Bulktrans Supply Chain management, New Delhi V. ITO ward-5(2), New Delhi

ITA 5043/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9562 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 31-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR CHOPRA
• Assessee Lawyers: ARUN KUMAR GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice; TDS; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER I.T.A. NO. 5043/DEL/2019 ASSESSMENT YEAR: 2015-16 BULKTRANS SUPPLY CHAIN MANAGEMENT, VS. INCOME TAX OFFICER, 35/4, 2 ND FLOOR, OLD RAJINDER NAGAR, WARD-5(2), NEW DELHI NEW DELHI (PAN:AADCB6042P) (ASSESSEE) (RESPONDENT) ASSESSEE BY : SHRI ARUN KUMAR GUPTA, AR REVENUE BY : SH. MANOJ KUMAR CHOPRA, SR. DR. ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 27.03.2019 PASSED BY THE LD. CIT(A)-2, NEW DELHI, R ELATING TO ASSESSMENT YEAR 2015-16 ON THE FOLLOWING GROUNDS:- 1. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFER TO 'LD. CIT (A)'] DATED 14.01.20 19 IS BAD IN LAW AND ON FACTS. 2. THAT THE ORDER OF THE LD. CIT (A) HAS ERRED IN L AW AND ON THE FACTS IN CONFIRMING THE ADDITION OF RS 12,37,048/- LEVIED U/ S 40(I) (IA) OF THE ACT ON ACCOUNT OF NON DEDUCTION OF TDS. 3. THE LD CIT(A) HAS ERRED IN NOT FOLLOWING THE PRI NCIPLES OF NATURAL JUSTICE BY NOT CROSS EXAMINE THE NATURE OF PAYMENTS WHICH WAS IN THE NATURE OF HIRE PURCHASE PAYMENTS AND NOT REQUIRED T O DEDUCT TDS ON INTEREST PART IN HIRE PURCHASE INSTALMENTS, FURTHER OUT OF 5 PARTIES ONE PAYMENT OF RS. 6,09,636/- OF INTEREST WAS TO KOTAK MAHINDRA BANK LIMITED (KMBL) (DISALLOWANCE OF RS. 1,82,890/-) WHE RE TDS IS NOT REQUIRED TO BE DEDUCTED. AS SUCH, THE ADDITIONS MAD E ARE VITIATED IN LAW AND ARE LIABLE TO BE DELETED. 4. THE LD CIT(A) HAS ERRED CONFIRMING THE ADDITION MADE WITHOUT CONSIDERING THE DETAILED SUBMISSION THAT THE NATURE OF INTEREST WAS IN THE NATURE OF HIRE CHARGES UNDER HIRE PURCHASE AGRE EMENT. 2 5. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND, DELETE, AND SUBSTITUTE ANY OR ALL THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 2. SHRI ARUN KUMAR GUPTA, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE APPEARED AND STATED THAT THE LEARNED FIRST APPELLAT E AUTHORITY HAS PASSED EX PARTE ORDER WITHOUT HEARING THE ASSESSEE. HE REQ UESTED THAT THE ISSUES IN DISPUTE MAY BE SET ASIDE TO THE LEARNED FIRST AP PELLATE AUTHORITY TO DECIDE THE SAME AFRESH, AS PER LAW, AFTER GIVING RE ASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 3. LEARNED DR HAS NOT RAISED ANY SERIOUS OBJECTION ON THE REQUEST OF THE LEARNED AR. 4. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE OR DERS PASSED BY THE REVENUE AUTHORITIES ESPECIALLY THE IMPUGNED ORDER D ATED 27.03.2019 AND FIND THAT LEARNED FIRST APPELLATE AUTHORITY HAS PAS SED THE EX PARTE ORDER AGAINST THE ASSESSEE WITHOUT PROVIDING SUFFICIENT O PPORTUNITY OF HEARING TO THE ASSESSEE. 5. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF T HE PRESENT CASE AND IN THE INTEREST OF JUSTICE, I AM OF THE VIEW THAT I SSUES IN DISPUTE BE SET ASIDE TO THE LEARNED FIRST APPELLATE AUTHORITY TO D ECIDE AFRESH, AS PER LAW, AFTER GIVING OPPORTUNITY TO THE ASSESSEE. ACCORDING LY, I SET ASIDE THE ISSUES IN DISPUTE TO THE FILE OF LD. CIT(A) WITH TH E DIRECTIONS TO DECIDE THE SAME, AS PER LAW, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 6. KEEPING IN VIEW THE NON COOPERATION OF THE ASSES SEE BEFORE THE LEARNED FIRST APPELLATE AUTHORITY, I AM DIRECTING T HE ASSESSEE THROUGH HIS 3 COUNSEL TO APPEAR BEFORE THE LEARNED FIRST APPELLAT E AUTHORITY ON 24.03.2020 AT 10:00 AM BEFORE THE LEARNED FIRST APP ELLATE AUTHORITY. IT IS MADE CLEAR THAT NO SEPARATE NOTICE SHALL BE ISSUED TO THE ASSESSEE FOR 24.03.2020 BECAUSE THIS ORDER HAS ALREADY BEEN PRON OUNCED IN THE OPEN COURT. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON 07/01/2020. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 07/01/2020 SH COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES