M/s. Botil Oil Tools (India) Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 3506/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0313 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 03-05-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 19-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA
• Keywords: Capital expenditure

Judgement Text

I.T.A. NO. 3506/DEL/2010 1/1 IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, IN THE INCOME TAX APPELLATE TRIBUNAL, NEW DELHI, BENCH A NEW DELHI, BENCH A NEW DELHI, BENCH A NEW DELHI, BENCH A BEFORE SHRI A. D. JAIN, JUDICIAL MEMBER AND SHRI A K GARODIA, ACCOUTANT MEMBER ITA NO. 3506 /DEL/2010 (ASSESSMENT YEAR 2007-08) M/S. BOTIL OIL TOOLS (INDIA) PVT. LTD., VS. DCIT, CIRCLE 3(1), C/O J C BHALLA & CO. C.A., NEW DELHI B-17, MAHARANI BAGH, NEW DELHI. (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AAACB0222G APPELLANT BY: NONE RESPONDENT BY: MS. ANUSHA KHURANA, SR. DR ORDER ORDER ORDER ORDER PER A. K. GARODIA, AM: PER A. K. GARODIA, AM: PER A. K. GARODIA, AM: PER A. K. GARODIA, AM: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) VI, NEW DELHI DATED 7.5.2010 FOR THE ASS ESSMENT YEAR 2007-08. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: 1) THE LD. CIT(A) HAS ERRED BOTH ON FACTS SAND IN LAW IN UPHOLDING THE DISALLOWANCE OF COMMISSION & EX-GRATI A PAID TO THE DIRECTORS OF THE COMPANY MADE BY THE LD. A.O. B Y WRONGLY INVOKING THE PROVISIONS OF SECTION 36(1) (II) OF TH E I. T. ACT, 1961. 2) THE LD. CIT(A) HAS ERRED BOTH ON FACTS AND IN LA W IN UPHOLDING THE LD. A.O.S ACTION OF DISALLOWING ROYA LTY PAID AMOUNTING TO ` 15,80,302/- ALLEGEDLY ON THE GROUND THAT THE SAME IS CAPITAL EXPENDITURE. 2. THIS APPEAL WAS FIXED FOR HEARING FOR THE FIRST TIME ON 21.09.2010. ON THAT DATE, LD. A.R. FOR THE ASSESSE E APPEARED AND FILED PAPER BOOK AND THE MATTER WAS ADJOURNED TO 10 TH DEC., 2010. ON THAT DATE I.E. ON 10.12.2010, LD. A.R. AGAIN SOU GHT ADJOURNMENT AND THE MATTER WAS AGAIN ADJOURNED TO 23.02.2011. BOTH THE I.T.A. NO. 3506/DEL/2010 2/2 PARTIES WERE INFORMED ABOUT THE NEXT DATE OF HEARIN G IN THE COURT. THE DATE OF HEARING WAS NOTED BY THE LD. A.R. ON TH E APPLICATION FILED BY HIM FOR ADJOURNMENT, WHICH IS AVAILABLE ON RECORD. IN SPITE OF THIS, NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE DATE OF HEARING I.E. 23.02.2011. THERE IS NO REQUEST FOR A DJOURNMENT. UNDER THESE FACTS, IT IS PRETENDED THAT THE ASSESSE E IS NOT INTERESTED IN PURSUING ITS APPEAL AND HENCE THE SAME IS LIABLE TO BE DISMISSED FOR NON PROSECUTION. IN OUR ABOVE VIEW, WE FIND SUP PORT FROM THE FOLLOWING DECISIONS:- IN THE CASE OF CIT VS B.N. BHATTACHARGEE AND ANOTHE R, REPORTED IN 118 ITR 461 (RELEVANT PAGES 477 AND 478 ) WHEREIN THEIR LORDSHIPS HAVE HELD THAT THE APPEAL DOES NOT MEAN MERELY FILING OF THE APPEAL BUT EFFECTIVELY PURSUIN G IT. IN THE CASE OF ESTATE OF LATE TUKOJIRAO HOLKAR VS C WT; 223 ITR 480 (M.P.) WHILE DISMISSING THE REFERENCE MADE AT T HE INSTANCE OF THE ASSESSEE IN DEFAULT MADE FOLLOWING OBSERVATION IN THEIR ORDER:- IF THE PARTY, AT WHOSE INSTANCE THE REFERENCE IS M ADE, FAILS TO APPEAR AT THE HEARING, OR FAILS IN TAKING STEPS FOR PREPARATION OF THE PAPER BOOKS SO AS TO ENABLE HEARING OF THE R EFERENCE, THE COURT IS NOT BOUND TO ANSWER THE REFERENCE. IN THE CASE OF CIT VS MULTIPLAN INDIA LIMITED; 38 ITD 320 (DEL), THE APPEAL FILED BY THE REVENUE BEFORE THE TRIBUNAL , WHICH WAS FIXED FOR HEARING. BUT ON THE DATE OF HEARING, NOB ODY REPRESENTED THE REVENUE/APPELLANT NOR ANY COMMUNICA TION FOR ADJOURNMENT WAS RECEIVED. THERE WAS NO COMMUNICATI ON OR INFORMATION AS TO WHY THE REVENUE CHOSE TO REMAIN A BSENT ON DATE. THE TRIBUNAL ON THE BASIS OF INHERENT POWERS , TREATED I.T.A. NO. 3506/DEL/2010 3/3 THE APPEAL FILED BY THE REVENUE AS UNADMITTED IN VI EW OF THE PROVISIONS OF RULE 19 OF THE APPELLATE TRIBUNAL RUL ES, 1963. 2. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STAN DS DISMISSED AS UNADMITTED. 3. PRONOUNCED IN THE OPEN COURT ON 4 TH MARCH 2011. SD./- SD./- (A. D. JAIN) (A K GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 4 TH MARCH , 2011 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR, ITAT, NEW DELHI