Marshal Security & Detectives Ltd , New delhi V. ITO Ward-16(2) , New Delhi

ITA 2650/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1965 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 27-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: T R TALWAR
• Keywords: Additional evidence
• Section: 142(1); 22

Judgement Text

1 ITA NO. 2650/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I(2 ) + SMC NEW DELHI BEFORE MS SUCHITRA KAMBLE, JUDICIAL MEM BER, AND SHRI B. R. R. KUMAR, ACCOUNTA NT MEMBER ITA NO. 2650/DEL/2019 ( A.Y 2010-11) MARSHAL SECURITY & DETECTIVES LTD. E-69, SF, SOUTH EXTN. PART-1 NEW DELHI AAACM227IN (APPELLANT) VS ITO WARD-16(2) NEW DELHI (RESPONDENT) APPELLANT BY SH. T. R. TALWAR, ADV RESPONDENT BY SH. PRADEEP SINGH GAUTAM, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 31/1/2019 PASSED BY CIT(A)- 22 FOR ASSESSMENT YEAR 2010-11 2. THE GROUNDS OF APPEAL ARE AS UNDER:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD.C IT(A) HAS ERRED:- 1. IN SUSTAINING THE ADDITION OF RS. 2,47,847/- MA DE BY THE ASSESSING OFFICER WHICH REPRESENTED 10% OF SALARY AND BONUS PAID TO T HE STAFF. 2. IN NOT ADMITTING/ APPRECIATING ADDITIONAL EVIDEN CE WHICH WAS SUBMITTED BEFORE HIM, WHEN THE APPELLANT WAS PREVENTED BY SUF FICIENT CAUSE IN NOT DATE OF HEARING 27.02.2020 DATE OF PRONOUNCEMENT 08.05.2020 2 ITA NO. 2650/DEL/2019 SUBMITTING THE ID PROOFS BY 27 EMPLOYEES TO THE AS SESSING OFFICER WHO HAVE ONLY THREE DAYS TO FILE THE SAME. 3. THE NATURE OF THE BUSINESS OF THE COMPANY IS SUP PLY OF SECURITY PERSONS TO VARIOUS INDIVIDUALS AND COMPANIES DURING THE YEAR UNDER CONSIDERATION. THE ASSESSEE HAS SHOWN IN HIS RETURN OF INCOME TOTAL RECEIPT AMOUNTING TO RS. 29,03,161/- INCLUDING INTEREST INC OME OF RS. 10,332/- AND DECLARED INCOME OF RS. 89,373/-. THE COMPANY MAINTA INS BOOKS OF ACCOUNTS AND SHOWN THE EXPENSES OF RS. 24,78,470/- AGAINST B USINESS RECEIPT OF RS. 28,92,829/-. THE ASSESSING OFFICER OBSERVED THAT SI NCE THERE IS NO COMPLIANCE OF THE NOTICE ISSUED U/S 142(1) AND 143 (2) AND CASE IS BARRED BY LIMITATION FOR WHICH THE ASSESSMENT HAS TO BE COMPL ETED BY STIPULATED TIME, THEREFORE, THE ASSESSING OFFICER MADE ADDITION OF R S. 2,47,847/- TOWARDS THE 10% OF TOTAL SALARY PAYMENTS AND BONUS PAYMENTS. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT DURING THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HAS NOT GRANTED SUFFICIENT TIME T O PRODUCE THE EVIDENCES RELATED TO CONTRACT PAYMENT AS WELL AS THE AMOUNT T OWARDS SALARY PAYMENTS AND BONUS PAYMENTS. THE CIT(A) ALSO HAS NOT ADMIT TED THE ADDITIONAL EVIDENCE AND DISMISS THE APPEAL WITHOUT GIVING PROP ER OPPORTUNITY TO DEFINE THE CASE ON MERIT TO THE ASSESSEE. THEREFORE, THE L D. AR SUBMITTED THAT THE ADDITIONAL EVIDENCE BE ADMITTED AND THE MATTER MAY BE REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER IN LIGHT OF THE EVID ENCES. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AS W ELL AS ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ASSESSMENT ORDER, IT CAN BE SEEN THAT THE 3 ITA NO. 2650/DEL/2019 ASSESSING OFFICER HAS NOT AT ALL GIVEN ANY OPPORTUN ITY TO THE ASSESSEE FOR FILING THE EVIDENCES TO PROVE THE CLAIM OF THE ASSESSEE FO R SALARY AND BONUS EXPENSES. FURTHER, THE ADDITIONAL EVIDENCE PRODUCED BEFORE TH E CIT(A) WAS SIMPLY REJECTED BY THE CIT(A) WITHOUT STATING THEREIN ANY REASON AN D UNDER WHICH CONDITION OF RULE 46A, THE SAME SHOULD NOT BE ADMITTED. THUS, T HE CIT(A) HAS NOT FOLLOWED THE PROVISIONS OF THE INCOME TAX ACT AS WELL AS THE INCOME TAX RULES. THUS, BOTH THE ASSESSING OFFICER AS WELL AS THE CIT(A) FA ILED TO DISCHARGE ITS PROPER PROCEDURAL ASPECT OF LOOKING INTO THE EVIDENCE GIVE N BY THE ASSESSEE BEFORE PASSING AN ORDER UNDER THE INCOME TAX ACT. THEREFOR E, WE ARE ADMITTING THE ADDITIONAL EVIDENCE AND REMANDING THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION. NEEDLESS TO SAY THA T THE ASSESSEE BE GIVEN OPPORTUNITY OF HEARING BY FOLLOWING PRINCIPLES OF N ATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURP OSE. 8. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON THIS 08TH DAY OF MAY, 2020. SD/- SD/- (B. R. R. KUMAR) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 08/05/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT 4 ITA NO. 2650/DEL/2019 ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 27.02.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28.02.2020 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 1 3 . 0 5 . 2 0 2 0 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