ACIT, Central Circle 17, New Delhi v. K.P. Pan Flavours Pvt. Ltd
[Citation -2019-LL-1001-75]

Citation 2019-LL-1001-75
Appellant Name ACIT, Central Circle 17, New Delhi
Respondent Name K.P. Pan Flavours Pvt. Ltd.
Court ITAT-Delhi
Relevant Act Income-tax
Date of Order 01/10/2019
Assessment Year 2004-05
Judgment View Judgment
Keyword Tags excise duty • gross profit ratio • opportunity of being heard • enhancement of turnover • sales turnover • original assessment • estimated profit • violation of natural justice • addition to income • non-appearance
Bot Summary: 24/36, Birahana Road, Kanpur 208 001 ASSESSEE BY None REVENUE BY Shri J.K. Mishra, CIT DR Date of Hearing 12.09.2019 Date of Order 01.10.2019 ORDER PER KULDIP SINGH, JUDICIAL MEMBER Appellant, ACIT, Central Circle 17, New Delhi by filing the present appeal sought to set aside the impugned order dated 29.04.2016 passed by the Commissioner of Income - tax-27, New Delhi qua the assessment year 2004-05 on the grounds inter alia that- 1. CIT deleted the addition of Rs.2,98,46,183/- vide order dated 26.03.2012 which order has been set aside by the Tribunal by allowing the appeal for statistical purposes to the file of ld. Departmental Representative for the revenue to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. Bare perusal of the operative part of the impugned order particularly para no.5 goes to prove that the ld. CIT has entertained the evidence of the assessee at the back of the Assessing Officer by taking on record certificate dated 24.03.2015 of Tribunal, Commercial Tax, Kanpur confirming that the Department has not filed the revision against the order dated 05.03.2012 of First Appellate Authority of Trade Tax till 24.03.2015, another certificate dated 18.03.2016 issued by the Tribunal confirming that till date no revision has been filed against the aforesaid order dated 05.03.2012 of the First Appellate Authority of Trade Tax and proceeded to delete the addition. Since the impugned order is based upon the fact that as per certificates dated 24.03.2015 18.03.2016, till that dates order of the First Appellate Authority of Trade Tax and Commercial Tax have not been challenged, copy of orders are also not on the file nor crux thereof has been extracted in the impugned order, the impugned order is not 4 ITA No.3934/Del./2016 sustainable having been passed in violation of rule of natural justice as opportunity of being heard is not give to the AO to verify the documents relied upon by the assessee. Even otherwise, addition cannot be deleted merely on the certificate that till such and such date order of Tribunal has not been further challenged, unless there is categoric decision taken by the Trade Tax Authorities not to challenge order passed by the Tribunal.


IN INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.3934/Del./2016 (ASSESSMENT YEAR 2004-05) ACIT, Central Circle 17, vs. M/s. K.P. Pan Flavours Pvt. Ltd., New Delhi. 24/36, Birahana Road, Kanpur 208 001 (U.P.) (PAN AABCK7310B) (APPELLANT) (RESPONDENT) ASSESSEE BY None REVENUE BY Shri J.K. Mishra, CIT DR Date of Hearing 12.09.2019 Date of Order 01.10.2019 ORDER PER KULDIP SINGH, JUDICIAL MEMBER Appellant, ACIT, Central Circle 17, New Delhi (hereinafter referred to as Revenue ) by filing present appeal sought to set aside impugned order dated 29.04.2016 passed by Commissioner of Income - tax (Appeals)-27, New Delhi qua assessment year 2004-05 on grounds inter alia that- 1. Ld. Commissioner of Income Tax (Appeal) has erred in law and on facts in deleting addition of Rs.2,98,46,183/ - made by AO on account of GP Ratio @ 16.9% of Rs.2,98,46,183/ -on amount of Rs.17,66,04,632/- (i.e. enhanced turnover of sales by Trade Tax Authorities of Rs.2,98,46,183/-). 2 ITA No.3934/Del./2016 2. That Ld. CIT(A) has erred in law and on facts in mentioning in her order that order of Commercial Tax Department has attained finality without appreciating fact that Trade Tax Authorities have filed appeal against said order. 3. That Ld. CIT(A) has erred in ignoring facts as Trade Tax Authorities filed second appeal against order dated 05.03.2012. 2. Briefly stated facts necessary for adjudication of issue at hand are : Original assessment was framed in this case under section 153A of Income-tax Act, 1961 (for short Act ) read with section 143 (3) of Act at income of Rs.3,58,55,080/- by making addition of Rs.2,98,46,183/- on basis of estimated Gross Profit (GP) rate at 16.9% on enhanced turnover of sales by Trade Tax Authorities at Rs.17,66,04,632/- and one more addition was made on account of GP rate on enhanced turnover on basis of excise duty of Rs.7,39,037/-. Then ld. CIT (A) deleted addition of Rs.2,98,46,183/- vide order dated 26.03.2012 which order has been set aside by Tribunal by allowing appeal for statistical purposes to file of ld. CIT (A) to decide afresh in light of observations made in order. 3. Ld. CIT (A) by passing impugned order after remand of case by Tribunal deleted addition by allowing appeal. Feeling aggrieved, Revenue has come up before Tribunal by way of filing present appeal. 3 ITA No.3934/Del./2016 4. Assessee has not preferred to put in appearance despite issuance of notice and consequently, we proceeded to decide present appeal with assistance of ld. DR as well as on basis of documents available on file. 5. We have heard ld. Departmental Representative for revenue to appeal, gone through documents relied upon and orders passed by revenue authorities below in light of facts and circumstances of case. 6. Bare perusal of operative part of impugned order particularly para no.5 goes to prove that ld. CIT (A) has entertained evidence of assessee at back of Assessing Officer (AO) by taking on record certificate dated 24.03.2015 of Tribunal, Commercial Tax, Kanpur confirming that Department has not filed revision against order dated 05.03.2012 of First Appellate Authority of Trade Tax till 24.03.2015, another certificate dated 18.03.2016 issued by Tribunal confirming that till date no revision has been filed against aforesaid order dated 05.03.2012 of First Appellate Authority of Trade Tax and proceeded to delete addition. 7. Since impugned order is based upon fact that as per certificates dated 24.03.2015 & 18.03.2016, till that dates order of First Appellate Authority of Trade Tax and Commercial Tax have not been challenged, copy of orders are also not on file nor crux thereof has been extracted in impugned order, impugned order is not 4 ITA No.3934/Del./2016 sustainable having been passed in violation of rule of natural justice as opportunity of being heard is not give to AO to verify documents relied upon by assessee. Even otherwise, addition cannot be deleted merely on certificate that till such and such date order of Tribunal has not been further challenged, unless there is categoric decision taken by Trade Tax Authorities not to challenge order passed by Tribunal. In these circumstances, we are of considered view that case is required to be remanded back to AO to decide afresh after providing adequate opportunity of being heard to assessee. Consequently, appeal filed by Revenue is allowed for statistical purposes. Order pronounced in open court on this 1st day of October, 2019. Sd/- sd/- (R.K. PANDA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 1st day of October, 2019 TS Copy forwarded to 1.Appellant 2.Respondent 3.CIT 4.CIT(A)-27, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI. ACIT, Central Circle 17, New Delhi v. K.P. Pan Flavours Pvt. Ltd
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