Gangotri Construction Company, Delhi V. ITO, Muzaffarnagar

ITA 5344/DEL/2014

• Counselvise Citation: 534420114 RSA 2014
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 01-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROBIN RAWAL
• Assessee Lawyers: K C ANEJA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

ITA NO. 5344/ DEL/ 2014 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C , NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI J.S. REDDY, ACCOUNTANT MEMBER I.T.A. NO. 5 344 /DEL/201 4 A.Y. : 20 10 - 11 GANGOTRI CONSTRUCTION COMPANY, C/O KL ANEJA ADVOCATE, BW - 92C, SHALIMAR BAGH, DELHI 110 088 (PAN: AACFG8781C ) VS. ITO, WARD - 1(1), AAYAKAR BHAVAN MEERUT ROAD, MUZAFFARNAGAR (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. K.C. ANEJA, ADV. DEPARTMENT BY : SH. ROBIN RAWAL, SR. DR DATE OF HEARING : 29 - 1 - 201 5 DATE OF ORDER : 30 - 1 - 201 5 ORDER PER H.S. SIDHU : J M THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE IMPUGNED ORDER DATED 31 / 3 /201 4 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - MUZAFFARNAGAR ON THE FOLLOWING GROUNDS: - 1. THAT THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE AO IN CONFIRMING THE FOLLOWING ADBACK MADE BY THE AO TOWARDS APPELLANT S INCOME. (I) RS. 1773869/ - AS NET INCOME DETERMINED AS PER THE PROVISIONS 4 4AD BY APPLYING NET ITA NO. 5344/ DEL/ 2014 2 PROFIT @ 8% BY REJECTING APPELLANTS BOOKS OF ACCOUNT DULY AUDITED AND PLACED WITH RETURN OF INCOME AND THE SAME IS OTHERWISE VERY VERY EXCESSIVE. (II) RS. 5772819/ - REPRESENTING OUTSTANDING SUMS AS ON LAST DAY OF THE ACCOUNTING YEAR, REPRE SENTING CURRENT BUSINESS LIABILITIES AND EXPENSES PAYABLE WHICH BY NO STRETCH OF IMAGINATION COULD BE ADDED WHERE INCOME IS DETERMINED BY THE AO BY APPELLANT NP RATE. THE ADBACK BEING OTHERWISE EXCESSIVE UNWANTED AND MADE WITHOUT ALLOWING REASONABLE OPPORT UNITY OF BEING HEARD. (III) RS. 20789/ - REPRESENTING INTERESTING ON FIXED DEPOSITS WITH BANKS REPRESENTING SECURITY DEPOSIT WITH PLEDGED THE DEPARTMENT FROM WHERE CONTACT WORK TAKEN. 2. THAT THE ACTION OF THE LD. CIT(A) IN CONFIRMING THE INCOME DETERMINED BY THE AO AT RS. 7549269/ - IS WRONG AND ON FACTS AND IN LAW AND OTHERWISE VERY VERY EXCESSIVE IN THE ALTERNATE. 3. THAT THE APPELLANT RESERVES ITS RIGHT TO ADD, MODIFIED OR WITHDRAW ANY GROUND BEFORE FINAL ADJUDICATION OF THE APPEAL. 2. THE FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NOT DISPUTED BY BOTH THE PARTIES, THEREFORE, NEED NOT TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. ITA NO. 5344/ DEL/ 2014 3 3. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSESSEE STATED THAT LD. CIT(A) HAS DECIDED THE ISSUE IN DISPUTE WITHOUT AFFORDIN G SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM. SIMILARLY, AO ALSO MADE THE ADDITIONS IN DISPUTE CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE. THEREFORE, BOTH THE ORDERS OF THE REVENUE AUTHORITIES DESERVE TO BE CANCELLED. HE REQUESTE D THAT THE ASSESSEE IS IN POSSESSION OF THE DOCUMENTARY EVIDENCE TO SUBSTANTIATE ITS CLAIM BEFORE THE AO , IF THIS BENCH , SET ASIDE THE ISSUE TO THE FILE OF THE AO TO CONSIDER THE SAME AFRESH, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD. 3.1 LD. D R HAS NOT RAISED ANY OBJECTION TO THE REQUEST OF THE ASSESSEE S COUNSEL. 4. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE RECORDS, SPECIALLY THE ORDERS OF THE AUTHORITIES BELOW, PAPER BOOK FILED BY THE ASSESSEE CONTAINING PAGES 1 TO 71 IN WHICH HE HAS A TTACHED VARIOUS DOCUMENTS ON THE ISSUE IN DISPUTE. WE ARE OF THE VIEW THAT THE APPRECIATION OF THESE EVIDENCES ARE REQUIRED TO BE EXAMINED AFRESH BY THE AO. WE ARE ALSO OF THE VIEW THAT THE REQUEST OF THE ASSESSEE SEEMS TO BE GENUINE. THEREFORE, IN THE I NTEREST OF JUSTICE, WE ARE SETTING ASIDE THE ISSUE IN DISPUTE TO THE FILE OF THE AO TO DECIDE THE SAME AFRESH, AFTER GIVING FULL OPPORTUNITY TO THE ASSESSEE. ITA NO. 5344/ DEL/ 2014 4 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 /01/2015. SD/ - SD/ - [J.S. REDDY] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 30 /01/2015 SRBHATNAGAR \ COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES ITA NO. 5344/ DEL/ 2014 5