ACIT, New Delhi V. M/s. SGA Power Systems Pvt. Ltd, New Delhi

ITA 4314/DEL/2009

• Counselvise Citation: [2010] 119 COUNSELVISE.COM (IT) 5733 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 30-03-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 10-11-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KISHORE B
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER & SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO. 4314/DEL/2009 ASSESSMENT YEAR : 2006-07 ACIT, CIRCLE 8(1), ROOM NO. 163, C.R. BUILDING, NEW DELHI VS. M/S. SGA POWER SYSTEMS PVT. LTD., X-1686, STREET NO. 20, RAJGARH COLONY, NEW DELHI (APPELLANT) (RESPONDENT) PAN : AAICS 9187 M APPELLANT BY : SHRI KISHORE B. , SR. DR RESPONDENT BY : SHRI MUKESH SHARMA, CA O R D E R PER: C.L. SETHI, J.M. THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 1 9.08.2009 PASSED BY THE LD. CIT(A) IN THE MATTER OF AN EX-PARTEE ASSESS MENT MADE BY THE AO U/S. 144 OF THE INCOME TAX ACT, 1961 (THE ACT) FOR THE A.Y. 2006-07. 2. THE GROUND RAISED BY THE REVENUE IS AS UNDER:- 1. LD. COMMISSIONER OF INCOME TAX (APPEALS) ERRED, IN LAW AND ON THE FACTS AND CIRCUMSTANCES OF THE CASE, IN REDUCING THE ADDITION OF RS. 25,00,000/- M ADE BY THE AO UNDER SECTION 144 OF THE INCOME TAX ACT TO R S. 7,02,885/- VIOLATING THE PROVISIONS OF RULE 46A OF THE I.T. RULES 1962 BY ACCEPTING FRESH EVIDENCE WITHOUT AFFO RDING OPPORTUNITY TO THE AO. 3. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PER USED THE ORDERS OF THE AUTHORITIES BELOW. ITA NO. 4314/DEL/2009 PAGE 2 OF 3 4. IN THIS CASE THE RETURN OF INCOME WAS FILED BY T HE ASSESSEE ON 28.11.2006. THE CASE WAS THEN SELECTED FOR SCRUTIN Y. NOTICES U/S. 143(2)/142(1) WERE ISSUED AND SERVED UPON THE ASSES SEE FROM TIME TO TIME. HOWEVER, THE ASSESSEE FAILED TO COMPLY WITH THE TER MS OF VARIOUS NOTICES SO ISSUED BY THE AO. THE AO, THEREFORE, COMPLETED THE ASSESSMENT BY DETERMINING THE TOTAL INCOME AT RS. 25 LACS. 5. ON AN APPEAL BEFORE THE CIT(A), THE CIT(A) HELD THAT THE AO WAS JUSTIFIED IN COMPLETING THE ASSESSMENT TO THE BEST OF HIS JUDGMENT U/S. 144 OF THE ACT. HOWEVER, THE CIT(A) REDUCED THE TOTAL IN COME ASSESSED BY THE AO AT RS. 25 LACS TO RS. 7,02,885/- BEING THE UNEXPLAI NED SHARE APPLICATION MONEY OF RS. 5,55,480/- AND RS. 1,47,405/- AGGREGAT ING TO RS. 7,02,885/-. IN THE APPELLATE ORDER, THE CIT(A) ALSO NOTED THE FACT THAT THE ASSESSEE FILED THE RETURN OF INCOME SHOWING LOSS OF RS. 18,744/-. THE CIT(A) IN THE ORDER HAS NO WHERE MENTIONED AS TO WHAT WOULD BE THE PROFIT F ROM BUSINESS AS AGAINST THE LOSS OF RS. 18,744/-, BUT MERELY REDUCE THE AD- HOC INCOME OF RS. 25 LACS ASSESSED BY THE AO TO RS. 7,02,885/-. THE AO HAS A LSO NOT GIVEN ANY BASIS FOR DETERMINING THE ASSESSED INCOME AT RS. 25 LACS. THE DEPARTMENT HAS NOW CONTENDED BEFORE US THAT THE LD. CIT(A) HAS ERRED I N REDUCING THE INCOME FROM RS. 25 LACS TO RS.7,02,885/-, BUT THE LD. DR H AS FAILED TO POINT OUT ANY MATERIAL OR BASIS ON WHICH THE TOTAL INCOME SHOULD BE ASSESSED AT RS. 25 LACS. SINCE THE ASSESSEE FAILS TO APPEAR BEFORE THE AO, A ND THE AO DID NOT MAKE ITA NO. 4314/DEL/2009 PAGE 3 OF 3 ANY FURTHER ENQUIRY BEFORE COMPLETING THE ASSESSMEN T, WE ARE OF THE CONSIDERED OPINION THAT THE MATTER INVOLVED IN THIS APPEAL SHOULD GO BACK TO THE FILE OF THE AO FOR HIS FRESH ADJUDICATION AFTER PROVIDING REASONABLE OPPORTUNITIES TO THE ASSESSEE. WE DO HEREBY DIRECT THE ASSESSEE TO PRODUCE OR FURNISH ALL NECESSARY BOOKS OF ACCOUNTS AND DETA ILS BEFORE THE AO SO AS TO ENABLE THE AO TO EXAMINE AND VERIFY THEM AND TO DEC IDE THE MATTER AS PER LAW AND ON THE BASIS OF MATERIALS AVAILABLE ON RECO RD. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S TREATED TO BE ALLOWED FOR A STATISTICAL PURPOSE. 7 THIS DECISION WAS PRONOUNCED IN THE OPEN COURT IM MEDIATELY AFTER THE HEARING WAS OVER ON 30 TH MARCH, 2010. SD/- (SHAMIM YAHYA) ACCOUNTANT MEMBER SD/- (C.L. SETHI) JUDICIAL MEMBER DATED: 30 TH MARCH, 2010 *NITASHA COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, NEW DELHI. BY ORDER DEPUTY REGISTRAR