M/s. Goldies Trading Co. Ltd., New Delhi V. DCIT, Faridabad

ITA 2564/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9065 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 28-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Opportunity of being heard
• Section: 143(3); 153A; 37(1); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT DR. B. R. R. KUMAR, ACCOUNTANT MEMBER (E-COURT MODULE) ITA NO. 2564/DEL/2017 : ASSTT. YEAR : 2009-10 M/S GOLDIES TRADING CO. LTD., (MERGED WITH M/S SUCON INDIA LTD., LTER MERGED WITH M/S AKRITI GLOBAL TRADERS LTD.), RRA TAXINDIA, D-28, SOUTH EXTENSION, NEW DELHI-110049 VS DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II, FARIDABAD (APPELLANT) (RESPONDENT) PAN NO. AACCG9622P ASSESSEE BY : SH. SOMIL AGRAWAL, ADV. REVENUE BY : MS. NIDHI SRIVASTAVA, CIT DR DATE OF HEAR ING: 30 . 0 7 .20 20 DATE OF PRONOUNCEMENT: 10 .0 8 .20 20 ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), KARNAL DATED 06.03.201 7. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT HAVING REGARD TO THE FACT AND CIRCUMSTANCE S OF THE CASE, LD. CIT (A) HAS ERRED IN LAW AND ON FA CTS IN CONFIRMING THE ACTION OF LD. AO IN ASSUMING JURISDICTION AND ISSUING OF NOTICE U/S 153A R.W.S. 153C OF THE ACT, MORE SO WHEN THE NOTICE WAS ISSUED IN THE NAME OF NON-EXISTING ENTITY. 2. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, THE ASSESSMENT FRAMED UNDER SECTION 153A(1)(B) OF THE ITA NO. 2564/DEL/2017 GOLDIES TRADING CO. LTD. 2 ACT, IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE, LD. CIT (A) HAS ERRED IN LAW AND ON FA CTS IN CONFIRMING THE ACTION OF THE LD. AO IN MAKING DISALLOWANCE OF FREIGHT CHARGES OF RS.23,28,723/- U /S 37(1) OF THE INCOME TAX ACT, 1961, THAT TOO IN THE PROCEEDINGS U/S 153C OF THE ACT, AND MORE-SO BY ALLEGING FAILURE OF THE ASSESSEE TO PRODUCE BILLS A ND VOUCHERS. 4. THAT IN ANY CASE AND IN ANY VIEW OF THE MATTER, ACTION OF LD. CIT (A) IN CONFIRMING THE ACTION OF L D. AO IN MAKING DISALLOWANCE OF RS.23,28,723/- IS BAD IN LAW AND AGAINST THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. THAT HAVING REGARD TO THE FACTS AND CIRCUMSTANCE S OF THE CASE, LD. CIT (A) HAS ERRED IN LAW AND ON FA CTS IN CONFIRMING THE ACTION OF LD. AO IN PASSING THE IMPUGNED ORDER WITHOUT GIVING ADEQUATE OPPORTUNITY OF BEING HEARD. 3. FACTS RELEVANT TO ADJUDICATION OF THE CASE ARE T HAT A SEARCH & SEIZURE ACTION IN THE CASE OF SRS GROUP OF COMPAN IES WAS CONDUCTED ON 09.05.2012. THE NOTICE U/S 153C IN THE CASE OF THE ASSESSED WAS ISSUED ON 18.09.2014 FOR THE ASSES SMENT YEAR 2009-10. IT IS AN UNDISPUTABLE FACT THAT THE ASSESS MENT YEAR 2009-10 IS NOT AN ABATED ASSESSMENT AS PER PROVISI ONS OF SECTION 153A. 4. THE ASSESSMENT FOR THE ASSESSMENT YEAR 2009-10 H AS BEEN COMPLETED U/S 143(3) VIDE ORDER DATED 26.12.2011. 5. THE ASSESSING OFFICER MADE AN ADDITION ON ACCOUN T OF FREIGHT CHARGES OWING TO THE REASON THAT THE ASSESS EE HAS NOT ITA NO. 2564/DEL/2017 GOLDIES TRADING CO. LTD. 3 PRODUCED THE BILLS AND THE TRANSACTIONS ARE WITHIN THE GROUP COMPANIES. 6. IN THE BACKGROUND OF THE THESE FACTS THAT THE RE GULAR ASSESSMENT HAS ALREADY BEEN COMPLETED U/S 143(3), T HE ASSESSMENT HAS NOT BEEN ABATED, THE ADDITION HAS NO T BEEN MADE BASED ON ANY INCRIMINATING MATERIAL UNEARTHED DURING THE COURSE OF SEARCH OR REQUISITION OF DOCUMENT OR UNDI SCLOSED INCOME PERTAINING TO THE ASSESSEE FOUND OUT DURING THE SEARCH & SEIZURE OPERATION AND IN VIEW OF JUDGMENTS IN THE CASE OF CIT VS KABUL CHAWLA 126 DTR 130 AND CIT VS KURELE PAPER MILLS PVT. LTD. 380 ITR 571 WHEREIN IT WAS HELD THAT THE COMPLETED ASSESSMENTS CANNOT BE INTERFERED WITH BY THE AO WHI LE MAKING THE ASSESSMENT U/S 153C IN THE ABSENCE OF ANY INCRI MINATING MATERIAL, THE ADDITION MADE BY THE AO IS DIRECTED T O BE DELETED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/08/2020. SD/- SD/- (SUSHMA CHOWLA) (DR. B. R. R. KUMAR) VICE PRESIDENT ACCOU NTANT MEMBER DATED: 10/08/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR