CRS Developers Pvt. Ltd, Loni UP V. ITO ward 6(4), New Delhi

ITA 4528/DEL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2806 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 17-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Deemed to accrue or arise in india
• Section: 201

Judgement Text

ITA NO. 4528/DEL/2019 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 4528/DEL/2019 ( A .Y 2010-11) (THROUGH VIDEO CONFEREN CING) CRS DEVELOPERS PVT. LTD. VILLAGE PAVI, SADAKPUR LONI TEHSIL, UTTAR PRADESH 201 102 AACCC9898D (APPELLANT) VS ITO WARD 6(4) ROOM NO. 376A, C. R. BUILDING, NEW DELHI - 2 (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. AJAY KUMAR, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER DATED 30/03/2019 PASSED BY CIT(A)-2, NEW DELHI FOR ASSESSMENT YEAR 2010-11. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- GROUND NO. 1 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN DECIDING THE APPEAL EX-PARTE WITHOUT D ECIDING THE APPEAL ON MERITS AS LAID DOWN IN CIT V. S. CHENNAIAPPA MUDALI AR (1969) SC (591) AND BALAJI STEEL RE-ROLLING MILLS V. COMMISSIONER EXCIS E & CUSTOMES (2014) 52 TAXMANN.COM 107 (SC) CASE. DATE OF HEARING 19.11.2020 DATE OF PRONOUNCEMENT 25.11.2020 ITA NO. 4528/DEL/2019 GROUND NO. 2 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN DECIDING THE GROUND RAISED FOR JUSTIFI CATION OF ASSESSMENT U/S 144/147 OF THE INCOME TAX ACT, 1961. GROUND NO. 3 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN PASSING ORDER ON ACCOUNT OF NON-COMPLI ANCE WHILE ASSESSEE WAS NOT PROVIDED A PROPER OPPORTUNITY OF BEING HEARD. H ONBLE CIT(APPEAL) HAS ALSO NOT FOLLOWED THE RULES OF NATURAL JUSTICE. GROUND NO. 4 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN PASSING THE ORDER WITHOUT CONSIDERING THE APPLICATION MADE BY THE ASSESSEE FOR ADJOURNMENT ON DATED 04.04.2019 DU E TO BELATED RECEIVING THE NOTICE DATED 20.03.2019. GROUND NO. 5 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN UPHOLDING THE ADDITION OF RS. 85,58,00 0/- MADE BY ASSESSING OFFICER ON ACCOUNT OF A. ADDITIONS OF RS. 21,50,000/- DUE TO MERELY CASH DEP OSIT IN BANK B. ADDITIONS OF RS. 47,00,000/- RECEIVED PART PAYMENT OF PURCHASE CONSIDERATION OF THE PROPERTY IN THE NAME OF MR. DH IR SINGH AND NOT IN THE NAME OF COMPANY. C. ADDITIONS OF RS. 17,08,000/- FOR THE DEEMED INCOME WHICH IS ASSESSED BY AO BY HIS OWN MOTION. ITA NO. 4528/DEL/2019 GROUND NO. 6 ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, LD. CIT(APPEAL) HAS ERRED IN CONFIRMING THE ASSESSMENT ORDER OF LD. ASSESSING OFFICER PASSED UNDER SECTION 144/147 OF THE INCOME TAX ACT 1961 WI THOUT GIVING PROPER OPPORTUNITY TO ASSESSEE BY AO. GROUND NO. 7 THAT THE ASSESSEE CRAVES LEAVE TO ADD, AMEND OR ALT ER ANY OF GROUNDS OF THE APPEAL. 3. THE ASSESSEE IS ENGAGED IN REAL ESTATE BUSINESS. THE ASSESSING OFFICER PASSED ASSESSMENT ORDER DATED 22.12.2017 UNDER SECT ION 144/147 OF THE INCOME TAX ACT, 1961 THEREBY ASSESSING THE INCOME O F THE ASSESSEE AT 85,58,000/-. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. NONE APPEARED AT THE TIME OF HEARING HENCE WE AR E PROCEEDINGS ON THE BASIS OF THE RECORDS AVAILABLE BEFORE US. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD LD. DR AND PERUSED THE MATERIAL AV AILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) HAS NOT GIVEN ANY CATEGORICAL FINDING ON MERIT OF THE CASE AND DISMISSED THE APPEAL ON THE GROUND OF NON-PROSECUTION OF APPEAL. IT IS ALSO OBSERVED THAT THE CIT(A) DID NOT GIVE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, THE CIT(A) WAS NOT RIGHT IN DISMISSING THE APPEAL OF THE ASSESSEE WITHOUT GIVING PROPER OPPORT UNITY OF HEARING. HENCE, WE ARE REMANDING BACK THE ENTIRE ISSUE TO THE FILE OF THE CIT(A) TO BE DECIDED ON MERIT. NEEDLESS TO SAY, THE ASSESSEE BE GIVEN OPPO RTUNITY OF HEARING BY ITA NO. 4528/DEL/2019 FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 25TH D AY OF NOVEMBER, 2020 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 25/11/2020 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI ITA NO. 4528/DEL/2019