PGF Ltd., Chandigarh V. ACIT, CC- 27, New Delhi

ITA 4349/DEL/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3264 (ITAT-DELHI)
• Duration Of Justice: 5 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2000-2001
• Appeal Filed On: 02-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.4349/DEL/2017 Assessment Year 2000-01 PGF Ltd., SCO 1042-43, Sector-22-B, Chandigarh v. ACIT, Central Circle-27, New Delhi. TAN/PAN: AABCP2805N (Appellant) (Respondent) Appellant by: None Respondent by: Shri Toufel Tahir, Sr.D.R. Date of hearing: 20 07 2022 Date of pronouncement: 26 07 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een filed at th e in s tan ce o f th e Assessee ag a in st t h e o rd er o f th e C o mmiss io n er o f In co me T ax (Ap p eals)-XXXI, New Delh i [‘CIT(A)’ in sh o rt], d ated 17 .0 3 .2 017 arisin g fro m th e a ssess men t o rd er d ated 3 1 .0 3 .2 01 6 p assed b y the Assessin g Offi cer (AO) u nd er Sectio n 25 4 /1 43 (3) o f th e In co me Tax Act, 1 9 6 1 (th e Act) co n cern in g AY 2 0 00 -01 . 2 . Th e g ro u nd s o f ap p eal ra ised b y th e Assessee re ad s as u n d er: “ T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n p a s s i n g a n e x - p a r t e o r d e r a n d t h a t t o o w i t h o u t g i v i n g s h o w c a u s e n o t i c e a s p er l a w a n d w i t h o u t g i v i n g a d e q u a t e o p p o r t u n i t y o f h e a r i n g a n d f u r t h e r e r r e d i n I.T.A. No.4349/Del/2017 2 n o t d e c i d i n g t h e a p p e a l o n m e r i t s . 2 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n no t q u a s h i n g t h e i m p u g n e d a s s e s s m e n t o r d e r w h i c h w a s p a s s e d b y L d . AO w i t h o u t c o m p l y i n g w i t h t h e d i r e c t i o n s o f H o n ’ b l e I n c o m e T a x A p p e l l a t e T r i b u n a l . 3 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n co n f i r m i n g t h e a c t i o n o f L d . A O i n m a k i n g d i s a l l o w a n c e o f R s . 1 , 9 0 ,7 4 , 9 8 5 / - u / s 5 7 o n a c c o u n t o f f i n a n c i a l / i n t e r e s t e x p e n s e s c l a i m e d by a s s e s s e e i n r e - c a s t e d t r a d i n g & p r o f i t & l o s s a c c o u n t a n d t h a t t o o w i t h o u t c o n s i d e r i n g t h e s u b m i s s i o n s o f a s s e s s e e a n d w i t h o u t o b s e r v i n g t h e p r i n c i p l e s o f n a t u r a l j u s t i c e . 4 . T h a t i n a n y c a s e a n d i n a n y v i e w o f t h e m a t t e r , a c t i o n o f L d . C I T ( A ) i n c o n f i r m i n g t h e a c t i o n o f L d . A O i n m a k i n g d i s a l l o w a n c e o f R s . 1 , 9 0 , 7 4 , 9 8 5 / - o n a c c o u n t o f f i n a n c i a l / i n t e r es t e x p e n s e s i s b a d i n l a w a n d a g a i n s t t h e f a c t s a n d c i r c u m s t a n c e s o f th e c a s e . 5 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n co n f i r m i n g t h e a c t i o n o f L d . A O i n m a k i n g d i s a l l o w a n c e o f R s . 6 5 , 4 4, 0 1 1 / - o n a c c o u n t o f b u s i n e s s d e v e l o p m e n t e x p e n s e s c l a i m e d b y a s s e s s e e i n r e - c a s t e d t r a d i n g & p r o f i t & l o s s a c c o u n t a n d t h a t t o o w i t h o u t o b s e r v i n g t h e p r i n c i p l e s o f n a t u r a l j u s t i c e . 6 . T h a t i n a n y c a s e a n d i n a n y v i e w o f t h e m a t t e r , a c t i o n o f L d . C I T ( A ) i n c o n f i r m i n g t h e a c t i o n o f L d . A O i n m a k i n g d i s a l l o w a n c e o f R s . 6 5 , 4 4 , 0 1 1 / - o n a c c o u n t o f b u s i n e s s d e v e l o p m e nt e x p e n s e s i s b a d i n l a w a n d a g a i n s t t h e f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e . 7 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n no t r e v e r s i n g t h e I.T.A. No.4349/Del/2017 3 a c t i o n o f L d . A O i n m a k i n g a d d i t i o n o f R s . 1 , 6 8 , 8 8 , 82 4 / - o n a c c o u n t o f i n c o m e f r o m o t h e r s o u r c e s . 8 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n no t q u a s h i n g t h e i m p u g n e d a s s e s s m e n t o r d e r w h i c h i s b a r r e d b y l i m i t at i o n . 9 . T h a t h a v i n g r e g a r d t o t h e f a c t s a n d c i r c u m s t a n ce s o f t h e c a s e , L d . C I T ( A ) h a s e r r e d i n l a w a n d o n f a c t s i n no t a l l o w i n g t h e c o m m o n d e p r e c i a t i o n a s p e r l a w . ” 3 . Wh en th e ma tt er was cal led fo r h ea rin g , n o n e ap peared fo r th e asse ssee . It is seen fro m th e re co rd th at mu l tip l e o p p o rtu n ities h av e b een g iv en to th e assessee. Ho wev er, h av ing reg ard to th e co n tin u ed n o n ap pearan ce, th e mat ter is p ro ceed ed ex-p a rte. 4 . On p eru sal o f th e o rd er o f th e CIT(A), we n o tice th at th e CIT(A) h as also p ro ceed ed ex-p a rte. Ho wev er, wh ile d isp o sin g th e ap p eal, th e CIT(A) h as merely rep ro d u ced th e assessmen t o rd er an d co n firmed th e sa me in th e ab se n ce o f an y ap p earan ce. Th e CIT(A) essen tia ll y d ismiss ed th e a p p eal b efo re i t fo r wan t o f p ro secu tio n an d no n atten d an ce. Th e CIT(A) h as ap paren tly n o t lo o k ed in to th e v a rio u s g rou n d s o f ap p eal in d ep en d en tl y an d h as n o t d etermin ed th e issu es in v o lv ed in terms o f Se ctio n 2 5 0(6 ) o f th e Act . 5 . Sect io n 2 50 (6 ) o f th e Act en jo in s th at th e CIT(A) sh all stat e th e p o in ts fo r d et ermin at io n b efo re it an d th e d ecis i o n sh all b e ren d ered o n su ch po in ts a lo n g with re aso n s fo r th e d ecis io n . Th u s, it is in cu mb en t u p o n th e CIT(A) to d eal with th e g ro u nd s on mer its ev en in ex p arte o rd er. In view o f Sec tio n 25 0 (6 ) o f th e Act, th e CIT(A) h as n o p o wer to d is mi ss an ap p eal on acco u n t o f I.T.A. No.4349/Del/2017 4 n o n -p ro secu tio n . Th is v iew is a lso t a k en b y th e Ho n’b le Bo mb ay Hig h Co u rt in case o f CIT vs. Prem ku ma r Arju nd a s Lu th ra HUF (2 0 1 7 ) 2 91 CTR 6 1 4 (Bo m.). A b are g lace o f th e o rd er o f th e CIT(A) sh o ws th at CIT(A) h as n o t ad d ressed itse l f on th e v ario u s p o in ts p laced fo r i ts d e termin at io n a t al l an d d is missed th e ap p eal o f ass essee fo r d efau lt in n o n ap p earan ce. Ne ed less to say , th e CIT(A) p lay s ro le o f b o th ad ju d i cat in g au th o rity as wel l as ap p ella te au th o rity . Th u s, th e CIT(A) co u ld n o t h ave shu n n ed th e ap p eal fo r n o n - co mp li an ce with o u t ad d ressin g th e issu e on mer its . 6. In th e tot al it y of cir cu ms ta nc es, w e con si de r it ex pe di e nt to res to re t he mat te r b ack t o t he f ile of th e CI T( A) in th e la r ger i nt er es t of jus ti ce wi th a v iew to e nab le th e ass es se e t o a va il o pp ort un it y onc e mo re . Ho we v er su ch b ene vo le nc e w il l be av ai la ble at t he co st of Rs .5 ,0 00/ - to b e d ep osi te d b y th e as se sse e wit hin 1 mo nt h of ser vi ce of t hi s or de r t o Th e Pri me Mi n ist er R el ief F un d. 7. W it h t he se ter ms , t he a pp ea l of th e a s ses se e i s re st or ed t o th e f ile of th e CI T( A) f or de no vo a dju di ca t ion i n acc or da nc e wit h la w. 8 . In th e resu l t, ap p eal o f th e as sesse e i s al lo wed fo r s ta ti sti cal p u rpo ses. Order was pronounced in the open Court on 26/07/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /07/2022 Prabhat