Genesis Organics Private Limited,, Vadodara v. The Income Tax Officer, Ward-1(1)(3),, Vadodara

ITA 952/AHD/2017 | 2005-2006
Pronouncement Date: 27-11-2017 | Result: Allowed

Appeal Details

RSA Number 95220514 RSA 2017
Assessee PAN AABCG5635R
Bench Ahmedabad
Appeal Number ITA 952/AHD/2017
Duration Of Justice 7 month(s) 7 day(s)
Appellant Genesis Organics Private Limited,, Vadodara
Respondent The Income Tax Officer, Ward-1(1)(3),, Vadodara
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Allowed
Bench Allotted C
Tribunal Order Date 27-11-2017
Assessment Year 2005-2006
Appeal Filed On 19-04-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH AHMEDABAD BEFORE SHRI N.K. BILLAIYA ACCOUNTANT MEMBER & SHRI S.S. GODARA JUDICIAL MEMBER ./ I.T.A. NOS.952 & 953/AHD/2017 ( / ASSESSMENT YEARS : 2005-06 & 2006-07) M/S.GENESIS ORGANICS PVT.LTD. TORAN COMPLEX 1 ST FLOORVIKAS NAGAR OLD PADRA ROAD VADOARA 390 007 / VS. THE INCOME TAX OFFICER WARD-1(1)(3) VADODARA ./ ./ PAN/GIR NO. : AABCG 5635 R ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI SURENDRA MODIANI C.A. / RESPONDENT BY : SHRI PRASOON KABRA SR.DR / DATE OF HEARING 02/11/2017 !'# / DATE OF PRONOUNCEMENT 27 /11/2017 / O R D E R PER S.S. GODARA JUDICIAL MEMBER THESE TWO ASSESSEES APPEALS FOR ASSESSMENT YEARS 2 005-06 & 2006-07 ARISE FROM THE CIT(A)-I VADODARAS EX-PART E ORDERS; BOTH DATED 31/01/2017 PASSED IN CASE NUMBERS CAB-1/363/2015-1 6 & CAB- 1/364/2015-16 UPHOLDING ASSESSING OFFICERS IDENTI CAL ACTION DISALLOWING/ADDING ITS RESEARCH AND DEVELOPMENT EXP ENDITURE OF ITA NOS.952 & 953/AHD/2017 M/S.GENESIS ORGANICS PVT.LTD. VS. ITO ASST.YEARS 2005-06 & 2006-07 - 2 - RS.28 48 709/- AND RS.25 48 883/-; RESPECTIVELY UND ER SECTION 35 AND 37 IN PROCEEDINGS U/S.143(3) R.W.S. 254 OF THE INCOME TAX ACT 1961; IN SHORT THE ACT. 2. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 3. IT EMERGES FROM A COMBINED PERUSAL OF BOTH THE I NSTANT FILES THAT THIS IS SECOND ROUND OF LITIGATION BETWEEN THE PART IES QUA ALLOWABILITY OF THE IMPUGNED RESEARCH AND DEVELOPMENT EXPENSES BEFO RE THE TRIBUNAL. THE ASSESSING OFFICER HAD FRAMED REGULAR ASSESSMENT S ON 28/11/2007 AND 02/12/2008 DISALLOWING THE ABOVE RESEARCH AND D EVELOPMENT EXPENSES CLAIMED AS REVENUE EXPENDITURE. THE CIT(A ) CONFIRMED THE SAME IN HIS SEPARATE FIRST ROUND LOWER APPELLATE OR DERS; BOTH DATED 17/09/2010. THE ASSESSEE THEN PREFERRED ITA NOS.31 60 AND 3472/AHD/2010 BEFORE THIS TRIBUNAL. A COORDINATE B ENCHS COMMON ORDER DATED 25/06/2012 THEREIN RESTORED THE ISSUE B ACK TO THE ASSESSING OFFICER FOR FACTUAL VERIFICATION. 4. THE ASSESSING OFFICER TOOK UP CONSEQUENTIAL PROC EEDINGS. WE FIND FROM HIS IDENTICAL ASSESSMENT ORDERS THAT HE R EITERATED HIS FINDINGS IN FIRST ROUND THAT THE EXPENSES IN QUESTION ARE NOT G ENUINE SINCE CLAIMED AFTER INFLATION OF BILLS IN THE NATURE OF ROUTINE E XPENSES. HE THEREFORE ITA NOS.952 & 953/AHD/2017 M/S.GENESIS ORGANICS PVT.LTD. VS. ITO ASST.YEARS 2005-06 & 2006-07 - 3 - INVOKED BOTH SECTION 35 AS WELL AS 37 OF THE ACT TO DISALLOW THE SAME ONCE AGAIN IN THE INSTANT SECOND ROUND. 5. THE ASSESSEE PREFERRED APPEAL. WE FIND FROM CIT (A)S IDENTICAL LOWER APPELLATE ORDERS UNDER CHALLENGE THAT HE ISSU ED FOUR NOTICES OF HEARING ON 20/09/2016 07/11/2016 14/12/2016 AND 0 6/01/2017 WHICH STOOD RETURNED WITH LEFT REMARKS. THIS MADE THE CIT(A) TO PASS THE IMPUGNED EX-PARTE ORDERS ONCE AGAIN CONFIRMING THE IMPUGNED DISALLOWANCES. 6. WE HAVE CONSIDERED RIVAL SUBMISSIONS REITERATING RESPECTIVE STANDS OF THE PARTIES. IT EMERGES THAT THE ASSESSEES ADD RESS GIVEN IN THE CIT(A)S ORDERS HAS BEEN CHANGED TO THE ONE SUBMITT ED IN THE INSTANT APPELLATE PROCEEDINGS. IT IS NOT IN DISPUTE THAT THE CIT(A) COULD NOT SUCCEED IN SERVING THE ASSESSEE ABOUT A SINGLE NOTI CE OF THE LOWER APPELLATE PROCEEDINGS BECAUSE OF THE ABOVE ADDRESS CHANGE. WE THEREFORE OBSERVE THAT THE ASSESSEES NON-APPEARANC E BEFORE THE CIT(A) COULD NEITHER BE TERMED AS INTENTIONAL NOR DELIBERA TE. WE ACCORDINGLY DEEM IT APPROPRIATE IN THE LARGER INTEREST OF JUSTI CE THAT THE LEARNED CIT(A) NEEDS TO RE-ADJUDICATE THE ENTIRE ISSUE AS P ER LAW AFTER AFFORDING THREE EFFECTIVE OPPORTUNITIES OF HEARING TO THE ASS ESSEE. THE ASSESSEES SOUL SUBSTANTIVE GROUND IN BOTH THESE APPEAL IS TAK EN AS ACCEPTED FOR STATISTICAL PURPOSES. ITA NOS.952 & 953/AHD/2017 M/S.GENESIS ORGANICS PVT.LTD. VS. ITO ASST.YEARS 2005-06 & 2006-07 - 4 - 7. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 27/11/2017 SD/- SD/- ( N.K. BILLAIYA ) ( S.S. GODARA ) ACCOUNTANT MEMBER JU DICIAL MEMBER AHMEDABAD; DATED 27/ 11 /2017 &.. .(../ T.C. NAIR SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. )*+ / CONCERNED CIT 4. ( ) / THE CIT(A)-I VADODARA 5. /01 ((*+ *+# ) / DR ITAT AHMEDABAD 6. 145 6 / GUARD FILE. / BY ORDER / ( //TRUE COPY// / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD 1. DATE OF DICTATION ...24.11.17 (WORD PROCESSED BY H ONBLE JM IN HIS COMPUTER) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .24.11.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.27.11.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.11.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER