Vavasi Telegence P. Ltd, New Delhi V. ITO, WARD- 26(1), New Delhi

ITA 2140/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1511 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2013-2014
• Appeal Filed On: 10-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: D.M. SINGHA
• Section: 144; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.2140/DEL/2019 Assessment Year 2013-14 Vavasi Telegence P. Ltd., C/o P.N. Chawla, Adv. B-V Vandana, 11-Tolstoy Marg, New Delhi. v. ITO, Ward-26(1), New Delhi. TAN/PAN: AABCV5624K (Appellant) (Respondent) Appellant by: Shri D.M. Singha, Adv. Ms. Parul Bansal, CA Respondent by: Shri Vipul Kashyap, Sr.DR Date of hearing: 05 04 2022 Date of pronouncement: 23 05 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The c apt io ne d ap p eal ha s be en f i le d at th e i ns ta nc e o f the ass es se e a ga in st t he or der of t he Co mmi s si on er of Inc o me Ta x (Ap pe al s) -I X, Ne w De lh i ( ‘C IT (A )’ in sh or t), d at ed 0 2.0 2. 20 18 ari si ng i n t he a ss ess me nt or der dat ed 1 5. 03 .2 01 6 pas sed b y t he As ses si ng Of f ice r (A O) un der Se ct io n 1 44 of the In co me Ta x A ct, 19 61 (t he A ct) c on c ern in g AY 2 01 2- 13 . 2. The g ro un ds of a pp eal r ais ed b y t h e As ses se e reads a s un d er: “ 1 . T h a t t h e o r d e r p a s s e d b y t h e l e a r n e d a p p e l l a t e a u t h o r i t y i s b a d i n l a w . 2 . T h a t t h e l e a r n e d A s s e s s i n g O f f i c e r g r o s s l y e r r e d i n a d d i n g b a c k u n e x p l a i n e d c a s h c r e d i t o f R s . 1 , 6 5 , 0 1 , 5 0 0 / - t o t h e r e t u r n e d I.T.A. No.2140/Del/2019 2 i n c o m e a n d t h e l e a r n e d C I T ( A ) h a s e r r e d i n c o n f i r m in g t h e s a i d a d d i t i o n m a d e b y t h e A s s e s s i n g O f f i c e r . 3 . T h a t t h e l e a r n e d A s s e s s i n g O f f i c e r g r o s s l y e r r e d i n d i s a l l o w i n g e m p l o y e e b e n e f i t e x p e n s e s o f R s . 1 9 , 0 9 , 37 9 / - a n d t h e l e a r n e d C I T ( A ) h a s e r r e d i n c o n f i r m i n g t h e s a i d d i sa l l o w a n c e m a d e b y t h e A s s e s s i n g O f f i c e r . 4 . T h a t t h e l e a r n e d A s s e s s i n g O f f i c e r g r o s s l y e r r e d i n d i s a l l o w i n g o t h e r e x p e n s e s o f R s . 6 2 , 5 4 , 2 0 0 / - a n d t he l e a r n e d C I T ( A ) h a s e r r e d i n c o n f i r m i n g t h e s a i d d i s a l l o w a n ce m a d e b y t h e A s s e s s i n g O f f i c e r . 5 . T h a t t h e l e a r n e d A s s e s s i n g O f f i c e r g r o s s l y e r r e d i n d i s a l l o w i n g d e p r e c i a t i o n o n a d d i t i o n o f f i x e d a s s e ts a m o u n t i n g t o R s . 1 4 , 0 4 0 / - a n d t h e l e a r n e d C I T ( A ) h a s e r r e d i n c o nf i r m i n g t h e s a i d d i s a l l o w a n c e m a d e b y t h e A s s e s s i n g O f f i c e r . ” 3. W it h t he a ss is tan ce of the ld . A R f or t he a sse ssee , we ob ser ve tha t t he as se ss me n t o rde r wa s f ra me d at be st ju dg ment ass es s men t un der Se ct io n 1 44 of th e A ct in vi ew of th e n on co mp lia nc e of sta tu to r y not ic es is sue d b y t he A ss es si ng Of f ic er ask in g t he a ss es see to s up po rt t he r et urn of inc o me a nd f ile th e ne ce ssar y det ail s t o cor ro bo ra te t he t ra nsa ct io ns r ef le cte d in t he r et urn of in c o me. I n t he f irst a pp ea l als o, the a ss es se e ha s not a tt en de d the pro ce ed in gs des pi te mul ti pl e n oti ce s as tab ul at ed in pa ra gra p h 5 o f the Fi rs t Ap pel la te o rd er. B ef ore t he T ri bu na l, the a ss ess ee s ee ks rest or at io n of th e pr oce ed in gs bef o re t he lo we r aut ho ri ti es to e xp l ain t he ca se af res h. 4. W e f i nd th at tha t ass es se e h as no t a ssi gn ed an y v al id rea so n f or co nti nu in g n o n co mp li an ce b ef ore the As se ss in g Of f icer or bef or e t he CI T( A) . Th e As ses si ng Of f icer ha s p as se d th e o rd er su mma ri l y in t he c irc u mst an ce s a nd t he CI T( A) ha s al s o d is po sed of f the f irs t ap pe al i n li mi ne. T he ld. co un sel f o r t he a ss es see I.T.A. No.2140/Del/2019 3 str on gl y p i tc hed f or r es tor at io n o f app ea l b ef or e the l ow er aut ho ri ti es in l arg e r i nt ere st of j us ti ce an d to prev en t mi s car ri age . It was su gg es te d th at s o me co st , at bes t, b e i mp os e d ow in g t o del in qu en c y sh ow n i n t he ma tt er bu t h ow ev er th e w hole sal e dis al lo wa nc es c arr i ed o ut w ou ld be t ota ll y di sp ro port io nat e to th e def au lt co m mi tte d due t o su ch n on co mp lia nc e. 5. On pe ru sal of t he f i rst ap pe ll at e o rd er, we f i nd th at th e C I T( A) has d ecl in ed to g ra nt an y r el ief t o t he ass es se e o wi ng t o t he f ac t tha t ass es se e w as to ta ll y n on co -o pe rat iv e in the a sse ssme nt p roc ee di ng s des pi te s ev era l op por tu ni ti es n or h as co mpli ed b ef or e hi m in t he f irst ap pe ll ate p ro c eed in gs . Ho we ver , the C IT (A ) h as n o t r en der ed an y de ci si on s o n mer it . I n o ur vi ew , it wa s i nc u mben t up o n th e CI T( A) to de al wi t h g ro un ds on me ri t af ter gi vi ng op po rt uni t y to t he ass es se e in t er ms of Secti on 2 50 ( 6) of the A ct . H oweve r, w e si mul ta ne ou sl y a p pre ci ate t he co nc ern s of th e Re ve nue o n the lac ka da isi ca l an d n on c o- ope ra ti ve a tt itu de of the a ss es s ee to wa rd s the q ua nt u m p ro cee din gs . 6. In th e tot al it y of cir cu ms ta nc es, w e con si de r it ex pe di e nt to res to re the ma tt er bac k t o t he f il e of the As se ss ing Of f ice r i n th e lar ge r in te re st of j ust ic e w it h a v ie w to e na bl e the a sse s see to a va il op por tu ni t y on ce more . H ow ev er s uc h ben ev ol en ce will b e av ai lab le at t he c os t of R s. 2 5,0 00 /- to be d ep o sit ed b y the as se ss ee w it hi n 1 mo nt h of se rv ice of th is o rd er to T he Pri me Mi nis ter Re l ief F un d. I t sha ll b e op en t o th e As se ssi ng Of f icer to ma ke s uc h in qu ir y a s ma y be co ns id ere d ex pe die nt i n a cc or dan c e w it h l aw o n bei n g s at isf ie d to war ds pa yme n t of cos t aw ar de d. N ee dle ss to s a y, th e as s ess ee sha ll f ull y c o- op era te w i th th e pr oc eed in gs bef o re t he A ss ess i ng Of f ice r wit ho ut an y d e mur and sh al l f ur ni sh th e ev id en ce s/ doc u m ent s e tc . a s cal le d f or e xp ed iti o usl y. I.T.A. No.2140/Del/2019 4 7. He nce , t he i mp ug n ed o rd er of t he CI T( A) d at ed 0 2. 02 .2 01 8 is set a sid e an d a ll the i ss ues r ai sed in th e c ap ti oned app ea l a re res to re d ba ck t o the f il e of the Ass es si ng Of f ice r f or f res h adj ud ic at io n in a cco rd an ce w it h l aw af te r gi vi ng reas on ab le op por tu ni t y of hea r ing t o th e a ss es se e. 8. In t he re su lt , th e app eal of the a sse ss ee i s al lo we d f or sta ti st ica l pu rp os es . Order pronounced in the open Court on 23/05/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2022 Prabhat