Sh. Sanjay Bansal, New Delhi V. ITO, New Delhi

ITA 1530/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3733 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Opportunity of being heard

Judgement Text

1 ITA NO. 1530/DEL/2017 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEM BER ITA NO. 1530/DEL/201 7 ( A.Y 2007-08) SANJAY BANSAL PROP. S. N. METALLOYS, RP-5, PITAMPURA, NEAR TV TOWER, NEW DELHI AAGPB2774G (APPELLANT) VS ITO WARD-63(3) NEW DELHI (RESPONDENT) APPELLANT BY SH. VED JAIN, ADV RESPONDENT BY SH. AMIT JAIN, SR DR ORDER PER R. K. PANDA , AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 28/11/2016 PASSED BY CIT(A)-20, NEW DELHI RELATING TO ASSESSMENT YEAR 2007- 08. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE HOWEVER THEY ALL RELATE TO THE EXPARTE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITIONS MADE BY THE A.O. 2.1. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSE T SUBMITTED THAT THE ADDITION OF RS.10,48,979/- MADE BY THE A.O ON ACCOU NT OF BOGUS PURCHASE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THE TRIBUNAL IN A NUMBER OF CASES. HE ACCORDINGLY, SUBMITTED THAT THE ISSUE BE ING COVERED IN FAVOUR OF THE DATE OF HEARING 23.10.2017 DATE OF PRONOUNCEMENT 23.10.2017 2 ITA NO. 1530/DEL/2017 ASSESSEE, THE GROUNDS RAISED BY THE ASSESSEE SHOULD BE ALLOWED AND THE ADDITION MADE BY THE A.O AND SUSTAINED BY THE CIT(A ) SHOULD BE DELETED. 3. THE LD. DR ON THE OTHER HAND SUBMITTED THAT THE ASSESSEE DID NOT APPEAR BEFORE THE A.O. DESPITE SPECIFIC NOTICE ISS UED BY HIM. THERE WAS NO COMPLIANCE BEFORE THE CIT(A) FOR WHICH LD.CIT(A) HA S PASSED THE EX-PARTE ORDER. THEREFORE, THIS MATTER SHOULD BE RESTORED TO THE FI LE OF THE A.O. 4. I HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE PERU SAL OF THE ASSESSMENT ORDER SHOWS THAT DESPITE THE SHOW CAUSE NOTICE DATED 12 TH MARCH, 2015 AND NOTICE U/S 143(2) SENT TO THE ASSESSEE FIXING THE CASE FOR APPEARING ON 18 TH MARCH, 2015 THERE WAS NO APPEARANCE BY THE ASSESSEE NOR AN Y BOOKS OF ACCOUNTS WERE PRODUCED BEFORE THE A.O. A PERUSAL OF THE ORDER OF THE CIT(A) SHOWS THAT DESPITE NUMBER OF OPPORTUNITIES GIVEN BY THE CIT(A) , THERE WAS NO COMPLIANCE BEFORE HIM FOR WHICH HE HAS PASSED AN EX-PARTE ORDE R. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUS TICE I DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE A.O WITH A DIRECTION T O GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE HIS CASE WITH EVIDENCE TO HIS SATISFACTION. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE T HE A.O AND COOPERATE WITH HIM IN COMPLETION OF THE ASSESSMENT BY PROVIDING HI M WITH THE NECESSARY INFORMATION AS IS CALLED FOR BY THE A.O FROM TIME T O TIME. THE A.O SHALL DECIDE THE ISSUE AFRESH AND IN ACCORDANCE WITH LAW AFTER G IVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I HOLD AND DIRECTED ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3 ITA NO. 1530/DEL/2017 PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF, I.E. ON 23 RD OCTOBER , 2017. SD/- (R. K. PANDA ) ACCOUNTANT MEMBER DATED: 23/10/2017 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 1530/DEL/2017 DATE 1. DRAFT DICTATED ON 23/10/2017 PS 2. DRAFT PLACED BEFORE AUTHOR 23/10/2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 24.10. 2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 2 4 .10.2017 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER. 5 ITA NO. 1530/DEL/2017