Adamya Finance & Leasing Ltd, New Delhi V. ITO, New Delhi

ITA 1924/DEL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3631 (ITAT-DELHI)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-06-2010
• Assessment Year: 2001-2002
• Appeal Filed On: 28-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS PRATIMA KAUSHIK
• Assessee Lawyers: HEMANT PAHWA
• Keywords: Reopening of assessment; Accommodation entries; Set aside
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : A NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMEBR AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER I.T.A NO. 1924/DEL/10 ASSTT. YEAR 2001-02 ADAMYA FINANCE & LEASING LTD. 46A, PKT. A/10, KALKAJI EXTN. NEW DELHI. VS. ITO COMPANY WARD-1 (2) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI HEMANT PAHWA, CA RESPONDENT BY: MRS. PRATIMA KAUSHIK, SR. DR ORDER PER RAJPAL YADAV, JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. CIT (A) DATED 10.2.10 PASSED FOR ASSTT. YEAR 2001-02. IN THE FIRS T GROUND OF APPEAL ASSESSEE HAS PLEADED THAT LD. CIT(A) HAS ERRED IN DISMISSING THE APPEAL OF ASSESSEE WITHOUT GIVING PROPER OPPORTUNITY OF HEARING. 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE HA S FILED ITS RETURN OF INCOME ON 31.10.2001 DECLARING A LOSS OF RS. 685250/-. AO HAS OBSERVED THAT AN INFORMATION FROM DIT (INVESTIGATION) WAS RECEIVED, EXHIBITING T HE FACT THAT ASSESSEE HAS TAKEN ACCOMMODATION ENTRIES FROM THE PERSONS WHO HAVE NO CREDITWORTHINESS. ON THE BASIS OF SUCH INFORMATION HE ISSUED NOTICE U/S 148 AND REOPENED THE ASSESSMENT PROCEEDING. DURING THE REASSESSMENT PROCEEDING AO N OTICED THAT ASSESSEE RECEIVED ITA NOS. 3337/DEL/08 ASSTT. YEAR 2005-06 2 SHARE APPLICATION MONEY OF RS. 6 LACS ON 2 ND JANUARY, 2001 FROM M/S. MKM FINSEC (P) LTD. ACCORDING TO THE AO ASSESSEE FAILED TO SUB MIT DETAILS IN SUPPORT OF SUCH SHARE APPLICATION MONEY. HE MADE THE ADDITION OF RS . 6 LACS IN THE TOTAL INCOME OF ASSESSEE. IN THIS WAY THE INCOME OF THE ASSESSEE HA S BEEN DETERMINED AT THE LOSS OF RS. 685250.AS AGAINST DECLARED LOSS OF RS. 685250/- . 3. DISSATISFIED WITH THE REOPENING OF ASSESSMENT AS WELL AS ADDITION OF RS. 6 LACS ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD . CIT(A). IT EMERGES OUT FROM THE ORDER OF LD. FIRST APPELLATE AUTHORITY THAT HEARING WAS FIXED ON 11.1.2010, 19.1.2010, 3.2.2010 AND 9.2.2010. ACCORDING TO THE LD. CIT(A) SUFFICIENT NUMBER OF OPPORTUNITIES WERE GIVEN TO THE ASSESSEE BUT IT FAI LED TO SUBMIT EITHER ADDITIONAL DETAILS OR ADVANCE ANY ARGUMENT. ACCORDING TO LD. C IT(A), ASSESSEE JUST REITERATED ITS STAND AS WAS TAKEN BEFORE THE AO. LD. CIT(A) HA S DISMISSED THE APPEAL OF ASSESSEE. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT A SU FFICIENT COMPLIANCE WAS MADE BY THE ASSESSEE. IN RESPONSE TO THE NOTICE OF HEARING ASSESSEE FILED AN ADJOURNMENT APPLICATION. IT HAD SOUGHT ONE MONTH T IME, BECAUSE THE DIRECTOR WAS OUT OF STATION AND IN HIS ABSENCE TAX CONSULTANT CO ULD NOT COLLECT THE RELEVANT PAPERS. LD. CIT(A) THOUGH GRANTED ADJOURNMENT BUT NOT FOR T HE PERIOD SOUGHT BY THE ASSESSEE. THE LD. CIT(A) HAS GRANTED ADJOURNMENT OF A WEEK OR 10 DAYS WHICH WAS NOT, A SUFFICIENT TIME FOR THE ASSESSEE TO COLLECT ALL THE DETAILS AND SUBMIT BEFORE THE LD. FIRST APPELLATE AUTHORITY. IN THIS WAY THE APPE AL OF THE ASSESSEE HAS BEEN DISMISSED EX PARTE. LD. DR ON THE OTHER HAND SUBMIT TED THAT SUFFICIENT OPPORTUNITIES ITA NOS. 3337/DEL/08 ASSTT. YEAR 2005-06 3 WERE GRANTED TO THE ASSESSEE IT FAILED TO SUBMIT TH E DETAILS AND THEREFORE LD. CIT(A) HAS RIGHTLY DISMISSED THE APPEAL. 5. WE HAVE DULY CONSIDERED THE RIVAL CONTENTION AND GONE THROUGH THE RECORD CAREFULLY. LD. COUNSEL FOR THE ASSESSEE PLACED ON R ECORD COPY OF THE ADJOURNMENT LETTERS. WE FIND THAT ON 11 TH JANUARY, 2010 WHEN APPEAL OF THE ASSESSEE WAS LIST ED FOR HEARING BEFORE LD. CIT(A) ASSESSEE SOUGHT ADJOU RNMENT FOR A DATE SUBSEQUENT TO 15 TH FEBRUARY, 2010. BUT LD. CIT(A) HAS ADJOURNED THE H EARING FOR 19 TH JANUARY, 2010 THEREAFTER 3 RD FEBRUARY 2010 AND THEN 9 TH FEBRUARY 2010. LD. CIT(A) HAS PASSED THE ORDER ON 10 TH FEBRUARY 2010. ON DUE CONSIDERATION OF THE HARDSHI P FACED BY THE ASSESSEE TO COLLECT THE RELEVANT PAPER BY THE TAX C ONSULTANT, ON ACCOUNT OF THE ABSENCE OF ITS DIRECTOR, WHEN APPEAL WAS TAKEN UP F OR HEARING BY THE LD. CIT(A) WE SET ASIDE THE ORDER OF LD. CIT(A) RESTORED THE ISSU E TO THE FILE OF LD. FIRST APPELLATE AUTHORITY FOR READJUDICATION. LD. FIRST APPELLATE A UTHORITY SHALL GRANT DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE ALSO DIRECT THE ASSE SSEE TO COOPERATE WITH LD. FIRST APPELLATE AUTHORITY AND WILL NOT SEEK UNNECESSARY ADJOURNMENTS. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.6.2010. [K.G. BANSAL] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER VEENA DATED: 29.6.2010 ITA NOS. 3337/DEL/08 ASSTT. YEAR 2005-06 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT