Sanjeev Buildtech Pvt. Ltd, New Delhi V. ACIT Range-21(1), New Delhi

ITA 2382/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7633 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 18-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH DUBEY
• Keywords: Unexplained cash credit; Business income; Set aside
• Section: 6; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DLEHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.2382/DEL/2019 ASSESSMENT YEAR: 2013-14 SANJEEV BUILDTECH PVT. LTD., VS. ACIT, RANGE-21(1 ), G-13, MM MALL, SECTOR-3, NEW DELHI ROHINI, NEW DELHI - 110085. PAN : AAKCS1725K (APPELLANT) (RESPONDENT) APPELLANT BY : SH. MOHIT BANSAL, C.A. RESPONDENT BY: SH. PRAKASH DUBEY, SR. DR DATE OF HEARING: 23/08/2021 DATE OF ORDER : 23/08/2021 ORDER PER K. NARASIMHA CHARY, J.M. AGGRIEVED BY THE ORDER DATED 27.11.2018 PASSED BY T HE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-8, NEW DELHI ( 'LD. CIT(A)') FOR THE ASSESSMENT YEAR 2013-14, SANJEEV BUILDTECH PVT. LTD. (THE ASSESSEE) PREFERRED THIS APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 30.09.2013 DECLA RING AN INCOME OF RS.62,86,760/-. LEARNED ASSESSING OFFICER RECORDED THAT IN SPITE OF GIVING SEVERAL OPPORTUNITIES, ASSESSEE FAILED TO ENTER APP EARANCE AND SUBMIT 2 THEIR CASE, AND THEREFORE, BY ORDER DATED 04.03.201 6 U/S. 144 OF THE INCOME TAX ACT, 1961 (THE ACT), LD. ASSESSING OFF ICER DETERMINED INCOME OF THE ASSESSEE AT RS.1,01,17,280/- BY MAKIN G ADDITION OF RS.83,55,967/- ON ACCOUNT OF CERTAIN DISALLOWANCES AND RS. 17,61,313/- U/S. 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CREDIT S APPEARING IN THE LEDGER ACCOUNT. 3. ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A) WHO BY ORDER DATED 27.11.2018 DELETED THE ADDITION OF RS.17,61,3 13/- ADDED U/S. 68 OF THE ACT, BUT CONFIRMED THE ADDITION OF RS.83,55,967 /-. 4. IT IS THE ARGUMENT ON BEHALF OF THE ASSESSEE THA T THE NOTICE IN THIS MATTER WERE SENT BY THE LD. ASSESSING OFFICER TO AN ADDRESS WHICH WAS VACATED BY THE ASSESSEE LONG BACK BUT ON COMING TO KNOW OF THE ASSESSMENT PROCEEDINGS THROUGH OTHER SOURCES, ASSES SEE ENTERED APPEARANCE ON 10.02.2016 AND SOUGHT TIME BUT BECAUS E NO SUFFICIENT OPPORTUNITY WAS GRANTED BY THE LD. ASSESSING OFFICE R, ASSESSEE COULD NOT PUT FORTH THEIR CASE BEFORE THE LD. ASSESSING OFFIC ER AND TO CONTEST THE MATTER. IT IS SUBMITTED BY THE LD. AR THAT THE ASS ESSEE OWNS ONLY ONE BUILDING AND LET IT OUT AND THE INCOME FROM SUCH HO USE PROPERTY IS CHARGED BY ASSESSING OFFICER AS BUSINESS INCOME WHE REAS IN THE NEXT ASSESSMENT YEAR, SUCH AN INCOME WAS TREATED AS INCO ME FROM HOUSE PROPERTY AND IF AN OPPORTUNITY IS GRANTED TO THE AS SESSEE, THE ASSESSEE WOULD SUBSTANTIATE ITS CLAIM BEFORE THE LD. ASSESSI NG OFFICER. 5. WE HEARD THE LD. DR ALSO. ON A CAREFUL CONSIDERA TION OF THE MATTER AND MORE PARTICULARLY IN VIEW OF THE SUBMISSION ON BEHALF OF THE ASSESSEE THAT THOUGH THE ASSESSING OFFICER HAD TREATED THE I NCOME AS BUSINESS 3 INCOME AS AGAINST INCOME FROM HOUSE PROPERTY AS CLA IMED BY THE ASSESSEE AND FOR THE SUBSEQUENT ASSESSMENT YEARS, T HE SAME INCOME WAS TREATED AS INCOME FROM HOUSE PROPERTY, WE ARE OF TH E CONSIDERED OPINION THAT IT WOULD BE JUST AND PROPER TO GIVE AN OPPORTU NITY TO THE ASSESSEE TO CONTEST THE MATTER ON MERITS BEFORE THE LD. ASSESSI NG OFFICER. WITH THIS VIEW OF THE MATTER WE SET ASIDE THE IMPUGNED ORDER AND REMAND THE ISSUE RELATING TO ADDITION OF RS.83,55,967/- TO THE FILE OF THE LD. ASSESSING OFFICER FOR CONSIDERING THE SAME UNDER LAW AFTER AF FORDING AN OPPORTUNITY TO THE ASSESSEE. NOTICE SHALL BE ISSUED AT THE ADDR ESS GIVEN IN THE CAUSE TITLE ABOVE. IT IS MADE CLEAR THAT IT IS FINAL OPPO RTUNITY GIVEN TO THE ASSESSEE TO GET THE MATTER DISPOSED OF ON MERITS. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS THE 23 RD DAY OF AUGUST, 2021. SD/- SD/- (PRASHANT MAHARISHI) (K. NARSIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23/08/2021 AKS