Amarjeet Singh, New Delhi V. ACIT, Circle- 52(1), New Delhi

ITA 1455/DEL/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2950 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 01-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAKASH DUBEY
• Keywords: Principle of natural justice; Revised return
• Section: 143(3); 143(2)

Judgement Text

1 ITA NO. 1455 & 1454/DEL/2018 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: AFRIDAY NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 1455/DEL/2018 ( A.Y 2013-14) & ITA NO. 1454/DEL/2018 ( A.Y 2013-14) (THROUGH VIDEO CONF ERENCING) AMARJEET SINGH 23, REGAL BUILDING, CONNAUGHT PLACE, NEW DELHI AAGPS2209D (APPELLANT) VS ACIT CIRCLE-52(1) NEW DELHI (RESPONDENT) APPELLANT BY SH. V. RAJAKUMAR, ADV RESPONDENT BY SH. PRAKASH DUBEY, SR. DR ORDER PER SUCHITRA KAMBLE, JM THESE TWO APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDER DATED 01/01/2016 & 17/10/2017 PASSED BY CIT(A)- 18, NEW D ELHI FOR ASSESSMENT YEAR 2013-14 . 2. THE GROUNDS OF APPEAL ARE AS UNDER:- ITA NO. 1455/DEL/2018 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT (A) ERRED IN: 1. TREATING THE PAPER APPEAL FILED BY THE ASSESSEE AS NON-EST AND DISMISSING THE SAME IN LIMINE; 2. NOT PASSING A SPEAKING ORDER ON THE POINTS IN ISSU E EX-PARTE AND IN CONTRAVENTION OF NATURAL JUSTICE; DATE OF HEARING 19.02.2021 DATE OF PRONOUNCEMENT 19.02.2021 2 ITA NO. 1455 & 1454/DEL/2018 3. CONFIRMING THE FOLLOWING ACTIONS OF THE ASSESSING OFFICER: A) DETERMINING TAXABLE INCOME VIDE ORDER U/S 143(3) O F THE ACT AT AN INCOME OF RS.99,97,760/- AGAINST THE RETURNED INCOME IN A SUM OF RS.42,58,080/-; B) MAKING FOLLOWING ADDITION TO THE RETURNED INCOME: I) RS.28,01,105/- ON ACCOUNT OF INTEREST PAID ON ACCO UNT ON THE GROUND OF NON-EXISTENT NEXUS; II) RS.29,38,576/- ON ACCOUNT OF INTEREST PAID TO EARN INTEREST INCOME. ALL THE ABOVE ACTIONS BEING ARBITRARY, GROSSLY MISC ONCEIVED, PALPABLY ERRONEOUS AND WHOLLY UNJUST AND SO MUST BE QUASHED WITH DIRECTIONS FOR RELIEF. ITA NO. 1454/DEL/2018 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE CIT (A) ERRED IN: 1. TREATING THE APPEAL FILED ELECTRONICALLY ON 27.07. 2016 AS NON-EST AND IN VIOLATION OF MANDATORY REQUIREMENT TO FILE THE APPE AL ELECTRONICALLY WITHIN THE EXTENDED PERIOD I.E. 15.06.2016 AND DISMISSING THE SAME IN LIMINE AND IN CONTRAVENTION OF THE NORMS OF NATURAL JUSTICE AND F AIR PLAY; 2. FRUSTRATING THE PROCEDURE FOR RELIEF PROVIDED UNDE R THE ACT ARBITRARILY AND ABRUPTLY; 3. CONFIRMING THE FOLLOWING ACTIONS OF THE ASSESSING OFFICER: A) DETERMINING TAXABLE INCOME VIDE ORDER U/S 143(3) O F THE ACT AT AN INCOME OF RS.99,97,760/- AGAINST THE RETURNED INCOME IN A SUM OF RS.42,58,080/-; B) MAKING FOLLOWING ADDITION TO THE RETURNED INCOME: I) RS.28,01,105/- ON ACCOUNT OF INTEREST PAID ON ACCO UNT ON THE GROUND OF NON-EXISTENCE NEXUS; II) RS.29,38,576/- ON ACCOUNT OF INTEREST PAID TO EARN INTEREST INCOME. ALL THE ABOVE ACTIONS BEING ARBITRARY, GROSSLY MISC ONCEIVED, PALPABLY ERRONEOUS AND WHOLLY UNJUST AND SO MUST BE QUASHED WITH DIRECTIONS FOR RELIEF. 3 ITA NO. 1455 & 1454/DEL/2018 3. THE ASSESSEE IS AN INDIVIDUAL AND HAD FILED HI S RETURN OF INCOME FOR AY 2013-14 ON 31/10/2013 AT RS. 42,58,080/- WHICH HAS SUBSEQUENTLY BEEN REVISED ON 08/08/2014 AT RS. 42,58,080/-. THE REASO N FOR FILING REVISED RETURN WAS DECLARING LONG TERM CAPITAL LOSS AT RS. 39,61,0 36/- WHICH HAD BEEN OMITTED TO BE DECLARED IN ORIGINAL RETURN OF INCOME . THE CASE OF THE ASSESSEE WAS SELECTED UNDER SCRUTINY ASSESSMENT VIDE ISSUANC E OF NOTICE UNDER SECTION 143(2) DATED 03.09.2014. THE INCOME HAS BEEN ASSESS ED AT RS. 99,97,760/- RESULTING IN ADDITION OF RS. 57,39,681/- BY THE ASS ESSING OFFICER. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASS ESSEE. 4. THE LD. AR SUBMITTED THAT THE CIT(A) HAS NOT DEC IDED THE APPEAL ON MERIT AND DISMISSED THE APPEAL IN LIMINE. THEREFOR E, THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE CIT(A). 5. THE LD. DR RELIED UPON THE ORDER OF THE CIT(A) A ND ASSESSMENT ORDER. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. THERE IS A DELAY IN FILING T HE APPEAL WHICH IS 422 DAYS IN ITA NO. 1455/DEL/2018 CHALLENGING ORDER DATED 01.04 .2016 OF THE CIT(A). AT THE TIME OF HEARING THE LD. AR EXPLAINED THAT THE C IT(A) PASSED EX-PARTE ORDER DATED 01.10.2016 WHICH WAS RECEIVED BY THE ASSESSEE ON 04.11.2016. IN THE MEANWHILE THE ASSESSEE FILED E-APPEAL IN TERMS OF T HE NEW RULES ON 27.07.2016 WHICH IS BEFORE THE ORDER PASSED BY THE CIT(A). AS THE E-APPEAL WAS PENDING, THE ASSESSEE AT THAT STAGE NEVER FILED APPEAL BEFOR E THE TRIBUNAL. BUT SINCE IN E- APPEAL AS WELL THE ORDER DATED 17.10.2017, THE CIT( A) PASSED EX-PARTE ORDER, THE ASSESSEE HAS CHALLENGED BOTH THE ORDERS IN SEPA RATE APPEAL BEFORE US. THE EXPLANATION FOR DELAY IS GENUINE AND HENCE, DELAY I S CONDONED. FROM THE PERUSAL OF THE ORDERS IN AY 2013-14 FOR WHICH THE A SSESSEE HAS FILED TWO APPEALS BEFORE US FOR SEPARATE ORDERS OF THE CIT(A) , IT CAN BE SEEN THAT THE 4 ITA NO. 1455 & 1454/DEL/2018 CIT(A) HAS NOT AT ALL TAKEN COGNIZANCE ON MERIT OF THE CASE AND HAS SIMPLICITOR DISMISSED THE APPEAL IN LIMINE ON BOTH OCCASIONS. ONCE BY SAYING THAT THE APPEAL IS IN PHYSICAL FORM AND NOT FILED E-APPEAL F ORM AND SECONDLY BY SAYING THAT THE APPEAL IS IN E-APPEAL FORM BUT IS IN VIOLA TION OF MANDATORY REQUIREMENT TO FILE THE APPEAL ELECTRONICALLY WITHIN THE EXTEND ED PERIOD. THUS, THE CIT(A) HAS DENIED THE OPPORTUNITY OF HEARING OF THE CASE O N MERIT TO THE ASSESSEE. THEREFORE, IT WILL BE APPROPRIATE TO REMAND BACK TH E ISSUE TO THE FILE OF THE CIT(A) TO DECIDE THE ISSUE ON MERIT AND PASS APPRO PRIATE ORDER ACCORDING TO LAW. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPORT UNITY OF HEARING BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. 7. IN RESULT, THE APPEALS OF THE ASSESSEE ARE PARTL Y ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT IN PRESENCE OF B OTH THE PARTIES ON THIS 19 TH DAY OF FEBRUARY, 2021 SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 19/03/2021 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 5 ITA NO. 1455 & 1454/DEL/2018