M/s. Ramria Associates Pvt. Ltd., New Delhi V. ACIT, Bhiwani

ITA 1192/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4895 (ITAT-DELHI)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-07-2017
• Assessment Year: 2006-2007
• Appeal Filed On: 01-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: R K BHALLA
• Keywords: Accommodation entries; Reassessment proceedings
• Section: 143(3); 147; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.1192/DEL/2017 ASSESSMENT YEAR : 2006-07 RAMRIA ASSOCIATES PVT. LTD., A-53, PRASHANT VIHAR, NEW DELHI. PAN: AACCR1686G VS. ACIT, BHIWANI CIRCLE, BHIWANI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI R.K. BHALLA, CA DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 31.08.2017 DATE OF PRONOUNCEMENT : 01.09.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 02.01.2017 IN RELATION TO THE ASSESSM ENT YEAR 2006-07. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSMENT ORDER IN THIS CASE WAS ORIGINALLY PASSED U/S 143(3) ASSESSIN G THE INCOME AT ITA NO.1192/DEL/2017 2 RS.1,83,630/-. LATER ON, NOTICE 148 WAS ISSUED ON THE GROUND THAT THE ASSESSEE RECEIVED ACCOMMODATION ENTRIES AMOUNTING T O RS.20,50,000/-. THAT IS HOW, THE ASSESSMENT ORDER WAS PASSED U/S 14 7 MAKING AN ADDITION OF RS.20,50,000/- ON ACCOUNT OF ACCOMMODAT ION ENTRIES. THIS ASSESSMENT ORDER WAS PASSED U/S 144 OF THE ACT. THE ASSESSEE CHALLENGED THE INITIATION OF REASSESSMENT AND ALSO THE MERITS BEFORE THE LD. CIT(A) CONTENDING THAT NO ENTRY OF RS.20,50,000/- WAS CRED ITED IN THE BOOKS OF ACCOUNT OF THE ASSESSEE. THE LD. CIT(A) DISMISSED THE GROUND OF INITIATION OF REASSESSMENT PROCEEDINGS. HE, HOWEVE R, NOTED ON THE LAST PAGE OF HIS ORDER: AS FAR AS MERITS OF THE CASE AR E CONCERNED, THE APPELLANT HAS DONE NOTHING TO REFUTE THE FACT THAT IT HAD NO CONNECTION WITH THE ENTRIES MENTIONED. THAT IS HOW, THE ASSE SSEES APPEAL CAME TO BE DISMISSED, AGAINST WHICH THE INSTANT APPEAL HAS BEEN FILED. 3. AFTER HEARING BOTH THE SIDES AND PERUSING THE RE LEVANT MATERIAL ON RECORD, IT IS SEEN THAT THE ASSESSEE CONTENDED BEFO RE THE LD. CIT(A) THAT NO CREDIT ENTRY OF RS.20,50,000/- APPEARED IN ITS B OOKS OF ACCOUNT WHICH WAS CLAIMED BY THE REVENUE AS ACCOMMODATION ENTRY. THE ASSESSMENT ITA NO.1192/DEL/2017 3 ORDER WAS PASSED U/S 144. THE LD. AR CONTENDED THA T VIRTUALLY NO TIME WAS ALLOWED BY THE ASSESSING OFFICER TO REPLY PROPE RLY. IT IS OBVIOUS THAT IF THERE IS/ARE NO CREDIT ENTRY/(IES) OF RS.20 ,50,000/-, THERE CANNOT BE ANY QUESTION OF MAKING ADDITION ON THIS SCORE. I N THE FACTUAL SCENARIO PREVAILING BEFORE ME, I AM SATISFIED THAT THE INTER EST OF JUSTICE WOULD BE SERVED IF THE IMPUGNED ORDER IS SET ASIDE AND THE M ATTER IS RESTORED TO THE FILE OF ASSESSING OFFICER. WHILE UPHOLDING THE INI TIATION OF REASSESSMENT, I DIRECT THE AO TO EXAMINE THE ASSESS EES CONTENTION OF NOT HAVING ANY CREDIT ENTRY(IES) OF RS.20,50,000/- IN ITS BOOKS OF ACCOUNT , BEFORE DRAWING ANY CONCLUSION. NEEDLESS T O SAY, THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNITY OF HEARING IN THIS REGARD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 0 1 ST SEPTEMBER, 2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 01 ST SEPTEMBER, 2017. DK ITA NO.1192/DEL/2017 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.