Multiwal Duplex Pvt Ltd, Moradabad V. DCIT Central Circle, Bareily

ITA 3287/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2805 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Appeal Filed On: 16-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: VISHAL GARG
• Keywords: Principle of natural justice

Judgement Text

1 ITA NO.3287/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT ME MBER A N D MS. SUCHITRA KAMBLE, JUD ICIAL MEMBER I.T.A. NO. 3287/DEL/20 19 (A.Y. 2015-16) (THROUGH VIDEO CON FERENCING) M ULTIWAL DUPLEX PVT. LTD., 118119, LAJPAT NAGAR, MORADABAD 244 001 (U. P.) PAN: AAECM8268F (APPELLANT) VS DCIT , CENTRAL CIRCLE, BAREILLY. (RESPONDENT) O R D E R PER SUCHITRA KAMBLE, JM : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 11.02.2019 PASSED BY CIT (APPEALS), BAREILLY, FOR ASSESSMENT Y EAR 2015-16. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE ORDER OF LD. CIT (A) HAS ERRED IN LAW AND ON FA CTS ON BOTH. 2. THE LD. CIT (APPEALS) HAS ERRED IN LAW AND ON FACTS ON BOTH WHILE REJECTING THE APPEAL FILED BY THE ASSESSEE WITHOUT GOING THROUGH THE FACTS AND THAT THE COUNSEL OF THE ASSESSEE IS A HEART PATIENT AND DUE TO HIS HEALTH PROBLEM THE COMPLIANCE OF APPEAL PROCEEDING HAS NOT BEEN MADE. APPELLANT BY SHRI VISHAL GARG, C. A. RESPONDENT BY SHRI GAYASUDDIN ANSARI, SR. D. R. DATE OF HEARING 19.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 2 ITA NO.3287/DEL/2019 3. THAT THE LD. DCIT HAS ERRED IN LAW AND ON FACTS ON BOTH COMPLETING THE ASSESSMENT AT NET LOSS OF RS. 1,11,19,899.00 AGAINS T THE LOSS CLAIMED AS PER RETURN OF RS. 21,19,57,021/-. 4. THAT THE LD. AOIS HIGHLY UNJUSTIFIED AND AGAINST TH E FACTS FOR MAKING DISALLOWANCE OF RS. 21,39,739/- OUT OF ELECTRICITY EXPENSES BY ALLEGING THAT RECEIPT OF PAYMENT DATED 30/04/2015. 5. THAT THE LD. AO IS HIGHLY UNJUSTIFIED AND AGAINST T HE FACTS FOR MAKING DISALLOWANCE OF RS. 18,77,34,860/- OUT OF TOTAL EXP ENSES BY ALLEGING THAT THE RATIO OF EXPENDITURE AGAINST TURNOVER WAS VERY MUCH HIGH THAN THE IMMEDIATE PRECEDING YEAR. 6. THAT THE LD. AO IS HIGHLY UNJUSTIFIED AND AGAINST T HE FACTS FOR MAKING DISALLOWANCE OF RS. 1,09,62,523/- OUT OF INTEREST O N BORROWED FUNDS BY ALLEGING THAT AN INTEREST FREE ADVANCE OF RS. 9,13,54,364/- HAS BEEN GIVEN WHILE ON ANOTHER SIDE THERE IS HUGE TRADE CREDITORS AMOUNTIN G TO RS. 19,71,27,160/-. 7. ANY OTHER GROUND OF APPEAL(S) WHICH MAY BE RAISED D URING THE COURSE OF HEARING OF APPEAL. 3. THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGE D IN MANUFACTURING OF DIFFERENT KIND OF PAPERS ETC. THE ASSESSEE FILED RE TURN OF INCOME ON 31.10.2015 SHOWING LOSS OF RS. 21,19,57,021/-. THE ASSESSING O FFICER ASSESSED THE LOSS AT RS. 1,11,19,899 VIDE ASSESSMENT ORDER DATED 26.12.2 017. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT (APPEALS). THE CIT (A) DISMISSED THE APPEA L OF THE ASSESSEE. 5. THE LD. AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CIT (APPEALS) HAS NOT GIVEN AN APPROPRIATE OPPORTUNITY OF HEARING TO THE ASSESSEE TO REPRESENT HIS CASE. 6. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT (APPEALS). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE MATERIAL AVAILABLE ON 3 ITA NO.3287/DEL/2019 RECORD. IT IS PERTINENT TO NOTE THAT THE CIT (APPE ALS) HAS NOT GIVEN ANY CATEGORICAL FINDING ON MERITS OF THE CASE AND ALSO DID NOT GIVE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, THE CIT (APPEALS) WAS NOT RIGHT IN DISMISSING THE APPEAL OF THE ASSESSEE WITH OUT GIVING PROPER OPPORTUNITY OF HEARING. HENCE, WE ARE REMANDING BACK THE ENTIR E ISSUE TO THE FILE OF THE CIT (APPEALS) TO BE DECIDED ON MERITS. NEEDLESS TO SAY , THE ASSESSEE BE GIVEN AN OPPORTUNITY OF HEARING BY FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED, FOR STATI STICAL PURPOSE. 8. IN RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLO WED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF NOVEMBER, 2020 SD/- SD/- ( R. K. PANDA ) ( SUCHITRA KAMBLE ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 25/11/2020 *MEHTA/R.N* COPY FORWARDED TO :- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO.3287/DEL/2019