K D Trend Wear Limited, New Delhi V. ITO, ward-14(1), New Delhi

ITA 1003/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0495 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 06-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M BARNWAL
• Section: 40A(3); 201; 13; 147

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC - 1 : NEW DELHI (THROUGH VIRTUAL HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER ITA NO. 1003 /DEL/20 20 ASSESSMENT YEAR : 20 1 2 - 13 K.D. TREND WEAR LIMITED, C/O MAHESH KUMAR & CO., 304, ARUNACHAL BUILDI NG, BARAKHAMBA ROAD, CONNAUGHT PLACE, NEW DELHI. PAN: AA DCK1709P VS ITO, WARD - 14 ( 1 ), NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : NONE RE VENUE BY : SHRI M. BARNWAL, SR. DR DATE OF HEARING : 14 . 07 . 20 2 1 DA TE OF PRONOUNCEMENT : 14 . 0 7 . 20 2 1 ORDER TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 31 ST MAY, 201 9 OF THE CIT(A) - 5 , NEW DELHI RELATING TO ASSESSMENT YEAR S 20 1 2 - 13 . 2 . NONE APPEARED ON BEHALF OF THE ASSESSEE DES PITE ISSUE OF NOTICE BY THE REGISTRY . THEREFORE, THIS APPEAL WAS DECIDED ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR. ITA NO. 10 03 /DEL/20 20 2 3 . FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY AND HAD FILED ITS RETURN OF INCOME ON 31 ST MARCH, 201 3 DECLARING THE TOTAL INCOME AT RS.1,45,441/ - . THE CASE OF THE ASSESSEE WAS REOPENED U/S 147 ON ACCOUNT OF HUGE CASH TRANSACTIONS IN THE BANK ACCOUNT. IN RESPONSE TO THE NOTICE U/S 148, THE ASSESSEE FILED ITS RETURN OF INCOME ON 27 TH JU NE, 2018 DECLARING THE LOSS OF RS.2,86,311/ - . THE AO COMPLETED THE ASSESSMENT U/S 147/143(3) AT A TOTAL INCOME OF RS.12,43,254/ - WHEREIN HE MADE ADDITION OF RS.10,61,354/ - U/S 68 OF THE ACT AND RS.1,81,900/ - U/S 40A(3) OF THE IT ACT. SINCE THE ASSESSEE D ID NOT APPEAR BEFORE THE CIT(A), TH E LD. CIT(A), IN THE EX PARTE ORDER PASSED BY HIM , SUSTAINED THE ADDITIONS MADE BY THE AO AND DISMISSED THE APPEAL FILED BY THE ASSESSEE . 4 . AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE T RIBUNAL. 5 . I HAVE HEARD THE LD. DR AND PERUSED THE RECORD. IT IS AN ADMITTED FACT THAT D UE TO NON - APPEARANCE BY THE ASSESSEE BEFORE THE CIT(A) DESPITE THREE OPPORTUNITIES GRANTED, THE LD.CIT(A) WAS CONSTRAINED TO PASS THE EX PARTE ORDER AND THEREBY CONF IRM THE ADDITIONS IN ABSENCE OF ANY DOCUMENTS FILED BEFORE HIM TO SUBSTANTIATE THE VARIOUS CREDITS. C ONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIR ECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW . THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) AND SUBSTANTIATE ITS CASE, FAILING ITA NO. 10 03 /DEL/20 20 3 WHICH, THE CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE DE CISION WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E., ON 14. 07 .20 21 . SD/ - ( R. K. PANDA ) ACCOUNTANT MEMBER DATED: 14 TH J ULY, 20 21 DK COPY FORWARDED TO 1. AP PELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI