Impact Industrial Component Pvt. Ltd., Noida V. ITO, New Delhi

ITA 2947/DEL/2012

• Counselvise Citation: 294720114 RSA 2012
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 13-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: V MOHAN
• Keywords: Deemed dividend; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC: NEW DELHI BEFORE SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER ITA NO. 2947/DEL/2012 ASSESSMENT YEAR: 2006-2007 IMPACT INDUSTRIAL, COMPONENT PVT. LTD., 313, SECTOR-15A, NOIDA. PAN NO. AABCI1953L VS. ITO, WARD 11(3), NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SH. V. MOHAN, CA RESPONDENT BY : SH. SATPAL SINGH, SR. DR DATE OF HEARING : 21/08/2012 DATE OF PRONOUNCEMENT : 30/08/2012 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. CIT(A) DATED 17/01/2012 FOR A.Y. 2006-07. 2. THE ASSESSEE, A PRIVATE LIMITED COMPANY, IN THE RELEVANT ASSESSMENT YEAR, WAS ENGAGED IN THE BUSINESS OF MANUFACTURING OF SHEET, METAL COMPONENTS AND TOOLS. IT HAD FILED ITS RETURN OF I NCOME DECLARING LOSS OF RS. 41,958/-. THE ASSESSMENT WAS COMPLETED AT A TO TAL INCOME OF RS. 4,71,230/- AFTER MAKING FOLLOWING ADDITIONS: - I) DEEMED DIVIDEND U/S 2(22)(E) RS. 4,76,948/- II) DISALLOWANCE OF CAPITAL EXPENDITURE RS. 36 ,240/- ON ACCOUNT OF COMPANY FORMATION EXPENSES. TOTAL RS. 4,71,230/- ITA NO. 2947/D/2012 2 3. THE ASSESSEE PREFERRED APPEAL BEFORE LD. CIT(A) WHICH WAS DISMISSED EX-PARTE. LD. CIT(A) OBSERVED THAT IN SP ITE OF SIX OPPORTUNITIES, AS TABULATED AT PAGE 3 OF HIS ORDER, THERE WAS NO C ONSTRUCTIVE RESPONSE FROM THE ASSESSEE. HE HAS OBSERVED THAT ON 11.10.2 011 LAST AND FINAL OPPORTUNITY WAS AFFORDED TO ASSESSEE BUT THE LETTER WAS RECEIVED BACK WITH THE REMARKS FROM THE POSTAL AUTHORITIES LEFT. ON 24.10.2011 THE DATE FIXED FOR HEARING WAS GIVEN AS 20.12.2011 AND THE NOTICE WAS SERVED THROUGH AFFIXTURE BY THE INSPECTOR OF WARD-11, NEW DELHI, B UT THERE WAS NO COMPLIANCE. 4. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THER E WAS CHANGE OF ADDRESS AND THE ASSESSEE HAD NOT RECEIVED EVEN THE APPELLATE ORDER. THEREFORE, THE ASSESSEE HAD TO OBTAIN CERTIFIED TRU E COPY OF THE ORDER. HE SUBMITTED THAT LD. CIT(A) HAS NOT DECIDED THE MERIT S AND, THEREFORE, THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD. CIT( A). 5. LD. DR SUBMITTED THAT IN SPITE OF SIX OPPORTUNIT IES, ASSESSEE DID NOT APPEAR. 6. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND HAVE PERUSED THE RECORD OF THE CASE. 7. I FIND THAT ON ALL DATES FIXED FOR HEARING BY LD . CIT(APPEALS), ASSESSEE DID NOT APPEAR. FROM THE SUBMISSIONS OF LD. COUNSE L IT IS EVIDENT THAT ASSESSEE HAD NOT RECEIVED THE NOTICE. UNDER SUCH C IRCUMSTANCES, IN ORDER TO IMPART SUBSTANTIAL JUSTICE TO ASSESSEE, I CONSID ER IT IN THE INTEREST OF JUSTICE THAT THE MATTER MAY BE RESTORED BACK TO THE FILE OF LD. CIT(A) FOR GIVING ONE MORE OPPORTUNITY TO ASSESSEE. IT GOES W ITHOUT SAYING THAT ASSESSEE WILL COOPERATE IN DISPOSAL OF APPEAL BY PR OVIDING THE CORRECT ADDRESS TO LD. CIT(A) SO THAT THE NOTICES MAY BE SE NT AT CORRECT ADDRESS. ITA NO. 2947/D/2012 3 8. IN THE RESULT, THE ORDER OF CIT(A) IS SET ASIDE AND THE MATTER IS RESTORED BACK TO THE FILE OF CIT(A) FOR DECIDING TH E APPEAL DENOVO. 9. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/08/2012 SD/- (S.V. MEHROTRA) ACCOUNTANT MEMBER DATED: 30/8/12 *KAVITA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. TRUE COPY BY ORDER DEPUTY REGISTRAR