DCIT, New Delhi V. M/s. Ideal Broadcasting India (P) Ltd., New Delhi

ITA 5318/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97832 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 22-09-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 17-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: SUMIT KALRA
• Keywords: Reassessment proceedings

Judgement Text

1 ITA NO. 5318/DEL/2012 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI S. V. MEHROTRA, ACCOUNTANT MEMBER AND SHRI C. M. GARG, JUDICIAL MEMBER I.T.A .NO.-5318/DEL/2012 ASSESSMENT YEAR-2007-08 DCIT CIRCLE-11(1), ROOM NO. 312, C.R. BUILDING NEW DELHI (APPELLANT) VS IDEAL BROADCASTING INDIA (P) LTD. C-6-7, GRIPE WELL HOUSE COMMERCIAL COMPLEX, VASANT KUNJ, NEW DELHI AAAC1560C (RESPONDENT) APPELLANT BY SHRI T. VASANTHAN, SR. DR RESPONDENT BY SH. SUMIT KALRA, CA ORDER PER C. M. GARG, JM THIS APPEAL BY THE REVENUE HAS BEEN FILED AGAINST THE ORDER OF THE LD. CIT(A) XV DATED 3/9/2012 IN APPEAL NO. 192/2009-10/ LD. CIT(A) XV FOR A. Y 2007-08. DATE OF HEARING 22.09.2015 DATE OF PRONOUNCEMENT 4.11.2015 2 ITA NO. 5318/DEL/2012 2. THE MAIN GROUNDS RAISED BY THE REVENUE READ AS F OLLOWS: 1. ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF RS.4,78,400/- MAD E ON ACCOUNT OF PREPAID RENT. 2. ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.6,20,702/- MADE ON ACCOUNT OF EXCESS CLAIM OF EXPENDITURE UNDER THE HEAD SALARY E XPENSES. 3. ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF RS.14,22,000/- MA DE ON ACCOUNT OF SALARY PAID TO DIRECTOR. 4. ON THE FACTS AND CIRCUMSTANCE OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING ADDITION OF RS.1,86,972/- MAD E ON ACCOUNT OF UNDISCLOSED INCOME. 3. WE HAVE HEARD ARGUMENTS OF BOTH THE SIDES AND CA REFULLY PERUSED THE RELEVANT MATERIAL PLACED ON RECORD, INTER ALIA, ASS ESSMENT ORDER, FIRST APPELLATE ORDER OF LD. CIT(A), PAPER BOOK OF THE ASSESSEE SPREAD OV ER 218 PAGES AND ALL RELEVANT RECORDS PLACED BEFORE US. 4. WE HAVE HEARD ARGUMENTS OF BOTH THE SIDES AND CA REFULLY PERUSED ALL RELEVANT RECORDS PLACED BEFORE US ON THE RECORD. THE LD. DE PARTMENTAL REPRESENTATIVE SUBMITTED THAT THE A. O MADE ADDITIONS/DISALLOWANCE S ON RIGHT AND CORRECT FOOTINGS WHICH WERE DELETED BY THE LD. CIT(A) WITHOUT ANY JU STIFIED REASONING HENCE, IMPUGNED FIRST APPELLATE ORDER MAY KINDLY BE SET AS IDE BY RESTORING THAT OF THE A.O ON ALL FOUR ISSUES ON WHICH THE LD. CIT(A) GRANTED RELIEF TO THE ASSESSEE. HOWEVER, THE LD. DR FAIRLY ACCEPTED THAT THE A.O DI D NOT MAKE ANY DELIBERATIONS 3 ITA NO. 5318/DEL/2012 OR ADJUDICATION ON THE SUBMISSIONS AND CONTENTIONS OF THE ASSESSEE WHICH WERE PLACED BEFORE HIM DURING ASSESSMENT PROCEEDING EXPL AIN ALL FOUR ISSUES. 5. THE LD. AR OF THE ASSESSEE POINTED OUT THAT THE A.O MADE ADDITIONS/DISALLOWANCES WITHOUT ANY ADJUDICATION ON THE STAND OF THE ASSESSEE ON ALL FOUR ISSUE WHICH RESULTED INTO PASSING AN ASSES SMENT ORDER WITHOUT ANY REASONING AND BASIS. THE LD. A.R, SUPPORTING THE O RDER OF THE FIRST APPELLATE AUTHORITY, SUBMITTED THAT THE LD. CIT(A) GRANTED RE LIEF TO THE ASSESSEE AFTER DUE CONSIDERATION OF RELEVANT FACTS AND CIRCUMSTANCES O F THE CASE AND THUS ORDER OF THE LD. CIT(A) IS CORRECT AND THE SAME SHOULD BE SUSTAI NED AND UPHELD DISMISSING APPEAL OF THE REVENUE. HOWEVER, THE LD. AR FAIRLY SUBMITTED IF IT IS FOUND THAT THE A.O COULD NOT GET AN OPPORTUNITY TO COMMENT UPON AN D TO VERIFY AND EXAMINE THE DETAILS, SUBMISSIONS AND EXPLANATION OF THE ASSESSE E SUPPORTED BY VARIOUS RELEVANT DOCUMENTS, THEN THE ASSESSEE HAS NO OBJECTION IF TH E CASE IS RESTORED TO THE FILE OF THE A.O FOR RECONSIDERATION AND REASSESSMENT. 6. ON CAREFUL CONSIDERATION OF ABOVE SUBMISSIONS OF BOTH THE SIDES, WE ARE OF THE OPINION THAT THE A.O PASSED A CRYPTIC ORDER WIT HOUT ANY ADJUDICATION ON THE SUBMISSIONS AND EXPLANATION OF THE ASSESSEE BY SIMP LY MAKING CERTAIN OBSERVATIONS IN PARA 2 OF THE ASSESSMENT ORDER AND IN PARA 3 HE DIRECTLY JUMPED TO MAKE FOUR DISALLOWANCES/ADDITIONS. ON APPEAL BY THE ASSESSEE , LD. CIT(A) GRANTED PART RELIEF 4 ITA NO. 5318/DEL/2012 TO THE ASSESSEE AFTER CONSIDERING THE RELEVANT EXPL ANATION, SUBMISSIONS AND CONTENTIONS OF THE ASSESSEE SUPPORTED BY VARIOUS DO CUMENTS AND EVIDENCE BUT AT THE SAME TIME WE CLEARLY OBSERVE THAT THE A.O WAS N OT GRANTED OPPORTUNITY TO COMMENT AND VERIFY THE SAME WHICH IS MANDATORY FOR FIRST APPELLATE AUTHORITY. IN VIEW OF ABOVE NOTED FACTS AND CIRCUMSTANCES AND IN THE LIGHT OF SUBMISSIONS OF BOTH THE SIDES WE ARE OF THE CONSIDERED OPINION THA T THE A.O MADE ADDITION BY PASSING A SLIP SHOD AND CRYPTIC ORDER AND ON THE OT HER HAND THE LD. CIT(A) GRANTED RELIEF TO THE ASSESSEE WITHOUT PROVIDING DUE OPPOR TUNITY TO THE A.O TO COMMENT UPON AND TO EXAMINE AND VERIFY THE STAND AND SUBMIS SIONS AND EXPLANATION OF THE ASSESSEE SUPPORTED BY VARIOUS DOCUMENTS AND EVIDENC E, THUS IT IS APPARENT THAT THE CASE WAS NOT CONDUCTED PROPERLY NEITHER AT THE ASSE SSMENT STAGE NOR AT FIRST APPELLATE STAGE. HENCE, WE FIND IT APPROPRIATE TO RESTORE THE CASE TO THE FILE AT THE A.O AT ASSESSMENT STAGE FOR FARMING AFRESH DENOVO A SSESSMENT BY THE A.O. 7. NEEDLESS TO MENTION THAT THE A.O SHALL CONDUCT A FRESH REASSESSMENT PROCEEDINGS AND SHALL PROVIDE DUE OPPORTUNITY OF HE ARING TO THE ASSESSEE AND SHALL PASS REASSESSMENT ORDER WITHOUT BEING PREJUDICED FR OM EARLIER ASSESSMENT AND FIRST APPELLATE IMPUGNED ORDER OF THE LD. CIT(A). 8. IN THE RESULT, APPEAL OF THE REVENUE IS DEEMED T O BE ALLOWED FOR STATISTICAL PURPOSES IN THE MANNER AS INDICATED ABOVE. 5 ITA NO. 5318/DEL/2012 THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 4.11. 2015. SD/- SD/- (S. V. MEHROTRA) (C . M. GARG) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED:- 4/11/2015 GS COPY FORWARDED TO: COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI