M/s. Binary Network Solution Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 1282/DEL/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4068 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 09-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 06-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K JAIN SENIOR
• Keywords: Business income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH A AA A : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI BEFORE SHRI BEFORE SHRI BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT G.D. AGRAWAL, VICE PRESIDENT AND AND AND AND MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 1282/DEL/2014 1282/DEL/2014 1282/DEL/2014 1282/DEL/2014 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2009 2009 2009 2009 - -- - 10 1010 10 M/S BINARY NETWORK SOLUTION M/S BINARY NETWORK SOLUTION M/S BINARY NETWORK SOLUTION M/S BINARY NETWORK SOLUTION PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 105 105 105 105- -- -A/2, SARASWA A/2, SARASWA A/2, SARASWA A/2, SARASWATI HOUSE, TI HOUSE, TI HOUSE, TI HOUSE, 27, NEHRU PLACE, 27, NEHRU PLACE, 27, NEHRU PLACE, 27, NEHRU PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 019. 110 019. 110 019. 110 019. PAN : AACCB4449F. PAN : AACCB4449F. PAN : AACCB4449F. PAN : AACCB4449F. VS. VS. VS. VS. ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -II, II,II, II, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : MS. RASHMI CHOPRA, ADVOCATE. RESPONDENT BY : SHRI S.K. JAIN , SENIOR DR. DATE OF HEARING : 09.08.2016 09.08.2016 09.08.2016 09.08.2016 DATE OF PRONOUNCEMENT : 11.08.2016 11.08.2016 11.08.2016 11.08.2016 ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : :: :- -- - THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2009-1 0 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXXI, N EW DELHI DATED 2 ND JANUARY, 2013. 2. THE ONLY GROUND RAISED BY THE ASSESSEE READS AS UNDER:- THIS IS AN APPEAL AGAINST THE ORDER PASSED BY ASSTT. COMMISSIONER OF INCOME TAX, WHERE BY HE HAS ASSESSED THE INCOME OF THE ASSESSEE AT RS.60,96,027 AGAINST THE RETURNED INCOME OF RS.3,50,670/- BY ACTING ARBITRARI LY IN MAKING THE ABOVE ADDITION. THE APPELLANT IS DISPUT ING THE ABOVE ADDITION WHICH IS WRONG, UNJUST, BIASED AND AGAI NST THE PROVISION OF LAW AND FACTS ON RECORDS. ITA-1282/DEL/2014 2 3. AT THE TIME OF HEARING BEFORE US, IT IS STATED BY T HE LEARNED COUNSEL THAT IN THE ASSESSEE COMPANY, THERE ARE TWO DIRE CTORS SHRI SUNIL JAIN AND HIS MOTHER SMT. NIRMALA JAIN. THAT A T THE RELEVANT TIME, WIFE OF SHRI SUNIL JAIN SUFFERED FROM CANCER AND HE WAS BUSY IN HER TREATMENT. THIS FACT IS EVIDENT FROM THE STATEMENT O F SMT. NIRMALA JAIN WHICH IS REPRODUCED IN THE ASSESSMENT ORDER ITSELF WHERE IN SMT. NIRMALA JAIN HAS STATED THAT HIS SON SHRI SUNIL JAIN L OOKS AFTER THE BUSINESS AND SHE ONLY SUPERVISES THE BUSINESS IN HIS ABSENCE. SHE ALSO STATED THAT SHRI SUNIL JAIN IS AWAY TO MUMBAI FOR TREATMENT OF HIS WIFE AND WHEN HE COMES BACK, HE WILL EXPLAIN THE DISC REPANCY. SHE STATED THAT IN THE ABSENCE OF SHRI SUNIL JAIN, SMT. N IRMALA JAIN COULD NOT FURNISH PROPER EXPLANATION BEFORE THE ASSESSING OFFICER AND, THEREFORE, HE TREATED THE ASSESSEE AS ENTRY PROVIDER AND ESTIMATED THE COMMISSION INCOME OF THE ASSESSEE AT `60,96,027/- AS AGAIN ST THE BUSINESS INCOME OF `3,50,670/-. SHE REQUESTED THAT THE MATTER MAY BE SENT BACK TO THE FILE OF THE ASSESSING OFFICER WHERE SHR I SUNIL JAIN WOULD APPEAR AND WOULD SUBMIT ALL THE NECESSARY DETAI LS AND EVIDENCES SO AS TO SATISFY THE ASSESSING OFFICER THAT THE ASSE SSEE WAS ACTUALLY CARRYING ON THE BUSINESS AND NOT AN ENTRY PRO VIDER. 4. LEARNED DR, ON THE OTHER HAND, RELIED UPON THE O RDERS OF AUTHORITIES BELOW. HOWEVER, HE HAS NO SERIOUS OBJECTIO N IN SETTING ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PER USED THE ORDER OF THE ASSESSING OFFICER AND LEARNED CIT(A). AF TER CONSIDERING THE SAME, WE ARE OF THE OPINION THAT IT WOULD MEET T HE ENDS OF JUSTICE IF THE ORDERS OF AUTHORITIES BELOW ARE SET ASIDE AND MATTE R IS RESTORED TO THE FILE OF THE ASSESSING OFFICER. WE ORDER ACCORDINGL Y AND DIRECT THE ASSESSING OFFICER TO ALLOW ADEQUATE OPPORTUNITY OF BEIN G HEARD TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO PRODUCE NECESSARY EV IDENCE ITA-1282/DEL/2014 3 BEFORE THE ASSESSING OFFICER. THEREAFTER, THE ASSESSING OF FICER IS DIRECTED TO MAKE THE ASSESSMENT AFRESH DE-NOVO IN ACCORD ANCE WITH LAW. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 11.08.2016. SD/- SD/- (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE (SUCHITRA KAMBLE ) )) ) ( (( ( G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : M/S BINARY NETWORK SOLUTION PVT.L TD., M/S BINARY NETWORK SOLUTION PVT.LTD., M/S BINARY NETWORK SOLUTION PVT.LTD., M/S BINARY NETWORK SOLUTION PVT.LTD., 105 105 105 105- -- -A/2, SARASWATI HOUSE, A/2, SARASWATI HOUSE, A/2, SARASWATI HOUSE, A/2, SARASWATI HOUSE, 27, NEHRU PLACE, NEW DELHI 27, NEHRU PLACE, NEW DELHI 27, NEHRU PLACE, NEW DELHI 27, NEHRU PLACE, NEW DELHI 110 019. 110 019. 110 019. 110 019. 2. RESPONDENT : ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE CENTRAL CIRCLE- -- -II, NEW DELHI. II, NEW DELHI. II, NEW DELHI. II, NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR