SKA Promoters & Builders (P) Ltd., New Delhi V. ITO, New Delhi

ITA 2877/DEL/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2655 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 24-06-2013
• Assessment Year: 2005-2006
• Appeal Filed On: 02-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: RAKESH KHIWANI
• Section: 68

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI S. V MEHROTRA , ACCOUNTANT MEMBER AND SHRI I. C. SUDHIR, JUDICIAL MEMBER ITA NO. 2877/DEL/2011 ASSESSMENT YEAR: 2005 - 06 SKA PROMOTERS & BUILDERS (P) LTD., LD. CIT(A) - 1/1049, VASANT VIHAR, NEW DELHI 110070 PAN AAECS7814A VS. ITO, WARD - 8(4), C. R. BUILDING, NEW DELHI 110002 (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAKESH KHIWANI, CA RESPONDENT BY: SRI SATPAL SINGH, SR. DR O R D E R PER S. V MEHROTRA THE APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), XI, NEW DELHI DATED 17.11.2009 DELHI FOR THE ASSESSMENT YEAR 2005 - 06 . 2. BRIEF FACTS OF THE CASE ARE THAT WAS IN THE RELEVANT ASSESSMENT YEAR, THE ASSESSEE COMPANY TRADING IN SHARES AND IMMOVABLE PROPERTIES. IT HAD FILED ITS RETURN OF INCOME DECLARING INCOME OF RS. 1,35,045 / - . THE ASSESSMENT WAS COMPLETED AT A TOTAL INCOME OF RS. 8,01,140/ - AFTER MAKING FOLLOWING ADDITIONS: - PAGE NO. 2 ITA NO. 2877 /DEL/201 1 1. RS. 2,81,181/ - BEING SHORT TERM CAPITAL GAIN ARISING OUT OF SALE AND PURCHASE OF PROPERTY (AS DISCUSSED) RS. 2,81,181/ - 2. RS. 6,55,000/ - BEING AMOUNT RECEIVED FROM M/S. J. P. OVERSEAS PVT. LTD. U/S 68 OF I.T.ACT (AS DISCUSSED) RS. 6,55,000/ - 3. LD. CIT(A) DECIDED THE APPEAL EX - PARTE CONFIRMING THE ADDITIONS OF RS. 2,81,181/ - BUT DELETED THE ADDITION OF RS. 6,55,000/ - . BEING AGGRIEVED WITH THE ORDER OF LD. CIT(A) , THE ASSESSEE IS IN APPEAL BEFORE US AND HAS TAKEN FOLLOWING GROUNDS OF APPEAL : - 1. THE LD. CIT(APPEALS) WAS NOT JUSTIFIED IN SUSTAINING THE ADDITION OF RS. 2,81,181/ - WHICH EXPENDITURE WAS INCURRED AND CAPITALIZED TO THE VALUE OF THE PROPERTY HELD AS STOCK - IN - TRADE PURCHASED ON 08.11.2001, AND SOLD DURING THE YEAR. THE EXPENDITURE R ELATING TO AN EARLIER YEAR AND ALLOWED AS SUCH CANNOT BE DISALLOWED IN THE SUBSEQUENT YEAR AND THEREFORE THE ADDITION MADE BY THE ASSESSING OFFICER NEEDS TO BE DELETED. 2. THAT DUE TO THE DISGRUNTLED ATTITUDE OF THE DIRECTOR S. K. AGARWAL, HANDLING THE A CCOUNTS AND TAX MATTERS OF THE COMPANY WHO WAS DIRECTLY ASSOCIATED AND CONJUNCTION WITH CA RAJEEV GUPTA, BECAUSE OF THE LOSSES INCURRED BY THE COMPANY AND MOUNTING LIABILITIES, THE COMPLIANCES AND PRESENTATION BEFORE THE ASSESSING OFFICER AND THE LD. CIT( A) WERE NOT PROPERLY MADE AND THUS HAS RESULTED IN THE ADVERSE ORDER AND SO BURDENING THE COMPANY WITH THE ADDITIONAL DEMAND. IT IS PRAYED, IN THE ALTERNATIVE, THAT THE APPEAL MAY BE RESTORED TO THE LD. CIT(A) FOR PROPER PRESENTATION. 3. THAT THE ASSESSEE CRAVES INDULGENCE TO AMEND, ALTER, ADD OR MODIFY ANY OR ALL THE GROUNDS OF APPEAL AND/ OR TAKE ADDITIONAL GROUNDS OF APPEAL . PAGE NO. 3 ITA NO. 2877 /DEL/201 1 4. AT THE OUTSET LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF THE LD. CIT(A) BECAUSE OF THE ORDER BEING PASSED EX - PARTE AND FOR THE REASONS GIVEN IN GROUND NO. 2. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND HAVE PERUSED THE MATERIAL ON RECORD OF THE CASE . WE FIND THAT LD. CIT(A) HAS DECIDED THE APPEAL EX PARTE. HE HAS NOT ASSIGN ED ANY REASON FOR SUSTAINING THE ADDITION. WE, THEREFORE, RESTORE THIS ISSUE TO THE FILE OF THE LD. CIT(A) FOR PASSING A SPEAKING ORDER. 6 . IN THE RESULT THIS APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 0 5 . 0 7 . 2 0 1 3 . - S D / - - S D / - ( I. C. SUDHIR ) ( S. V MEHROTRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED 0 5 / 0 7 /2013 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI