ZAHI TYRES (INDIA) PRIVATE LTD,ERNAKULAM vs. ASSISTANT COMMISSIONER OF INCOME TAX , KOCHI

Brief facts of the case are that the assessee is a company incorporated under the provisions of the Companies Act and is engaged in the business of manufacturing of tyres on contract basis. Assessee filed return of income for AY 2013-14 on 07.032014 declaring a loss of Rs. 62,59,909/- . Against the said return of income assessment was completed by the Assessing Officer (AO) vide order dated 30.03.2016 passed u/s. 143(3) of the Act at a total income of Rs.29,69,327/-. While doing so the AO made addition of Rs.3,30,181/- invoking the provisions of section 14A of the Act. The AO also made addition of Rs. 48,21,000/- u/s. 40A(3) of the Act.

Being aggrieved, assessee is in appeal before the Tribunal. I have heard the rival contentions of both the parties and perused the material available on record. On perusal of the order of the CIT(A), it would be clear that the CIT(A) without adverting to the facts of the case and the judicial precedents relied upon by the assessee, had merely dismissed the appeal without giving any cogent reasoning. Thus the order passed by the CIT(A) is not a reasoned order. Therefore, I am of the considered opinion that the ends of justice, would be met if the matter is restored back to the file of the CIT(A) with a direction to dispose of the appeal on merits after affording reasonable opportunity of being heard to the assessee.

In the result, the appeal filed by the assessee is allowed for statistical purposes.