Asco Engineering Co., Delhi V. DCIT, New Delhi

ITA 4137/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3200 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CITA NEW DELHI IN APPEAL NO AY
• Keywords: Opportunity of being heard; Principle of natural justice; Bad and doubtful debts

Judgement Text

INCOME TAX APPELLATE TRIBUNAL , DELHI BENCH A : NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA , JUDICIAL MEMBER ITA NO.: - 4137 / DEL /2016 ASSESSMENT YEAR : 20 12 - 13 ASCO ENGINEERING CO. PLAZA 1, UNIT - 1073, CENTRAL SQUARE, 20 - MANOHAR LAL KHURANA MARG, BARA HINDU RAO, DELHI 110 006 PAN AAAFA4634L VS. D CIT CIRCLE - 63 (1) NEW DELHI. (APPELLANT) (RESPONDENT) O R D E R PER B.P. JAIN, A .M . THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 13.06.2016 PASSED BY THE CIT(A) - 20, NEW DELHI IN APPEAL NO. 319/14 - 15 FOR THE AY 2012 - 13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1 . THE LD. C. I. T. (APPEALS) - 20, NEW DELHI HAS ERRED IN LAW AND ON FACTS IN DECIDING THE HIGH DEMAND APPEAL ON THE BASIS OF THE PART SUBMISSIONS MADE BY THE AUTHORIZED REPRESENTATIVE ON 17.07.2015 I.E. ALMOST ONE ASSESSEE BY: SHRI S. KRISHNAN, ADVOCATE DEPARTMENT BY : SHRI S.K. JAIN, SR. DR DATE OF HEARING 07 /11 /2017 DATE OF PRONOUNCEMENT 23/11 / 2017 ITA NO . 4137 /DEL/201 6 ASCO ENGINEERING CO. VS. DCIT 2 Y EAR PRIOR TO PASSING OF APPELLATE ORDER. AT PAGE 22 OF THE APPELLATE ORDER IT HAS BEEN SPECIFICALLY MENTIONED THAT THE CASE WAS PARTLY HEARD ON 17.07.2015. SINCE THE APPEAL HAS BEEN DECIDED WITHOUT GIVING PROPER OPPORTUNITY TO THE ASSESSEE, IT IS REQUESTED THAT THE APPELLATE ORDER MAY KINDLY BE QUASHED IN VIEW OF THE NATURAL JUSTICE. 2 . THE LD. C. I. T. (APPEALS) HAS ERRED IN LAW AND ON FACTS IN SUSTAININ G THE ADDITIONA L RS. 1.4 5.58.965/ - TOWARDS G.P. BV APPLYING G.P.RATE OF OTHER CONCERNS WITHOUT APPRECIATIN G THE AREA OF OPERATION OF THE ASSESSEE FIRM AND OTHER DECIDING FACTORS FOR LOWER G.P. THOUGH COMPLETE DETAILS & CONTRIBUTION CHART WERE FILED BEFORE HIM. MOREOVER, THE ADDITION HAS BEEN MADE WITHOUT PINPOINTING ANY SPECIFIC DEFECT IN THE BOOKS OF ACCOUNT AND BY MERELY COMPARING IT WITH OTHER FIRMS WHICH DESERVES TO BE DELETED. 3 . THE LD. C. I. T. (APPEALS) HAS ERRED IN LAW AND ON FACTS IN SUSTAINING ADDITION OF BAD DEBTS OF RS. 13,86,267/ - THOUGH COMPLETE DETAILS WERE FURNISHED AND THE AMOUNT IS WRITTEN OFF IN THE BOOKS AND HENCE BY VIRTUE OF INCOME TAX ACT THE SAME DESERVES ,E BE ALLOWED AS BAD DEBTS. 4 . ANY OTHER GROUND THAT MAY ARISE LATER ON. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE CAREFULLY PERUSED THE RELEVANT MATERIAL ON RECORD. IN GROUND NO . 1, THE GRIEVANCE OF THE ASSESSEE IS THAT THE APPEAL HAS BEEN DECIDED WITHOUT GIVING PROPER OPPORTUNITY TO THE ASSESSEE. IN THIS REGARD, THE AOS ORDER AND THE LD CIT(A)S ORDER W ERE PERUSED. IN THE ORDER OF THE LD CIT(A), THE ASSESSEES WRITTEN SUBMISS IONS AND THE EXPLANATION IS REPRODUCED BY THE LD. CIT(A). THERE CANNOT BE ANY DISPUTE THAT THE ASSESSEE HAS NOT BEEN GIVEN ANY OPPORTUNITY OF BEING HEARD ITA NO . 4137 /DEL/201 6 ASCO ENGINEERING CO. VS. DCIT 3 BEFORE MAKING ANY ADDITION BY THE AO AND ALSO THE LD CIT(A) HAS NOT CONSIDERED THE EXPLANATION OF THE ASSESSEE, WHICH IS REPRODUCED IN THE ORDER OF THE LD CIT(A) IN RIGHT PERSPECTIVE. THEREFORE, THE WHOLE CASE REQUIRES EXAMINATION OF THE FACTS AFRESH. ACCORDINGLY, IN THE I NTEREST OF JUSTICE , THE MATTER IS SET ASIDE TO THE FILE OF THE AO WHO WILL DECIDE THE ISSUE DE NOVO, AFTER AFFORDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONO UNCED IN THE OPEN COURT ON 23 RD NOVEMBER, 2017 . SD/ - SD/ - ( SUDHANSHU SRIVASTAVA ) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 23 RD NOVEMBER, 2017 VL COPY FORWARDED TO 1 . APPLIC ANT 2 . RESPONDENT 3 . CIT 4 . CIT (A) 5 . DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI