Appeal details
Counselvise Citation
109020114 RSA 2013
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 8 month(s) 24 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
19-11-2014
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
B
Next Hearing Date
18-11-2014
Assessment Year
2009-2010
Appeal Filed On
25-02-2013
Judgement Text
IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : B : NEW DELHI BEFORE SHRI J.S. REDDY, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K. , JUDICIAL MEMBER ITA NO . 1090 / DEL / 201 3 ASSESSMENT YEAR : 200 9 - 10 M/S. FREEPLAY ENERGY INDIA P. LTD. VS. ITO WARD 11(3) 28 - SARDAR PATEL MARG, NEW DELHI. NEW DELHI. (PAN AABCF 0624 P ) (APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI MASINA RAM RESPONDENT BY: SMT. PARMINDER K AUR, SR. D.R. ORDER PER SHRI GEORGE GEORGE K , J M : 1. TH IS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE CIT(A) S ORDER DATED 31.12.2012 . THE RELEVANT ASSESSMENT YEAR IS 200 9 - 10 . 2. THE FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THAT IN EQUITY AND NATURAL JUSTICE THE EX - PARTE ORDER PASSED BY LD. COMMISSIONER OF INCOME TAX (APPEALS) WITHOUT PROPER LAWFUL OPPORTUNITY IS BAD IN LAW AND DESERVES TO BE SET ASIDE. 2. THAT ON THE FACTS AND LAW INVOLVED, LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.61,17,978/ - BEING THE AMOUNT OF DEPRECIATION ON NON COMPETE FEE CAPITALIZED BY THE ASSESSEE. ITA NO. 1090 /DEL /201 3 ASSESSMENT YEAR : 200 9 - 20 10 2 3. THAT ON THE FACTS AND LAW INVOLVED, LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN NOT AL LOWING THE ALTERNATIVE CLAIM OF THE ASSESSEE IN RESPECT OF NON COMPETE FEE OF RS.2,44,71,910/ - AS REVENUE EXPENSE. 4. THAT ON THE FACTS AND LAW INVOLVED, LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF RS.1,86,367/ - OUT OF INTEREST PAID BEING THE AMOUNT OF INTEREST ON INTEREST FREE ADVANCE OF RS.2,19,26,910/ - GIVEN TO ITS SUBSIDIARY COMPANY. 2. BRIEF FACTS OF THE CASE ARE AS FOLLOWS. THE ASSESSEE IS A COMPANY. IT IS ENGAGED IN TRADING OF RENEWABLE ENERGY PRODUCTS. FOR RELEVANT ASSESSMENT YEAR, RETURN OF INCOME WAS FILED ON 26.09.2010 DECLARING NIL INCOME. THE ASSESSMENT WAS TAKEN UP FOR SCRUTINY AND SCRUTINY ASSESSMENT U/S 143(3)/92C OF THE I.T. ACT WAS PASSED BY ORDER DATED 29.12.2011. 3. AGGRIEVED BY THE VARIOUS ADDITIONS/DISALLOWA NCE IN THE ASSESSMENT COMPLETED, ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE WITHOUT GOING INTO THE ISSUE ON MERITS, SINCE ASSESSEE WAS NOT REPRESENTED . 4. AGGRIEVED BY THE DISMISSAL OF APPEAL BY THE CIT(A) , ASSESSEE IS IN APPEAL BEFORE US. AT THE TIME OF HEARING OF THE APPEAL, LD. COUNSEL FOR THE ASSESSEE HAS FILED ADJOURNMENT APPLICATION. T HE ADJOURNMENT APPLICATION WAS REJECTED AND WE PROCEED TO DISPOSE O F F THE MATTER , SINCE THE CIT(A) HAD DISMISSED THE APPEAL IN LIMINE. 5. THE LD. D.R. PRESENT WAS DULY HEARD. ITA NO. 1090 /DEL /201 3 ASSESSMENT YEAR : 200 9 - 20 10 3 6 . WE HAVE HEARD LD. D.R. AND PERUSED THE MATERIAL ON RECORD. THE CASE WAS FIXED FOR HEARING BEFORE THE CIT(A) ON 30.11.2012, 13.12.2012 AND 31.12. 2012 . T HE ASSESSEE HAS SOUGHT FOR ADJOURNMENT ON 30.11.2012 & 13.12.2012 AND ON 31.12.2012 (LAST DATE OF HEARING ) THE ASSESSEE NEITHER APPEARED NOR SOUGHT FOR ADJOURNMENT OF THE CASE. HENCE, THE CIT(A) DISMISSED THE APPEAL EX - PARTE IN LIMINE WITHOUT GOING INTO THE ISSUE S ON MERITS. WE STRONGLY DEPRECATE THE ATTITUDE OF THE ASSESSEE FOR NOT BEING PRESENT BEFORE THE CIT(A) ON 31.12.2012. HOWEVER, IN THE INTEREST OF JUSTICE AND EQUITY, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE AFFORDED ONE MORE OPPORTUNIT Y TO PRESENT ITS CASE. THEREFORE, THE ISSUES RAISED IN THIS APPEAL ARE RESTORED TO THE CIT(A) FOR DECISION ON MERITS . THE ASSESSEE SHALL COOPERATE WITH THE CIT(A) FOR EXPEDITIOUS DISPOSAL OF THE APPEAL AND SHALL NOT SEEK ADJOURNMENT WITHOUT ANY VALID REASO N. THE CIT(A) AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE SHALL DISPOSE OF THE MATTER, IN ACCORDANCE WITH LAW. IT IS ORDERED ACCORDINGLY. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. TH E DECISION WAS PRONOUNCED IN THE OPEN COURT ON 19 TH NOVEMBER , 201 4 . SD/ - SD/ - ( J.S. REDDY ) (GEORGE GEORGE K.) A CCOUNTANT MEMBER J UDICIAL MEMBER DATED: 19 TH NOVEMBER , 201 4 . AKS/ - ITA NO. 1090 /DEL /201 3 ASSESSMENT YEAR : 200 9 - 20 10 4 COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST . REGISTRAR, ITAT, NEW DELHI
