Usha Ispat Ltd, New Delhi V. ACIT, Central Circle-18, , New Delhi

ITA 235/DEL/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6229 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2001-2002
• Appeal Filed On: 13-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 13; 144

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC B ENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA NO. 235/DEL/2020 [ASSESSMENT YEAR: 2001-02] USHA ISPAT LTD VS. THE I.T.O B-11/100, MOHAN COOPERATIVE WARD 43(2) INDUSTRIAL ESTATE, BADARPUR NEW DELHI NEW DELHI PAN: AAACU 1007 G [APPELLANT] [RESPONDENT] DATE OF HEARING : 13.09.2021 DATE OF PRONOUNCEMENT : 13.09.2021 ASSESSEE BY : NONE REVENUE BY : SHRI R.K. GUPTA, SR. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] 27, NEW DELH I DATED 25.11.2019 PERTAINING TO ASSESSMENT YEAR 2001-02. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE READS AS UNDER: THE ASSESSEE HAS NOT BEEN GIVEN PROPER OPPORTUNITY TO PRESENT THE FACTS OF THE CASE. THE ADDITION OF RS. 12.06.280 IS MADE WITHOUT ANY BASIS OR JUSTIFICATION AS NO CL AIM OF EXPENDITURE HAS BEEN MADE BY THE ASSESSEE. THE C1T( A) HAS MISUNDERSTOOD THE FACTS OF THE BALANCE SHEET AS ON 31.03.2002 WHICH HAD DETAIL OF EXPENSES AS ON 31.03 .2001 AND NO EXPENSE ON FREIGHT AND FORWARDING HAS BEEN CLAIM ED IN THAT. THE ORDER IS ILLEGAL AND AGAINST FACTS OF THE CASE AND BAD AT LAW. AN ASSESSMENT U/S 144 OF THE I T. ACT. 1961 IS ILLEGAL AND BASIC FACTS ON RECORD HAVE BEEN COMPLET ELY IGNORED. T HE ADDITION OF RS. 12.06.280 IS ARBITRAR Y AND WITHOUT ANY LEGAL BASE AND DESERVES TO BE DELETED. 3. AS CAN BE SEEN FROM THE GROUNDS OF APPEAL, THE ASSESSING OFFICER FRAMED EX-PARTE ORDER STATING AT PARA 4 OF HIS ORDER THAT SINCE THE ASSESSMENT WAS GETTING BAR RED BY LIMITATION, THE ASSESSING OFFICER HAD NO ALTERNATIV E BUT TO FINALISE THE ASSESSMENT PROCEEDINGS U/S 144 OF THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] BY MAKING ADDITION ON ACCOUNT OF DISALLOWANCE OUT O F PURCHASE AND FREIGHT AND FORWARD EXPENSES ON PRORAT A BASIS. 3 4. THE LD. CIT(A), WITHOUT GOING INTO THE MERITS, U PHELD THE EX-PARTE ASSESSMENT ORDER. 5. IN THE GROUNDS OF APPEAL, THE ASSESSEE HAS CONTE NDED THAT THE LD. CIT(A) HAS MISUNDERSTOOD THE FACTS OF THE BALANCE SHEET AS ON 31.03.2002, AS ON 31.03.2001, N O EXPENSES OF FREIGHT AND FORWARDING HAS BEEN CLAIMED . 6. IN MY CONSIDERED VIEW, THIS CONTENTION OF THE AS SESSEE GOES TO THE ROOT OF THE MATTER. THEREFORE, I N THE INTEREST OF JUSTICE AND FAIR PLAY, I RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO EXAMINE THE I SSUE AFRESH AFTER GIVING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO FURNISH NECES SARY DOCUMENTARY EVIDENCES IN SUPPORT OF ITS CLAIM. 4 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 235/DEL/2020 IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 13.09. 2021. SD/- [N.K. BILLAIYA] ACCOUNTANT MEMBER DATED: 13 TH SEPTEMBER, 2021. VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) ASST. REGISTRAR, 5. DR ITAT, NEW DELHI 5 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACE D BEFORE THE DICTATING MEMBER 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 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 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