The ITO, Ward-1(1)(4), Ahmedabad V. M/s Divine Enterinment Ltd, Ahmedabad

ITA 276/AHD/2020

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0934 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2024
• Appeal Filed By: Department
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 09-07-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 26-05-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: FORTHEREVENUE; FORTHEASSESSEESHRIPARINSHAH; SUBMITTEDTHATHE

Judgement Text

xplanation INTHEINCOMETAXAPPELLATETRIBUNAL AHMEDABAD“B”BENCH Before:ShriT.R.SenthilKumar,JudicialMember And ShriNarendraPrasadSinha,AccountantMember TheI.T.O, Ward-1(1)(4), Vadodara. (Appellant) Vs DivineEntertainmentLtd. B/3,TruptiApartment, B/h.OldGujaratHigh Court,Navrangpura, Ahmedabad-380009. PAN:AAACD6670J (Respondent) RevenueRepresented:ShriAarsiPrasad,Sr-DR AssesseeRepresented:None Dateofhearing:10.07.2024 Dateofpronouncement:16.07.2024 आदेश/ ORDER PERT.R.SENTHILKUMAR,JUDICIALMEMBER ThisappealisfiledbytheRevenueasagainsttheappellate orderdated27.01.2020passedbytheCommissionerofIncomeTax (Appeals)-1Ahmedabad,arisingoutoftheexparteassessmentorder passedundersection144oftheIncome-taxAct,1961[hereinafter referredtoas‘theAct’]relatingtotheAsst.Year2015-16. 2.TheRevenuehasraisedthefollowinggroundsofappeal: (1)ThattheCIT(A)haserredinlawandinfactsinreducingtheamountof estimatedincomefromRs.14,95,95,496/-toRs.2.24.34.837/-eventhough rejectionofbooksofaccountshasbeenconfirmed (2)ThattheCIT(A)haserredinnotentirelyappreciatingthefactsmentioned intheremandreport,includingthatcertainpartieshavedeniedfor transactionswiththeassesseecompany. ITANo.276/Ahd/2020 AssessmentYear:2015-16 ITANo.276/Ahd/2020 ITOVsM/s.DivineEntertainmentLtd Asst.Year2015-16PageNo. 2 (3)ThattheorderoftheCIT(A)isnotacceptableinasmuchasithasfailed toconsiderthefactsthatassessmentorderwaspassedu/s144after providingadequateopportunitiestotheassesseeandthattheassessee nowbeenregardedforitsnon-compliance (4)Itis,therefore,prayedthattheorderofld.CIT(A)maybesetasideand thatoftheAssessingOfficerberestored. 2.1AdditionalGroundraisedbytheRevenueisfollow: Onperusalofthecaserecords,itisnoticedthattheDirectoroftheassessee companyhadsignedFormNo.35andsubmittedbeforetheLd.CIT(Appeal) on23.01.2018.InspiteofthefactsthatShriAushimKhetarpalwasnota directoroftheassesseecompanyatthetimeofappealfiledbythe assesseebeforetheCIT(Appeal),astheCompanyMasterDatashows thatShriAushimKhetarpalwastheDirectoroftheassessee companyfortheperiodof01.04.2000to15.06.2016,hencethe appealoftheassesseebeforetheCIT(Appeal)wasnotmaintainable. Itistherefore,prayedthatorderoftheCIT(Appeal)maybesetasideand thatoftheAssessingOfficerberestored. 3.Intheprevioushearingsoftheaboveappealon17.01.2024, theLd.CounselfortheassesseeShriParinShah,submittedthathe iswithdrawinghisLetterofAuthorityandfreshnoticebesenttothe assessee.ThusnoticewassentbyRPADforthenexthearingon 15.02.2024andservedontheassessee,howeverNoneappearon behalfoftheassessee.Inthenexthearingon28.03.2024theLd.DR directedtofilethenecessaryevidencestosubstantiatetheadditional groundsofappealraisedbytheRevenueandthecasewas adjournedon04.04.2024.Afterthreeadjournmentsagainthecase islistedforhearingtoday.However,Noneappearonbehalfofthe assesseeandLd.CIT-DRShriAarsiPrasad,fortheRevenue submittedbeforeusthatthecompanymasterdatafromthewebsite ofCorporateAffairs,whereinShriAushimKhetarpalwasthe DirectoroftheCompanybetween01.04.2000till15.06.2016only. WhereasaspertheFormNo.35filedon23.01.2018beforethe ITANo.276/Ahd/2020 ITOVsM/s.DivineEntertainmentLtd Asst.Year2015-16PageNo. 3 Ld.CIT(A)wasfileddigitallysignedbyShriAushimKhetarpalwhois notaDirectorduringthatperiod.Therefore,theappealfiledbythe assesseeisnotmaintainable,sinceShriAushi,Khetarpalwasnot Directorofassessee’scompanyatthatpointoftimeHence,the appellateorderpassedbytheLd.CIT(A)isherebyset-asideand Departmentappealisherebyallowed. 4.Intheresult,theappealfiledbytheRevenueisallowed. Orderpronouncedintheopencourton16/07/2024 Sd/-Sd/- (NARENDRAPRASADSINHA)(T.R.SENTHILKUMAR) ACCOUNTANTMEMBERJUDICIALMEMBER (TrueCopy) Ahmedabad:Dated16/07/2024 Manish