SIPANI WOOLEN PRIVATE LIMITED,BIKANER vs. ITO, WARD-1(2), BIKANER

PER: RATHOD KAMLESH JAYANTBHAI, AM

This appeal is filed by assessee and is arising out of the order of

the National Faceless Appeal Centre, Delhi dated 29.11.2022 [here in

after (NFAC)] for assessment year 2018-19 which in turn arise from

the order dated 13.11.2019 passed under section 143(1) of the

Income Tax Act, by the DCIT, CPC.

2 ITA No. 178/Jodh/2022 Sipani woolen Pvt Ltd. 2. The assessee has marched this appeal on the following

grounds:-

“1. The ld. CIT(A), Bikaner was wrong in law as well as in facts in upholding an addition of Rs. 2,26,484/- on account of employer and employee contribution for ESI/PF without considering the facts and circumstances of case by completing the assessment u/s 143(1). 2. The Ld. CIT(A), Bikaner was wrong in law as well as in facts in upholding an addition of Rs. 2,15,561/- in account of depreciation u/s 32(1)(i). 3. The Ld. CIT(A), Bikaner was erred by charging interest u/s 234A, 234B and 234C of IT. Act. 4. The appellant reserves right to add, amend or alter any ground of appeal as and when required. 5. No reasonable opportunity of being heard was afforded.”

u/s 36(1)(va) of the Act, of Provident Fund Payment and ESI payment

amounting to Rs. 2,26,484/- being employees contribution deposited

after the due date as stipulated by the Provident Fund Act but before

filing of Income Tax Return and disallowance on account of incorrect

claim of depreciation u/s 32(1)(i) amounting to Rs. 2,15,561/-. The

contention of the assessee is that the same was wrongly added to

total income on account of profit on sales of fixed asset in case of

company assessee under the intimation issued by the CPC u/s.

143(1) of the Act.

3 ITA No. 178/Jodh/2022 Sipani woolen Pvt Ltd. 4. Being aggrieved by the order issued U/s 143(1) of the IT Act,

the assessee preferred an appeal before the ld. CIT(A). The ld.CIT(A)

uphold the adjustments made by the AO CPC in the intimation issued

u/s. 143(1) of the Act and consequently the appeal of the assessee on

both the issue raised was dismissed.

assessee is in appeal before this tribunal on the grounds so raised in

para 2 above. The ld. AR of the assessee in support of the two

adjustment submitted that while issuing the intimation the ld. AO CPC

has not correctly appreciated the fact that whether the disallowance is

for the employee contribution for ESI/PF or employer and this has

impact on the decision. Not only that while disallowing the claim of the

depreciation the assessee has claimed the deprecation on property

sold but the block depreciation is on the block concepts need to be

explained and since the same were not placed on record prayed that

on both the issue the matter may be remanded back to the file of the

ld.AO.

4 ITA No. 178/Jodh/2022 Sipani woolen Pvt Ltd. 6. The ld DR is heard who has relied on the findings of the lower

authorities did not object to the prayer of the assessee as the matter is

to be decided on merit by the ld. AO.

placed on record. It is not under dispute that the adjustment is made

by the AO CPC in the intimation u/s. 143(1) of the Act. Even before the

ld. CIT(A) the submission is evidently not discussed as contended that

the disallowance is of employee or employe contribution and looking to

the facts of the case in fact depreciation is disallowable or not. Thus,

based on these arguments the bench feels that if given a chance the

assessee would like to demonstrate the merits of the case. Based on

the contentions and on going through the orders of the lower

authorities we find force in the arguments advanced by the ld. AR of

the assessee and therefore, we are of the considered view that the

assessing officer should hear the assessee’s submission on merits

after affording proper opportunity of being heard and pass speaking

order in the matter and therefore, the matter is set a side to the file of

the learned assessing office. At the same time assessee is directed to

represent and present all the facts before the assessing officer and

5 ITA No. 178/Jodh/2022 Sipani woolen Pvt Ltd. should not ask for the adjournment on frivols grounds. At this stage we

remand back the issues raised without commenting upon the merits of

the case and the ld. AO is directed to complete the assessment in

accordance with the law.

In the result, appeal of the assessee is allowed for statistical

purpose.

Order pronounced under rule 34(4) of the Appellate Tribunal Rules,

1963, by placing the details on the notice board.

Sd/- Sd/- (Dr. S. Seethalakshmi) (Rathod Kamlesh Jayantbhai) Judcial Member Accountant Member

Dated : 03/08/2023 *Ganesh Kumar, PS Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File

Assistant Registrar Jodhpur Bench