ANG Industries Ltd., New Delhi V. DCIT, New Delhi

ITA 2120/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3131 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK GAUTAM
• Keywords: Transfer pricing; International transaction
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, A: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K.N. CHARY, JUDICIAL MEMBER ITA NO.2120/DEL/2017 [ASSESSMENT YEAR: 2011-12] ANG INDUSTRIES LTD. (FORMERLY KNOWN AS ANG AUTO LTD.) 101-106, 1 ST FLOOR, PLOT NO.42, 3, LOCAL SHOPPING COMPLEX, SHARDA CHAMBERS IV KALKAJI, NEW DELHI-110019 DCIT, CIRCLE-2(2), NEW DELHI PAN-AAACA2969B ASSESSEE REVENUE ASSESSEE BY NONE REVENUE BY SH. ASHOK GAUTAM, SR. DR DATE OF HEARING 08.06.2021 DATE OF PRONOUNCEMENT 08.06.2021 ORDER PER R.K. PANDA, AM, THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE EX-PARTE ORDER DATED 10.02.2017 OF THE LEARNED CIT( A)-22, NEW DELHI, RELATING TO ASSESSMENT YEAR 2011-12. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THEREFORE, THIS APPEAL IS BEING DISPOSED OF ON 2 ITA NO.2120/DEL/2017 THE BASIS OF MATERIAL AVAILABLE ON RECORD AFTER HEA RING THE LEARNED DR. 3. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER :- I. THE ORDER OF THE AUTHORITIES BELOW IS ERRONEOUS AND ARB ITRARY AND WITHOUT GIVING PROPER OPPORTUNITY OF THE CASE A S THE COMPANY DID NOT RECEIVE THE TWO NOTICES DATED 27.11 .2016 AND 16.12.2016 AS THE OFFICE OF THE COMPANY BEING S HIFTED FROM 1C/13, NEW ROHTAK ROAD, KAROL BAGH, NEW DELHI 110005 TO 101-106, PLOT NO.43, SHARDA CHAMBERS-IV, LOCAL SHOPPING CENTER, KALKA JI, NEW DELHI-110019. HOWEV ER, IN THE SAME CASE FOR THE ASSESSMENT YEAR 2010-11, THE NOTICES WERE REDIRECTED BY THE POST OFFICER TO THE NEW ADDR ESS. II. THE AUTHORITIES BELOW HAVE NOT BEEN GIVEN PROPER OPPORTUNITIES FOR HEARING AND ORDER HAS BEEN PASSED WITHOUT CONSIDERING THE WRITTEN SUBMISSIONS SUBMITTED BY US . III. THEREFORE, IT IS PRAYED THAT PROPER HEARING OF THE CASE MAY BE GRANTED TO US. 4. FACTS, OF THE CASE IN BRIEF, ARE THAT THE ASSES SEE IS A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURING OF AUTO PARTS AND FABRICATION OF HEAVY STEEL STRUCTURES. IT FILED ITS RETURN OF INCOME ON 29.09.2011 DECLARING LOSS OF RS.36,99, 013/-. THE CASE WAS SELECTED FOR SCRUTINY. THE ASSESSING OFFIC ER REFERRED THE MATTER TO THE TPO FOR DETERMINATION OF THE ALP OF THE INTERNATIONAL TRANSACTIONS ENTERED INTO BY IT. HOW EVER, NO SUCH T.P. ADDITION HAS BEEN MADE. FINALLY, THE AO COMPL ETED THE ASSESSMENT U/S 143(3) OF THE ACT ON 19.03.2015 DETE RMINING 3 ITA NO.2120/DEL/2017 THE TOTAL LOSS OF RS.11,39,380/-, WHEREIN HE MADE T HE FOLLOWING ADDITIONS:- SL. NO. PARTICULARS AMOUNT (IN RS.) 1 DISALLOWANCE ON ACCOUNT OF STOCK RESERVE 24,81,226 2 ADDITION ON ACCOUNT OF INTEREST NOT INCLUDED 19,203 3 INTEREST ON I.T. REFUND 59,203 5. SINCE, NONE APPEARED BEFORE THE LEARNED CIT(A) DESPITE THREE NOTICES ISSUED BY HIS OFFICE, THE LEA RNED CIT(A) UPHELD THE ACTION OF THE AO AND DISMISSED THE APPEA L FILED BY THE ASSESSEE. 6. AGGRIEVED WITH SUCH ORDER OF THE LEARNED CIT(A) , THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 7. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND DESPITE THREE NOTICES ISSUED BY THE LEARNED CIT(A), THERE WAS NO APPEARA NCE FROM THE SIDE OF THE ASSESSEE EXCEPT FILING OF SOME WRIT TEN SUBMISSIONS. HOWEVER, DUE TO NON-APPEARANCE OF THE LEARNED COUNSEL FOR THE ASSESSEE, THE WRITTEN SUBMISSION SO FILED BEFORE THE LEARNED CIT(A) COULD NOT BE VERIFIED BY HIM FOR WHICH HE 4 ITA NO.2120/DEL/2017 DISMISSED THE APPEAL FILED BY THE ASSESSEE AND SUST AINED THE ADDITION MADE BY THE AO. 8. CONSIDERING THE TOTALITY OF THE FACTS OF THE CA SE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RE STORE THIS ISSUE TO THE FILE OF THE LEARNED CIT(A) WITH THE DIRECTIO N TO GRANT ONE LAST OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE IT S CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE LEARNED CIT(A) AND SUBSTANTIATE ITS CASE FAILING WHICH THE LEARNED CIT (A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. WE HO LD AND DIRECT ACCORDINGLY. 9. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. THE ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE T IME OF HEARING ITSELF I.E. ON 08.06.2021. SD/- SD/- [K.N. CHARY] [R.K.PANDA] JUDICIAL MEMBER ACCOUNTANT MEMBER DELHI; DATED: 08/06/2021. F{X~{T? F{X~{T? F{X~{T? F{X~{T? FA FA FA FA P.S P.SP.S P.S COPY FORWARDED TO: 1. APPELLANT 5 ITA NO.2120/DEL/2017 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI