Blue Coast Hotels Ltd., New Delhi V. ACIT, Circle- 5(1), New Delhi

ITA 1212/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3231 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 15-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANI BANSAL
• Assessee Lawyers: ROHIT JAIN
• Keywords: Depreciation; Unabsorbed depreciation
• Section: 143(3); 201; 20

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DE LHI BENCHES : G : NEW DELHI (THROUGH VIRTUAL COURT HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 1 21 2 /D EL /201 9 ASSESSMENT YEAR : 20 15 - 16 BLUE COAST HOTELS LTD., 4 15 - 417, ANTRIKSH BHAWAN, CONNAUGHT PLACE, NEW DELHI. PAN : A A ACM0037G VS ACIT, CIRCLE - 5(1), NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SH R I ROHIT JAIN, ADVOCATE RE VENUE BY : MS SHIVANI BANSAL, SR. DR DATE OF HEARING : 1 7 . 1 1 . 20 20 DATE OF PRONOUNCEMENT : 17 . 1 1 . 20 20 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 31 ST D ECEMBER, 201 8 OF THE CIT(A) - 2 , NEW DELHI, RELATING TO ASSESSMENT YEAR 2 0 14 - 15 . 2. THE ASSESSEE IN ITS VARIOUS GROUNDS OF APPEAL HAS CHALLENGED THE ORDER OF THE CIT(A) SUSTAINING VARIOUS ADDITIONS MADE BY THE AO. ITA NO. 121 2 / D EL /201 9 2 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 30 TH SEPTE MBER, 20 15 DECLARING A LOSS OF RS. 12,08,80,745/ - . THE AO COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.9,25,00,603/ - WHEREIN AFTER ALLOWING UNABSORBED DEPRECIATION OF EQUAL AMOUNT, DETERMINED THE TOTAL I NCOME OF THE ASSESSEE AT RS.NIL. THE AO IN THE ORDER HAS MADE ADDITION OF RS.55,67,640/ - BEING INTEREST FREE LOAN GIVEN TO SUBSIDIARY COMPANIES AND RS.20,78,13,708/ - ON ACCOUNT OF DISALLOWANCE U/S 14A. IN APPEAL, THE LD.CIT(A) IN THE EX PARTE ORDER PASSE D BY HIM, UPHELD THE ADDITION S MADE BY THE AO. 4 . AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5 . WE HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. IT IS AN ADMITTED FACT THAT THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) ON 20.11.2018 AND ON THE NEXT DATE OF HEARING I.E., 6 TH DECEMBER, 2018 FILED AN APPLICATION OF ADJOURNMENT. HOWEVER, ON THE NEXT DATE OF HEARING I.E., ON 28 TH DECEMBER, 2018, THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) FOR WHICH HE PASSED THE EX PARTE ORDER DISMISSING THE APPEAL OF THE ASSESSEE. FROM THE ABOVE, IT IS SEEN THAT DESPITE THREE OPPORTUNITIES GRANTED BY THE CIT(A), THE ASSESSEE DID NOT APPEAR BEFORE HIM FOR WHICH HE PASSED TH E EX PARTE ORDER SUSTAINING THE ADDITION MADE BY THE AO. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE ITA NO. 121 2 / D EL /201 9 3 FILE OF THE CIT(A) WITH A DIRECTION 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 DIRECTED TO APPEAR BEFORE THE LD.CIT(A) AND SUBSTANTIATE ITS CASE, FAILING WHICH THE LD.CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. WE HO LD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. DE CISION WAS PRONOUNCED ON CONCLUSION OF VIRTUAL HEARING ON 1 7 TH NOVEMBER, 2020 ITSELF . SD/ - SD/ - ( SUCHITRA KAMBLE ) ( R. K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 7 TH NOVEMBER, 2020. DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI