Ajaramar Trading & Investment Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 3466/DEL/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5036 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KAPOOR
• Keywords: Additional evidence
• Section: 143(3); 133(6); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A : NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.3466/DEL/2017 ASSESSMENT YEAR: 2012-13 AJARAMAR TRADING & INVESTMENT PVT. LTD., S-3, IIND FLOOR, W-19, GREATER KAILASH PART-2, NEW DELHI. PAN: AAACA0535D VS ITO, WARD-2(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI SANJAY KAPOOR, SR. DR DATE OF HEARING : 21.11.2019 DATE OF PRONOUNCEMENT : 22.11.2019 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE EX PARTE ORDER DATED 9 TH DECEMBER, 2016 OF THE CIT(A)-22, NEW DELHI RELATIN G TO ASSESSMENT YEARS 2012-13. 2. THE ASSESSEE IN ITS VARIOUS GROUNDS HAS CHALLENG ED THE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITION OF RS.2,94,20,513/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SUNDRY CREDITOR BALANCE AND THE DIFFEREN CES WRITTEN BACK AND AN AMOUNT OF RS.1,50,000/- ON ACCOUNT OF UNSECURED LOAN ADDED U/S 68 OF THE IT ACT. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE ISSUE OF NOTICE. HOWEVER, CONSIDERING THE FACT THAT THE CIT(A) HAS PASSED AN EX PARTE ORDER DUE TO ABSENCE OF ITA NO.3466/DEL/2017 2 THE ASSESSEE, THE APPEAL IS BEING DECIDED ON THE BA SIS OF THE MATERIAL AVAILABLE ON RECORD AND AFTER HEARING THE LD. DR. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A PRIVATE LIMITED COMPANY ENGAGED IN TRADING AGRI COMMODITIES. IT FILED ITS RETURN OF INCOME ON 22 ND MARCH, 2013 DECLARING AN INCOME OF RS.10,57,610/-. THE ASS ESSING OFFICER COMPLETED THE ASSESSMENT U/S 143(3) ON 31.03.2015 DETERMINING THE TOTAL INCOME AT RS.3,06,28,123/- WHEREIN HE MADE ADDITION OF RS.2,9 4,20,513/- ON ACCOUNT OF SUNDRY CREDITOR BALANCES AND DIFFERENCES WRITTEN BA CK. SIMILARLY, HE ALSO MADE AN ADDITION OF RS.1,50,000/- BEING UNEXPLAINED LOAN TA KEN BY THE ASSESSEE DURING THE YEAR BY INVOKING THE PROVISIONS OF SECTION 68. SIN CE, DESPITE SERVICE OF NOTICE, NOBODY APPEARED BEFORE THE CIT(A), THE LD.CIT(A) DI SMISSED THE APPEAL ON THE GROUND THAT THE ASSESSEE DOES NOT WISH TO PURSUE TH E APPEAL. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. IT IS AN ADMITTED FACT THAT DESPITE REPEATED OPPORTUNITIE S GRANTED BY THE CIT(A), THE ASSESSEE NEVER BOTHERED TO APPEAR BEFORE THE CIT(A) FOR WHICH HE WAS CONSTRAINED TO PASS AN EX PARTE ORDER. FURTHER, THE LD.CIT(A) HAS ALSO OBSERVED T HAT THE APPEAL WAS FILED LATE BY APPROXIMATELY TWO MONTHS AND ALON G WITH THE APPEAL, THE ASSESSEE HAD ENCLOSED CONFIRMATIONS FROM THE TWO CREDITORS W HOSE NOTICES U/S 133(6) WERE RETURNED UNSERVED. THE EXPLANATIONS FOR THE DIFFER ENCE IN THE BALANCE IN THE CASE OF ITA NO.3466/DEL/2017 3 INDIA GLYCOLS LIMITED WERE ALSO ENCLOSED. A REQUES T FOR ADMISSION OF ADDITIONAL EVIDENCE WAS ALSO MADE. HOWEVER, SINCE THE ASSESSE E HAD NOT MADE OUT THE CASE FOR ADMISSION OF ADDITIONAL EVIDENCE UNDER RULE 46A AND, SINCE, ACCORDING TO HIM, THE ASSESSEE WAS COMMUNICATED THE RESULT OF ENQUIRI ES UNDER SECTION 133(6) BY THE ASSESSING OFFICER, HE DISMISSED THE APPEAL DUE TO N ON-PROSECUTION OF THE APPEAL, BUT, DID NOT DECIDE THE APPEAL ON MERIT. CONSIDERIN G THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PRO PER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GIVE ONE FINAL OP PORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) WITHOUT SEEKING ANY ADJOURNMENT UNDER ANY PR ETEXT, FAILING WHICH THE LD.CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER A S PER LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE AR E ACCORDINGLY ALLOWED FOR STATISTICAL PURPOS 7. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 2.11.2019. SD/- SD/- (H.S. SIDHU) (R.K. PANDA) JUDICIAL MEMBER ACCO UNTANT MEMBER DATED: 22 ND NOVEMBER, 2019 DK ITA NO.3466/DEL/2017 4 COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI