Rajesh Gulati, New Delhi V. ACIT Circle-4(1), New Delhi

ITA 5170/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4305 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 05-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 6; 90; 11; 15; 48; 73; 72; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.5170/DEL/2019 Assessment Year 2010-11 Rajesh Gulati, Flat No.915, 9 th Floor, Indraprakash Building, 21 Barakhamba Road, New Delhi. v. ACIT, Circle-41(1), New Delhi. TAN/PAN: AJKPG5827A (Appellant) (Respondent) Appellant by: Shri Vipin Jain CA Respondent by: Shri Anil Kumar Sharma, Sr. DR Date of hearing: 24 08 2022 Date of pronouncement: 22 09 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een fil ed b y th e Assessee ag ain st th e o rd er o f th e C o mmiss io n er o f In co me T ax (Ap p eals)-XXXIV, New Delh i [‘CIT( A)’ in sh o rt] d a te d 2 9 .0 4 .2 01 9 arisi n g fro m th e assess men t o rd er d ated 1 3 .1 2 .20 17 p assed by th e Assessin g Officer (AO) u n d er Sect io n 1 4 7 /1 48 o f th e In co me T ax Act, 1 9 61 (th e Act) co n cern in g AY 20 1 0-1 1 . 2 . Th e g ro u n d s o f ap p eal ra ised b y th e assesse e read as u n d er: “ 1 . T h a t t h e L d A O i n i t i a t e d p r o c e e d i n g s u / s 1 4 7 / 1 4 8 w i t h o u t r e a s o n s t o b e l i e v e t h a t “ i n c o m e c h a r g e a b l e t o t a x ha d e s c a p e d a s s e s s m e n t ” a n d o n t h e f a l s e r e a s o n t h a t ‘ t h e a s s e ss e e h a d n o t f i l e d I.T.A. No.5170/Del/2019 2 h i s r e t u r n o f i n c o m e ’ . T h e a s s e s s e e h a v i n g f i l e d t he r e t u r n o f i n c o m e i n t i m e , p r o c e e d i n g s u / s 1 4 7 / 1 4 8 a r e b a d i n l a w a n d w i t h o u t j u r i s d i c t i o n , l i a b l e t o b e q u a s h e d . 2 . T h a t a p p r o v a l u / s 1 5 1 ( 1 ) w a s o b t a i n e d o n f a c t s wh i c h w e r e c o n c e a l e d a n d m i s - s t a t e d , a n d w a s g r a n t e d i n a m e c ha n i c a l m a n n e r , w i t h o u t a p p l i c a t i o n o f m i n d a n d w i t h o u t r e f e r e n c e to t h e a s s e s s m e n t r e c o r d s . A p p r o v a l o b t a i n e d a n d g r a n t e d i s b a d i n l aw . 3 . T h a t t h e L d C o m m i s s i o n e r o f I n c o m e T a x ( A p p e a l s ) h a s e r r e d i n l a w i n s u s t a i n i n g a d d i t i o n o f R s 1 1 , 9 5 , 4 7 7 m a d e t o i n c o m e b y t h e A O , d e s p i t e h a v i n g r e c o r d e d a f i n d i n g i n t he a p p e a l o r d e r , t h a t t h e a s s e s s e e h a d p r e p a r e d t h e r e t u r n o n t h e “ Ca s h s y s t e m o f A c c o u n t i n g ” , a n d R s 1 1 , 9 5 , 4 7 7 w a s n o t r e c e i v e d b y th e A s s e s s e e a n d c a n n o t f o r m p a r t o f i n c o m e o f t h e a s s e s s e e . A d di t i o n m a d e t o i n c o m e a n d s u s t a i n e d i s b a d i n l a w , l i a b l e t o b e d el e t e d . 4 . T h e L d C I T ( A ) e r r e d i n t r a v e l l i n g b e y o n d t h e s u bj e c t m a t t e r o f t h e a s s e s s m e n t a n d t h e a p p e a l b y d i r e c t i n g t h a t c r e d i t f o r T D S b e a l l o w e d p r o r a t a i n t h e y e a r t h e i n c o m e i s o f f e r e d t o b e t a x e d T h i s i s s u e n o t b e i n g t h e s u b j e c t m a t t e r o f t h e a s s e s s m e nt o r a p p e a l . T h e L d C I T ( A ) e x c e e d e d h e r j u r i s d i c t i o n r e n d e r i n g t h e di r e c t i o n s i l l e g a l a n d b a d i n l a w . 5 . T h e L d C I T ( A ) f a i l e d t o c o n s i d e r t h a t c r e d i t f o r T D S i s i n c o m e d e e m e d t o b e r e c e i v e d b y t h e a s s e s s e e , A N D pa y m e n t m a d e t o t h e c r e d i t o f t h e C e n t r a l G o v e r n m e n t i s t a x p a i d o n b e h a l f o f t h e a s s e s s e e , i n t h e y e a r t a x i s d e d u c t e d a n d d e p o s i t e d. 6 . T h a t t h e a s s e s s e e p l e a d s t h a t h e b e p e r m i t t e d t o a m e n d , a l t e r , d e l e t e , m o d i f y , s u b s t i t u t e a l l o r a n y o f t h e G r o u n d s o f A p p e a l a b o v e , o r t o a d d a n y f r e s h g r o u n d , a t a n y t i m e b e f or e o r d u r i n g t h e a p p e a l p r o c e e d i n g s . ” 3 . As p er its g ro u nd s o f ap p eal, th e ass essee h as ch a llen g ed th e assu mp t io n o f ju ri sd ict io n u n d er Sectio n 1 4 7 o f th e Act b y th e Assessin g Officer o n th e g ro un d s th at p rereq u isit es fo r assu mp t io n o f ju risd ic t io n are n o t fu lfi lled in t h e in stan t c ase an d th erefo re th e co n seq u en tial re-assess men t o rd er is b ad in law. The assessee h as also ch al len g e d th e ad d i tio n s o n mer it . 4 . Sin ce th e ch a llen g e to a ssu mp t io n o f ju risd ic t ion g o es to th e v ery roo t o f th e ma tt er an d affec ts ex ist en ti al v i ta li t y o f th e re- I.T.A. No.5170/Del/2019 3 assess men t o rd er, we sh all d eal with th e ch al len g e to th e ju risd ic tio n to b eg i n with . 5 . Th e reaso n s reco rd ed u nd er Sectio n 1 4 8 (2 ) o f th e Act d ated 1 7 .0 4 .20 1 7 fo rmin g th e b asis fo r ch a llen g e to ju risd i ct i o n read s as u n d er: “ S h ri R a j e sh G u l a t i G H - 1 4 / 9 0 8 , P a sc h i m V i h a r, N e w D e l h i - 1 1 0 0 8 7 R e a so n s f o r i n i t a t i o n o f p r o c e e d i n g s u / s . 1 4 7 o f t h e I T A c t , 1 9 6 1 A s se s s m e n t Y e a r 2 0 1 0 - 1 1 T h e I n c o m e T a x D e p a rt m e n t h a s re c e i v e d i n f o rm a t i o n re l a t i n g t o F i n a n c i a l Y e a r 2 0 0 9 - 1 0 i n F o r m 2 6 A S , i n t h e c a s e o f a b o v e n a m e d a s s e ss e e t h a t h e h a s re c e i v e d R s . 1 , 3 3 , 9 4 , 5 7 6 7 - “ o n a c c o u n t o f c o n t ra c t s a n d f e e f o r p r o f e ss i o n a l / t e c h n i c a l s e rv i ce s . O n v e ri f i c a t i o n o f d a t a b a se o f t h e D e p a rt m e n t , i t i s o b se r v e d t h a t t h e a s s e ss e e h a s n o t f i l e d re t u rn o f i n c o m e f o r t h e A . Y . 2 0 1 0 - 1 1 . I n - v i e w o f t h e p r e c i s e i n f o rm a t i o n , m e n t i o n e d a b o v e I h a v e re a so n s t o b e l i e v e t h a t t h e a s s e ss e e , S h . R a j e sh G ul a t i h a s n o t d i sc l o se d h i s i n c o m e e a rn e d d u r i n g t h e F . Y . 2 0 0 9 - 1 0 re l e v a n t t o A . Y . 2 0 - 1 0 - 1 1 , so f a r a s t h i s a m o u n t i s c o n c e r n e d i .e . R s. 1 , 3 3 , 9 4 , 5 7 6 / - , c h a rg e a b l e t o t a x h a s e s c a p e d a ss e s sm e n t . T h e r e f o r e , t h i s c a s e i s f i t f o r i s su i n g n o t i c e u / s 1 4 8 o f t h e I n c o m e t a x A c t , 1 9 6 1 . Ke e p i n g i n v i e w o f t h e a b o v e f a c t s, i t i s re q u e st e d t h a t n e c e s s a ry a p p r o v a l u / s 1 5 1 (1 ) o f I n c o m e T a x A c t , 1 9 6 1 , m a y k in d l y b e a c c o rd e d f o r i n i t i a t i n g p ro c e e d i n g s u / s 1 4 8 o f A c t i n o r d e r t o a s s e ss t h e i n c o m e w h i c h h a d e s c a p e d a s se s s m e n t . A s st . Co m m i s si o n e r o f I n c o m e T a x Ci r c l e - 4 1 (1 ) , N e w D e l h i . ” 6 . On a p eru sal o f th e reaso n s reco rd ed , it can b e n o ticed th at th e fo rma t io n o f beli ev e to ward s escap emen t o f ch arg e ab le in co me is b ased o n th e p remise th at th e a ssessee h as rece iv ed certa in p ro fessio n al fees a s fo u n d in An nu al In fo rmat io n State men t , i .e. , Fo rm 2 6 AS b u t ho wev er th e assessee h as n o t fi led t he retu rn o f I.T.A. No.5170/Del/2019 4 in co me at a ll . T h e Assessin g Officer th u s assu me d th at th e assesse e h as n o t d i sclo sed h is in co me earn ed in th e fin a n cial y ear 2 0 09 -10 relev an t t o Assessmen t Yea r 2 0 10 -11 an d conseq u en tly th e in co me e arn ed in F.Y. 2 0 0 9 -10 relev an t to Assess men t Ye ar 2 0 10 -11 h as escap ed assess men t. 7 . Th e assessee in th e co u rse o f h earing , at th e o utset, su b mi tted th at th e v ery p remi se o f reo p en in g th e assess men t is to t ally wro n g an d o p po sed to th e t an g ib le fa cts o n reco rd . Th e ld. co u n sel fo r th e ass essee ad v erted to th e re tu rn e-fi led fo r Assess men t Year 2 0 11 -12 d ated 2 8 .0 9 .20 1 1 b earin g ackn o wled g emen t n o. 2 9 57 3 73 61 28 0 91 1 to reb u t th e a ll eg atio n o f n o n fi l in g o f retu rn an d pro ceed in g s to reop en th e assessmen t o n who lly u n fo un d ed b asis. In th is b ack g ro un d , th e ld . co un sel fo r th e ass ess ee co n ten d s th at th e v ery p remi se o f reo p en in g th e assess men t is o n wrong assu mp t io n o f fac t s. Th u s, th e ac tio n o f th e Assessin g Officer is n o t su sta in ab le in l aw. 1 3 . In th e l ig h t o f th e t an g ib le fac ts av ai l ab le o n reco rd , we are in to ta l ag reemen t wi th th e p lea o f th e assesse e al legin g assu mp tio n o f ju risd ic t io n with o u t an y fo u nd atio n . Th e id en tical ly p laced issu e h as b een d ecid ed in fav o u r o f th e asse ssee in S u n rise Ed u ca tio n Tru st vs. ITO (E) (S p ecia l Civi l ) Ap p licat io n No .1 6 72 6 o f 2 0 1 7 ju d gment d a ted 1 9 t h Feb ru a ry, 2 0 1 8 ; Mumta z Ha ji Mo h ma d Memon vs. ITO, 4 0 8 ITR 2 6 8 (Gu j.); S a g a r En terp rises , 2 5 7 ITR 33 5 (Gu j. ); Kh em Ch a n d S an kh la vs. Un io n o f In d ia , 181 CTR 3 8 0 (Ra j.). Cle arly , th e assu mp t io n o f ju risd ic tio n o n the b asis o f n o n ex ist e n t p remise is with o u t au th o rity o f la w an d th u s can n o t b e su stain ed . Th e re-assessme n t n o tice issu ed o n th e b asis o f wro n g assu mp ti o n o f ju risd ic tio n is a co mp l ete no n -start er an d I.T.A. No.5170/Del/2019 5 th u s stan d s q u ash ed . As a s eq u el th e reto , th e reas sess men t o rd er fra med o n th e b as is o f an i ll eg al n o tice is b ad in la w an d th u s q u ash ed . Th is b ein g so , we d o n o t c o n sid er it n ecess ary to d elv e o n meri ts o f th e ad d itio n s/d i sal lo wan ce in q u estio n. 1 4 . In th e resu l t, th e a p p eal o f th e asses s ee is a llo wed . Order pronounced in the open Court on 22/09/2022. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /09/2022 Prabhat