SONATA CERAMICA PVT. LTD.,SABARKANTHA vs. THE DY, CIT, SABARKANTHA CIRCLE, HIMATNAGAR

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ITA 987/AHD/2016Status: DisposedITAT Ahmedabad16 November 2018AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. Following a coordinate bench's decision, the matter was remitted to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeal was filed 22 days late due to a lapse in communication. The additions made by the AO were based on findings from excise proceedings.

What were the issues?

Whether the reopening of assessment was valid and whether the rejection of books of accounts and suppression of sales were correctly confirmed by the CIT(A), pending the outcome of excise proceedings.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 145

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD ‘D’ BENCH, AHMEDABAD

1.

This is an appeal filed by the assessee and is directed against the order dated 22nd December 2015 passed by the CIT(A)-7, Ahmedabad in the matter of assessment under section 143(3) r.w.s. 147 of the Income-tax Act, 1961, for the assessment year 2008-09.

2.

The appeal is time barred by 22 days; but the assessee has moved a condonation petition duly supported by affidavit dated 31.05.2018. It is contended that the delay occurred due to lapse on the part of the assessee to pass on the impugned order of the CIT(A) to the Chartered Accountant for preparing appeal against the same.

3.

Having perused the condonation petition and having heard the rival contentions on the same, we are inclined to condone the delay. The delay is condoned. Accordingly, we admit the appeal and proceed to take up the same on merits.

I TA N o. 9 8 7 /A hd / 20 1 6 S on a ta C e r a mi a Pv t Lt d V s. DCI T Ass e ss me n t Y ea r : 2 0 08 - 0 9 Page 2 of 3 4. Grievances raised by the assessee are as follows:-

“1. The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of AO in reopening the assessment u/s 147 of the Act, On the facts and circumstances of the case, learned CIT(A) ought to have held that the action of reopening is without jurisdiction and not permissible either in law or on facts.

2.

The learned CIT(A) has erred both in law and on the facts of the case in confirming the action of AO in rejecting books of accounts u/s 145 of the Income- tax Act, 1961.

3.

The learned CIT(A) has erred in law and on facts of the case in confirming the action of learned AO that the appellant has suppressed sales amounting to Rs.1,99,70,820/-.

4.

The learned CIT(A) has erred both in law and on the facts of the case in confirming an addition of Rs.21,32,884/- after applying net profit rate of 10.68% on alleged suppressed sales.

5.

Both the lower authorities have passed the orders without properly appreciating the fact and that they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. This action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed.”

5.

When this appeal was taken up for hearing on merits, it was pointed out that the impugned additions were made on the basis of findings in the course of Excise Proceedings and that a Co-ordinate Bench of this Tribunal in assessee’s own case for assessment years 2005-06 & 2006-07 has remitted the matter to the file of the CIT(A), in that assessment years, for fresh adjudication in the light of final outcome in the Excise Proceedings based on which the present additions were made. We are urged to follow the same approach and remit the matter to the file of the learned CIT(A) for fresh adjudication in the light of final outcome of the proceedings in the excise matter. Learned Departmental Representative did not seriously dispute the prayer of the learned Counsel for the assessee, but merely placed reliance on the stand of the authorities below.

6.

Respectfully following the Co-ordinate Bench decision in assessee’s own case for assessment years 2005-06 & 2006-07 (ITA Nos. 2076/Ahd/2012 & 2077/Ahd/2012, order dated 01.03.2016), we deem it fit and proper to remit the matter to the file of the

I TA N o. 9 8 7 /A hd / 20 1 6 S on a ta C e r a mi a Pv t Lt d V s. DCI T Ass e ss me n t Y ea r : 2 0 08 - 0 9 Page 3 of 3

learned CIT(A) for re-adjudication in the light of final outcome in the excise proceedings in assessee’s case. Ordered, accordingly.

7.

In the result, the appeal is allowed for statistical purposes in the terms indicated above. Pronounced in the open court today on the 16th November, 2018

Sd/- Sd/-

Justice P P Bhatt Pramod Kumar (President) (Vice President) Ahmedabad, the 16th day of November, 2018 **bt

Copies to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File

By order TRUE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad

1.

Date of dictation: .......attached 2 pages dictation pad – 08.11.2018... 2. Date on which the typed draft is placed before the Dictating Member: .. 09.11.2018..... 3. Date on which the approved draft comes to the Sr. P.S./P.S.: …16.11.2018... 4. Date on which the fair order is placed before the Dictating Member for Pronouncement: . 16.11.2018.. 5. Date on which the file goes to the Bench Clerk : . …16.11.2018…. 6. Date on which the file goes to the Head Clerk : ……………………………. 7. The date on which the file goes to the Assistant Registrar for signature on the order: …. 8. Date of Despatch of the Order: ………………......

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