Income Tax Appellate Tribunal - Chandigarh
M/S Shree Ganesh Concast Group Of ... vs Dcit, Circle, Shimla on 10 July, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
DIVISION BENCH 'B', CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER
AND SHRI B.R.R.KUMAR, ACCOUNTANT MEMBER
ITA Nos.1716 & 1717/Chd/2017
(Assessment Years : 2012-13 & 2013-14)
M/s Shree Ganesh Concast Group Vs. The D.C.I.T.,
Of Industries, Industrial Area Circle - Shimla.
Sansarpur Terrace, Distt. Kangra(H.P.)
PAN: ABGFS0856H
(Appellant) (Respondent)
Appellant by : Shri Aashre Sarna
Respondent by : Shri Manu Malik, CIT DR
Date of hearing :06.06.2018
Date of Pronouncement :10.07.2018
O RDE R
Per Sanjay Garg, Judicial Member :
Both t h e a b o v e c a p t i o n e d a p p ea l s h a v e b e e n p r e fe r r e d by the a s s e s s ee against the separate o r d er s of Ld. Commissioner of I nc o m e Ta x ( A p p e a l s) , Palampur ( h e r e i n a ft e r r e f er r e d to as ( ' L d. CI T( A p p e a l s ) ' bo t h d a te d 2 8 . 9 . 2 0 1 7 p a ss ed u / s 2 5 0 ( 6 ) o f t h e Income Ta x A c t , 1 9 6 1 (in short ' th e Act') in Appeal N os . CI T( A ) P a l a m p u r /1 0 1 2 7/ 1 5 - 1 6 an d CI T( A ) P a l a mp u r / 1 00 5 9 / 1 6 - 1 7 relating to a ss e s s m e n t y ea r s 2012-13 and 2013-14 r e s p e c t i ve l y .
2. S i n c e i d e n t i ca l i s s u e s h a v e b e en r a i s ed i n b o th t he appeals, th e s am e were h e ar d together an d are being d i s p o s e d o f f b y th i s c o n s ol i d a t ed o r d e r .
3. Th e assessee is aggrieved w i th the action of the C I T( A p p e al s ) in rejecting t he application m ove d by th e 2 ITA Nos.1716 & 1717/Chd/2017 AYs: 2012-13 & 2013-14 a s s e s s e e f or a d mi t t i n g a d d i t i o n a l g r o u n d a n d f u rth e r d e n i a l o f c l a i m o f d ed u ct i o n t o t h e a s se ss e e u / s 80I C o f th e A c t .
4. A t t h e o ut s e t , t he L d . c o un s e l fo r a s s e s s e e h a s i nv i t e d o u r a t t en t i o n to t h e as s e s s m en t o r d e r o f t h e A s s e s s i n g O f f i c e r f o r t h e ye a r u n de r c on s i de r a t i o n a n d h a s s u b m i t t e d t h a t t h e s a i d o rd e r o f t h e A s se ss i n g O f f i ce r i s an e x - p a r t e o r d e r p a s s ed u /s 1 4 4 o f t h e Ac t , w h e r e i n t h e A s s e s s i n g O f f i c e r h as d e n i e d t h e c l a i m o f e x e m p t i o n u / s 10 A A o f t h e A c t . Th e L d . c ou n s e l fo r a ss e ss e e h a s f u r th e r s u b m i tt e d t h a t i n f a c t t h e a s s e s s e e w a s en t i t l e d t o d e d u ct i o n u n d e r t h e p r o vi s i o n s o f s e c ti o n 8 0I C o f t he A c t. H o w e v e r , t h e a s s e s s e e m i s t ak en l y h a d c l a i m e d e x e m p t i o n u / s 10 A A o f t h e A c t . Th e L d . c ou n s e l fo r a ss e ss e e h a s f u r th e r s u b m i tt e d t h a t t h e a s s e s see f i r m w a s r u n ni n g i n t o h e a v y l o s s e s a n d t h e b a n k ha d t ak e n p o s s e ss i o n of t h e a s s et s o f t he a s s e s s ee a n d t h e p a r t ne rs o f t h e a s s e s see f i r m w e r e i n a s t a t e o f s h c k / d e p re s s i o n a n d h e n c e c o ul d n o t a p p e a r b e f o r e t he A s s e s s i n g O ff i c e r. F u r t h e r , t h e j ur i s d i c t i o n o f t h e A s s e s s i n g O f f i c e r w a s c h a ng e d w i t h o u t n o t i c e t o t h e a s s e s se e . H e n ce t h e a s s e ss e e c oul d n o t ap p e a r b ef o r e t h e A s s e ss i n g O f f i ce r d u r i n g t he a s s ess m e n t p r oc e e d i ng s .
F u r t h e r , i nv i t i n g o u r a t t e n t i o n to t h e i m p u g n e d o r d er o f t h e CI T( A p p e al s ) , t h e L d . c o u ns e l f o r a s s e ss e e s u b m i t t e d that t he a s se s se e had r a i s ed the a b ov e plea that the a s s e s s e e w as e nt i t l e d t o t h e de du c t i o n u / s 8 0I C o f t h e A c t a n d f u r t h e r t h at t h e c o p y o f F o r m 3 C B / 1 0 C CB w a s a l s o f i l e d b e f or e t h e L d . CI T( A p p e a l s ) a s a n a d d i t i o n a l e v i d e n c e . 3 ITA Nos.1716 & 1717/Chd/2017
AYs: 2012-13 & 2013-14 However, the L d . CI T( A p p e a l s ) r e j e c te d t he additional e v i d e n c e f i l e d by t h e a ss e s s e e ob s e r v i n g t h a t t he a s s e s s ee had not filed the a u di t report or f o rm 1 0 C CB o n l i n e / t hr o u g h i n t e r n e t . Th e L d. c o u n s e l fo r a s se s s e e h as f u r t h e r s u b m i tt ed t h a t t h e as s e ss e e h a s f u l l y c om p l i e d wi t h a l l t h e r e q u i r e me n t s . Th a t n o n- fi l i n g o f t h e a u d i t r e p o r t o r f o r m 1 0 C C B, b e fo r e t h e A s s es s i ng O f f i c e r , w a s no t d u e t o any i n t e nt i o n a l default but wa s due to an i n a d v e r t ent m i s t a k e . Th e a s s e s s e e h a s e x p l a i n e d t h a t b e c au s e i t h as m i s t a k e n l y c l a i m e d d e d u c t i o n u / s 1 0 A A o f t he A c t , h e n c e t h e r e q u i re d d oc u m e n t s f or c l ai m i n g t h e s a i d d e d u c t i o n u//s 10AA of the Act were filed. Th e Ld. co u n s e l fo r a s s e s s e e h a s s ub m i t t e d t h a t th e a s s e s s e e h a s a l r e a d y f i l e d t h e r e q ui s i t e d oc u m e n t s r e q u i r ed u / s 8 0I C o f th e A c t . H e h a s f u r t h er s u bm i t t e d t h at d u e t o d e l a y i n f i l i n g o f f o r m 1 0 C C B , wh i c h wa s n o t i n t e n t i o na l b u t du e t o ab o v e n o te d f a c t s , t h e l e g i t i m a t e c l a i m o f d e d u c t i o n o f t he a s s e s s e e s h o u l d n ot b e den i e d t o th e a s se ss e e .
5. Th e L d . D R , o n t h e o t h e r h an d, h a s c o n t e nd e d t h a t t h e r e i s c o n s i d er a b l e d e l a y i n fi l i n g f o r m 1 0 CC B a n d t h a t the c l ai m of the a s s es s e e at this stage ca n n o t be e n t e r t a i ne d .
6. We have c o n si d e r e d th e r i v al s u b m i s s i o n s. Th e a s s e s s e e i n t h i s c a s e , h a s e x p l ai n e d t he r e as o ns f o r n o n - filing of f o rm 10CCB as he had m i st a k e nl y c l a i me d d e d u c t i o n u / d 1 0 A A i n s te a d o f s e c t i o n 8 0I C of t h e A c t. H o w e v e r , t h e a ss e s s e e ha d f i l e d t h e r eq u i s i te do c u m e n t s 4 ITA Nos.1716 & 1717/Chd/2017 AYs: 2012-13 & 2013-14 b e f o r e t h e Ld . CI T( A p p e a l s ) u n der R u l e 4 6 A o f th e I n c om e Ta x R u l e s . I t h a s b e e n t i m e a n d a g a i n h e l d t h a t t he r e v e n u e authorities s h ou l d c h a r ge legitimate ta x f r om the tax p a y e e s . I f th e a ss e s s e e i s , ot h e r w i s e , en t i t l ed t o d e d u c ti on u n d e r a n o t h er p r o v i s i o n s b ut h ad c l a i m e d d e d u ct i o n u n d er t h e w r o n g p ro v i si o n , a d u t y i s al s o c a s t u p o n th e a s s e s s i n g a u t h o r i t i e s t o a pp l y t h e r e l e v an t p r o v i s i o n wh i l e c o m p u t i n g t h e i n c o m e . E ve n t h e L d . CI T( Ap p e a l s ) , i n ou r v i e w , h a s f a i l e d t o e x er c i se h i s a p p e l l at e ju r i s d i c t i o n u / s 2 5 0 o f t h e Act. A s p e r t h e p r o v i s i o ns , a d u t y i s a l s o c a s t u p o n t h e L d . C I T( A ) t o a d m i t a n d c o n s i de r th o s e e v i d en c e s w h i c h a r e r e l e v a n t f or t h e ju s t a n d p r o p e r de c i s i o n o f t he c as e a n d g o t o t h e r o ot o f t he c a s e . Th e H o n 'b l e B o m b a y H i gh C o u r t i n t h e c a s e o f "S m t . P r a b h a va t i S .S ha h v . CI T" [ ( 1 9 9 8) 2 3 1 I TR 1 ( B o m . ) ] h a s he l d t h a t t h e p o w e r s c o n f e rr e d o n t h e f i r s t a p p e l l a t e a u t h o ri t y u n d e r s u b - s ec t i o n ( 4 ) o f s e ct i o n 2 5 0 of t h e A c t , b e i n g a q u a s i - j u d i c i a l p o w e r , i t i s i n cu m b e n t o n h i m t o e x e r c i s e t h e s am e , i f t he f a c t s a n d c i r cu m s t a n c e s justify.
E v e n o t he r w i s e u n d e r R ul e 4 6A ( 4 ) o f t h e I n c o me t a x R u l e s , t he L d . CI T( A p p e a l s ) h a s be e n g i v e n p o w e r t o c a l l f o r p r o d u c t i on o f an y d o c u me n t or t h e e xa m i n a ti on o f a ny w i t n e s s e s t o en ab l e h i m t o d i sp os e o f t he a p p e al . Th e r e i s n o d o u b t a b o u t t h e l e g a l p o s i ti o n t h a t i f a n y d o c u m e n t f u r n i s h e d b y t h e a s s e s s ee b e fo r e t h e L d. CI T( A p pe a l s ) i s i n t h e n a t u re o f c l i n c h i n g e vi d e n c e w h i c h go e s t o th e r o o t o f 5 ITA Nos.1716 & 1717/Chd/2017 AYs: 2012-13 & 2013-14 the case then in the interest of justice s u ch types of e v i d e n c e s h o u l d n o t b e r e j e c t e d.
7. F u r t h e r th e H on ' b l e S u pr e m e C o u r t i n t h e ca s e of N a t i o n a l Th e r m a l P o w e r C o . Lt d . V s . CI T, 2 2 9 I TR 3 8 3 h as h e l d t h at t h e Tr i b u n a l i s n o t p r e ve n t e d f ro m c o ns i d e r i n g th e q u e s t i o n o f l a w a r i s i n g i n a s se ss m e n t p ro c e e d i ng s t h o u gh n o t r e a c h e d e a rl i e r . Th e H o n ' b l e S u p r e m e C o u rt h e l d t h a t t h e Tr i b u n a l h a s j u r i s d i c t i on t o e x a m i n e a q u e s ti o n o f l a w w h i c h a r i s e s f rom t h e f a ct s a s f o u n d b y t h e a u t h o r i t i e s b e l o w a n d h a v i n g a b e a r i n g on t h e t a x l i a b i l i t y o f t h e assessee.
Th e f u l l b e n c h o f t h e H on ' b l e B o m b a y H i g h C ou r t i n t h e c a s e s o f " A hm e d a b a d E l e c t r i c i t y C o m pa n y L td . v s . CI T"
a n d " G o d a v ar i Su g a r M i l l s L td . vs . CI T" b y w a y o f a c o m m o n o r d e r d a t e d 3 0 .0 4 . 1 9 9 2 ( 1 9 9 3) 1 9 9 I TR 3 5 1 h a s o b s e r v ed t h a t t h e b a s i c pu r p o s e o f a n ap pe a l p r o c ed u r e i n a n i n c o m e t a x m a tt e r i s to a s c e r ta i n t h e co r r e c t t a x l i a b i l i t y o f t he a s s e s s e e i n a c co r d a n c e w i t h l a w . Th e r e f o r e , a t b o t h t h e s t a g e s , e i t h e r by t h e A pp e l l a te A s s i s t a n t C o m mi s s i o n e r o r b e f o r e t h e A p pe l l a t e Tr i b u n a l , th e a p p e l l a te a u th o r i t y c a n c o n s i d e r t h e p ro c e e d i n g s b e fo re i t and the material on r e c o r d be f o r e i t f o r t h e p u r p o se o f d e t e rm i n i n g th e c o r r ec t t a x l i a b i l i t y of th e a s s e s se e . Th e a p p e l l at e a u tho r i t i e s , o f c o u r s e , ca n n o t tr a v e l b e yo n d t h e p r o c e e d i n g s a nd e x a m i n e new source of income, for t h at purpose o t h e r s e p a r a te r e m e d i e s a re p r ov i d e d t o t h e d e pa r t m e n t u n d er th e I nc o m e Ta x A c t . Th e H on ' b l e f ul l b e nc h o f t h e Bo m b a y H i g h C o ur t 6 ITA Nos.1716 & 1717/Chd/2017 AYs: 2012-13 & 2013-14 o b s e r v e d t h a t ap a r t f r o m t h e ab o v e , t h er e w a s n o t h i n g i n s e c t i o n 2 5 4 o r se c t i o n 2 5 1 , w h i ch w o u l d i n di c a t e t h a t t he a p p e l l a t e a u t h o ri t i e s a r e co n f i n ed t o c o n s i d er i n g o n l y t he o b j e c t i o ns r ai s e d b e f o r e t h e m o r a l l o w e d t o be r a i s e d b e f ore t h e m e i t h er b y th e a s s e s s ee o r b y t h e d e p ar t m en t , a s t h e c a s e m a y b e . Th e y c a n c o n s i d er t h e e n t i r e p r oce e d i n g s t o d e t e r m i n e t h e ta x l i a b i l i t y o f t h e a s s e s s e e .
8. Th e H o n ' b l e B o mb a y H i g h C ou r t i n t h e c a s e of " CI T v s . P r u t h v i B r o k er s a n d S h ar e h o l d ers P v t . L t d ." ( 20 12 ) 3 4 9 I TR 3 3 6 ( B o m . ) h as o b s e r v e d t h a t t h e a s s e s s ee i s e n t i t l e d t o r a i s e n ot m e r el y a d d i t i o n a l l e ga l s u b m i s s i o n s b e f o r e th e a p p e l l a t e a u th o r i t i e s , bu t i s a l s o e n t i t l e d t o r a i s e a d d i t i o n al clams b ef o r e them. Th e a pp e l l a t e a u t h o ri t i e s h a ve j u r i s d i c ti o n to d e a l n o t m e r e l y w i t h a dd i t i o na l g r o u n d s, which b e ca m e available on account of change of c i r c u m s t an c e s or l a w , b u t w i t h a d d i t i o n a l g r o un d s w h i c h w e r e a v a i l a b l e wh e n t h e r e tu r n w a s f i l e d. Th e w o r d s ' c o u l d n o t h a v e be e n ra i s e d ' m us t b e co n s t r u e d l i b e r al l y a n d n o t s t r i c t l y. Th e r e m a y b e s e v e r a l f ac t o r s j u s t i f yi n g th e r a i s i n g of a new plea in an appeal and e a ch c a se must be c o n s i d e r ed o n i t s o w n f a ct s .
9. I n v i e w o f t h e a b o v e d i s cu s s i o n , w e s e t a s i d e t he a s s e s s m e nt o r d er a n d t h e or d e r o f t h e CI T( A p pe a l s ) a n d r e s t o r e th e m a tte r b a c k to t h e f i l e o f t h e A s s e ss i n g O f f i c er f o r d e - no v o as s es s m e n t i n c l u d i ng c o n s i de r a t i on o f c l a i m o f t h e a s s e s s ee f o r d e d u c t i o n u /s 8 0 I C o f t h e A c t. I t i s ma d e clear t ha t the delay in filing of a ud i t re p o r t / f o rm 7 ITA Nos.1716 & 1717/Chd/2017 AYs: 2012-13 & 2013-14 3 C D / 1 0 C CB , e t c . w i l l n o t b e a g r ou n d t o d e n y t h e d e d u c t i o n t o t h e as s e s s ee . N e e d l es s t o sa y t h a t t h e a sse s s e e w i l l p a r t i c i p at e i n t he a s s e s sm e n t pro c e e d i n g s a n d fu r n i s h th e r e q u i s i t e d e ta i l s t o t he A s se s s i ng O f f i ce r a nd t he A s s e ss i ng O f f i c e r w i l l gi v e p r o p e r o pp o r t u ni t y o f h e ar i n g / pre s e n t a t i on o f h i s c as e t o t h e a s s e s s e e.
10. I n t h e r es u l t , bo t h t h e a pp e a l s o f t h e a ss e s s ee a re t r e a t e d as a l l o w ed f o r s t at i s t i c a l p u r p o s e s .
O r d e r p r on o u n c ed i n t h e o p e n cou r t o n ... ...... ... ...
Sd/- Sd/-
(B.R.R. KUMAR) (SANJAY GARG)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 10 t h July, 2018
*Rati*
Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT
5. The DR Assistant Registrar,
ITAT, Chandigarh