Bio Nucleus Pharmaceuticals Private Limited, New Delhi V. ITO WARD - 5(1), New Delhi

ITA 369/DEL/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4674 (ITAT-DELHI)
• Duration Of Justice: 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 21-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S. N. MEENA
• Keywords: Rejection of books of accounts; Income from undisclosed sources; Opportunity of being heard
• Section: 144; 142(1); 143(2); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES FRIDAY/A, NEW DELHI BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 369/DEL/2020 : ASSTT. YEAR : 2016 -17 BIO NUCLEUS PHARMACEUTICALS PVT. LTD., D-2/144, PLOT NO. 144, UPPER GROUND FLOOR, GALI NO. 3, KH NO. 720/590, MAHAVIR ENCLAVE, NEW DELHI-110045 VS INCOME TAX OFFICER, WARD-5(1), NEW DELHI-110002 (APPELLANT) (RESPONDENT) PAN NO. AAGCB1568H ASSESSEE BY : SH. TARANDEEP SINGH, ADV. REVENUE BY : SH. S. N. MEENA, SR. DR DATE OF HEARING: 07 . 0 2 .2020 DATE OF PRONOUNCEMENT: 20 .02 .2020 ORDER PER DR. B.R.R. KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF LD. CIT(A)-2, NEW DELHI DATED 31.10.20 19. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: 1. THAT ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE ORDER PASSED BY INCOME TAX OFFICER, WAD 5(1), NEW DELHI {HEREINAFTER REFERRED TO AS 'AO} AND COMMISSIONER OF INCOME TAX APPEALS {HEREINAFTER REFERRED TO AS CIT(A)} ARE BAD IN LA W AND VOID AB-INITIO. 1.1 THAT ON FACTS AND IN LAW THE CIT(A) AND AO HAVE ERRED IN NOT GRANTING A PROPER OPPORTUNITY OF BEING HEARD. 2. WITHOUT PREJUDICE, THAT ON FACTS AND IN LAW THE CIT(A) HAS ERRED IN NOT ADJUDICATING UPON THE ISSUE S ITA NO. 369/DEL/2020 BIO NUCLEUS PHARMACEUTICALS PVT. L TD. 2 IN DISPUTE I.E., THE GROUNDS OF APPEAL RAISED BY TH E APPELLANT IN FORM NO. 35. 3. THAT ON FACTS AND IN LAW THE CIT(A) HAS ERRED IN NOT APPRECIATING THAT: (A) AO HAS WRONGLY REJECTED THE BOOKS OF ACCOUNTS OF THE APPELLANT. (B) AO HAS ERRED IN INVOKING PROVISIONS OF SECTION 144 OF THE ACT. (C) AO HAS ERRED IN NOT PROVIDING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE APPELLANT. (D) AO HAS ERRED IN MAKING AN ADDITION OF RS. 1,65,24,132/- AS INCOME FROM UNDISCLOSED SOURCES. (E) AO HAS ERRED IN MAKING AN ADDITION OF RS.2,52,04,902/- BEING AMOUNT OF DEBTORS AS SHOWN IN THE BALANCE SHEET AS AT 31ST MARCH, 2016. (E) AO HAS ERRED MAKING AN ADDITION OF RS.56,54,751 BEING THE AMOUNT OF TOTAL EXPENDITURE CLAIMED IN THE PROFIT AND LOSS ACCOUNT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE E- FILED THE RETURN OF INCOME ON 09.03.2017 DECLARING TOTAL INCO ME OF RS. NIL AND CURRENT YEAR LOSS OF (-) RS.29,21,850/-. TH E CASE WAS SELECTED FOR LIMITED SCRUTINY THROUGH CASS AND NOTI CE U/S 143(2) OF THE INCOME TAX ACT, 1961 DATED 18.09.2017 AND DATED 28.09.2017 WAS ISSUED AND SERVED ON THE ASSES SEE. FURTHER, NOTICE U/S 142(1) DATED 04.10.2018 WAS ALS O ISSUED ASKING FOR SPECIFIC DETAILS/DOCUMENTS. 4. SUBSEQUENTLY, THE ASSESSMENT WAS COMPLETED BY WI DENING THE SCOPE AFTER DUE APPROVALS FROM THE LD. PCIT DETERMI NING THE ASSESSED INCOME AT RS.444 LACS. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE LD. ITA NO. 369/DEL/2020 BIO NUCLEUS PHARMACEUTICALS PVT. L TD. 3 CIT (A) WHO SUMMARILY DISMISSED THE APPEAL OF THE A SSESSEE EX-PARTE WITHOUT ADJUDICATING THE MERITS OF THE CASE. 5. BEFORE US, THE LD. AR ARGUED THAT GIVEN AN OPPOR TUNITY HE WOULD REPRESENT AND FILE ALL THE DETAILS BEFORE THE REVEN UE AUTHORITIES. THE LD. DR DID NOT OBJECT TO THE PROPOSITION. 6. HENCE, KEEPING IN VIEW THE FACTS OF THE CASE, WE HEREBY REMAND THE MATTER BACK TO THE FILE OF THE LD. CIT (A) TO A DJUDICATE THE ISSUES ON MERITS BY WAY OF A SPEAKING ORDER. WE ALSO DIRECT T HE ASSESSEE TO COMPLY THE NOTICES ISSUED BY THE REVENUE AUTHORITIES AND D IRECT THAT NO UNNECESSARY ADJOURNMENTS WOULD BE SOUGHT BY THE ASS ESSEE WHILE COMPLYING PROCEEDINGS BEFORE THE LD. CIT (A). 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 20/02/2020. SD/- SD/- (SUSHMA CHOWLA) (DR. B.R.R. KUMAR) VICE PRESIDENT ACCOUNTANT ME MBER DATED: 20/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR