Devdhar Trading & Consultants Pvt Ltd, Gurgaon V. ACIT Circle-01, Gurgaon

ITA 3352/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2831 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 18-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: GURU DEV CHAWLA
• Keywords: Principle of natural justice; Earning of tax free income
• Section: 14A

Judgement Text

1 ITA NO.3352/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. 3352/DEL/20 19 (A.Y. 2015-16) (THROUGH VIDEO CON FERENCING) M/S DEVDHAR TRADING AND CONSULTANTS PVT. LTD., O116, FIRST FLOOR, DLF SHOPPING MALL, ARJUN MARG, PHASEI, GURGAON 122 002. PAN: AADCD7533P (APPELLANT) VS ACIT , CIRCLE : 01 GURGAON. (RESPONDENT) O R D E R PER SUCHITRA KAMBLE, JM : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 28.06.2018 PASSED BY CIT (APPEALS)-1, GURGAON, FOR ASSESSMENT YEAR 2015-16. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE LD. COMMISSIONER OF INCOME TAX APPEALS HA S ERRED IN CONFIRMING DISALLOWANCE OF RS.5,29,08,882/- U/S 14A OF THE INC OME TAX ACT 1961, WITHOUT THERE BEING ANY EXEMPT INCOME, WITH TOTAL DISREGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE; 2. THE ENTIRE DISALLOWANCE MADE, IS ILLEGAL AND WITH TOTAL DISREGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF TRAD ING AND CONSULTANCY. APPELLANT BY SHRI GURU DEV CHAWLA, C.A. RESPONDENT BY SHRI UMESH TAKYAR, SR. DR DATE OF HEARING 19.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 2 ITA NO.3352/DEL/2019 THE ASSESSEE FILED RETURN OF INCOME ON 30.09.2015 D ECLARING A LOSS OF RS.5,30,96,629/-. THE ASSESSING OFFICER PASSED ASSE SSMENT ORDER DATED 28.12.2017 THEREBY ASSESSING THE LOSS AT RS.1,87,74 7/-. 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 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 3 ITA NO.3352/DEL/2019 *MEHTA/R.N* COPY FORWARDED TO :- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI