ADIT (E), New Delhi V. Oil Industry Safety Directorate, New Delhi

ITA 2596/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97601 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 05-10-2015
• Assessment Year: 2004-2005
• Appeal Filed On: 29-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: S SAMPATH
• Keywords: Opportunity of being heard; Reassessment proceedings
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : E : NEW DELHI BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER ITA NO . 2596 /DEL/201 2 ASSESSMENT YEAR: 2004 - 05 ASSTT. DIRECTOR OF INCOME - TAX (E) VS. OIL INDUSTRY SAFETY DIRECTORATE, INV. CIRCLE - II, NEW DELHI 7 TH FLOOR, NEW DELHI HOUSE, 27 BARAKHAMBA ROAD, NEW DELHI (PAN: AAALO0048G ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. P. DAM KANUNJNA, SR. DR RESPONDENT BY : SH. S. SAMPATH, CA DATE OF HEARING: 05.10.2015 DATE OF PRONOUNCEMENT: 28.10.2015 ORDER PER INTURI RAMA RAO, A.M. : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) DATED 19.03.2012 PASSED FOR THE ASSESSMENT YEAR 2004 - 05. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL: I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) H AS ERRED IN DELETING THE ADDITIONS MADE ON THE BASIS OF ASSESSMENT COMPLETED AS AOP. THE ASSESSEE HAS NO WHERE PROVED THAT IT FALLS UNDER THE CATEGORY OF ARTIFICIAL JURIDICAL PERSON. II. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEND ANY GROUND OF APPEA L RAISED ABOVE AT THE TIME OF HEARING. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE RESPONDENT COMPANY IS AN ENTITY OF MINISTRY OF OIL AND PETROLEUM , GOVT. OF INDIA. IT WAS GRANTED AN EXEMPTION UNDER SECTION 12A OF THE INCOME - TAX ACT, 1961 (FOR SHORT TH E ACT ) . FOR THE 2 ASSESSMENT YEAR 2004 - 05, THE RETURN OF INCOME WAS FI L E D AND SUBSEQUENTLY NOTICE UNDER SECTION 143(1) OF THE ACT WAS ISSUED ON 26 TH MARCH, 2007. DURING THE COURSE OF REASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THERE WAS EXC ESS OF RECEIPTS FOR EXPENDITURE OF RS. 8,15,520/ - AND ACCORDINGLY BROUGHT THE S AME TO TAX IN THE STATUS OF AOP W HEREAS THE RESPONDENT ASSESSEE IS AN ARTIFICIAL JURIDICAL PERSON. IN AN APPEAL, THE LD. CIT(A) VIDE PARA 4.1 OF HIS ORDER DATED 19.03.2012, CANC ELLED THE ASSESSMENT ON THE GROUND THAT THE ASSESSING OFFICER CANNOT CHANGE THE STATUS OF AN ASSESSEE WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD. BEING AGGRIEVED, THE REVENUE IS BEFORE US WITH THE PRESENT APPEAL. 3. WE HEARD THE RIVAL SUBMISSION AND PE RUSED THE MATERIAL ON RECORD. WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A) SINCE THE ORDER OF CIT(A) IS BASED ON WELL SETTLED PRINCIPLE OF LAW THAT NO ASSESSMENTS CAN BE MADE B Y CHANG I N G STATUS OF THE ASSESSEE WITHOUT GIVING AN OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, THE APPEAL FILED BY THE REVENUE IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. THE DECISION IS PRONOUNCED IN THE OPEN COURT ON 2 8 T H OCTOBER , 2015. S D / - S D / - ( SUDHANSHU SRIVASTAVA ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 8 T H OCTOBER , 2015. RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI