AASL India Finvest Pvt. Ltd., New Delhi V. ITO, Ward- 1(1), New Delhi

ITA 4418/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3168 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 15-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Wrong claim
• Section: 143(3); 201

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DE LHI BENCHES : G : NEW DELHI (THROUGH VIRTUAL COURT HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 4418 /D EL /201 9 ASSESSMENT YEAR : 20 14 - 15 AASL INDIA FINVEST PVT. L TD., KP - 23, 3 RD FLOOR, PITAMPURA, NEW DELHI. PAN : A A ECA2150L VS ITO, WARD 1(1), NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SHRI NIPUN MITTAL, CA RE VENUE BY : SHRI VIPUL KASHYAP, SR. DR DATE OF HEARING : 1 8 . 1 1 . 20 20 DATE OF PRONOUNCEMENT : 1 8 . 1 1 . 20 20 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 19 TH MARCH, 201 9 OF THE CIT(A) - 32 , NEW DELHI, RELATING TO ASSESSMENT YEAR 20 14 - 15 . 2. THE ASSESSEE IN ITS VARIOUS GROUNDS OF APPEAL HAS CHALLENGED THE EX PARTE ORDER OF THE CIT(A) IN SUSTAINING THE DISALLOWANCE/ ADDITION MADE BY THE AO. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINESS OF SALE AND PURCHASE OF SH ARES ON DELIVERY BASIS. IT FILED ITS RETURN OF ITA NO. 4418 / D EL /201 9 2 INCOME ON 30 TH SEPTEMBER, 201 4 DECLARING TOTAL INCOME AT RS.19,06,480/ - . THE AO COMPLETED THE ASSESSMENT U/S 143(3) THE ACT ON 26 TH DECEMBER, 2016 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.68,60,37 0/ - WHEREIN HE DISALLOWED BUSINESS LOSS CLAIMED IN PENNY STOCK AT RS.44,44,441/ - AND ADDED WRONG CLAIM ON LONG - TERM CAPITAL GAIN OF RS.5,09,445/ - . SINCE THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) DESPITE SERVICE OF NOTICE, THE LD.CIT(A), FOLLOWING THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. B.N. BHATTACHARJEE, 118 ITR 461 (SC) AND THE DECISION OF DELHI BENCH OF THE TRIBUNAL IN THE CASE OF CIT VS. MULTIPLAN INDIA PVT. LTD., 38 ITD 320 (DEL) AND VARIOUS OTHER DECISIONS, DISMISSED THE APPEAL FILED BY THE ASSESSEE FOR WANT OF PROSECUTION. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES AND PERUSED THE MATERIALS AVAILABLE ON RECORD. W E FIND, DESPITE NUMBER OF OPPORTUNITIES GRANTED BY THE LD.CIT(A), THE ASSESSEE DID NOT APPEAR BEFORE THE CIT(A) TO SUBSTANTIATE ITS CASE FOR WHICH THE LD.CIT(A) DISMISSED THE APPEAL FOR WANT OF PROSECUTION. HOWEVER, HE HAS NOT DECIDED THE APPEAL ON MERIT WHICH HE IS REQUIRED TO DO INSTEAD OF DISMISSING THE APPEAL FOR WANT OF PROSECUTION. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRA NT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ITA NO. 4418 / D EL /201 9 3 ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE LD. CIT(A) AND SUBSTANTIATE ITS CASE , FAILING WHICH THE LD.CIT(A) IS AT LIBERTY TO PASS A PPROPRIATE ORDER AS PER LAW. WE HOLD AND DIRECT ACCORDINGLY. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. DE CISION WAS PRONOUNCED ON CONCLUSION OF VIRTUAL HEARING ON 1 7 TH NOVEMBER, 2020 ITSELF . SD / - SD/ - ( SUCHITRA KAMBLE ) ( R. K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 8 TH NOVEMBER, 2020. DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, IT AT, NEW DELHI