DCIT, New Delhi V. M/s. New World Synthetics Ltd., New Delhi

ITA 4520/DEL/2012

• Counselvise Citation: 452020114 RSA 2012
• Duration Of Justice: 2 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: E
• Next Hearing Date: 18-03-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 24-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJHA
• Keywords: Principle of natural justice; Additional evidence
• Section: 68; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH E EE E : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA BEFORE SHRI G.C. GUPTA, VICE , VICE , VICE , VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR, , , , ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .4520/DEL/2012 4520/DEL/2012 4520/DEL/2012 4520/DEL/2012 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007- -- -08 0808 08 DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX, INCOME TAX, INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), 13(1), 13(1), 13(1), NEW DELH NEW DELH NEW DELH NEW DELHI. I.I. I. VS. VS. VS. VS. M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 ND NDND ND FLOOR), FLOOR), FLOOR), FLOOR), NEHRU PLACE, NEHRU PLACE, NEHRU PLACE, NEHRU PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 019. 110 019. 110 019. 110 019. PAN : AAACJ3276C. PAN : AAACJ3276C. PAN : AAACJ3276C. PAN : AAACJ3276C. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P. DAM KANUNJHA, SR.DR. RESPONDENT BY : NONE. DATE OF HEARING : 18.03.2015 18.03.2015 18.03.2015 18.03.2015 DATE OF PRONOUNCEMENT : 01.04.2015 01.04.2015 01.04.2015 01.04.2015 ORDER ORDER ORDER ORDER PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA PER G.C. GUPTA, VP , VP , VP , VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2007-08 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XVI, N EW DELHI DATED 8 TH FEBRUARY, 2012. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE AND, THEREFORE, THE APPEAL OF THE REVENUE IS BEING DISPOSED OF EX-PARTE QUA THE ASSESSEE-RESPONDENT AFTER HEARING THE ARGUM ENTS OF LEARNED DR. 3. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDE R:- 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) WAS ERRED IN DELETING THE ADDIT ION ITA-4520/DEL/2012 2 MADE U/S 68 BY THE AO ON ACCOUNT OF UNDISCLOSED SOURCES. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) HAS NOT APPRECIATED THE FACT TH AT THE ASSESSEE HAS NOT PRODUCED THE DETAILS/INFORMATION REGARDING SOURCE SHARE APPLICATION MONEY. 3. WHETHER ON THE FACTS & IN THE CIRCUMSTANCES OF T HE CASE, THE LD.CIT(A) HAS ERRED IN ACCEPTING THE ADDI TIONAL EVIDENCE DURING THE COURSE OF APPELLATE PROCEEDINGS NOTWITHSTANDING THE FACT THAT THE ASSESSEE IN REMAN D PROCEEDINGS WAS ASKED SPECIFICALLY TO PRODUCE COPIE S OF BANK STATEMENTS, FIRC DOCUMENTS, PERMISSION OF RBI FOR FOREIGN REMITTANCE AND ASSESSMENT DOCUMENTS AND BANK STATEMENTS OF M/S MULTIKARSA INVESTAMA PT. 4. LEARNED DR SUBMITTED THAT GROUND NO.3 OF THE APP EAL MAY BE TAKEN FIRST AS THE ADDITIONAL EVIDENCE WAS ACCEPTED BY THE CIT(A) DURING THE COURSE OF APPELLATE PROCEEDINGS. ALTHOU GH THE ASSESSEE IN REMAND PROCEEDINGS WAS ASKED SPECIFICALLY TO PRODUC E COPIES OF BANK STATEMENTS, FIRC DOCUMENTS, PERMISSION OF RBI FOR F OREIGN REMITTANCE AND ASSESSMENT DOCUMENTS AND BANK STATEMENTS ETC., THE ASSESSEE HAS NOT COOPERATED WITH THE ASSESSING OFFICER AND H AS FILED CERTAIN DOCUMENTS AT THE BACK OF THE ASSESSING OFFICER TO T HE LEARNED CIT(A). HE SUBMITTED THAT IN THE INTEREST OF JUSTICE AND IN ACCORDANCE WITH THE PRINCIPLES OF NATURAL JUSTICE, THE ORDER OF LEARNED CIT(A) SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D DR AND HAVE PERUSED THE ORDER OF THE ASSESSING OFFICER AND THE LEARNED CIT(A). WE FIND THAT THE ADDITIONAL EVIDENCE WAS ACCEPTED BY T HE CIT(A) DURING THE COURSE OF APPELLATE PROCEEDINGS. THE ASSESSEE COUL D NOT FILE CERTAIN EVIDENCES BEFORE THE ASSESSING OFFICER. IN THE FAC TS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTICE TO RESTORE THE ISSUE IN THE GROUNDS OF APPEAL OF TH E REVENUE TO THE FILE ITA-4520/DEL/2012 3 OF THE ASSESSING OFFICER WITH THE DIRECTION TO PASS A DE NOVO ASSESSMENT ORDER IN ACCORDANCE WITH LAW AFTER PROVI DING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESS EE SHALL BE AT LIBERTY TO FILE ANY EVIDENCE IN SUPPORT OF ITS CASE . IN VIEW OF OUR DECISION DIRECTING THE ASSESSING OFFICER TO PASS A DE NOVO ASSESSMENT ORDER, THE ISSUE IN OTHER GROUNDS OF APPEAL NO.1 & 2 ARE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH DECISION AS PER LAW. WE DIRECT ACCORDINGLY. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 1 ST APRIL, 2015. SD/- SD/- ( (( ( T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR T.S. KAPOOR ) )) ) (G. (G. (G. (G. C. GUPTA C. GUPTA C. GUPTA C. GUPTA ) )) ) ACCOUNTANT ACCOUNTANT ACCOUNTANT ACCOUNTANT MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. COPY FORWARDED TO: - 1. APPELLANT : DEPUTY COMMISSIONER OF INCOME TA X, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE CIRCLE CIRCLE CIRCLE- -- -13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 13(1), NEW DELHI. 2. RESPONDENT : M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, M/S NEW WORLD SYNTHETICS LIMITED, 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 205, SKY LINE HOUSE (2 ND NDND ND FLOOR), FLOOR), FLOOR), FLOOR), NEHRU PLACE, NEW DELHI NEHRU PLACE, NEW DELHI NEHRU PLACE, NEW DELHI NEHRU PLACE, NEW DELHI 110 019. 110 019. 110 019. 110 019. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR