M/s Vinayak Education Society, Noida V. DCIT (TDS), Noida

ITA 2238/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2908 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 26-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: MRS SWEETY KOTHARI
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F , NEW DELHI BEFORE SHRI G.D.AGRAWAL , PRESIDENT AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 2238 /DEL/201 6 A.Y. 20 11 - 12 VINAYAK EDUCATION SOCIETY C/O M/S MB GUPTA & CO. C 9, SECTOR 19 NOIDA 201 301 PAN: AAATV5466F VS . DCIT (TDS) A - 2D, 5 TH FLOOR, ROOM NO.503 SECTOR 24 NOIDA (APPELLANT) (RESPONDENT) APPELLANT BY MRS. SWEETY KOTHARI, C.A. RESPONDENT BY SHRI ATIQ AHMAD, SR.D.R DATE OF HEARING 2 1 /12/2017 DATE OF PRONOUNCEMENT 27/12/2017 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER T HE PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST ORDER DATED 29/02/16 PASSED BY LD.CIT(A) - 1, NEW DELHI FOR ASSESSMENT YEAR 2011 - 12 ON THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD.CIT(A) - 1, NOIDA WAS WHOLLY UNJUSTIFIED & GROSSLY ERRED IN PASSING THE ORDER FOR REGISTRATION U/S 201(1)/201(1A) OF THE INCOME TAX ACT, 1961 (THE ACT) OF THE APPELLANT TRUST WITHOUT ALLOWING PROPER AND EFFECTIVE OPPORTUNITY OF BEING HEARD AND THUS TH E ORDER WAS PASSED IN QUITE DEROGATION OF PRINCIPLE OF NATURAL JUSTICE WHICH RENDERS THE ORDER VOID AB - INITIO. ITA 2238/DEL/2016 ASSESSMENT YEAR: 2011 - 12 VINAYAK EDUCATION SOCIETY VS. DCIT(TDS), NOIDA PAGE 2 OF 5 2. THAT THE LD.CIT(A) - 1, NOIDA WAS WHOLLY UNJUSTIFIED & GROSSLY ERRED IN REJECTING THE APPLICATION FOR REGISTRATION U/S 201(1)/201(1A) OF THE INC OME TAX ACT, 1961 (THE ACT) OF THE APPELLANT TRUST WITHOUT ISSUING ANY SPECIFIC SHOW CAUSE TO THE APPELLANT TRUST. 3. THAT THE LD.DCIT(TDS) HAVE GROSSLY ERRED BOTH ON FACTS AND IN LAW BY LEVYING TDS ON LEASE RENT PAID TO GREATER NOIDA AUTHORITY U/S 194I OF THE ACT BY THE ASSESSEE. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER, MODIFY OR DELETE ANY OR ALL OF THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. IT IS OBSERVED FROM THE RECORDS PLACED BEFORE US THAT THE ONLY DISPUTE/ ISSUE THAT HAS ARISEN IS OVER THE APPLICABILITY OF SECTION 194 I TO THE LEASE RENT PAID BY ASSESSEE TO NOIDA D EVELOPMENT A UTHORITY/ T HE G REATER NOIDA I NDUSTRIAL D EVELOPMENT A UTHORITY/THE YAMUNA EXPRESSWAY D EVELOPMENT A UTHORITY FOR LEASE OF IMMOVABLE PROPERTY. FROM ORDERS PASSED BY AUTHORITIES BELOW , IT IS OBSERVED THAT ASSESSEE DID NOT DEDUCT TD S ON THE SAID LEASE RENT AND A SSESSING O FFICER HELD THAT ASSESSEE WAS LIABLE TO DEDUCT TAX UNDER SECTION 201 (1). 3. AGGRIEVED BY THE ASSESSMENT ORDER PASSED ASSESSEE PREFER RED AN APPEAL BEFORE THE LD. CIT (A). 3.1 . HOWEVER IT IS OBSERVED BY US THAT NONE HAD APPEARED BEFORE THE LD. CIT (A). IT IS OBSERVED THAT ASSESSEE DID NOT GET A FAIR OPPORTUNITY TO REPRESE NT HIS CASE BEFORE LD. CIT (A) AND LD.CIT(A) HAS NOT DECIDED THE I SSUE ON MERITS. ITA 2238/DEL/2016 ASSESSMENT YEAR: 2011 - 12 VINAYAK EDUCATION SOCIETY VS. DCIT(TDS), NOIDA PAGE 3 OF 5 4. WE ARE THEREFORE INCLINED TO SET ASIDE THIS ISSUE TO LD. CIT (A) TO PASS A SPEAKING ORDER AFTER GRANTING SUFFICIENT AND PROPER OPPORTUNITY TO ASSESSEE AS PER LAW. 4.1. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 T H DECEMBER, 2017. S D / - S D / - ( G.D.AGRAWAL ) (BEENA A PILLAI) PRESIDENT JUDICIAL MEMBER DATED : 2 7 T H DECEMBER , 2017. *MV ITA 2238/DEL/2016 ASSESSMENT YEAR: 2011 - 12 VINAYAK EDUCATION SOCIETY VS. DCIT(TDS), NOIDA PAGE 4 OF 5 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI ITA 2238/DEL/2016 ASSESSMENT YEAR: 2011 - 12 VINAYAK EDUCATION SOCIETY VS. DCIT(TDS), NOIDA PAGE 5 OF 5 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON DRAGON SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER