Bharat Marketing & Advertising Co. PVT. lTD., Delhi V. ITO WARD 4(4), New Delhi

ITA 3266/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6214 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 15-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARUL SINGH
• Keywords: Opportunity of being heard; Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 3266/DEL/2019 ASSESSMENT YEAR: 2013-14 M/S BHARAT MARKETING &, VS. IT O, WARD-4(4), ADVERTISING COMPANY PVT. LTD., NEW DELHI DG-1/39C, VIKAS PURI NEW DELHI (PAN:AAACB0049H) (ASSESSEE) (RESPONDENT) ASSESSEE BY : SH. SURESH KUMAR GUPTA, DIRECTOR OF COMPANY REVENUE BY : MS. PARUL SINGH, SR. DR ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE IM PUGNED ORDER DATED 10.01.2019 PASSED BY THE LD. CIT(A)-2, NEW DELHI RE LATING TO ASSESSMENT YEAR 2013-14 ON THE FOLLOWING GROUNDS:- 1. THAT THE LD. CIT(A) HAS ERRED ON FACTS, IN THE CIRC UMSTANCES OF THE CASE AND IN LAW IN DISMISSING THE APPEAL OF THE APPELLAN T EX-PARTE DUE TO NON-PURSUING. THE DECISION IS ILLEGAL AND UNWARRANT ED AND MUST BE QUASHED SINCE THE APPLICATION FOR ADJOURNMENT WAS N OT ACCEPTED AND TOLD TO JOIN ON THE NEXT APPEARANCE FOR ASSESSMENT YEAR 2011-12. 2. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FAC T OF PASSING/FRAMING THE EX- PARTE ORDER ON HER OWN MOTION WITHOUT ISSUI NG OF NO NEW NOTICE FOR APPEARANCE AFTER NOT ACCEPTING THE ABOVE ADJOUR NMENT LETTER IS ERRONEOUS, ILLEGAL AND UNWARRANTED AND BAD IN LAW AND MUST BE QUASHED WITH SPECIFIC DIRECTIONS FOR DELETING THE A DDITIONS. 3. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS A ND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE ADDITION OF RS. 4,12,059/ - BEING INTEREST PAID ON UNSECURED LOANS TAKEN FOR MEETING BUSINESS EXPEN SES AND REPAYMENT OF BUSINESS CREDITORS UNDER SECTION 36(L) (III) BY THE LD. A.O. IS ERRONEOUS, ILLEGAL AND UNWARRANTED AND MUST BE Q UASHED WITH SPECIFIC DIRECTIONS FOR DELETING THE ADDITIONS MADE . 2 4. THAT THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS A ND CIRCUMSTANCES OF THE CASE IN UPHOLDING THE MAKING OF NOTIONAL DISALL OWANCE OF RS. 2,33,222/- UNDER SECTION 14A READ WITH RULE 8D ON A CCOUNT OF INVESTMENTS IN LONG TERM INVESTMENTS WITHOUT EARNIN G ANY TAX FREE INCOME OR INCURRING ANY EXPENDITURE ON SAME BY THE A.O. IS ERRONEOUS, ILLEGAL AND UNWARRANTED AND MUST BE QUASHED WITH SP ECIFIC DIRECTIONS FOR DELETING THE ADDITIONS MADE. 2. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASSESSEE STATED THAT THE LEARNED FIRST APPELLATE AUTHORITY HAS DECIDED THE I SSUES IN DISPUTE AGAINST THE ASSESSEE EX PARTE WITHOUT PROVIDING SUFFICIENT OPPORTUNITY OF HEARIN G TO THE ASSESSEE AND HE REQUESTED THAT THE ISSUES IN DISPUT E MAY BE SET ASIDE TO THE LEARNED FIRST APPELLATE AUTHORITY TO DECIDE THE SAM E AFRESH, AS PER LAW, AFTER GIVING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. LEARNED DR FOR THE REVENUE DID NOT RAISE ANY OBJ ECTION ON THE REQUEST OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. AFTER HEARING BOTH THE PARTIES AND PERUSING THE ORDERS PASSED BY THE REVENUE AUTHORITIES ESPECIALLY THE IMPUGNED ORDER, I AM OF THE CONSIDERED VIEW THAT LEARNED FIRST APPELLATE AUTHORITY HAS DEC IDED THE ISSUES IN DISPUTE AGAINST THE ASSESSEE BY PASSING A NON SPEAKING AND EX PARTE ORDER AND DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINI WHIC H IS CONTRARY TO LAW AND FACTS ON THE FILE AND LIABLE TO BE CANCELLED. THERE FORE, IN THE INTEREST OF JUSTICE, I AM CANCELLING THE IMPUGNED ORDER AND SET TING ASIDE THE ISSUES IN DISPUTE TO THE LEARNED FIRST APPELLATE AUTHORITY TO DECIDE THE SAME AFRESH, AS PER LAW, AFTER GIVING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. KEEPING IN VIEW THE NON COOPERATION OF THE ASSES SEE BEFORE THE REVENUE AUTHORITIES, I AM DIRECTING THE ASSESSEE TH ROUGH HIS COUNSEL TO 3 APPEAR BEFORE THE LEARNED FIRST APPELLATE AUTHORITY ON 23.04.2020 AT 10:00 AM. THERE IS NO NEED TO ISSUE NOTICE TO THE ASSESSE E FOR 23.04.2020 BECAUSE THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 12/02/2020. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 12/02/2020 SH COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES