M/s. Rapid Packagings Ltd., New Delhi V. DCIT, New Delhi

ITA 3779/DEL/2015

• Counselvise Citation: 377920114 RSA 2015
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 17-08-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 10-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Assessee Lawyers: AMIT GOEL
• Keywords: Opportunity of being heard
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC - I , NEW DELHI BEFORE SH. N. K. SAINI, AM ITA NO. 3779 /DEL/201 5 : ASSTT. YEAR : 200 5 - 06 M/S RAPID PACKAGINGS LTD. 802, PADMA TOWER - II, 22, RAJENDRA PLACE, NEW DELHI - 110008 VS DCIT, CENTRAL CIRCLE - 22, ARA CEN TRE, JHANDEWALAN, EXTENSION, NEW DELHI - 110055 (APPELLANT) (RESPONDENT) PAN NO. A AACR1029F ASSESSEE BY : SH. AMIT GOEL, CA REVENUE BY : SH. K. K. JAISWAL , SR. DR DATE OF HEARING : 17 .0 8 .2015 DATE OF PRONOUNCEMENT : 17.08 .2015 ORDER PER N. K. SAINI, AM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 18.03 .201 5 OF LD. CIT (A) - IV, NEW DELHI . 2 . FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT O N THE FACTS AND CIRCUMSTANCES OF T HE CASE THE NOTICE ISSUED U/S 148 OF THE INCOME TAX ACT, 1961 IN THIS CASE BY ASSESSING OFFICER IS ILLEGAL, VOID, BARRED BY LIMITATION AND WITHOUT JURISDICTION AND THE CIT(A) ERRED IN NOT HOLDING SO. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) OUGHT TO HAVE HELD THAT NOTICE ISSUED U/S 148 OF THE INCOME TAX ACT, 1961 IN THIS CASE BY THE ASSESSING OFFICER IS ILLEGAL, VOID, BARRED BY LIMITATION AND ACCORDINGLY THE ASSESSMENT ITA NO.3779 /DEL /2015 RAPID PACKAGINGS LTD. 2 ORDER PASSED ON THE FOUNDATION OF SUCH NOTICE WAS LIABLE TO BE QUAS HED. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN NOT QUASHING THE ASSESSMENT ORDER BEING WITHOUT JURISDICTION. 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN CONFIRMING TH E ADDITION OF RS. 59,075/ - ON ACCOUNT OF ALLEGED COMMISSION INCOME. 5. THAT THE ORDER PASSED BY THE CIT(A) IS BAD IN LAW AND VOID AB - INITIO. THAT THE GROUNDS OF APPEAL AS HEREIN ARE WITHOUT PREJUDICE TO EACH OTHER. THAT THE APPELLANT CRAVES LEAVE TO ADD , AMEND, ALTER OR VARY ANY OF THE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3 . VIDE GROUND NOS. 1, 2, 3 THE ASSESSEE HAS RAISED A LEGAL ISSUE RELATING TO THE JURISDICTION OF THE AO WAS ISSUED A NOTICE U/S 148 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THIS ISSUE WAS SPECIFICALLY RAISED BEFORE THE LD. CIT(A) WHO DID NOT ADJUDICATE THE SAME BY STATING THAT SINCE HE HAD PARTLY ALLOWED RELIEF TO THE ASSESSEE, THESE GROUNDS BECAME ACADEMIC IN ITA NO.3779 /DEL /2015 RAPID PACKAGINGS LTD. 3 NATURE. THE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE WAS NOT CONTROVERTED BY THE LD. DR. 4 . AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND THE MATE RIAL ON RECORD, IT IS NOTICED THAT IN THIS CASE THE ASSESSEE FILED THE RETURN OF INCOME ON 20.10.2005 DECLARING INCOME AT RS. 7,300/ - , THEREAFTER A NOTICE U/S 148 OF THE ACT WAS ISSUED ON 29.03.2012. IN RESPONSE TO THE SAID NOTICE, THE ASSESSEE SUBMITTED T HAT THE EARLIER RETURN FILED MAY BE TREATED AS INCOME TAX RETURN IN RESPONSE TO THE NOTICE U/S 148 OF THE ACT. HOWEVER, T HE AO FRAMED THE ASSESSMENT AT AN INCOME OF RS. 1,25,450/ - BY MAKING THE ADDITION OF RS. 1,18,150/ - . 5 . BEING AGGRIEVED THE ASSESSEE C ARRIED THE MATTER TO THE LD. CIT(A) AND CHALLENGED THE REOPENING U/S 148 OF THE ACT. THE LD. CIT(A) HOWEVER ALLOWED PART RELIEF TO THE ASSESSEE AND SUSTAI NED THE ADDITION OF RS. 5 9 ,075 / - ON ACCOUNT OF COMMISSION INCOME BUT DID NOT ADJUDICATE THE LEGAL ISSU E RAISED BY THE ASSESSEE FOR CHALLENGING THE VALIDITY OF THE REASSESSMENT BY ISSUING THE NOTICE U/S 148 OF THE ACT. IN THE PRESENT CASE, SINCE THE LEGAL ISSUE WHICH GOES TO THE ROOT OF THE MATTER AND WAS SPECIFICALLY RAISED BEFORE THE LD. CIT(A) HAD NOT BE EN ADJUDICATED. I, THEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THIS ISSUE BACK TO THE FILE OF THE LD. CIT(A) TO ADJUDICATE THE LEGAL ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.3779 /DEL /2015 RAPID PACKAGINGS LTD. 4 6 . IN THE RES ULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED IN THE COURT ON 17/08 /2015 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DATED: 17/08 /2015 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR