Raman Textile Pvt. Ltd., Panipat V. ITO, Ward- 1, Panipat

ITA 2047/DEL/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9719 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 23-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Keywords: Principle of natural justice
• Section: 148; 144

Judgement Text

1 ITA NO. 2047/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D+SMC NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER ITA NO. 2047/DEL/2018 ( A.Y 2006-07) RAMAN TEXTILE PVT. LTD. BARSAT ROAD, BICHPARI CHOWK, PANIPAT HARYANA AADCR4021L (APPELLANT) VS ITO WARD-(1) PANIPAT (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. SURENDER PAL, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 01/01/2018 PASSED BY CIT (A)-KARNAL FOR ASSESSMENT YEAR 2006-0 7. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE ORDER PASSED U/S 250(6) OF THE INCOME TAX ACT IS BAD IN LAW AND WRONG ON FACTS AND AS PER THE CIRCUMSTANCES OF THE CASE. 2. THE ADDITIONS MADE ARE BASED ON ASSUMPTIONS AND NOT ON FACTS AND WITHOUT ANY EVIDENCE. 3. THAT BOTH THE A.O AND CIT(A) HAVE ERRED IN NOT A PPRECIATING THE FACTS OF THE CASE AND MADE THE ADDITIONS RELY ON THE STATEMENT OF 3 RD PARTY. DATE OF HEARING 19.09.2018 DATE OF PRONOUNCEMENT 26.09.2018 2 ITA NO. 2047/DEL/2018 4. THAT THE LD. A.O ERRED IN NOT DISCHARGING HIS ON US BY PROVIDING THE APPELLANT THE INFORMATION ON THE BASIS OF WHICH THE ADDITIONS WAS MADE. 3. THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE A.Y 2006-07 ON 30.03.2007 DECLARING NIL INCOME. SUBSEQUENTLY, THE CASE WAS REOPENED U/S 148 OF THE INCOME TAX ACT, 1961. THE ASSESSMENT U/S 144/147 WAS COMPLETED ON 31.03.2014 MAKING AN ADDITION OF RS 20,40,000/- RELYING ON THE INFORMATION RECEIVED FROM THIRD PARTY DURING THE CO URSE OF SEARCH CONDUCTED ON HIM WITHOUT CONFRONTING THE EVIDENCE IN POSSESSI ON OF THE ASSESSING OFFICER. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED THE APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL. 5. AT THE TIME OF HEARING NO ONE HAS APPEARED FOR T HE ASSESSEE COMPANY. THEREFORE, WE ARE TAKING OF THE SUBMISSIONS OF THE ASSESSEE BEFORE THE CIT (A) AS SUBMISSIONS BEFORE US. THE LD. DR RELIED UPON TH E ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. THE ASSESSING OFFICER PASSED ASSESSMENT ORDER U/S 1 44 WHICH IS AN EX-PARTE ORDER. THE CIT(A) ALSO DID NOT CONSIDER THE EVIDENC E PRODUCED BY THE ASSESSEE AND HAS NOT GIVEN ANY OPPORTUNITY TO THE ASSESSEE. THE CIT(A) SIMPLY OBSERVED THAT THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE EVE N DURING THE APPEAL STAGE. WHEREAS THE ASSESSEE INTIMATED THE ASSESSING OFFICE R THAT THE ASSESSEE IS NOT HAVING ANY INFORMATION ABOUT THE ENTRY IN QUESTION AND THE ONUS IS UPON THE DEPARTMENT TO PROVE THAT THE ASSESSEE WAS THE BENEF ICIARY OF THE TRANSACTION. HOWEVER THE ASSESSING OFFICER COMPLETED THE ASSESSM ENT U/S 144 WITHOUT CONSIDERING THE REQUEST OF THE ASSESSEE AND THE CIT (A) SIMPLY DISMISSED THE CASE WITHOUT APPRECIATING THE FACTS OF THE CASE. IN THE INTEREST OF JUSTICE IT WILL BE APPROPRIATE TO REMAND BACK THIS ISSUE CONTESTED BY THE ASSESSEE TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SH OULD GIVE THE OPPORTUNITY OF 3 ITA NO. 2047/DEL/2018 HEARING TO THE ASSESSEE BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THEREFORE, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR ST ATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH SEPTEMBER, 2018. SD/- SD/- (N. K. SAINI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 26/09/2018 R.N* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 2047/DEL/2018 DATE OF DICTATION 20.09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 24.09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 2 6 .09.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 2 6 .09.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 6 .09.2018 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER