M/s. Dynamic Electricals & Switchgear Pvt. Ltd., Noida V. ITO, Noida

ITA 4338/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7036 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 05-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SARAS KUMAR
• Assessee Lawyers: P K RASTOGI
• Keywords: Condonation of delay
• Section: 143(3); 142(1); 44AB

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SH. H. S. SIDHU, JUDICIAL MEMBER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER ITA NO. 4338/DEL/2016 : ASSTT. YEAR : 2010-11 DYNAMIC ELECTRICALS & SWITCHGEAR PVT. LTD., D-83, SECTOR-20, NOIDA-201301 VS INCOME TAX OFFICER, WARD-1, NOIDA (APPELLANT) (RESPONDENT) PAN NO. AAACD8153C ASSESSEE BY : SH. P. K. RASTOGI, CA REVENUE BY : SH. SARAS KUMAR, SR. DR DATE OF HEARING: 19.12.2019 DATE OF PRONOUNCEMENT: 04.02.2020 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)-I, NOIDA DATED 29.12.2015. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE ASSESS EE: THE APPELLANT IS PRIVATE LIMITED COMPANY AND FILED ITS INCOME TAX RETURN ONLINE FOR THE ASSESSMENT YEA R 2010-11 DECLARING INCOME OF RS.35,96,710/- ON DATED 27.09.2010 VIDE ACKNOWLEDGEMENT NO 161656641270910. LATER ON THE CASE WAS SELECTED FOR SCRUTINY UNDER SECTION 142(1) OF THE INCOME TAX ACT, 1961. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING & SUPPLY OF ALL KIND OF ELECTRICAL GOODS AND ALSO ENGAGED IN THE BUSINESS OF WORK CONTRACT OF ELECTRI CAL PROJECTS FOR SUPPLY, FIXING AND INSTALLATION VARIOU S KIND OF ELECTRICAL JOB WORKS. THE ASSESSEE HAS SUBMITTED ALL THE INFORMATION AS REQUIRED BY THE ASSESSING OFFICER FROM TIME TO TIME ITA NO. 4338/DEL/2016 DYNAMIC ELECTRICALS & SWITCHGEAR PVT. LT D. 2 VIDE LETTER DATED 23.11.2012, 21.12.2012, 09.01.2013 AND 28.02.2013. THE ASSESSING OFFICER PASSED AN ORDER U/S 143(3) ON DATED 18.03.2013 ON THE BASIS OF ASSUMPTION AND RECOMPUTED THE PROFITS @ 8% ON TOTAL RECEIPTS FROM CONTRACT AND @5% ON SALE OF ELECTRICAL GOODS AND ARRIVED TOTAL PROFIT OF RS 54,75,095 AS COMPARED TO THE RETURNED INCOME OF RS. 35,96,710/- HENCE AN ADDITION OF RS. 18,78,385/- ARBITRARILY WAS MADE BY THE ASSESSING OFFICER. THE ASSESSEE HAS PROVIDED ALL THE INFORMATION REQUIRED BY THE ASSESSING OFFICER TIME TO TIME. THE ASSESSEE IS A COMPANY DOING BUSINESS FROM LAST 15 YEARS. THE BOOKS OF ACCOUNTS WERE AUDITED AS PER COMPANIES ACT, 1956 AND ALSO AS PER 44AB OF INCOME TAX ACT 1961. THE PROPER VAT (SALES TAX AND WORK CONTRACT) RETURNS HAVE BEEN FILED REGULARLY. THE COMPLETE BANK ACCOUNT AND OTHER INFORMATION HAVE BEEN PROVIDED BY THE ASSESSEE TO THE ASSESSING OFFICER. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED RETURN OF INCOME DECLARING AN INCOME OF RS.35,96,710/- ON 27.09.2010 . DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE COMPANY IS ENGAGE D IN THE BUSINESS OF TRADING & SUPPLY OF ALL KINDS OF ELECTRICAL GOODS, AND ALSO ENGAGED IN THE BUSINESS OF WORK CONTRACT OF ELECTRICAL PROJECTS FO R SUPPLY, FIXING & INSTALLATION VARIOUS KINDS OF ELECTRICAL JOB WORKS. THE COMPANY IS DOING FIXING & INSTALLATION FOR SOME OF PARTIES WITH MATE RIAL AND WITHOUT MATERIAL AS PER TERM OF CONTRACT. DURING THE YEAR UNDER CONS IDERATION, GROSS TURNOVER OF RS.7,06,51,090/- AND NET PROFIT OF RS.3 7,32,542/- HAS BEEN SHOWN. THE ACCOUNTS WERE AUDITED AND THE COPY OF AU DIT REPORT WAS FURNISHED. THE ASSESSEE FURNISHED VARIOUS DOCUMENTS INCLUDING COPY OF BANK ACCOUNT DURING ASSESSMENT PROCEEDINGS THAT WAS LOOKED INTO AND VERIFIED. THE ASSESSEE HAS DEBITED EXPENSES UNDER V ARIOUS HEADS IN P&L ACCOUNT. DURING THE COURSE OF ASSESSMENT PROCEEDING S, A.R. OF THE ASSESSE ITA NO. 4338/DEL/2016 DYNAMIC ELECTRICALS & SWITCHGEAR PVT. LT D. 3 WAS ASKED TO PRODUCE BILLS & VOUCHERS ALONG WITH DE TAILED, LEDGERS OF PARTY WISE PURCHASES. HOWEVER, THE SAME WAS NOT FURNISHED . HENCE, THE ASSESSING OFFICER HAS DETERMINED THE PROFITS @ 8% O N THE GROSS TURNOVER CONTRACT RECEIPTS AND 5% ON ELECTRIC GOODS. 4. THE LD. CIT (A) HAS DISMISSED THE APPEAL ON THE GROUNDS THAT THERE HAS BEEN DELAY IN FILING OF THE APPEAL FOR ABOUT 96 0 DAYS AND THE ASSESSEE HAS NOT SHOWN ANY JUSTIFIABLE CAUSE AND SUFFICIENT REASON TO CONDONE THE DELAY. THE LD. CIT (A) ALSO HELD THAT AS THE ONUS I S ON THE ASSESSEE TO PROVE THAT IT WAS PREVENTED FROM FILING THE PRESENT APPEAL BECAUSE OF SUFFICIENT CAUSE AND THE GROUND TAKEN BY THE ASSESS EE FOR THE DELAY OF ABOUT THREE YEARS IN FILING THE PRESENT APPEAL IS N EITHER CORRECT NOR ADMISSIBLE THE ASSESSEE IS NOT ENTITLED FOR ANY IND ULGENCE IN THE LAW. THE LD. CIT (A) FURTHER HELD THAT, THE ASSESSEE HAS PLA YED FRAUD ON THE REVENUE AS WELL AS ON THE UNDERSIGNED BY DELIBERATELY MAKIN G A FALSE STATEMENT THAT IT WAS NOT AWARE OF THE FACT THAT BY THE IMPUG NED ORDER THE ASSESSING OFFICER HAS MADE QUANTUM ADDITIONS. THE ASSESSEE WA S NOT ONLY FULLY AWARE OF THIS MATERIAL FACT BUT HAD CONTESTED THE C ORRECTNESS OF THE SAME IN THE APPEAL FILED BY THE ASSESSEE AGAINST THE CON CEALMENT PENALTY ORDER WHICH WAS PASSED BY THE ASSESSING OFFICER ON THE IS SUE OF CONCEALMENT OF INCOME. 5. HAVING GONE THROUGH THE ENTIRE MATERIAL ON RECOR D, SINCE THE FACTS ARE NOT VERY CLEAR FROM THE ORDER OF THE LD. CIT (A ) WHETHER IT WAS IN RELATION TO THE PENALTY LEVIED CONSEQUENT TO THE AD DITION MADE WHICH THE ASSESSEE IS UNAWARE OF OR OTHERWISE, WE FEEL IT JUS TIFIED TO REMAND THE MATTER BACK TO THE FILE OF THE LD. CIT (A) TO LOOK INTO THE ENTIRE ISSUE DE NOVO AND PASS A SPEAKING ORDER ON CONDONATION OF DELAY A S WELL AS ON MERITS. ITA NO. 4338/DEL/2016 DYNAMIC ELECTRICALS & SWITCHGEAR PVT. LT D. 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 04/02/2020. SD/- SD/- (H. S. SIDHU) (DR . B. R. R. KUMAR) JUDICIAL MEMBER ACCOUNT ANT MEMBER DATED: 04/02/2020 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR