B.L.YADAV SR.DR 3 0 /4' / DATE OF HEARING : 7 TH OCTOBER 2014 567 0 /4' / DATE OF PRONOUNCEMENT : 25-11-2014 &8 / O R D E R PER G.C. GUPTA VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2001-2002 IS DIRECTED AGAINST THE OR DER OF THE CIT(A) BARODA. 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN CONFI RMING THE ACTION OF THE AO IN INVOKING THE PROVISIONS OF SECTION 147 FO R REOPENING THE ASSESSMENT AND CONSEQUENTLY MAKING THE ASSESSMENT U /S.147 R.W.S. 143(3) OF THE ACT. ITA NO.713/AHD/2011 -2- 2. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN REJECT ING THE CLAIM OF THE APPELLANT THAT NO REASONS WERE PROVIDED BY THE AO F OR THE PURPOSE OF REOPENING OF ASSESSMENT AND THEREFORE THE ENTIRE PROCEEDINGS ARE BAD IN LAW. 3. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN ALLOWING DEPRECIATION ON TANKERS @ 20% AS AGAINST @ 40% CLAIMED BY THE APPELLANT AND THEREBY MAKING DISALLO WANCE OF RS.2 44 707/- 4. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN DISALLOWANCE OF COMMISSION PAID TO SMT.PR AIBHA H. BHATT OF RS.1 90 553/- CONSIDERING IT AS NON BUSINESS EXPEND ITURE. 5. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN MAKING DISALLOWANCE OF COMMISSION PAID TO SMT. HEENABEN D. SHAH OF RS .4 00 000/- ON THE GROUND THAT IT IS NOT JUSTIFIABLE. 6. THE LD.CIT(A) ERRED IN FACT AND IN LAW IN CONFIR MING THE ACTION OF THE AO IN MAKING DISALLOWANCE OF DIRECTORS REMUNER ATION PAID TO SMT. INDUBEN P. MEHTA RS.72 000/- P.A. AND RS.75 000/- PAID TO SMT. TRAPTI N. MEHTA. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ACTION OF THE AO IN INVOKING THE PROVISION OF SECTION 147 FOR REOPEN ING OF THE ASSESSMENT IS BAD IN LAW AS THE ASSESSEE WAS NEVER SERVED WITH THE C OPY OF REASONS RECORDED BY THE DEPARTMENT. HE SUBMITTED THAT THE ISSUE IS COV ERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIG H COURT IN SAHKARI KHAND UDYOG MANDAL LTD. VS. ACIT 2014-(IT1)-GJX-0117-GUJ WHEREIN HELD THAT THE DEPARTMENT IS BOUND TO SUPPLY COPY OF REASONS EVEN IF NOT ASKED FOR BY THE ASSESSEE. 4. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF TH E LEARNED COUNSEL FOR THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS N OT ASKED FOR THE REASONS RECORDED WHILE REOPENING THE ASSESSMENT IN THIS CAS E AND HAS ALSO PARTICIPATED IN THE ASSESSMENT PROCEEDINGS BEFORE THE AO. HE RE FERRED TO THE RELEVANT PORTIONS OF THE ASSESSMENT ORDER AND THE ORDER OF T HE CIT(A) IN SUPPORT OF THE ITA NO.713/AHD/2011 -3- CASE OF THE REVENUE. HE RELIED ON THE DECISION OF THE CROWN CONSULTANTS P. LTD. V. COMMISSIONER OF INCOME-TAX 44 TAXMANN.COM 397 ( BOM). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS. WE FIND T HAT THE ASSESSEE HAS REQUESTED IN ITS WRITTEN SUBMISSIONS BEFORE THE CIT (A) FOR COPY OF REASONS RECORDED BY THE AO WHILE REOPENING ASSESSMENT UNDER SECTION 147 OF THE ACT AND THE SAME WERE NOT GIVEN TO THE ASSESSEE. IN TH ESE FACTS AND IN THE LIGHT OF THE DECISION OF THE HONBLE GUJARAT HIGH COURT RELI ED UPON BY THE ASSESSEE WE ARE OF THE VIEW THAT THE COPY OF THE REASONS RECORD ED WHILE REOPENING THE ASSESSMENT UNDER SECTION 147 HAS TO BE ISSUED TO TH E ASSESSEE AND ACCORDINGLY THE ISSUE IN THE GROUNDS OF THE APPEAL OF THE ASSES SEE IS RESTORED TO THE FILE OF THE AO WITH DIRECTION TO FRAME DE NOVO ASSESSMENT IN ACCORDANCE WITH LAW AFTER ISSUING THE COPY OF THE REASONS RECORDED WHILE REOP ENING THE ASSESSMENT UNDER SECTION 147 AND AFTER ALLOWING THE ASSESSEE REASON ABLE OPPORTUNITY OF HEARING. WE DIRECT ACCORDINGLY. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( # ## # . .. . # ## # . . . . % % % % /N.S.SAINI) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD