M/s. Sita Ram Contractor, Rohtak V. ITO, Rohtak

ITA 1391/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4420 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 27-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 10-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSHLENDRA TIWARI
• Assessee Lawyers: NITIN JAIN
• Keywords: Opportunity of being heard
• Section: 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 1391/DEL/2014 A.Y.: 2010-11 M/S SITA RAM CONTRACTOR, VS ITO, WARD-1, 24, VIKAS NAGAR, ROHTAK SONEPAT ROAD, ROHTAK (PAN: ABIFS4298P) (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. NITIN JAIN, ADV DEPARTMENT BY : SH. KAUSHLENDRA TIWARI, S R. DR. ORDER PER H.S. SIDHU, JM: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A), ROHTAK RELATING TO ASSESSMENT YEAR 2010- 11 ON THE FOLLOWING GROUNDS:- 1. THE ORDER OF THE LD. CIT(A) IS AGAINST FACTS AND IS BAD IN LAW. 2. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE AO IN REJECTING THE BOOKS OF ACCOUNTS BY INVOKING SECTION 145 OF THE I.T. ACT. 2 3. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE AO IN ADOPTING NET PROFIT RATE OF 8% ON THE GROSS RECEIPTS OF CONTRACT. 4. THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF THE AO IN NOT DEDUCTING COST OF MATERIAL FROM THE GROSS RECEIPTS AMOUNTING TO RS. 1,98,92,958/-. 5. THE LD. CIT(A) HAS ERRED IN NOT DEDUCTING DEPRECIATIO N CLAIMED AT RS. 23,392/- FROM THE TAXABLE INCOME. 6. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR FORGO ANY GROUND OF APPEAL AT THE TIME OF ITS HEARING. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NOT DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 3. DURING THE HEARING, LD. COUNSEL OF THE ASSESSEE HAS STATED THAT LD. CIT(A) HAS PASSED THE ORDER WITHOUT GIVING SUF FICIENT OPPORTUNITY TO THE ASSESSEE FOR SUBSTANTIATING ITS CLAI M BEFORE HIM. SECONDLY, HE ARGUED THAT LD. CIT(A) HAS PASSED A NON -SPEAKING ORDER WHICH IS NOT SUSTAINABLE IN THE EYES OF LAW AND, THEREFORE, HE REQUESTED THAT ISSUE IN DISPUTE MAY BE SET ASIDE TO T HE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION AND ALSO DIRECT H IM TO PASS A 3 SPEAKING ORDER, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. ON THE OTHER HAND, LD. DR RELIED UPON THE ORDER OF THE LD. CIT(A) AND STATED THAT ASSESSEE HAS NOT PRODUCED THE BOOKS OF ACCOUNTS AND HAS NOT GIVEN ANY COMPLETE DOCUMENTARY EVIDENCE ON THE ADDITION IN DISPUTE, THEREFORE, HE REQUESTED THAT TH E ORDER OF THE LD. CIT(A) MAY BE UPHELD. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE REC ORDS ESPECIALLY THE IMPUGNED ORDER. WE ARE OF THE VIEW THA T THE LD. CIT(A) HAS PASSED THE IMPUGNED ORDER WHICH IS NON-SP EAKING AND HENCE, NOT SUSTAINABLE IN THE EYES OF LAW. WE ALSO F IND THAT THE ASSESSEE HAS NOT FILED SUFFICIENT EVIDENCE FOR SUBSTA NTIATING THE CLAIM BEFORE THE LD. CIT(A) AND, THEREFORE, WE DIRECT THE ASSESSEE TO PRODUCE THE RELEVANT EVIDENCES BEFORE THE LD. CIT(A ) FOR SUBSTANTIATING ITS CASE. ACCORDINGLY, WE SET ASIDE T HE ISSUES IN DISPUTE TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTIO N TO DECIDE THE SAME ON MERITS, AFTER APPRECIATING THE EVIDENCES PROD UCED BY THE ASSESSEE AND ALSO PROVIDE ADEQUATE OPPORTUNITY OF BEI NG HEARD TO THE ASSESSEE TO SUBSTANTIATE ITS CASE. HOWEVER, THE ASSE SSEE IS DIRECTED NOT TO SEEK ANY UNNECESSARY ADJOURNMENT BEFO RE THE LD. CIT(A) AND FULLY COOPERATE IN THE SPEEDY DISPOSAL O F THE APPEAL. 4 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STA ND ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 18/9/2017. SD/- SD/- [PRASHANT MAHARISHI] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 18/9/2017 *SR BHATNAGAR* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR