DHARNI SAMPDA P. LTD, MUMBAI V. ADDL CIT RG 7(3), MUMBAI

ITA 5365/MUM/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0206 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 18-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V JUSTIN
• Keywords: Principle of natural justice; Deemed dividend; Non passing of speaking order
• Section: 37

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL D BENCH, MUMBAI BEFORE SH. RAJENDRA , AM & SH. SANDEEP GOSAIN, JM ./ I.T.A. NO . 5365/MUM/2015 , ( / ASSESSMENT YEAR: 2009 - 10 ) D HARNI SAMPDA P. LTD. 5 TH FLOOR, HALLMARK BUSINESS PLAZA, S. D. MARG, BANDA (E), MUMBAI - 400051 / VS. ADDL. CIT RG 7(3) MUMBAI PIN - ./ ./ PAN/GIR NO. A ACCT5738P ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI SATISH MODY / RESPONDENTBY : SHRI V. JUSTIN / DATE OF HEARING : 1 5 /0 2 /201 8 / DATE OF PRONOUNCEMENT : 21/02/2018 / O R D E R PER SANDEEP GOSAIN, J UDICIAL MEMBER : THE P RESENT APPE AL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 12 , MUMBAI DATED 18.04.13 FOR AY 20 09 - 10 ON THE GROUNDS MENTIONED HEREIN BELOW: - 2 I.T.A. NO. 5365 /MUM/201 5 DHARNI SAMPDA P. LTD. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN PASSING THE ORDER U/S 250 BE ING A NON - SPEAKING ORDER AND WITHOUT CONSIDERING THE WRITTEN SUBMISSIONS OF THE AR OF THE APPELLANT COMPANY, THUS VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN MAKING AD DITIONS OF RS. 21,39,900/ - W.R.T DEEMED DIVIDEND U/S 2(22)(E) OF THE ACT WITHOUT CONSIDERING THE FACTS OF THE CASE AND THE SUBMISSION OF THE AR. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF CASE AND IN LAW THE LD. CIT(A) ERRED IN MAKING DISALLOWANCE U/S 37 OF THE ACT OF RS. 28,44,960/ - W.R.T CLUB MEMBERSHIP FEES MADE BY THE COMPANY FOR ITS DIRECTORS WITHOUT CONSIDERING THE FACTS OF THE CASE AND THE SUBMISSION OF THE AR. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE EASE AND IN LAW THE LD. CIT(A) ERRED IN MAKING DISALLOWANCE U/S 37 OF THE ACT OF RS. 11,20,052/ - W.R.T BUSINESS PROMOTION EXPENSES INCURRED BY THE COMPANY WITHOUT CONSIDERING THE FACTS O F THE CASE AND THE SUBMISSION OF THE AR. 3 I.T.A. NO. 5365 /MUM/201 5 DHARNI SAMPDA P. LTD. 5. THE APPELLANT RESERVES THE RIGHT TO ADD, AMEND, MODIFY, OF APPEAL AT ANY STAGE OF HEARING. 2 . A T THE VERY OUTSET, LD. AR APPEARING ON BEHALF OF THE ASSESSEE SUBMITTED BEFORE US THAT LD. CIT(A) ERRED IN PASSING ORDER U/S 250 BEING NON SPEAKING ORDER AND WITHOUT CONSIDERING THE WRITTEN SUBMISSIONS OF THE AR OF THE ASSES SEE COMPANY. THUS THE SAID ACT OF LD. CIT(A) VIOLATES THE PRINCIPLE OF NATURAL JUSTICE. 3 . WE HAVE HEARD THE COUNSELS FOR BOTH THE PARTIES AND WE HAVE ALSO PERUSED THE MATERIAL PLACED ON RECORD AS WELL AS ORDER PASSED BY REVENUE AUTHORI TIES. FROM THE RECORDS, WE FIND T HAT THE ASSESSEE HAS RAISED SEVERAL GROUNDS BEFORE LD. CIT(A) IN APPEAL AGAINST THE ORDER PASSED BY AO. LD. AR SUBMITTED THAT DETAIL ED WRITTEN SUBMISSIONS , FINANCIAL STATEMENT, TAX AUDIT REPORT AND LEDGER ACCOUNT, DIFFERENT JUDGMENTS CONTAINING AT PAGE NO. 1 TO 121 OF THE PAPER BOOK WERE ALSO FILED. WE NOTICE THAT THE LD. CIT(A) WHILE DISPOSING ALL THE GROUNDS RAISED BY THE ASSESSEE HA S NOT CONSIDERED THE DETAILED SUBMISSIONS , DOCUMENTS AND 4 I.T.A. NO. 5365 /MUM/201 5 DHARNI SAMPDA P. LTD. JUDGMENTS CITED AND PLACED ON RECORD BY THE ASSESSEE AND HAS DISMISSED THE GROUNDS OF APPEAL IN A SUMMARY MANNER WITHOUT PASSING WELL REASONED SPEAKING ORDER. 4. IT IS A SETTLED LAW THAT RECORDING OF REASONING IS A HEART BEAT OF AN ORDER AND WITHOUT RECORDING ANY REASONING, ONE CANNOT REACH TO THE CONCLUSION. QUASI - JUDICIAL AUTHORITIES ARE UNDER OBLIGATIONS TO PASS WELL REASONED SPEAKING ORDER. BE THAT AS IT MAY, WITHOUT COMMENTING ANYT HING ON THE MERITS OF THE GROUNDS RAISED BY THE ASSESSEE, WE ARE OF THE CONSIDERED VIEW THAT THE INTEREST OF JUSTICE WOULD BE MET IN REMITTING THE MATTER BACK TO THE FILE OF LD. CIT(A) WITH A DIRECTION TO PASS AFRESH REASONED ORDER AFTER CONSIDERING THE WR ITTEN SUBMISSIONS, DOCUMENTS AND JUDGMENTS RELIED UPON BY THE ASSESSEE. IT IS NEEDLESS HERE TO MENTION THAT BEFORE PASSING THE ORDER, THE LD. CIT(A) SHALL PROVIDE SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. BEFORE PARTING, WE MAY MAKE IT CLEAR THAT OUR DECISION TO RESTORE T HE MATTER BACK TO THE FILE OF CIT(A) SHALL IN NO WAY BE 5 I.T.A. NO. 5365 /MUM/201 5 DHARNI SAMPDA P. LTD. CONSTRUED AS HAVING ANY REFLECTION OR EXPRESS ION ON THE MERITS OF THE ISSUE , WHICH SHALL BE ADJUDICATED BY THE CIT(A) INDEPENDENTLY IN ACCORDANCE WITH LAW. WITH THESE DIRECTI ONS, THIS GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . 5 . IN THE NET RESULT, THE APPEAL FILED BY THE ASSESSES IS ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST FEB 2018 SD/ - SD/ - (RAJENDRA ) (SANDEEP GOSAIN) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 21 . 02 .201 8 SR.PS . DHANANJAY / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI