ITO WARD- 2(1), New Delhi V. Airwave International Pvt Ltd, New Delhi

ITA 1364/DEL/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 2441 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2022
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 02-07-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ISHTIYAQUE AHMED
• Section: 147; 69; 148; 56; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.1363 & 1364/DEL/2020 Assessment Years 2013-14 & 2014-15 ITO, Ward-2(1), New Delhi. v. M/s. Airwave International Pvt. Ltd., N-540, Gali No.19, Saurabh vihar, Near Morbandh Jaitpur, Badarpur, Delhi. TAN/PAN: AAKCA5743R (Appellant) (Respondent) Appellant by: None Respondent by: Shri Ishtiyaque Ahmed, CIT-DR Date of hearing: 03 08 2022 Date of pronouncement: 27 09 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap p eals h av e b een fi led b y th e Ass essee ag ain st th e co n so li d ated o rd er o f th e Co mmiss io n er o f In co me Tax (Ap p eals)-I, No id a (‘CIT(A)’ in sh o rt) d ated 3 1 .1 2 .2 0 1 8 arisin g fro m th e a ssess me n t o rd ers o f ev en d ate 2 9 .1 2 .2 0 1 7 p assed b y th e Assessin g Offi cer u n d er Sectio n 1 4 7 /1 4 3 (3 ) o f th e In co me Tax Act, 1 9 6 1 (th e Act ) co n cern in g AYs 2 0 13 -14 , 2 0 1 4-1 5. 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: I T A N o . 1 3 6 4 / D e l / 2 0 2 0 ( A s s e s s m e n t Y e a r 2 0 1 4 - 1 5 ) 1 . W h e t h e r i n f a c t s a n d c i rc u m st a n c e s o f t h e c a s e , t h e CI T (A ) wa s c o r re c t a n d j u st i f i e d i n p a s si n g a n o r d e r wi t h o u t ju r i s d i c t i o n I.T.As. No.1363 & 1364/Del/2020 2 i r r e s p e c t i v e o f t h e f a c t s t h a t t h e o rd e r wa s i n f a vo u r o f t h e R e v e n u e . 2 . W h e t h e r i n f a c t s a n d c i rc u m st a n c e s o f t h e c a s e , t h e CI T (A ) wa s c o r re c t i n u p l o a d i n g h i s o r d e r i n I T B A , a f t e r h e was c o m p u l so ri l y re t i re d b y t h e G o v t , o f I n d i a a n d h e ha s b e c o m e f u n c t u s o f f i c i o . 3 . W h e t h e r i n f a c t s a n d c i r c u m s t a n c e s o f t h e c a se , c a n t h e re v e n u e b e i n g a st a t e , b e a b e n e f i c i a ry o f a n o rd e r p a s se d wi t h o u t j u r i sd i c t i o n b y a n a p p e l l a t e c o m m i s si o n e r as i t i s a b so l u t e l y i m m a t e ri a l t h a t u l t i m a t e l y t h e c a se wa s d e c i d e d i n f a v o u r o f t h e R e v e n u e b y t h e a p p e l l a t e c o m m i s si o n e r a l b e i t wi t h o u t j u ri sd i c t i o n . 4 . T h e o rd e r o f t h e CI T (A ) N o i d a , b e i n g n u l l i t y i n t h e L a w, m a y b e s e t a si d e f o r f re s h a d j u d i c a t i o n L d . CI T (A )- 1 , De l h i 5 . T h e a p p e l l a n t c ra v e s l e a v e , m o d i f y , a d d o r f o rg o a n y g r o u n d (s ) o f a p p e a l a t a n y t i m e b e f o r e o r d u ri n g t h e h e a ri n g o f t h i s a p p e a l . ” 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 B a s e d u p o n t h e i n f o r m a t i o n r e c e i v e d f ro m t h e O / o Th e A d d l . D I T (I n v . ), No i d a p u r s u a n t t o a s u rv e y o p e ra t i o n u nd e rt a k e n b y t h a t o f f i c e i n t h e p r e m i s e s o f M / s A i r w a v e G ro u p o n 2 8 / 0 1 / 2 0 1 6 u n d e r t h e p ro v i si o n s o f s e c t i o n 1 3 2 A o f t h e I . T . A ct , 1 9 6 1 , a s s u m e d j u ri s d i c t i o n u / s 1 4 7 o f t h e I . T . A c t , 1 9 6 1 a n d i s su e d n o t i c e u / s 1 4 8 t o M / s A i rw a v e I n t e r n a t i o n a l P v t . L td . . A s se s s m e n t o rd e r s w e re p a s s e d o n 2 9 / 1 2 / 2 0 1 7 f o r b o th t h e a s s e ss m e n t y e a r s i . e . A . Y . 2 0 1 3 - 1 4 a n d A . Y . 2 0 1 4 - 1 5 c o m p u t i n g t h e t a x a b l e i n c o m e o f t h e a s s e s se e c o m p a n y a t R s. 1 0 , 7 3 , 0 8 , 0 6 0 / - f o r A . Y . 2 0 1 3 - 1 4 a g a i n st t h e r e t u r n ed i n c o m e o f R s. 1 6 , 6 9 , 2 1 0 / - a n d R s. 1 4 , 8 6 , 8 2 , 5 5 0 / - f o r A . Y . 2 0 14 - 1 5 a g a i n st re t u rn e d i n c o m e o f R s. 1 , 1 6 , 8 5 , 6 5 0 / - . I.T.As. No.1363 & 1364/Del/2020 3 B e i n g a g g ri e v e d wi t h t h e a s se s s m e n t o r d e r s, t h e a ss e s se e we n t i n a p p e a l b e f o r e t h e CI T (A ) a n d f i l e d t w o a p p e a l s ag a i n s t t h e a s s e ss m e n t o rd e r s f o r t h e A . Y . 2 0 1 3 - 1 4 (a p p e a l n o . 3 2 1 / 2 0 1 7 - 1 8 / No i d a ) a n d A . Y . 2 0 1 4 - 1 5 (a p p e a l n o . 3 2 0 / 2 0 1 7 - 1 8 /No i d a ) . T h e CI T (A )- 0 1 , No i d a i n i t s c o m b i n e d o rd e r d a t e d 3 1. 1 2 . 2 0 1 8 f o r b o t h t h e a p p e a l s, d i s m i s s e d t h e a p p e a l f i l e d b y t h e a s se s s e e c o m p a n y a n d c o n f i r m e d t h e a s s e ss m e n t o rd e r s m a d e b y t h e L d . A O . A n F I R wa s l o d g e d a g a i n st S h r i S . K. S r i v a st a v , f o rm e r CI T (A ), No i d a - 1 . & 2 (n o w c o m p u l s o ry re t i r e d u / s 5 6 J ) a n d fi l e d a c h a r g e s h e e t a l l e g i n g t h a t a p p e a l o rd e r s p a ss e d b y i n 1 0 4 c a se s b y t h e t h e n CI T (A ) , N o i d a i n D e c e m b e r , 2 0 1 8 we r e a ct u a l l y p a s se d / d i s p a t c h e d / u p l o a d e d a f t e r t h e d a t e o f h i s c om p u l s o r y re t i re m e n t . O u t o f t h o se 1 0 4 c a s e s , t w o c a s e s b e l o ng t o t h e a s s e ss e e c o m p a n y ( M / s A i r wa v e I n t e r n a t i o n a l P v t . L td . , P A N: A A K CA 5 7 4 3 R ) f o r A . Y . 2 0 1 3 - 1 4 a n d 2 0 1 4 - 1 5 . i n t h i s re g a rd , l e g a l o p i n i o n wa s s o u g h t f ro m t h e S t a n d i n g Co u n s e l a f t e r t a k i n g n e c e s sa r y a p p ro v a l o f P r. CI T - 0 1 , N e w D e l h i d a t e d 26 / 0 6 / 2 0 2 0 t h ro u g h A d d l . CI T , R a n g e - 0 2 , N e w D e l h i . S h ri Z o h e b H o s s a i n , S t a n d i n g Co u n se l v i d e h i s E - m ai l d a t e d 3 0 / 0 6 / 2 0 2 0 h a s g i v e n h i s c o n se n t / l e g a l o p i n i o n wi t h r e g a rd t o f i l i n g o f a p p e a l . T h e c o n t e n t s o f l e g a l o p i n i o n p rov i d e d b y t h e S t a n d i n g C o u n s e l a r e a s u n d e r: - " F o r t h e sa k e o f c o n si st e n c y a n d u n i f o r m i t y i n t h e st a n d a d o p t e d b y R e v e n u e i n si m i l a r c a s e s, a p p e a l w i l l h a v e t o b e f i l e d o n t h e f o l l o w i n g g r o u n d s 1 . B e c a u se , t h e t h e n CI T (A )- No i d a h a d b e e n c o m p u l so r i l y re t i re d b y t h e G o v e rn m e n t o f I n d i a w i t h e f f e c t f ro m 1 1 . 0 6 . 2 0 1 9 a n d a c c o rd i n g l y , h e h a d b e c o m e f u n c t u s o f f i c i o w. e .f . 1 1 . 0 6 . 2 0 1 9 . A c c o rd i n g l y , a n y d i sc h a rg e o f f u n c t i o n b y a n o f f i c e r wh 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 ri sd i c t i o n . 2 . I n t h i s re g a r d , re l i a n c e i s p l a c e d o n t h e d e c i sio n o f t h e H o n ' b l e H i g h Co u rt o f Ka 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 si 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. , Wri t P e t i t i o n No . 3 1 7 3 4 / 2 0 1 6 (S - R E S ) , wh e re 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 m es f u n c t u s o f f i c i o . No o f f i c e r c a n c o n t i n u e t o d i sc h a rg e h i s fu n c t i o n s su b se q u e n t t o h i s re t i re m e n t a n d m o re p a rt i c u l a r l y , t o t a k e a c t i o n a g a 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 se e k su c h d i re c t i o n f r o m t h i s Co u r t . " (e m p h a si s a d d e d ) I.T.As. No.1363 & 1364/Del/2020 4 I t i s t o b e n o t e d t h a t t h e t e rm f u n c t u s o f f i c i o h a s 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 wi 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 ) 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 g e 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 rp o se , a n d t h e r e fo re , o f n o f u rt h e r f o rc e o r a u t h o ri 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 CI T(A )- N o i d a h a s b e e n d i sc h a rg e d f r o m h i s o f f i c e i . e . , wi t h e f f e c t fro m 1 1 . 0 6 . 2 0 1 9 , a n y o r d e r p ri m a f a c i e p a s se d b y h i m o r a c t e d u p o n by h i m a f t e r t h e d a t e o f h i s c o m p u l so ry r e t i r e m e n t i s w i t ho u t j u ri sd i c t i o n . 3 . B e c a u se a v i g i l a n c e i n sp e c t i o n f o r t h e wo r k c a r ri e d o u t b y S h . S a n j a y Ku m a r S ri v a st a v a I R S (R e t d . ), w h o wa s p o st e d t o a s CI T (A )- 1 No i d a wi t h t h e a d d i t i o n a l c h a rg e o f CI T ( A )- 2 No i d a , p r i o r t o h i s c o m p u l so ry re t i re m e n t w . e . f 1 1 .0 6 . 2 0 1 9 w a s c o 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 nc o m e T a x (V i g i l a n c e ) , wh i c h re v e a l e d t h a t o r d e r s p u r p o t e d t o h a v e b e e n p a s se d b y S h . S ri v a st 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 we r e p r i m a - f a c i e p a s se d i n t h e m o n t h o f J u n e , 2 0 1 9 . A l l t h e se o rd e r s l i a b l e t o 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 sy st e m we re 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 is d e m i t t i n g t h e o f f i c e . T h e r e a r e a l so i n d i c a t i o n s o f f a l si f i c at i o n o f re c o rd s t o a l l u d e t o wa r d s d i s p a t c h o f t h e se o r d e r s o n 7 t h Ju n e , 2 0 1 9 , wh e re a s t h e y w e re d i sp a t c h e d o n 1 4 t h J u n e , 2 0 1 9 I t wa s f u r t h e r re v e a l e d t h a t 1 0 4 o rd e r s we 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 s t a v a d u ri 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 we r e u p l o a d e d t o t h e c e n t ra l se 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 re m e n t . 4 . B e c a u se , i t i s i m m a t e ri a l w h e t h e r a n o r d e r p a s sed wi t h o u t j u ri s d i c t i o n i s i n f a v o u r o f re v e n u e o r a g ai n st i t . S u c h a n o rd e r i s c o n t ra r y t o t h e a d m i n i s t ra t i o n o f t h e In c o m e T a x A c t a n d i t p o l l u t e s t h e st r e a m s o f j u st i c e . T h e r e f o r e , r e v e n u e wo u l d b e a n a g g ri e v e d p a rt y i f a Co m m i s si o n e r o f I n c o m e Ta x (A p p e a l s ) p a s se s a n o rd 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 st o f t h e re 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 io n t o e n s u re t h a t o rd e r s a r e p a s se d b y t h e c o r r e c t l e g a l a u t h o rit y u n d e r t h e A c t . 5 . B e c a u s e t h e re 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 ry o f a n o rd e r p a s se d wi t h o u t j u ri sd i c t i o n b y a n A p p e l l a t e C o m m i s si o n e r a n d t h e r e f o re i t i s a b so l u t el y i m m a t e ri a l t h a t u l t i m a t e l y t h e c a se w a s d e c i d e d i n f a v o u r o f t h e re v e n u e b y t h e A p p e l l a t e C o m m i s si o n e r a l b e i t wi t h o ut j u ri sd i c t i o n . " I.T.As. No.1363 & 1364/Del/2020 5 I n v i e w o f t h e a b o v e a n d c o n si d e r i n g t h e f a c t s a n d c i rc u m st a n c e s o f t h e c a s e , t h e o r d e r o f L d . CI T (A ), No i d a c a n n o t b e a c c e p t a b l e o n m e ri t s . I n t h e i n t e re st o f re v e n u e a s we 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 re t h a t o r d e r s a re p a s s e d b y t h e c o r re c t l e g a l a u t h o ri t y u n d e r t h e A c t , a p p e a l b e f o re t h e H on ' b l e I T A T a r e re q u i r e d t o b e f i l e d o n t h e f o l l o wi n g g ro u n d s of a p p e a l a s m e n t i o n e d a b o v e . T h e c a se o f t h e a s se s s e e c o m p a n y a l o n g wi t h t h e a s se s s m e n t f o l d e r s wa s t ra n sf e r re d t o C i r c l e - 2 (1 ) , Ne w D e l h i i n J u n e 2 0 1 9 , wh i c h h a s a g a i n b e e n t r a n sf e r re d t o W a r d - 2 (1 ) , N e w D e l h i o n 3 0 . 0 6 . 2 0 2 0 c o n si d e ri n g t h e c u r re n t j u r i s d i c t i o n o f t h e a s s e s s e e c o m p a n y . I t i s t o m e n t i o n h e re t h a t t h e a p p e a l wa s n o t f i l e d b y t h e d e p a rt m e n t i n t h i s c a s e a s t h e a s s e s se e ' s a p p e al wa s d i sm i s s e d a n d h e n c e , t i m e l i m i t f o r f i l i n g o f a p p e al h a s b e e n e x p i re d . H o w e v e r, c o n si d e ri n g t h e f a c t s o f t h e c a s e wh i c h c a m e u p r e c e n t l y a n d a l s o c o n si d e r i n g t h e l e g a l o p i n i o n so u g h t f ro m t h e S t a n d i n g Co u n s e l , f i l i n g o f f u rt h e r a p p e a l i s ne c e s sa r y . (M a n o j Ku m a r ) I n c o m e T a x O f f i c e r , Wa r d - 2 (1 ) , N e w D e l h i . 5 . 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 I.T.As. No.1363 & 1364/Del/2020 6 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 2 .0 6 .2 0 19 . Osten sib ly , th e i mp u g n ed o rd er h as n o t 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 le tt er F.No . 2 7 9 /Mis c.5 3 /2 0 0 3 ITJ d ated 19 .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 ou t b ack d ati n g and ma la fid e in ten t . We th u s fin d trac tio n in th e cl ai m o f th e Rev en u e fo r remi t tin g th e ma tt er b ack to th e CIT(A) fo r fres h ad ju d icat io n o n th e g ro u nd th at th e i mp u g n ed o rd er h as b een passed b y th e ex tan t CIT(A) with o u t ju risd i ct io n . 7 . Bo th ap p eals h av e si milar g riev an ce an d th ere fo re b o t h th e ap p eals o f th e R ev en u e are d ecid e d o n same ter ms. Bo th th e ap p eals are th u s resto red to th e fi le o f th e CIT(A). Th e resp ect iv e ap p eals b efo re th e CIT(A) by th e assessee are th u s rev iv ed fo r fresh ad ju d i cat io n in acco rd an ce wi th law. 8 . In th e resu lt, b o th th e ap p eals o f th e Rev en u e are allo w ed ex- p a rte. Order pronounced in the open Court on 27/09/2022. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /09/2022