ITO WARD - 3(1), Noida V. Ramesh Kumar, Noida

ITA 1211/DEL/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0523 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 10-10-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 17-06-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1211/DEL/2020 Assessment Year 2009-10 ITO, Ward-3(1), Noida Vs. Ramesh Kumar, Village-Nangli Wazidpur, Phase-2, Noida, G.B. Nagar. TAN/PAN: AHMPC3395B (Appellant) (Respondent) Appellant by: None Respondent by: Shri Anuj Garg, Sr.D.R. Shri Sidharth Sharma for Zoheb Hussain, standing counsel. Date of hearing: 11 10 2022 Date of pronouncement: 18 10 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap t io n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e Co mmiss io n er o f Inco me Tax (Ap p eals)-I, No id a (‘CIT(A)’ in sh o rt) d ated 3 1 .12 .2 0 18 arisin g fro m th e assess men t o rd er d ated 16 .1 1.2 0 1 6 p assed b y th e Assessin g Officer u n d er Sect io n 1 4 4 /14 7 o f th e In co me Tax A ct, 1 9 6 1 (th e Act) co n cern in g AY 2 00 9 -1 0 . 2 . Th e g ro u nd s o f ap p eal ra ised b y th e Rev en u e read as u n d er: “ 1 . B e c a u s e S h . S . K . S r i v a s t a v a , t h e t h e n C I T ( A ) - 1, N o i d a h a d b e e n c o m p u l s o r i l y r e t i r e d b y t h e G o v e r n m e n t o f I n d ia w i t h e f f e c t f r o m 1 1 . 0 6 . 2 0 1 9 a n d a c c o r d i n g l y , h e h a d b e c o m e f u n ct u s o f f i c i o w . e . f . 1 1 . 0 6 . 2 0 1 9 . A c c o r d i n g l y , a n y d i s c h a r g e o f f un c t i o n b y a n I.T.A. No.1211/Del/2020 2 o f f i c e r w h o h a s b e c o m e f u n c t u s o f f i c i o i s a n u l l i t y i n l a w a n d w i t h o u t j u r i s d i c t i o n . 2 . I n t h i s r e g a r d , r e l i a n c e i s p l a c e d o n t h e d e c is i o n o f t h e H o n ' b l e H i g h C o u r t o f K a r n a t a k a i n t h e c a s e o f R u d ra g o u d a v . T h e U n i v e r s i t y o f A g r i c u l t u r a l S c i e n c e s a n d O r s . , Wr i t P e t i t i o n N o . 3 1 7 3 4 / 2 0 1 6 ( S - R E S ) , w h e r e i n i t w a s h e l d t h a t : - " T h e p e t i t i o n e r / o f f i c e r a f t e r h i s r e t i r e m e n t b e c o me s f u n c t u s o f f i c i o . N o o f f i c e r c a n c o n t i n u e t o d i s c h a r g e h i s f u n c t i o n s s u b s e q u e n t t o h i s r e t i r e m e n t a n d m o r e p a r t i c u l a r l y , t o t a k e a c t i o n a ga i n s t t h e s u b o r d i n a t e o f f i c e r o r t o s e e k s u c h d i r e c t i o n f r o m t h i s C o u r t . " ( e m p h a s i s a d d e d ) I t i s t o b e n o t e d t h a t t h e t e r m f u n c t u s o f f i c i o h as b e e n d e f i n e d t o m e a n t h e f o l l o w i n g : - B l a c k ' s L a w D i c t i o n a r y S i x t h E d i t i o n P a g e 6 7 3 1 g i ve s i t s m e a n i n g a s f o l l o w s : H a v i n g f u l f i l l e d t h e f u n c t i o n , d i s c h a r ge d t h e o f f i c e , o r a c c o m p l i s h e d t h e p u r p o s e , a n d t h e r e f o r e , o f n o f u r th e r f o r c e o r a u t h o r i t y . A c c o r d i n g l y , i t i s s u b m i t t e d t h a t o n c e t h e t h e n C IT ( A ) - N o i d a h a s b e e n c o m p u l s o r i l y r e t i r e d i . e . , w i t h e f f e c t f r o m 1 1. 0 6 . 2 0 1 9 , a n y o r d e r p r i m a f a c i e p a s s e d b y h i m o r a c t e d u p o n b y h im a f t e r t h e d a t e o f h i s c o m p u l s o r y r e t i r e m e n t i s w i t h o u t j u r i s d i c t i on . 3 . B e c a u s e a v i g i l a n c e i n s p e c t i o n f o r t h e w o r k c ar r i e d o u t b y S h . S a n j a y K u m a r S r i v a s t a v a I R S ( R e t d . ) , w h o w a s p o st e d t o a s C I T ( A ) - 1 N o i d a w i t h t h e a d d i t i o n a l c h a r g e o f C I T ( A )- 2 N o i d a , p r i o r t o h i s c o m p u l s o r y r e t i r e m e n t w . e . f 1 1 . 0 6 . 2 0 1 9 w a s co n d u c t e d o n 1 9 . 0 6 . 2 0 1 9 b y t h e V i g i l a n c e T e a m o f I n c o m e T a x ( V i gi l a n c e ) , w h i c h r e v e a l e d t h a t o r d e r s p u r p o r t e d t o h a v e b e e n p a s s e d b y S h . S r i v a s t a v a i n t h e m o n t h o f D e c e m b e r , 2 0 1 8 w e r e p r i ma - f a c i e p a s s e d i n t h e m o n t h o f J u n e , 2 0 1 9 . I n m a j o r i t y o f t h e s e o rd e r s l i a b l e t o I.T.A. No.1211/Del/2020 3 h a v e b e e n u p l o a d e d o n t h e I T B A s y s t e m w e r e u p l o a d e d b e t w e e n 1 1 t h J u n e t o 1 3 t h J u n e , 2 0 1 9 , i . e . a f t e r h i s d e m i t t i n g t h e o f f i c e , as p e r t h e c h a r g e s h e e t f i l e d b y t h e C B I . A s p e r t h e C B I ' s c h ar g e s h e e t t h e r e a r e a l s o i n d i c a t i o n s o f f a l s i f i c a t i o n o f r e c o r d s t o a l l u d e t o w a r d s d i s p a t c h o f t h e s e o r d e r s o n 7 t h J u n e , 2 0 1 9 , w h e r e a s t h e y w e r e d i s p a t c h e d o n 1 4 t h J u n e , 2 0 1 9 I t w a s f u r t h e r r e v e a le d t h a t 1 0 4 o r d e r s w e r e c l a i m e d t o b e p a s s e d b y S h . S . K . S r i v a st a v a d u r i n g D e c e m b e r , 2 0 1 8 , h o w e v e r , m a n y o f t h e m w e r e u p l o a d e d t o t h e c e n t r a l s e r v e r u s i n g h i s R S A t o k e n o n l y a f t e r h i s re t i r e m e n t . 4 . B e c a u s e L d . C I T ( A ) - 1 , N o i d a h a s c o m m i t t e d a j ur i s d i c t i o n a l e r r o r b y d e c i d i n g t h e a p p e a l b e y o n d f i f t e e n d a y s o f t h e l a s t h e a r i n g i n c o n t r a v e n t i o n o f I n s t r u c t i o n n o . 2 0 / 2 0 0 3 d a t e d 23 . 1 2 . 2 0 0 3 i s s u e d b y t h e C B D T a n d t h e o r d e r w a s u p l o a d e d o n t h e I T B A a f t e r a n i n o r d i n a t e d e l a y o f t i m e , a s i t w a s u p l o a d e d a f t e r h e w a s c o m p u l s o r i l y r e t i r e d u n d e r p r o v i s i o n s o f F u n d a m e n t al R u l e s (F R ) 5 6 ( J ) . 5 . B e c a u s e t h e o r d e r o f t h e C I T ( A ) - 1 , N o i d a , b e i ng a n u l l i t y i n t h e e y e s o f l a w , m a y b e s e t a s i d e f o r f r e s h a d j u d i ca t i o n t o t h e j u r i s d i c t i o n a l L d . C I T (A ) , N o i d a . 6 . B e c a u s e , i t i s i m m a t e r i a l w h e t h e r a n o r d e r p a ss e d w i t h o u t j u r i s d i c t i o n i s i n f a v o u r o f R e v e n u e o r a g a i n s t i t . S u c h a n o r d e r i s c o n t r a r y t o t h e a d m i n i s t r a t i o n o f t h e I n c o m e T a x A ct a n d i t p o l l u t e s t h e s t r e a m s o f j u s t i c e . T h e r e f o r e , R e v e n u e w o u l d b e a n a g g r i e v e d p a r t y i f a C o m m i s s i o n e r o f I n c o m e T a x (A p p e a l s ) p a ss e s a n o r d e r w i t h o u t j u r i s d i c t i o n a n d i t i s i n t h e i n t e r e s t o f th e r e v e n u e a s w e l l a s t a x a d m i n i s t r a t i o n t o e n s u r e t h a t o r d e r s a r e p a s s e d b y t h e c o r r e c t l e g a l a u t h o r i t y u n d e r t h e A c t . 7 . B e c a u s e t h e R e v e n u e b e i n g ' S t a t e ' c a n n o t b e a b e n e f i c i a r y o f a n o r d e r p a s s e d w i t h o u t j u r i s d i c t i o n b y a n A p p el l a t e C o m m i s s i o n e r a n d t h e r e f o r e i t i s a b s o l u t e l y i m m a t e ri a l t h a t I.T.A. No.1211/Del/2020 4 u l t i m a t e l y t h e c a s e w a s d e c i d e d i n f a v o u r o f t h e r ev e n u e b y t h e A p p e l l a t e C o m m i s s i o n e r a l b e i t w i t h o u t j u r i s d i c t i o n . 8 . B e c a u s e a n y o r d e r s , i n s t r u c t i o n s o r d i r e c t i o n s i s s u e d u n d e r S e c t i o n 2 6 8 A ( 1 ) b y t h e B o a r d t o o t h e r i n c o m e t a x a ut h o r i t i e s f o r f i x i n g m o n e t a r y l i m i t s w o u l d n o t a p p l y t o o r d e r s p as s e d w i t h o u t j u r i s d i c t i o n w h e n t h e o f f i c e r h i m s e l f h a d n o j u r i s di c t i o n t o g r a n t r e l i e f o r p a s s a n y o r d e r w h a t s o e v e r . 9 . B e c a u s e t h e m o n e t a r y l i m i t s f i x e d p u r s u a n t t o S e c t i o n 2 6 8 A w i l l o n l y a p p l y t o o r d e r s p a s s e d b y a u t h o r i t i e s w i th j u r i s d i c t i o n a n d n o t t o a u t h o r i t i e s w i t h o u t j u r i s d i c t i o n . S e c t i o n 2 68 A ( 1 ) o f t h e A c t r e a d s a s f o l l o w s : - " S e c t i o n 2 6 8 A . ( 1 ) T h e B o a r d m a y , f r o m t i m e t o t i me , i s s u e o r d e r s , i n s t r u c t i o n s o r d i r e c t i o n s t o o t h e r i n c o m e - t a x a u t ho r i t i e s , f i x i n g s u c h m o n e t a r y l i m i t s a s i t m a y d e e m f i t , f o r t h e p ur p o s e o f r e g u l a t i n g f i l i n g o f a p p e a l o r a p p l i c a t i o n f o r r e f er e n c e b y a n y i n c o m e - t a x a u t h o r i t y u n d e r t h e p r o v i s i o n s o f t h i s Ch a p t e r " 1 0 . T h e R e v e n u e c r a v e s l e a v e t o m o d i f y a n y o f t h e g r o u n d s a b o v e a n d / o r t o a d d a n y f r e s h g r o u n d o r g r o u n d s a s a n d w h e n i t i s r e q u i r e d t o d o s o . ” 3 . It is a p ecu liar cas e wh ere th e Rev enu e h as sou gh t to imp u g n th e o rd er o f th e CIT(A) wh ich h as b een ad ju d icat ed ag ain st th e assesse e an d in fav o u r o f th e Rev en u e. 4 . Th e p ecu liar fac ts in th e in stan t cas e as b ro ug ht ou t on reco rd o n b eh alf o f th e R e v en u e are rep ro d u ced h ereu n d er: S t a t e m e n t o f F a c t s “ I n t h i s c a s e , a s p e r A I R i n f o r m a t i o n , t h e a s s e s se e h a d s o l d i m m o v a b l e p ro p e rt y a m o u n t i n g t o R s. 3 1 , 1 0 , 8 0 0 / - t h e F . Y . 2 0 0 8 - 0 9 re l e v a n t t o A . Y . 2 0 0 0 9 - 1 0 . I n a b s e n c e o f a n y c o mp l i a n c e o n t h e p a rt o f t h e a s se s se e , t h e a ss e s sm e n t w a s c o m p l e t e d u / s 1 4 4 r. w. s . I.T.A. No.1211/Del/2020 5 1 4 7 ' o f t h e I . T . A c t o n 1 6 . 1 1 . 2 0 1 6 , a f t e r m a k i n g a n a d d i t i o n o f R s. 1 0 , 1 8 , 1 1 8 / - o n a c c o u n t o f l o n g t e rm c a p i t a l g a i n . Ag g ri e v e d wi t h t h i s a ss e s sm e n t o r d e r , t h e a s s e ss e e f i l e d a n a p p e a l b e f o re t h e L d . CI T (A p p e a l ) - I , N o i d a . T h e L d . CI T (A p p e a l )- I , N o id a , v i d e o r d e r d a t e d 3 1 . 1 2 . 2 0 1 8 i n a p p e a l No . 3 8 / 2 0 1 7 - 1 8 / N o i d a h a s d i s m i s se d t h e a p p e a l f i l e d b y t h e a s se s se e . I n t h i s c a se , t h e re i s j u ri s d i c t i o n a l d e f e c t i n a s m u c h a s t h e o rd e r wa s p a s s e d b y t h e CI T (A )- I , No i d a a f t e r h e wa s r e t ir e d . T h e o r d e r s we r e r e c e i v e d i n t h e o f f i c e o f P r . Co m m i ss i on e r o f I n c o m e T a x , No i d a o n 1 7 t h J u n e 2 0 1 9 w h i c h i s a f t e r t h e d a te w h e n t h e t h e n Co m m i s si o n e r o f I n c o m e T a x (A p p e a l s ), w a s r e t ir e d b y t h e G o v e rn m e n t . T h e r e f o r e , i n v i e w o f t h e a b o v e f a c t s o f t h e c a se , 2 n d a p p e a l i s re c o m m e n d e d b e f o r e t h e H o n ’ b l e I T A T i n t h i s c a s e . ” 4 . Fro m th e fac tu al s u b missio n mad e o n b eh alf o f the as sessee , it is n o ticed th a t th e Rev en u e seek s to alleg e th at th e first ap p ella te o rd er h as b een p assed b y th e CIT(A) alth ou g h ag ain st th e assesse e is with o u t ju risd ic ti o n . It is co n ten ded th at th e In co me Tax Dep artmen t b ein g ‘Sta te ’ can n o t b e b en efi ciary o f an o rd er p assed with o u t ju risd ic tio n an d it is ab so lu te ly immater ia l th at u lt i ma tely th e case h as b een d ec id ed ad v erse to th e asse ssee . It was p o in ted o u t o n b eh alf o f th e R ev en u e th at the a ct io n o f th e CIT(A) in th e circu mstan c es as n arrated can n o t b e en d o rsed reg ard less o f wh eth er it o p erates i n fav o u r o f th e Rev en u e or ag ain st i t. 6 . We fin d fo rce in s u ch p lea wi th o u t a n y reserv atio n . Th e o rd er p assed with o u t ju risd ic tio n is a n u ll ity an d th u s amen ab le to ap p ella te ju risd ic tio n o f Trib u n al to seek re med y on su ch fu n d amen ta l d e fec ts. Th is ap art, we n o tice th a t th e d a t e o f o rd er o f th e CIT(A) is o f 3 1 .1 2 .20 1 8 wh ereas th e first app ella te o rd er was co mmu n ica ted to th e Rev en u e a ft er a g ap o f mo re th an fiv e mo n th s o n 1 1 .0 6 .2 0 19 . Osten sib ly , th e i mp u g n ed o rd er h as n o t I.T.A. No.1211/Del/2020 6 b een co mmu n ica te d p ro mp tly , i. e. , 1 5 d ay s as p er g uid elin es issu ed in th is reg ard by CBDT. Th e CIT(A) is ex p ected to fo llo w th e g u id in g p rin cip les in l et ter an d sp irit as p ro vid ed in CBDT In stru ctio n s No .2 0/2 0 0 3 d ated 2 3 .12.2 0 0 3 wh ich was reit erated v id e CBDT lett er F. No . 27 9 /Misc.5 3 /2 0 0 3 ITJ d ated 1 9 .6 .2 01 5 . An o th er co mmu n ic atio n F. No . DGIT (v ig ) / HQ / SF / Ap p eals /2 0 1 7 -1 8 /9 95 9 d ated 8 .3 .2 0 1 8 was yet ag ain i ssu ed by CBDT to g iv e i mp etu s fo r t imely d isp a tch o f o rd ers p assed by CIT(A) to sh u n an y su sp icio n ab o u t b ack d at in g an d ma la fid e in te n t. 7 . Th e Co -o rd in ate B en ch o f th e Trib u n al in ITO v s. U ma Dev i in ITAs No .1 4 7 9 , 1 4 80 , 1 4 8 1 /Del/2 02 0 o rd er d ated 1 2.0 8 .2 02 2 h as also se t as id e th e o rd er o f CIT(A) fo r fresh ad j u d icatio n in so mewh at s i mi lar circu ms tan ce s. 8 . We th u s fin d tractio n in th e cla i m o f th e Rev en ue fo r remit tin g th e ma tt er b ack to th e CIT(A) fo r fresh ad ju d icat io n on th e g ro un d th at th e i mp u g n ed o rd er h as b een p assed by th e ex tan t CIT(A) with o u t jurisd ic tio n . Hen ce, th e ma t ter is re mi t ted to th e fi le o f th e co n cern ed CIT(A) h old in g law fu l ju ri sd ict io n to ad ju d icat e th e mat ter afr esh in acco rd an ce with law an d in tu n e with p rin cip l es o f n atu ral ju st ice . 7 . In th e resu l t, th e a p p eal o f th e Rev en u e is al lowed ex-p a rte. Order pronounced in the open Court on 18/10/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /10/2022 prabhat