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ITA 4468/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2838 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 16-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Gift; Principle of natural justice; Revised return
• Section: 20

Judgement Text

1 ITA NO. 4468/DEL/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT ME MBER A N D MS. SUCHITRA KAMBLE, JUD ICIAL MEMBER I.T.A. NO. 4468/DEL/20 19 (A.Y. 2015-16) (THROUGH VIDEO CON FERENCING) PRINT LAND DIGITAL INDIA PVT. LTD., G 9, SIDDARTHA BUILDING, 96 NEHRU PLACE, NEW DELHI 110 019. PAN: AAGPC5703L (APPELLANT) VS ACIT , CIRCLE : 20 (1) NEW DELHI. (RESPONDENT) O R D E R PER SUCHITRA KAMBLE, JM : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 17.01.2019 PASSED BY CIT (APPEALS)-38, NEW DELHI, FOR ASSESSME NT YEAR 2015-16. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, NO PROPER OPPORTUNITY OF HEARING HAS BEEN ALLOWED BY CIT (APPEALS) AS NOT ICE FOR HEARING HAS NOT BEEN RECEIVED; 2. THAT UNDER THE FACTS AND CIRCUMSTANCES, THE L D. AO ERRED IN LAW AS WELL ON MERITS IN REJECTING THE DISCOUNTED CASH FLOW METHOD FOR VALUATION OF SHARES AND BY ADOPTING THE NET ASSET VALUE METHOD FOR VALU ATION OF SHARES; APPELLANT BY N O N E; RESPONDENT BY SHRI VIPUL KASHYAP, SR.DR DATE OF HEARING 19.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 2 ITA NO. 4468/DEL/2019 3. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. AO AND CIT (APPEALS) ERRED IN MAKING AND SUSTAINING ADDITION O F RS.1,47,88,032/- BY INVOKING OF SECTION 56(2)(VIIB); 4. THAT WITHOUT PREJUDICE, THE SHARE PREMIUM REC EIVED BY THE COMPANY DURING THE YEAR IS OF RS.1,38,00,000/- AS AGAINST T HE ADDITION OF RS.1,47,88,032/-. 3. THE ASSESSEE WAS ENGAGED IN THE BUSINESS OF ONLI NE SUPPLY OF PRINTED MATERIAL ORDERS AS WELL AS DIRECT PRINTED VARIETY O F MATERIALS, STATIONERY, GIFT ITEMS AS PER ORDER FROM DIFFERENT PARTIES. THE ASS ESSEE FILED E-RETURN OF INCOME ON 28.09.2015 DECLARING AN INCOME OF RS.2,72,08,797 /- AND REVISED RETURN FILED ON 29.09.2015 DECLARING LOSS OF RS. 2,76,75,6 97/-. THE ASSESSING OFFICER PASSED ASSESSMENT ORDER DATED 30.12.2017 THEREBY AS SESSING THE TOTAL INCOME OF THE ASSESSEE AT RS.1,28,87,665/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT (APPEALS). THE CIT (A) DISMISSED THE APPEA L OF THE ASSESSEE. 5. NONE APPEARED FOR THE ASSESSEE DESPITE GIVING NO TICE, THEREFORE WE ARE PROCEEDING ON THE BASIS OF THE MATERIAL AVAILABLE O N RECORD OF THE PRESENT APPEAL AND THE ORDER OF THE CIT(A). 6. THE LD. DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT (APPEALS). 7. WE HAVE HEARD LD. DR AND PERUSED ALL THE MATERIA L AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT (APPEALS) HAS NOT GIVEN ANY CATEGORICAL FINDING ON MERITS OF THE CASE AND ALSO DID NOT GIVE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, THE CIT (APPEA LS) WAS NOT RIGHT IN DISMISSING THE APPEAL OF THE ASSESSEE WITHOUT GIVIN G PROPER OPPORTUNITY OF HEARING. HENCE, WE ARE REMANDING BACK THE ENTIRE I SSUE TO THE FILE OF THE CIT 3 ITA NO. 4468/DEL/2019 (APPEALS) TO BE DECIDED ON MERITS. NEEDLESS TO SAY , THE ASSESSEE BE GIVEN AN OPPORTUNITY OF HEARING BY FOLLOWING THE PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED, FOR STATI STICAL PURPOSE. 8. IN RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLO WED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25 TH DAY OF NOVEMBER, 2020 SD/- SD/- ( R. K. PANDA ) ( SUCHITRA KAMBLE ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 25/11/2020 *MEHTA/R.N* COPY FORWARDED TO :- 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 4468/DEL/2019 DATE OF DICTATION 20 .1 1 .2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 20 .11.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK