M.M. Industries, Faridabad vs Assessee

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH 'E ', NEW DELHI) BEFORE SHRI G. C. GUPTA, HON'BLE VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. No.2420 /Del/2013 Assessment year : 2007-08 M/s. M.M. Industries, Vs. ITO, Ward 11(4), 65-A, Industrial Area, NIT, Faridabad Faridabad GIR / PAN:AALFM2320G (Appellant) (Respondent) Appellant by : Shri Ashwani Taneja, Adv. Shri Tarun Kumar, Adv. Respondent by : Shri P Dam Kanunjha, Sr. DR Date of hearing : 11.03.2015 Date of pronouncement : 18.03.2015 ORDER PER T.S. KAPOOR, AM:

This is an appeal filed by assessee against the order of Ld. CIT(A) dated 18.03.2013. The assessee has raised various grounds of appeal regarding various additions made by A.O.

2. Ground No.1 of appeal relates to grievance of assessee whereby it has submitted that additional evidence filed by it was not accepted by Ld. CIT(A). Ld. A.R. at the outset, invited our attention to the relevant paragraphs of Ld. CIT(A)'s order with a view to highlight that Ld. CIT(A), after calling remand report form A.O., has not accepted the additional evidence holding that assessee was provided sufficient opportunity. Ld. A.R. filed copy of the remand report dated 08.08.2012 and submitted that 2 ITA No.2420/Del/2013

the A.O. has also submitted his comments on merits which Ld. CIT(A) has failed to take in to account. Ld. A.R. further submitted that additional evidences were filed only for one ground of appeal whereas Ld. CIT(A) has considered as if additional evidence were filed for all grounds of appeal.

3. Ld. D.R. on the other hand heavily relied upon the orders of authorities below.

4. We have heard rival parties and have gone through the material placed on record. We find that the assessment order was passed u/s 143(3) of the Act. However Ld. CIT(A) has noted form the records that assessee on various dates had not attended the assessment proceedings and even observing that A.O. had imposed penalty u/s 271(1)(c) and therefore, he held that sufficient opportunities were provided to assessee and, therefore, after calling remand report from A.O., he did not consider the additional evidence and proceeded to decide the issue without taking into account the additional evidence. Though it is a fact that assessee was provided a number of opportunities to submit details as mentioned in Ld. CIT(A)'s order yet the fact remains the additional evidence go to the root of the matter, which were not taken into account by Ld. CIT(A) especially in view of the fact that A.O. had issued remand report also. In view of above facts and circumstances, we deem it appropriate to set aside the order of Ld. CIT(A) and remit back the issue to the office of Ld. CIT(A) who should readjudicated on the grievances of the assessee after taking into account the additional evidence and remand report. We also direct the assessee to present itself before Ld. CIT(A) for speedy disposal of its appeal and the opportunity granted to assessee should 3 ITA No.2420/Del/2013

not be misutilized. Needless to say assessee will be given proper opportunity of being heard.

5. In view of above, appeal filed by assessee is allowed for statistical purposes.

6. Order pronounced in the open court on 18th March, 2015.

Sd./- Sd./- (G. C. GUPTA ) (T.S. KAPOOR) VICE PRESIDENT ACCOUNTANT MEMBER th Date: 18 March, 2015 Sp Copy forwarded to:- 1. The appellant 2. The respondent 3. The CIT 4. The CIT (A)-, New Delhi.

5. The DR, ITAT, Loknayak Bhawan, Khan Market, New Delhi. True copy.

By Order (ITAT, New Delhi).

S.No. Details Date Initials Designation 1 Draft dictated on Sr. PS/PS 2 Draft placed before author Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS 18/3/2015 Sr. PS/PS 6 Kept for pronouncement 18/3 Sr. PS/PS 7 File sent to Bench Clerk 18/3 Sr. PS/PS Date on which the file goes to Head 8 Clerk 9 Date on which file goes to A.R. 10 Date of Dispatch of order