M/s Gangotri Paper Mills (P) Ltd., New Delhi V. DCIT, New Delhi

ITA 3689/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3489 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 21-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Principle of natural justice; Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 3689/DEL/2016 ASSESSMENT YEAR: 2012-13 M/S GANGOTRI PAPER MILLS (P) LTD., VS. DCIT, CI RCLE 10(1) C/O RAJ KUMAR & ASSOCIATES, NEW DELHI CHARTERED ACCOUNTANTS, L-7A(LGF), SOUTH EXTN., PART-2, NEW DELHI 110 049 (PAN: AABCV7469F) (ASSESSEE) (RESPONDENT) ASSESSEE BY : SH. RAJ KUMAR, CA REVENUE BY : SH. ARUN KUMAR YADAV, SR. DR ORDER PER H.S. SIDHU, JM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 21.12.2016 PASSED BY THE LD. CIT(A)-4, NEW DELHI RE LATING TO ASSESSMENT YEAR 2012-13 ON THE FOLLOWING GROUNDS:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES, NO PROPER AND REASONABLE OPPORTUNITY OF HEARING HAS BEEN PROVIDED BY LD. CIT(A). 2 2. THAT UNDER THE FACTS AND CIRCUMSTANCES, THE CASE COULD NOT BE ATTENDED BEFORE LD. CIT(A) FOR REASONABLE CAUSE. 3. THAT WITHOUT PREJUDICE, LD. CIT(A) ERRED IN LAW IN NOT DECIDING THE APPEAL ON MERITS AND ERRED IN DISMISSING THE SAME WITHOUT ADJUDICATING THE ISSUE BY ASSUMING THAT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE MATTER. 4. THAT UNDER THE FACTS AND CIRCUMSTANCES, THE AO GROSSLY ERRED IN LAW AS WELL AS ON MERITS IN ALLOWING DEPRECIATION ON CIVIL CONSTRUCTION COST FOR INSTALLATION OF ETP PLANTS AT RS. 4,70,094/- @10% ONLY AGAINST CORRECTLY CLAIMED AT RS. 47,00,938/- @100%, THUS, ERRED IN NOT ALLOWING THE DEPRECIATION TO THE EXTENT OF RS. 42,30,844/-. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEAT ED HERE FOR THE SAKE OF BREVITY. 3 3. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSES SEE DRAW OUR ATTENTION TOWARDS THE IMPUGNED ORDER AND STATED THA T LD. CIT(A) HAS NOT GIVEN SUFFICIENT OPPORTUNITY FOR SUBSTANTI ATING THE CLAIM OF THE ASSESSEE AND DECIDE THE CASE EXPARTE, WHICH IS CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE. HE REQUESTED TH AT THE IMPUGNED ORDER MAY BE CANCELLED AND THE ISSUE IN DISPUTE MAY BE SET ASIDE TO THE FILE OF THE LD. CIT(A) TO DECIDE THE SAME AF RESH, UNDER THE LAW, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEA RD. HE FURTHER STATED THAT ASSESSEE IS READY TO ARGUE THE CASE A ND REQUESTED THE BENCH TO FIX THE DATE OF HEARING BEFORE THE LD . CIT(A) AND ALSO UNDERTAKES TO APPEAR BEFORE HIM AND WILL NOT T AKE ANY UNNECESSARY ADJOURNMENT. 4. ON THE CONTRARY, LD. DR HAS NOT RAISED ANY SERIO US OBJECTION ON THE REQUEST OF THE LD. COUNSEL OF THE ASSESSEE. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS, ESPECIALLY THE IMPUGNED ORDER PASSED BY THE LD. CI T(A). AFTER EXAMINING THE IMPUGNED ORDER, WE ARE OF THE CONSIDE RED VIEW THAT LD. CIT(A) HAS PASSED THE EXPARTE ORDER AND D ID NOT PROVIDE SUFFICIENT OPPORTUNITY, AS A RESULT THEREOF, THE AS SESSEE COULD NOT SUBSTANTIATE ITS CASE BEFORE THE LD. CIT(A). THEREF ORE, IN THE INTEREST OF JUSTICE, WE SET ASIDE THE ISSUES IN DIS PUTE TO THE FILE OF 4 THE LD. CIT(A) WITH THE DIRECTIONS TO DECIDE THE SA ME AFRESH, UNDER THE LAW, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HOWEVER, TO SAVE TIME, WE ARE DIR ECTING THE ASSESSSEE THROUGH HIS COUNSEL TO APPEAR BEFORE THE LD. CIT(A) ON 11.12.2017 AT 10.00 AM FOR SUBSTANTIATING ITS CASE BY PRODUCING ALL THE EVIDENCES BEFORE HIM AND WILL NOT TAKE ANY UNNECESSARY ADJOURNMENT. THERE IS NO NEED TO ISSU E THE NOTICE TO THE PARTIES, BECAUSE THIS ORDER HAS BEEN PRONOUN CED IN THE OPEN COURT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 07/11/2017 . SD/- SD/- [L.P. SAHU] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 07/11/2017 SRBHATNAGAR COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 5