DHILLON LIQUORS & SYNDICATE INC., BHILAI,DURG V. INCOME TAX OFFICER, WARD-1(3), BHILAI, DURG

ITA 225/RPR/2024

AI Insights

The case involves M/s Dillon Liquors & Syndicate Inc, the appellant, contesting the orders of the Commissioner of Income Tax (Appeals), NFAC, Delhi, and the Assessing Officer, which pertained to the reassessment proceedings and subsequent additions made to the assessee's income for the Assessment Year 2017-18. The primary issues revolved around the alleged lack of proper service of notice, non-fulfillment of conditions for reassessment, and failure to address objections raised against the reassessment. The Tribunal noted the absence of a speaking order on the objections and the non-representation of the assessee due to unavoidable circumstances, including the arrest of a key partner by the Enforcement Directorate.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472224 (ITAT-RAIPUR)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Next Hearing Date: 09-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 17-05-2024
• Other Referred Cases: Rabo India Finance Ltd. Vs. Deputy Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: S.R. RAO
• Keywords: Set aside; Opportunity of being heard; Reassessment proceedings; Principle of natural justice; Assessment record
• Section: 147; 144; 143(2); 250; 69A

Judgement Text

" आयकर अपीलीय अिधकरण, रायपुर Ɋायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR ŵी रिवश सूद, Ɋाियक सद˟ एवं ŵी अŜण खोड़िपया, लेखा सद˟ क े समƗ । BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM (ITA No. 225/RPR/2024) (Assessment Year: 2017-18) आदेश / O R D E R Per Arun Khodpia, AM: The aforesaid appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeal), NFAC, Delhi (for short, “ld. CIT(A)”), u/s 250 of the Income Tax Act, 1961 (for short, “the Act”), for Assessment Year 2017-18, dated 30.03.2024, which in turn arises from the order of Assessing Officer, NFAC, Delhi (for short, “ld. AO”) under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 15.09.2021. M/s Dillon Liquors & Syndicate Inc Dhillon Complex, Akashganga, Supela, Bhilai – 490023, Chhattisgarh V S Income Tax Officer, Ward-1(3), Aaykar Bhawan, Civic Centre, Bhilai, Dist. Durg – 490006, Chhattisgarh PAN: AAKFD0645G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से / Assessee by : Shri S.R. Rao, Advocate. राजˢ की ओर से / Revenue by : Dr. Priyanka Patel, Sr. Dr. सुनवाई की तारीख / Date of Hearing : 09.10.2024 घोषणा की तारीख / Date of Pronouncement : 17.10.2024 ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 2 2. The grounds of appeal raised by the assessee in present appeals are extracted as under: 1) In the facts and circumstances of the case and in law, the Ld. Commissioner of Income- tax (Appeals), National Faceless Appeal Centre (NFAC) has erred in deciding the appeal ex-parte without proper service of the notice as per provisions of the Act and without following the principles of natural justice. 2) In the facts and circumstances of the case and in law, the Ld. Commissioner of Income- tax (Appeals), National Faceless Appeal Centre (NFAC) is not justified in confirming action of the Ld. Assessing Officer initiating reassessment proceeding u/s 147 of the Income-tax Act, 1961 without fulfilling stipulated conditions mandated under the Act. 3) In the facts and circumstances of the case and in law, the Ld. Commissioner of Income- tax (Appeals), National Faceless Appeal Centre (NFAC) is not justified in confirming action of the Ld. Assessing Officer in not passing speaking order on objections filed in response to reasons recorded u/s 148(2) of the Income-tax Act, 1961 as mandated by the Hon'ble GKN Drive Shafts (India) Ltd. 4) In the facts and circumstances of the case and in law, the Ld. Commissioner of Income- tax (Appeals), National Faceless Appeal Centre (NFAC) is not justified in confirming action of the Id. Assessing Officer making addition of cash deposit of Rs.90,00,000/- during 09/11/2016 to 30/12/2016 as unexplained cash deposit u/s 69A of the Income-tax Act, 1961 after deducting Rs.15,00,000/- declared under PMGKY and charging the same to higher rate of tax u/s.115BBE of the Act. 5) In the facts and circumstances of the case and in law, the Ld. Commissioner of Income- tax (Appeals), National Faceless Appeal Centre (NFAC) is not justified in confirming action of the ld. Assessing Officer making addition of Rs.15,97,913/- as profit @10% of Rs. 2,28,15,930/- treating cash deposits between 01/04/2016 and 08/11/2016 as turnover, after setting of returned income of Rs.6,83,680/-. 6) The impugned order is bad in law and on facts. 7) The appellant reserves the right to addition, after or omit all or any of the grounds of appeal in the interest of justice. ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 3 3. At the outset, learned Authorized Representative, Shri S.R. Rao, Advocate (in short, ld. AR) for the assessee had submitted a written synopsis, stating the summary of facts of the case, reasons for non- prosecution before the Ld CIT(A) and contentions of the assessee qua the issues raised in present appeal. The synopsis so submitted is extracted as under: ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 4 ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 5 4. Backed by the aforesaid submissions, it was the prayer by the ld. AR that there were bonafide reasons due to which the assessee was prevented to access the email id provided before the Ld CIT(A), so it was not possible to put up its presence before the first appellate authority. He substantiated that the reason for non-compliance before the ld CIT(A) was because of arrest of the main partner of the firm by the Enforcement Directorate on 11.02.2023. It was the submission that under such state of affairs the firm was not made known about the fixation of appeals. ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 6 4.1 Ld AR, in furtherance of the proceedings before us, referring to Ground No 3 of the instant appeal, contended that during the assessment proceedings, assessee has raised objections to the initiation of reassessment proceedings on 04.03.2021 (copy placed before us at 05-11 of APB), however the assessment was completed without deciding the objections of the assessee. It is submitted that the issue is squarely covered by the order of Hon’ble Mumbai High court in the case of Rabo India Finance Ltd. Vs. Deputy Commissioner of Income Tax, (2012) 346 ITR 81 dated 02.03.2012, wherein the observations of Hon’ble High Court were as under: ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 7 5. On the basis of aforesaid submission, it was the prayer by the ld. AR that as the objections raised by the assessee are not disposed off by the Ld. AO therefore in all fairness the matter may be restored back for fresh adjudication. 6. In rebuttal Ld. Sr DR, placed her reliance on the orders of revenue authorities and vehemently supported the same. 7. We have considered the rival submissions, perused the materials available on record and the case law relied upon by ld. AR. 8. Admittedly, in present case, before the ld. CIT(A), the assessee remain absent for the reasons stated herein above. It is the grievance of the assessee that the objections to the initiation of reassessment proceedings u/s 147 raised before the Ld. AO on 04.03.2021 were not addressed by the Ld AO and ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 8 admittedly not disposed of by way of a speaking order before completion of assessment. Ostensibly, on perusal of the assessment order there was no whisper about disposal of the objections of assessee raised against the notice u/s 143(2) r.w.s. 147 of the Act. The ground raised in this respect before the Ld CIT(A) has been decided by stating that the appellant should have filed the details like copies of objections, date of filing of objections for reopening of the case, also there was no mention in the order of Ld. AO on this aspect, therefor it is inferred that there were no objections filed by the assessee, whereas the objection by the assessee is very much available on the ITBA portal and assessment record could have been fetched by the Ld CIT(A). 9. Under such facts and circumstances, as in present case Ld AO had not responded to the objections of the assessee, as mandated under the law, by way of passing a separate speaking order, nor he revealed about such objection in the assessment order, also before Ld CIT(A), the assessee’s case could not represented under certain unavoidable circumstances, therefore in the interest of substantial justice, respectfully following the judicial pronouncement by the Hon’ble Mumbai High Court in the case of Rabo India Finance Ltd. Vs. Deputy Commissioner of Income Tax (supra), we are of the considered view that the order passed by the Ld AO u/s 147 r.w.s 144 r.w.s. 144B shall be set aside for de novo assessment after disposing off the objections the assessee in terms of and in the manner specified in law. ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 9 10. In view of aforesaid observations, Ld AO is directed to reassess the case of assessee, in terms of our aforesaid observations. Needless to say, the assessee shall be afforded with reasonable opportunity of being heard in the set aside assessment proceedings. 11. Since, in deciding of ground no 3 of the present appeal regarding issue qua the objections of assessee which are not dealt with and disposed of by the Ld AO, whereas it was obligatory upon him under the mandate of law, the matter is restored back to the file of Ld. AO for de novo reassessment, the other contentions raised by the assessee in the present appeal are therefore not adverted to. 12. Resultantly, the aforesaid appeal of the assessee is partly allowed for statistical purpose. in terms of our aforesaid observations. Order pronounced in the open court on 17/10/2024. Sd/- (RAVISH SOOD) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर/Raipur; िदनांक Dated 17/10/2024 Hem ITA No. 225/RPR/2024 M/s Dillon Liquors & Syndicate Inc 10 आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, //True copy// (Private Secretary) आयकर अपीलीय अिधकरण, रायपुर/ITAT, Raipur 1. अपीलाथŎ / The Appellant- 2. ŮȑथŎ / The Respondent- 3. आयकर आयुƅ(अपील) / The CIT(A), 4. The Pr. CIT -1, Raipur, (C.G.) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 6. गाडŊ फाईल / Guard file. "