Indus Towers Ltd, Gurugram V. ACIT, Circle 10(1), New Delhi

ITA 2172/DEL/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 7359 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 14-04-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 27-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH MAHAJAN
• Section: 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI SUDHIR PAREEK, JUDICIAL MEMBER ITA No.2172 /Del/2023 Assessment Year 2019-20 Indus Towers Limited 4 th Floor, DLF Cybercity Building No.10 Tower A, DLF QE S.O. Gurugram Vs. Assistant Director of Income Tax, Central Circle Meerut TAN/PAN: AACCV5763A (Appellant) (Respondent) Applicant by: Shri Nabin Balloida, Adv. Shri Ankit Agarwal, CA Respondent by: Shri Rajesh Mahajan, Sr.DR Date of hearing: 15 04 2024 Date of pronouncement: 08 05 2024 O R D E R PER PRADIP KUMAR KEDIA - A.M.: T h e c a p t i on e d a p pe a l h a s be e n f i l e d b y t h e a s s e s s e e a ga i n s t t he or d e r o f t h e C o m m i s s i o ne r of I n c om e T a x ( A p p e a ls )- Na t i o n a l Fa c e l e s s A p pe a l C e n t r e , D e l h i ( ‘ C I T ( A ) ’ i n s h or t ) da t e d 0 8. 06 . 2 0 23 a r i s i n g f r o m t he i n ti m a t i o n o rd e r d a t e d 0 3. 0 2. 2 0 21 pa s s e d u nd e r S e c t i o n 1 4 3 ( 1 ) of t he In c o m e T a x A c t , 1 96 1 (t h e A c t ) c o n c e r n i n g A Y 2 0 1 9 - 20 . 2. W h e n t h e m a t t e r w a s c a l l e d f o r h e a ri n g, t h e l d . c ou n s e l f or t he a s s e s s e e s t r a i g h ta w a y re f e r r e d t o p a r a g r a ph 6 . 3 of t h e f ir s t a p p e l la t e or d e r pa s s e d u n d e r S e c t i o n 2 50 of t he A c t a nd s u bm it t e d t h a t t h e C I T (A ) ha d de c l i n e d t o a dj u di c a t e i s s u e s a ri s i n g f r om t h e i nt i m a t i on dr a w n un d e r Se c t i on 14 3 ( 1 ) o f t h e A c t o n t h e g ro u nd th a t t he i mpu g ne d i s s ue s a r i s i n g f r o m t h e i nt i m a t i o n s h a l l be a dj u di c a t e d b a s e d on th e m e r i t s o f t h e c a se w h i l e d e c i di n g t h e a pp e a l a ga i n s t t he r e gu l a r a s s e ss m e n t f r a m e d un d e r ITA No.2172/Del/2023 2 Se c t i on 1 4 3 ( 3 ) of t he A c t w hi c h i s a l s o s u b j e c t m a tte r t o a pp e a l. 2. 1 I n t he m a t e r , t h e l d. c o u ns e l re f e rr e d t o t h e de c i s io n r e n d e r e d by t he C o - o r d i n a t e B e n c h i n M / s . A r e c a T r u s t v s . C I T (A ) , I TA N o . 4 3 3 / B an g / 2 0 2 3 o r de r d a te d 2 6. 0 7. 2 0 23 A s s e s s m e n t Y e ar 2 0 18 - 1 9 to s u bm i t t h a t Se c t i o n 2 4 6A s p e c i f i c a l l y pr o v i de s f o r a n a pp e a l a ga i n s t i nt i m a t i on i s s ue d u nd e r Se c t i on 1 4 3( 1 ) o f t he A c t an d a s s e s s m e nt c om p l e t e d u nd e r S e c t i o n 1 4 3 ( 3 ) o f t h e A c t m e re l y a do pt s t h e a s s e s s e d f i gu r e i n t h e i nt i m a t i on o r d e r p a s s e d u n de r Se c t i on 1 43 (3 ) o f th e A c t . T he r e f o r e , a c l e a r c a us e o f a c t i o n i s a va i l a bl e t o t h e a s s e s s e e a ga i n s t t he or d e r o f t h e C I T ( A ). 2. 2 T h e l d . c o un s e l t h us s u b m it t e d t h a t t he vi e w t ake n b y t he C I T (A ) ho l d i n g t h e a pp e l l a t e p r o c e e di n gs a ga i n s t th e i nt i ma t i on un d e r Se c t i o n 14 3 (1 ) m a ki n g s u bs t a n t i a l a d j u s t m e n t s , is i n f r uc t u ou s , i s c o n t ra r y t o t he pr e s e n t s c he m e o f t h e A c t . 2. 3 T h e l d. c o un s e l t h us u r ge d f o r s e t t i n g a s i de t he or de r o f t h e C I T (A ) a nd r e s t o re t he m a t t e r b a c k t o t h e f i le o f th e C I T (A ) f o r a d j u d i c a t i o n o f t he gr o u nd s r a i s e d o n m e r i t s i n a c c o r da n c e w i t h l a w. 3. T h e l d . D R f or t he R e ve nu e d i d n o t e x p re s s a n y op i ni o n a n d l e f t t he m a t t e r t o t h e w i s d om o f t h e T ri b un a l . 4. A s po i nt e d o u t o n b e h a l f o f t he a s s e s s e e , c e r t a in a dj u s t m e n ts w e re m a de i n t he i nt i m a t i on or de r p a s s e d u n de r S e c ti o n 143 (1 ) o f t he A c t da t e d 3 r d F e br ua r y , 2 0 21 p a s s e d b y A D I T , C PC . T he a s s e s s e e ch a l le n ge d s u c h a d j u s t m e n t s be f or e t he N a t i o na l Fa c e l e s s A pp e al C e n t r e (N F A C ) f o r s e e ki n g r e d r e s s a l o f gr i e va n c e s a ri s i n g f r o m i n t i m at io n . T h e N F A C pa s s e d o r d e r u n de r Se c t i o n 2 5 0 of t h e A c t h o l di n g the a p p e a l t o be i nf ru c t u o u s a n d do e s n ot c a l l f o r a n y a d j ud i c a t io n in v ie w of on go i n g a pp e l l a te p r o c e e d i n g s i n t he re g u la r a s s e s s m e n t a gai n s t t he o r d e r pa s s e d un d e r Se c t i o n 1 4 3 ( 3 ) i n vo l vi n g a n d i n c l u d i n g s a m e is s ue s . 5. T h e re l e va n t op e ra t i ve p a ra g r a p h s of t h e f i r s t app e l l a t e o rd e r i s ITA No.2172/Del/2023 3 re p r o d uc e d he r e u n d e r : 6 . 1 T h e a p p e l l a n t h a s p r e f e r r e d a n a p p e a l a g a in s t di s a l l o w a n c e s p r o p o s e d i n s u m m a r y o r d e r u / s 1 4 3 ( 1 ) o f t h e I . T . A c t . O n p eru sa l o f r e c o r d s i t i s o b s e r v e d t h a t t h e a p p e l l a n t f i l e d o n e m o r e a p p e a l (b e a r i n g a p p e a l n o . N F A C / 2 0 1 8 -1 9 / 1 0 0 9 3 0 5 9 ) a g a i n s t t h e o r d e r w a s p a s s e d b y l e a r n e d A O u / s 1 4 3 ( 3 ) . O n c o m p a r i s o n o f g r o u n d s o f a p p e a l p e r t a i n in g t o a p p e a l n o . N F A C / 2 0 1 8 -1 9 / 1 0 0 1 2 4 9 2 ( w h i c h i s f i l e d a g a i n s t 1 4 3 ( 1) o rd e r ) a r e s i m i l a r t o t h a t o f g r o u n d s o f a p p e a l n o . N F A C / 2 0 1 8 -1 9 / 1 0 0 9 30 5 9 6 . 2 Fo r t h e sa k e o f c o n v e n i e n c e s t h e g ro u n d s o f a p pe a l n o . N F A C / 2 0 1 8 - 1 9 / 1 0 0 1 2 4 9 2 a r e m a p p e d w i t h g ro u n d s o f a p p e a l n o . N FA C / 2 0 1 8 - 1 9 / 1 0 0 9 3 0 5 9 a s u n d e r . S l . N o . D e s c r i p t i o n o f G r o u n d A m o u n t G r o u n d n u m b e r 1 4 3 ( 1 ) ( A p p e a l N . N F A C / 2 0 1 8 - 1 9 / 1 0 0 1 2 4 9 2 ) C o r r e s p o n d i n g G r o u n d n u m b e r 1 4 3 ( 3 ) ( a p p e a l N o . N F A C / 2 0 1 8 - 1 9 / 1 0 0 9 3 0 5 9 ) 1 D i s a l l o w a n c e o f e m p l o y e e s ’ c o n t r i b u t i o n t o w a r d s p r o v i d e n t f u n d a m o u n t i n g t o I N R 3 , 3 9 , 3 8 2 / - u n d e r S e c t i o n 3 6 ( 1 ) ( v a ) o f t h e A c t R s . 3 , 3 9 , 3 8 2 G r o u n d N o . 2 G r o u n d N o . 1 0 . 1 , 1 0 . 3 2 . D e n i a l o f c l a i m f o r l o n g t e r m c a p i t a l l o s s o f I N R 3 , 1 1 , 5 2 , 8 9 , 1 8 2 R s . 3 , 1 1 , 5 2 , 8 9 , 1 8 2 G r o u n d N o . 3 . G r o u n d N o . 4 . 1 , 4 . 2 3 . D e n i a l o f c l a i m f o r s h o r t t e r m c a p i t a l l o s s o f I N R 7 , 9 4 , 1 1 , 8 8 0 R s . 7 , 9 4 , 1 1 , 8 8 0 G r o u n d N o . 4 G r o u n d N o . 4 . 3 4 . S h o r t g r a n t o f c r e d i t o f T D S R s . 1 , 0 6 , 4 2 , 7 9 5 G r o u n d N o . 5 Gr o u n d N o . 1 1 . 1 6 . 3 I n v i e w o f t h e a b o v e , i t i s o b s e r v e d t h a t w h i l e a d j u d i c a t i n g g r o u n d s o f a p p e a l f o r a p p e a l n o . N F A C / 2 0 1 8 - 1 9 / 1 0 0 9 3 0 5 9 , a b o v e g ro u n d s ( i . e . , f o r a p p e a l n o . N F A C / 2 0 1 8 - 1 9 / 1 0 0 1 2 4 9 2 ) w i l l a l s o b e a d j ud i c a t e d b a s e d o n m e r i t s o f t h e c a s e a n d t h e r e f o r e t h e a p p e a l n o . N F A C/ 2 0 1 8 - 1 9 / 1 0 0 1 2 4 9 2 i s f o u n d t o b e i n f r u c t u o u s a n d a c c o r d i n g l y d i s p o s e d o ff . 6. O n a b a re r e a d i n g of s uc h o b s e r va t i o n s , i t i s a pp a r e nt t h a t C I T ( A ) ha s n ot e xa m i n e d t h e gr i e va n c e s r a i s e d i n t h e f i rs t a pp e a l o n m e ri t s a n d di s m is s e d t h e a p pe a l s u m m a r i l y a s i n f r u c tu o us . T h e a p p ro a c h a d op t e d b y ITA No.2172/Del/2023 4 t he C I T ( A ) i s t o t a l l y in c o m p r e he n s i bl e a nd i s c l e a rl y o pp o s e d t o t he pr o vi s i o ns of t h e A c t . W h il e p r oc e s s in g t he R O I u n de r S e c t i o n 1 4 3 ( 1 ) , t he C PC a rm o f R e ve n u e i s c om p e t e nt t o m a ke a d j us tme n t t o t h e t ot a l i nc o m e on p oi n t s e nu m e ra t e d i n 1 43 ( 1 ) (a ) of t h e A c t s ub j e c t to re a s o n a bl e o p po rt u ni t y t o a s s e s s e e . H e n c e , a s pe r t h e p ro c e s s o r da i n e d b y l a w , t h e i n t i m a ti o n c o m pr i s i n g of a d j us tm e n t s of t h e n a t u r e s pe c i f i e d i n S e c t i o n 1 4 3 ( 1 ) ( a ) c a rr i e d o u t a f t e r o p p o rt u n it y t o a s s e s s e e a c qu i r e s t he c ha r a c t e r o f a s s e s s m e nt on s uc h p oi n t s . C o n s e qu e nt ly , t h e gr i e va n c e s a ri s i n g f r o m t h e i n t i m a ti o n p a s s e d u n d e r Se c t i o n 143 ( 1 ) of t h e A c t c a l l s f o r i n d e pe n d e n t a d j ud i c a ti o n i n te r m s o f s t a t ut o r y d i c t a t e of Se c t i o n 24 6 A ( 1 ) (a ) of t he A c t . T h e C o -o r d i n a te B e nc h i n M / s . A r e c a Tr u s t (s u p r a ) h a s a l s o e c ho e d t h e s i m i l a r vi e w . 7. W e t h us h a ve n o he s i t a t i on t o h o l d t ha t t h e C I T (A ) h a s m i s di r e c t e d hi m s e l f i n l a w i n d i s m i s s i n g t h e a p pe a l of t h e a s s es s e e i n l i m i n e a s i nf ru c t u o u s . T h e i m pu gne d o r d e r o f t he C I T ( A ) - N FA C i s t h u s s e t a s i de a nd th e a pp e a l f i l e d b y t he a s s e s s e e i s r e s t or e d f or f re s h a dj u di c a t i o n b y C I T ( A ) i n a c c o r da n c e w i t h l a w a f te r gi v i n g r e a s o n a bl e o pp o r t un i t y t o t he a s s e s s e e . T h e C I T ( A ) s h a l l d e c i de t he g ri e va nc e s a ri s i n g f r om i nt i m a t i o n un d e r Se c t i o n 1 4 3 ( 1 ) o n m e r i ts a s c a l l e d u po n hi m in l a w . 8. I n t he r e s u l t , th e a p pe a l o f t h e a s s e s s e e i s a l lo w e d f o r s t a ti s t ic a l pu r po s e s . Order pronounced in the open Court on 08 May, 2024. Sd/- Sd/- [SUDHIR PAREEK] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: May, 2024 Prabhat