M/s. Suneel Galgotia, New Delhi V. ACIT, Noida

ITA 1237/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4582 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 02-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.1232/DEL./2017 ASSESSMENT YEAR 2012-2013 M/S. BHUMIKA ISPAT UDYOG PVT. LTD., NEW DELHI. C/O. M/S. RRA TAX INDIA, D- 28, SOUTH EXTENSION PART-1, NEW DELHI 110 049. PAN AACCT4963C VS. THE DCIT, CIRCLE-4(2) NEW DELHI. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI RAKESH GUPTA AND SHRI SOMIL AGARWAL, ADVOCATES FOR REVENUE : SHRI T. VASANTHAN, SR. D.R. DATE OF HEARING : 04.09.2017 DATE OF PRONOUNCEMENT : .09.2017 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(A)-35, NEW DELHI, DATED 25 TH JANUARY, 2017, FOR THE A.Y. 2012-2013, CHALLENGING THE ADDITION OF RS.75 L AKHS UNDER SECTION 68 OF THE I.T. ACT, 1961. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE FILED RETURN OF INCOME DECLARING LOSS OF RS.30,94,696. THE CASE WAS SELECTED FOR SCRUTINY. THE ASSESSEE-COMPANY IS ENGAGED IN THE BU SINESS OF MANUFACTURING AND TRADING OF G.I. PIPES/BLANK PIPES . THE A.O. NOTED 2 ITA.NO.1232/DEL./2017 M/S. BHUMIKA ISPAT UDYOG PVT. LTD., DELHI. THAT ASSESSEE HAD SHOWN INCREASE OF THE SHARE APPLI CATION MONEY FROM THREE COMPANIES VIZ., ABHILASHA EXPORTS PVT. L TD., NEELKAMEL DEALCOMM PVT. LTD., AND SUBHSHREE HIRISE PVT. LTD., FOR A SUM OF RS.25 LAKHS EACH. THE A.O. AFTER DISCUSSION OF THE ISSUE IN THE ASSESSMENT ORDER, MADE ADDITION OF RS.75 LAKHS UNDE R SECTION 68 OF THE I.T. ACT, 1961 CONSIDERING THE SHARE APPLICATIO N MONEY TO BE UNEXPLAINED. THE LD. CIT(A) DISMISSED THE APPEAL OF ASSESSEE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE PLACED ON RECORD TRUE COPY OF THE ORDER SHEET OF THE LD. CIT(A) AND HIGHLIGHTED THAT ON 24 TH JANUARY, 2017, THE LD. CIT(A) NOTED THAT REMAND RE PORT FROM A.O. IS AWAITED. ON 24 TH JANUARY, 2017, THE LD. CIT(A) NOTED THAT REMAND REPORT HAS BEEN RECEIVED FROM THE A.O. WHICH IS PLACED ON RECORD AND ON 25 TH JANUARY, 2017, THE LD. CIT(A) PASSED THE IMPUGNED ORDER. LEARNED COUNSEL FOR THE ASSESSEE TH EREFORE, SUBMITTED THAT LD. CIT(A) PASSED THE ORDER WITHOUT CONFRONTING THE REMAND REPORT RECEIVED FROM THE A.O. AND NO OPPORTU NITY OF BEING HEARD HAVE BEEN GIVEN TO THE ASSESSEE. 3 ITA.NO.1232/DEL./2017 M/S. BHUMIKA ISPAT UDYOG PVT. LTD., DELHI. 4. THE LD. D.R. IN VIEW OF THE ABOVE SUBMITTED THA T THE MATTER MAY BE REMANDED TO THE FILE OF THE LD. CIT(A) FOR P ASSING THE ORDER AFRESH. 5. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT THE MATTER REQUIRES RE-CONSIDERATION AT THE LE VEL OF THE LD. CIT(A). THE ORDER SHEET RECORDED BY THE LD. CIT(A) AS REFER RED TO ABOVE BY LEARNED COUNSEL FOR THE ASSESSEE CLEARLY REVEAL THA T LD. CIT(A) CALLED FOR THE REMAND REPORT FROM THE A.O. AND WITHOUT CON FRONTING THE SAME TO THE ASSESSEE, PASSED THE IMPUGNED ORDER. TH US, ASSESSEE HAS BEEN DENIED RIGHT FOR HEARING AT THE APPELLATE STAGE WITHOUT CONFRONTING REMAND REPORT AND WITHOUT CALLING FOR T HE FURTHER COMMENTS OF THE ASSESSEE. THE ORDER OF THE LD. CIT( A) CANNOT BE SUSTAINED IN LAW. I, ACCORDINGLY, SET ASIDE THE ORD ER OF THE LD. CIT(A) AND RESTORE THE APPEAL OF ASSESSEE TO HIS FILE WITH A DIRECTION TO RE- DECIDE THE APPEAL OF ASSESSEE AFRESH BY CONFRONTING THE REMAND REPORT FILED BY THE A.O. TO THE ASSESSEE, AFTER CAL LING THE COMMENTS OF THE ASSESSEE IN THE MATTER. LD. CIT(A) SHOULD GIVE REASONABLE, SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 4 ITA.NO.1232/DEL./2017 M/S. BHUMIKA ISPAT UDYOG PVT. LTD., DELHI. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 04 TH SEPTEMBER, 2017 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES DELHI.