M/s Gunvardhan Vyapar Pvt. Ltd., New Delhi V. ACIT, New Delhi

CO 89/DEL/2014

• Counselvise Citation: [2016] 112 COUNSELVISE.COM (IT) 4296 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 01-09-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-09-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 27-03-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K SAROHA
• Assessee Lawyers: PIYUSH KR KAMAL
• Keywords: Rule 8D
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER CROSS OBJECTION NO. 89/DEL/2014 (IN ITA NO. 2285/DEL/2013) ASSESSMENT YEAR: 2007-08 M/S GUNVARDHAN VYAPAR PVT. LTD., VS. ACIT, CIRCLE-5 13-B, 3 RD FLOOR, NETAJI SUBHASH NEW DELHI MARG, DARYA GANJ, NEW DELHI 110 002 (PAN: AAABCG2647M) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI GAUTAM JAIN, AD V. & SH. PIYUSH KR. KAMAL, ADV. DEPARTMENT BY : SH. A.K. SAROHA, CIT(D R) DATE OF HEARING : 01-09-2016 DATE OF ORDER : 01-09-2016 ORDER PER H.S. SIDHU, J.M. THE ASSESSEE HAS FILED THE CROSS OBJECTION WHICH I S EMANATE FROM THE ORDER DATED 04.2.2013 OF LD. CIT(A), NEW D ELHI PERTAINING TO ASSESSMENT YEAR 2007-08. THE GROUNDS RAISED IN T HE ASSESSEES CROSS OBJECTION READ AS UNDER:- THAT NOTICE ISSUED ULS 153C OF THE ACT AND, ASSESSMENT FRAMED ULS 153A/143(3) OF THE ACT WITHOU T SATISFYING THE STATUTORY PRECONDITIONS CONTAINED IN THE ACT WERE WITHOUT JURISDICTION AND THEREFORE, DESERV ES TO BE QUASHED AS SUCH. 1.1 THAT WHILE UPHOLDING THE ASSUMPTION OF JURISDICTION THE LEARNED COMMISSIONER OF INCOME. TA X (APPEALS) HAS FAILED TO APPRECIATE THAT SINCE NO MO NEY, CO NO. 89/DEL/2014 (IN ITA NO. 2285/DEL/2013) 2 BULLION JEWELLERY OR OTHER VALUABLE ARTICLE OR THIN G OR BOOKS OF ACCOUNTS OR DOCUMENTS BELONGING TO THE APPELLANT WERE SEIZED AS A RESULT OF SEARCH ON RAJD ARBAR GROUP, NOTICE ISSUED ULS 153C OF THE ACT WAS ILLEGA L, INVALID AND UNSUSTAINABLE. 2 THAT FOLLOWING DISALLOWANCES MADE BY THE LEARNED DEPUTY COMMISSIONER OF INCOME IS PERSE WITHOUT JURISDICTION SINCE THE SAME IS NOT BASED ON ANY MAT ERIAL FOUND AS A RESULT OF SEARCH ON RAJDARBAR GROUP OF C ASES AS HAS BEEN HELD BY SPECIAL BENCH OF HON'BLE TRIBUN AL IN THE CASE OF M/S ALL CARGO GLOBAL LOGISTICS LTD. VS. DCIT REPORTED IN 107 ITD 287 (MUM) (TRIB): I) DISALLOWANCE OF RS. 88,87,494/- REPRESENTING LOSS INCURRED UNDER THE HEAD LOSS ON SALE OF INVESTMENT; II) DISALLOWANCE OF SUM OF RS. 3,87,5901- BY INVOKING SECTION 14A OF THE ACT READ WITH RULE 8D OF THE INCOME TAX RULES 1962 IT IS THEREFORE PRAYED THAT, IT BE HELD THAT, ASSUM PTION OF JURISDICTION AND, DISALLOWANCES MADE OF RS. 88,87,494/- AND RS. 3,87,5901- WERE ILLEGAL, INVALI D AND UNSUSTAINABLE. 2. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASS ESSEE, SHRI GAUTAM JAIN, ADV. HAS STATED THAT HE WOULD LIKE TO WITHDRAW THE CROSS OBJECTION. 3. ON THE OTHER HAND, LD. CIT(DR), SH. AK SAROHA HAS NOT RAISED ANY OBJECTION TO THE REQUEST OF THE LD. COUNSEL OF THE ASSESSEE, AS AFORESAID. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS. WE FIND THAT SINCE LD. COUNSEL OF THE ASSESSEE HAS REQ UESTED TO CO NO. 89/DEL/2014 (IN ITA NO. 2285/DEL/2013) 3 WITHDRAW THE CROSS OBJECTION AND LD. CIT(DR) DID NO T HAVE ANY OBJECTION THEREOF, THEREFORE, WE ACCEPT THE REQUEST OF THE LD. COUNSEL OF THE ASSESSEE AND ACCORDINGLY, THE CROSS OBJECTION FILED BY THE ASSESSEE IS DISMISSED AS WITHDRAWN. 5. IN THE RESULT, THE ASSESSEES CROSS OBJECTION ST ANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 01/09/2016. SD/- SD/- (J.S. REDDY) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 01/9/2016 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR