DCIT, New Delhi V. M/s. Software Technologies Group International Ltd., New Delhi

ITA 1058/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86718 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 10-02-2015
• Assessment Year: 2002-2003
• Appeal Filed On: 22-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR
• Section: 143(3); 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SH. H.S.SIDHU, JUDICIAL MEMBER AND S H.J.S.REDDY , ACCOUNTANT MEMBER I.T.A .NOS. 1058 & 1059/ DEL/201 3 (ASSESSMENT YEARS - 2002 - 03 & 2003 - 04 ) D CIT, CIRCLE - 9(1), ROOM NO. - 163, C.R.BUILDING, NEW DELHI ( APPELLANT) VS M/S SOFTWARE TECHNOLOGIES GROUP INTERNATIONAL LTD., G - 31, IIND FLOOR, CELLULAR HOUSE, KALKAJI, NEW DELHI PAN - AAACS3551M (RESPONDENT) APPELLANT BY SH. B.R.R.KUMAR, SR. DR RESPONDENT BY NONE ORDER PERJ.S.REDDY, AM BOTH THESE APPEALS ARE FILED BY THE REVENUE AND DIRECTED AGAINST SEPARATE BUT IDENTICAL ORDERS OF THE CIT(A) - XII, NEW DELHI DATED 16.11.2012 FOR THE ASSESSMENT YEARS 2002 - 03 AND 2003 - 04. THE GROUNDS READ AS FOLLOWS: - ITA NO - 1058/DEL/2013 1. THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN HOLDING THAT THE REOPENING OF THE ASSESSMENT WAS BEYOND THE JURISDICTION OF THE ASSESSING OFFICER AS ASSESSEE DID NOT DISCLOSE MATERIAL FACTS TRULY & FULLY IN RETURN OF INCOME WHICH WAS ACCEPTED U/S 143(1) OF THE INCOME TAX ACT, 1961. 2. THE APPELLANT CRAVES TO AMEND MODIFY, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL ITA NO - 105 9 /DEL/2013 1. THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN QUASHING THE ASSESSMENT ORDER EVEN THOUGH PROVISO TO SECTION 147 OF THE INCOME TAX ACT, 1961 WAS NOT APPLICABLE. 2 I.T.A .NO. 1058 & 1059 /DEL/201 3 2. THE APPELLANT CRAVES TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND OF APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL . 2. AS THE ISSUES RAISED IN BOTH THE A P P E A L S ARE IDENTICAL, FOR THE SAKE OF CONVENIENCE , THEY ARE HEARD TOGETHER AND DISPOSED OFF BY WAY OF THIS COMMON ORDER. FACTS AND BRIEFS FOR THE ASSESSMENT YEAR 2002 - 03 3. THE ASSESSEE IS A PUBLIC LIMITED COMPANY A ND IS ENGAGED IN THE BUSINESS OF SOFTWARE DEVELOPMENT AND TRAINING TO ITS VARIOUS CENTRES AND FRANCHISEE. IT FILED ITS RETURN OF INCOME ON 22.10.2002 AND THE RETURN WAS PROCESSED U/S 143(1) ON 23.02.2004. NOTICE RE - OPENING THE ASSESS M E N T WAS ISSUED ON 29.0 1.2008, THAT IS AFTER 4 YEARS AND 10 MONTHS. FOR THE ASSESSMENT YEAR 2003 - 04 4. THE ASSESSEE FILED ITS RETURN OF INCOME ON 27.11.2003. THE ASSESSMENT WAS COMPLETED U/S 143(3) ON 31.01.2006. NOTICE U/S 148 RE - OPENING THE ASSESSMENT WAS ISSUED ON 29.01. 2008. 5. FOR BOTH THE ASSESSMENT YEARS THE REASONS FOR RE - OPENING IS THAT THE CLAIM BY THE ASSESSEE OF PUBLIC ISSUE EXPENDITURE U/S 35D HAS CAUSED ESCAPEMENT OF INCOME FROM ASSESSMENT. 6. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUANCE OF NOTICE. THERE IS NO PETITION FOR THE ADJOURNMENT EITHER. UNDER THESE CIRCUMSTANCES WE DISPOSE OFF THE CASE EX - PARTE QUA THE ASSESSEE ON MERITS. 3 I.T.A .NO. 1058 & 1059 /DEL/201 3 7. HEARD THE LD. DR, MR. B.R.R.KUMAR. THE FIRST APPELLATE AUTHORITY HAS OBSERVED THAT FOR BOTH THE ASSESSMENT YEARS THE AO ISSUED A NOTICE FIXING THE CASE FOR HEARING ON 20.11.2008 AND WHEREAS THE ASSESSMENT WAS COMPLETED ON 19.11.2008 WHICH IS BAD IN LAW. THIS FINDING OF THE FIRST APPELLATE AUTHORITY HAS NOT BEEN CHALLENGED BY THE REVENUE IN ITS GROUND OF APPEAL. THU S THE APPEAL OF THE REVENUE FOR BOTH THE ASSESSMENT YEARS HAS TO BE DISMISSED. 8. IN THE RESULT BOTH THE APPEALS ARE DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 1 2 T H OF FEBRUARY 2015. S D / - S D / - ( H.S.SIDHU ) ( J.S.REDDY ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 2 / 02 /201 5 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI