Kashi Vishwanath Steels Pvt. Ltd., New Delhi V. ACIT, Noida

ITA 2959/DEL/2016

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8138 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 24-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVANI BANSAL
• Keywords: Rule 8D
• Section: 14A; 2

Judgement Text

PAGE | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI SMC-2 BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI R.K.PANDA, ACCOUNTANT MEMBER ITA NO.2959/DEL/2016 ASSESSMENT YEAR : 2010-11 KASHI VISHWANATH STEELS PVT.LTD., D-6, PHASE-I, VIVEK VIHAR, NEW DELHI-110095. PAN-AAACK2340N VS ACIT, CENTRAL CIRCLE, NOIDA. APPELLANT RESPONDENT APPELLANT BY NONE RESPONDENT BY MS. SHIVANI BANSAL, SR.DR DATE OF HEARING 06.01.2021 DATE OF PRONOUNCEMENT 1 8 . 01.2021 ORDER PER R.K.PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE EX-PARTE ORDER DATED 15.03.2016 OF CIT(A)-IV, NEW DELHI RELATING T O ASSESSMENT YEAR 2010- 11. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE. THEREFORE, THIS APPEAL IS BEING DECIDED ON THE BAS IS OF MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD.SR.DR. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A PRIVATE LIMITED COMPANY. RETURN DECLARING INCOME OF RS.3,54,130/- W AS FILED BY THE ASSESSEE ON 26.11.2010. THE ASSESSING OFFICER COMP LETED THE ASSESSMENT ITA NO.2959/DEL/2016 2 | P A GE U/S 153A/143(3) OF THE INCOME TAX ACT, 1961 (IN SHO RT ACT) ON 27.12.2011 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT R S.47,62,650/- WHEREIN HE MADE ADDITION OF RS.12,19,238/- ON ACCOUNT OF DISAL LOWANCE U/S 14A R.W. RULE 8D OF THE INCOME TAX RULES. SINCE THERE WAS N O APPEARANCE FROM THE SIDE OF THE ASSESSEE DESPITE SERVICE OF NOTICE, THE LD. CIT(A) FOLLOWING THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS GOLD LEAF CAPITAL CORPORATION LTD. IN ITA NO.798 OF 2009 DATED 02.09.2011 AND VARIOUS OTHER DECISIONS, DISMISSED THE APPEAL FILED BY THE ASSESS EE FOR NON-PROSECUTION. 4. AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESS EE IS IN APPEAL BEFORE THE TRIBUNAL. 5. I HAVE HEARD THE LD. SR. DR AND PERUSED THE ORDE RS OF THE ASSESSING OFFICER AND THE CIT(A). IT IS AN ADMITTED FACT THA T DESPITE OPPORTUNITIES GRANTED BY THE CIT(A), THERE WAS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE FOR WHICH THE CIT(A) WAS CONSTRAINED TO PA SS THE EX-PARTE ORDER, DISMISSING THE APPEAL OF THE ASSESSEE FOR NON-PROSE CUTION. HOWEVER, HE HAS NOT DECIDED THE APPEAL ON MERIT WHICH HE IS REQUIRE D TO DO. AS PER PROVISIONS OF SECTION 250(6) OF THE ACT, THE ORDER OF THE CIT(A) DISPOSING THE APPEAL SHALL BE IN WRITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASON FOR THE DECISION. SINCE THE LD.CIT(A) HAS NOT DECIDED THE APPEAL ON MERIT WHICH HE IS REQUIRE D TO DO, THEREFORE, CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE A ND IN THE INTEREST OF JUSTICE, I DEEM IT APPROPRIATE TO RESTORE THE ISSUE TO THE F ILE OF LD. CIT(A) WITH THE ITA NO.2959/DEL/2016 3 | P A GE DIRECTION TO GRANT ONE LAST OPPORTUNITY TO THE ASSE SSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW BY PA SSING A SPEAKING ORDER. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFO RE THE CIT(A) AND SUBSTANTIATE ITS CASE FAILING WHICH THE LD. CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT AC CORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH JANUARY, 2021. SD/- (R.K.PANDA) ACCOUNTANT MEMBER DATED:- 18.01.2021 * AMIT KUMAR * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI