DCIT, New Delhi V. M/s. Dhir Global Industries P Ltd., New Delhi

ITA 2791/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0709 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 08-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBHASH VERMA
• Keywords: Wrong claim
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: C , NEW DELHI BEFORE SHRI N.K.SAINI, ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 2791/DEL/2015 AY: 2006 - 07 DCIT CIRCLE 7 (2), ROOM NO.403 C.R.BLDG., IP ESTATE NEW DELHI VS . DHIR GLOBAL INDUSTRIES P LTD. 14, NAVJEEVAN VIHAR NEW DELHI 110 017 PAN: AAACD7431P (APPELLANT) (RESPONDENT) DEPARTMENT BY : SH. SUBHASH VERMA, SR.D.R. ASSESSEE BY : MS. KANIKA JAIN, ADV. DATE OF HEARING : 1 1.09. 2018 DATE OF PRONOUNCEMENT : 12.09.2018 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER THE PRESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST ORDER DT. 1 8 /02/201 5 PASSED BY LD.CIT(A) - 3 , NEW DELHI FOR A.Y. 20 06 - 07 ON THE FOLLOWING GROUNDS OF APPEAL. 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS. 1,68,72,426/ - MADE BY A.O. ON ACCOUNT OF NON - P AYMENT PAYMENT OF EXCISE DUTY? 2. WHETHER ON THE FACT S AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.1,68,72,426/ - MADE BY A.O. ON ACCOUNT OF NON - PAYMENT PAYMENT OF EXCISE DUTY BY ENTERTAINING FRESH EV IDENCE IN THE FORM OF ORDER OF COMMISSIONER OF CENTRAL EXCISE - III, DELHI IN CONTRAVENTION OF RULE 46A(3) OF THE INCOME TAX RULES? 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY GROUNDS OF APPEAL RAISED ABOVE AT THE TIME OF THE HEARING . ITA NO. 2791/DEL/2015 A.Y. 2006 - 07 DCIT, CIRCLE 7(2) VS. DHIR GLOBAL INDUSTRIES P LTD. 2 2. BRIEF FACTS OF THE CASE ARE AS UNDER : A SSESSEE IS A COMPANY, AND IS 100% EXPORT ORIENTED UNIT ENGAGED IN MANUFACTURE AND EXPORT OF READY - MADE GARMENTS. FOR THE YEAR UNDER CONSIDERATION ASSESSEE COMPANY HAD DECLARED INCOME OF RS.11,28,068/ - VIDE RETURN DAT ED 18/01/07. ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') AT RS.2,17,64,870/ - . ASSESSEE CHALLENGED THE SAID ORDER BEFORE THE LD.CIT(A) WHICH WAS AGAIN SUBJECT TO CHALLENGE BEFORE THIS T RIBUNAL . LD.AO HAS RECORDED THAT THIS T RIBUNAL GRANTED RELIEF TO ASSESSEE AND INCOME WAS AGAIN DETERMINED AT THE RETURNED INCOME FILED BY ASSESSEE V IDE ORIGINAL RETURN OF INCOME. 2.1 . S UBSEQUENTLY UPON THE COMMUNICATION RECEIVED FROM O FFICE OF D IRECTOR G ENERAL OF I NTELLIGENCE CENTRAL EXCISE, NEW DELHI , A SEARCH ON FACTORY PREMISES OF ASSESSEE WAS CONDUCTED ON 20/08/10. IT CAME TO THE NOTICE OF LD. AO THAT COMPANY HAS PREPARED TWO SETS OF ACCOUNTS OUT OF WHICH ONE IS SUBMITTED TO THE CENTRAL E XCISE DEPARTMENT AN D THE OTHER TO THE I NCOME T AX DEPARTMENT OR R EGISTRAR OF C OMPANIES. ANOTHER ASPECT WHICH WAS OBSERVED BY LD.AO WAS THAT ASSESSEE HAD CLAIMED BENEFIT FOR EXCISE DUTY IN DIFFERENT A SSESSMENT Y EARS WHEREAS DURING THE SEARCH IT APPEARED THAT THE CHALLANS OF PA YMENT DUTY WERE NOT GENUINE. THUS THE CLAIM OF EXCISE DUTY HELD TO BE NOT GENUINE FOR YEARS 2002 - 03 , 2004 - 05 AND 2008 - 09. VARIOUS DETAILS WERE CALLED FOR AND ON SUBMISSIONS MADE BY ASSESSEE , LD. AO ADDED A SUM OF RS.1,68,72,426/ - ON ACCOUNT OF NON - PAYMEN T OF EXCISE DUTY AND ALSO ON ACCOUNT OF MAKING FALSE CLAIM IN THE RETURN OF INCOME. ITA NO. 2791/DEL/2015 A.Y. 2006 - 07 DCIT, CIRCLE 7(2) VS. DHIR GLOBAL INDUSTRIES P LTD. 3 2.2. AGGRIEVED BY THE ORDER OF LD. AO, ASSESSEE PREFERRED APPEAL BEFORE LD. CIT (A). 2.3. BEFORE LD.CIT (A) ASSESSEE SUBMITTED THAT, THE DEMAND NOTICE ISSUED BY EXCISE AUTHORITIES HAS BEEN ADJUDICATED AND REDUCED TO NIL VIDE ORDER DATED 11/07/14 PASSED BY E XCISE DEPARTMENT. ASSESSEE PLACED BEFORE LD.CIT(A) THE ORDER DATED 11/07/14 PASSED BY T HE COMMISSIONER OF CENTRAL EXCISE - 3, DELHI FOR THE YEAR UNDER CONSIDERATION. L D. CIT(A) ON THE BASIS OF THE ORDER DATED 11/07/14 PASSED BY COMMISSIONER OF CENTRAL EXCISE - 3, DELHI, DELETED THE ADDITION MADE BY LD.AO 3. A GGRIEVED BY THE ORDER OF LD. CIT (A) REVENUE IS IN APPEAL BEFORE US NOW. 3.1 . LD. SR.DR SUPPORTED ORDER OF LD.AO. 3.2. ON THE CONTRARY, LD.AR PLACED RELIANCE UPON ORDER PASSED BY LD. CIT (A). 4. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SIDES IN THE LIGHT OF THE RECORDS PLACED BEFORE US. 5 . IT IS OBSERVED THAT, THERE IS A CATEGORICAL RECORDING BY LD. CIT(A) OF THE ADDITION ON DIFFERENTIAL EXCISE DUTY, WORKED OUT BY COMMISSIONER CENTRAL EXCISE - 3, DELHI AT NIL FOR FINANCIAL YEAR RELEVANT TO ASSES SMENT YEAR UNDER CONSIDERATION. FURTHER UPON PERUSAL OF THE ASSESSMENT ORDER AT PAGE 8, IT IS OBSERVED THAT A SSESSING O FFICER HAS PREPARED A CHART WHEREIN THE DIFFERENTIAL DUTY AMOUNT FOR THE YEAR UNDER CONSIDERATION AMOUNTS TO RS.1,68,72,426/ - . AS COMMISS IONER CENTRAL EXCISE - 3, DELHI HAS WORKED OUT THE DIFFERENTIAL EXCISE DUTY FOR THE YEAR UNDER CONSIDERATION TO BE AT NIL THE ENTIRE BASIS FOR ADDITION FOR THE YEAR UNDER CONSIDERATION BY LD. AO DOES NOT EXIST. ITA NO. 2791/DEL/2015 A.Y. 2006 - 07 DCIT, CIRCLE 7(2) VS. DHIR GLOBAL INDUSTRIES P LTD. 4 6. ACCORDINGLY WE DO NOT FIND ANY INFIRMIT Y IN THE ORDER OF LD. CIT (A) AND THE SAME IS UPHELD. 7 . IN THE RESULT APPEAL FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2 T H SEPTEMBER , 2018. S D / - S D / - (N.K.SAINI) (BEENA A PILLAI) ACCOUNTANTMEMBER JUDICIAL MEMBER DT. 1 2 T H SEPTEMBER, 2018 GMV COPY FORWARDED TO: - 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) 5 . DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES ITA NO. 2791/DEL/2015 A.Y. 2006 - 07 DCIT, CIRCLE 7(2) VS. DHIR GLOBAL INDUSTRIES P LTD. 5 DETAILS DATE DRAFT DICTATED ON DRAGON 12 /09/18 DRAFT PLACED BEFORE AUTHOR 12/09/18 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER APPROVED DRAFT COMES TO THE SR. PS/PS KEPT FOR PRONOUNCEMENT ORDER UPLOADED ON : FILE SENT TO BENCH CLERK DATE ON WHICH THE FILE GOES TO HEAD CLERK DATE ON WHICH FILE GOES TO A.R. DATE OF DISPATCH OF ORDER