Jagbir Singh, Delhi V. Pr.CIT- 13, New Delhi

ITA 3250/DEL/2018

AI Insights

The case involves Jagbir Singh, the proprietor of DSR Construction, who appealed against the revisional order of the Pr.CIT, Delhi-13. The revisional order was issued after the Pr.CIT found that the original assessment under Section 143(3) of the Income Tax Act was completed without proper verification of substantial expenses claimed by the assessee, including purchases, rent, and labor charges. The ITAT dismissed the appeal due to the absence of the assessee and found no mitigating circumstances to overturn the revisional order.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121565 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 15-01-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-05-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A No.3250/DEL/2018 Assessment Year 2014-15 Jagbir Singh, Prop – DSR Contruction 1/63, Sector-24, Rohini, Delhi. v. Pr. Commissioner of Income Tax, Delhi-13, New Delhi. TAN/PAN: AIEPJ6561H (Appellant) (Respondent) Appellant by: None Respondent by: Mohd. Gayasuddin Ansari, CIT (DR) Date of hearing: 16 01 2023 Date of pronouncement: 23 01 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed by the assessee against the revisional order of the Principal Commissioner of Inco me Tax, Delhi-13, New Delhi (Pr.C IT) dated 26.02.2018 passed under Section 143(3) of the Act concerning Assessment Year 2014-15. 2. The assessee-co mpany is engaged in the business of civil contracts under the na me and st yl e of M/s. DS R C onstruction and M/s. Gaurav Ho mes for the ye ar under consideration. The assessee filed return of income ( R OI) showing total income at Rs.19,12,380/- for the Assess ment Year 2014-15 in question. The return was subjected to scrutiny assess me nt and the I.T.A No.3250/Del/2018 2 assessed income was deter mined at the same a mount without making additions or disallowances. After co mpleti on of the assessment, a proposal was received fro m Additional Co mmissioner of Inco me Tax that assessment was co mpleted in haste and without looking into or properl y ve rif ying the substantial purchases a mounting to Rs.234.80 lakh, rent expenses of Rs.37.57 lakh, labour charges of Rs.113.91 lakh and also other expenses. The Pr .CI T on proposal, for med an opinion that prima facie the Assessing Officer has not looked into or verified the above aspects. Consequently, r evisional proceedings under Section 263 wer e initiated. 3. In defense, the ld. counsel for the assessee before the Pr.CI T sub mitted that the issues we re verified b y the Assessing Officer and the details asked by the Assessing Officer were submitted. On inquiry f ro m the Pr.CI T as to wh ether the Assessing Officer asked for details for conducted verification with respect to purchases, labour charges, rent expenses, etc., it was submitted that the Assessing Officer has enquired about these and verified the supportings on test check basis. 4. The Pr.CI T on appraisal of assessment record and order- sheet entries dated 19.02.2018 however concluded that no details of such expenses are available on record and nowhere asked for by the Assessing Officer or provided to the Assessing Officer . The revisional Commissioner thus came into conclusion that the expenses have not been verified by the Assessing Officer and has been accepted summaril y. The Pr.CI T invoked Explanation-2 to Section 263 and held that the assessment order passed under Se ction 143(3) dated 14.03.2016 is erroneous I.T.A No.3250/Del/2018 3 insofar as it is prejudicial to the interest of the Revenue in the absence of any inquiry and verification which should have been made in the context of the case before passing the order under Section 143(3) of the Act. The assessment order was thus cancelled and the Assessing Officer was directed to fra me the assessment de novo after conducting appropriate enquiries and verifications. 3. Aggrieved by the revisional action, the assessee preferred appeal before the ITAT. 4. When the matter was called for hearing, none appeared for the assessee. It is noticed that multiple opportunities were given to the assessee in the past owning to non attendance. It is thus gauged that the assessee is not interested in pursuing the appeal. Consequently, we are constraint to proceed ex-parte. 5. We have heard the submissions made on behalf of the Revenue and also perused the assessment order as well as revisional order. No separate paper book is available on record fro m either side. 6. On perusal of the facts and circu mstances e merging fro m the case records, we do not find any mitigating circu mstances existing in the case to dislodge the revisional action of the Pr.CI T as alleged in the revisional order. The Assessing Officer has failed to mak e an y inquiry in r espect of several issues such as claim of rent expenses, labour charges and also other expenses. Fro m th e revisional order, it is not known as to what cogent defense has been put to justif y the assess ment order. The reply of the Asse ssee before Pr.C I T is generic and not found I.T.A No.3250/Del/2018 4 supportable from assessment record by the Pr.CI T. Under the circu mstances, to our mind, the Pr.CIT has rightly observed that the assessment order has been passed without application of mind and without making an y releva nt enquiry. No evidence has been filed on behalf of the assessee before the Tribunal in its rebuttal. Under the circu mstances, we see no reason to interfere with the revisional order. 7. In the result, the appeal of the assessee is dismissed ex- parte. Order pronounced in the open Court on 23/01/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /01/2023 Prabhat