SBS PAPER BOARDS PRIVATE LIMITED, ,RAJAMAHENDRAVARAM vs. THE ACIT, CIRCLE -1(1), RAJAMAHENDRAVARAM

Brief facts of the case are that the assesse is a Private Limited Company engaged in manufacture of Kraft Paper filed its return of income for the AY 2007-08 on 13/11/2007 declaring loss at Rs. 38,90,552/-. The scrutiny assessment was completed u/s. 143(3) of the Act on 25/11/2009 determining the loss at Rs. 33,13,336/-. The assessment was subjected to revision U/s. 263 by the CIT, Rajahmundry wherein the Ld. CIT set-aside the assessment on account of some erroneous commissions and omissions noticed therein and directed the Ld. AO to re-do the assessment as per the directions mentioned in the order U/s. 263 of the Act. Consequent to the order issued U/s. 263, the Ld. AO

On appeal, the Ld. CIT (A) after considering the submissions of the assessee as well as the remand report submitted by the Ld. AO, partly allowed the assessee’s appeal and granted relief to the assessee only to the extent of Rs.22,067/- on account of disallowance of interest. Aggrieved with the order of the Ld. CIT (A), the assessee is in further appeal to the Tribunal.

Before us, at the outset, the Ld. AR submitted that the assessee had filed the additional evidences / documents before the Ld. CIT(A). The Ld. CIT(A) had called for a remand report from the Ld. Assessing Officer and received the same on 26/09/2019. On the basis of the remand report the Ld. CIT(A) decided the issue against the assessee. It was the contention of the assessee that the assessee was not provided the opportunity to confront the remand report and therefore the issues were decided against the assessee violating the principles of natural justice.

Per contra, the Ld. DR submitted that a copy of the remand report should have been supplied by the Ld. CIT(A) to the assessee and the assessee chooses not to respond to the remand report and therefore it was submitted that there was no violation to the principles of natural justice and hence the order passed by the Ld. CIT(A) is in accordance with law.

We have heard the rival contentions and perused the material on record and the orders of the authorities below. On perusal of paras 7 & 7.1 of the Ld. CIT (A)’s order, it is clear that there is no reference of filing response by the assessee as well as there was no mention about the supply of copy of the remand report to the assessee. Therefore, in our considered opinion once the lower authorities or any authority chooses to decide the issue on the basis of the remand report given by the Assessing Officer,

In the light of the above, the appeal of the assessee is allowed for statistical purposes.

Aayakar Bhavan Annexe, Veerabhadrapuram, Rajamahendravaram, E.G Dist., A.P. ववभागीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशाखाऩटणम/ DR, ITAT,

Visakhapatnam गार्ा फ़ाईऱ / Guard file 6. आदेशानुसार / BY ORDER