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ITA 5393/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6590 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 13-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A” NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I. T. A. No. 5393/ De l/ 2019 ( नधा रण वष / As s es s ment Yea r : 2015-16) A v en ue H o mes P vt . Lt d. 36 9, G ro und F l o or , Y oj na V i ha r, N e w D e lh i बनाम/ V s . IT O Wa r d - 3 ( 4) N ew D el hi थायी लेखा सं./जीआइआर सं./P A N / G IR N o . A A LC A 3 2 6 3 H (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : None यथ क ओर से / Respondent by : Sh. Zahid Parvez, Sr. DR स ु नवाई क तार ख / D a t e o f H e a r i ng 13.06.2022 घोषणा क तार ख /D a te o f P r o n o u nc e me n t 16.06.2022 आदेश/ O R D E R PER PRADIP KUMAR KEDIA, AM: T he c a p t i on e d a pp e al h as b ee n fi l e d a t t he i ns t a n c e o f t he a s s es s e e a ga in s t t he or de r o f th e Co m mi s s i on e r o f In c o m e T a x (A p pe a l s ) -1 , N e w D e l hi ( ‘C I T ( A ) ’ i n s hor t) , d a t e d 27. 03 . 2 01 9 c on c e r n i n g A Y 2 015 -1 6. 2. T he a s s e s se e has r a i s e d th e fo l l ow i ng gr o un ds o f a p pe a l : - 1. Under the facts and circumstances of the case, and as per law, the learned CIT(A) erred in upholding the Order of Assessing Officer, assessing the total income of the Appellant at Rs.5,57,53,560/- against returned income of Rs. 3,560/-, without giving adequate opportunity to the Appellant. The Learned CIT(A) erred in not adjudicating the grounds of appeal on merit and dismissed the appeal. 2. The Learned Assessing Officer, on the facts of the case and as per law erred in making addition of Rs.5,57,50,000/- under section 68 of the Act on account of two unsecured loans taken by the Appellant. The Assessment was under limited scrutiny and the Assessing Officer, erred in making enquiry with respect to unsecured loans, which was not point for limited scrutiny and therefore, the action of Assessing Officer, without taking appropriate approval of appropriate Authority as per CBDT guidelines, in examining cash credits was illegal and against the said circular. The addition is consequently arbitrary and illegal. 3. On the facts and circumstances of the case and as per law, without prejudice to above grounds, otherwise also, addition of Rs.5,57,50,000/- is illegal as the Appellant furnish adequate confirmation and other documents with respect to unsecured loans as per law. 3.1 Otherwise also, the addition of Rs. 5,57,50,000/- u/s 68 of the Act is arbitrary and illegal as the Appellant was not having any source of income which emanate undisclosed income to the Appellant and therefore addition of Rs.5,57,50,000/- is against the provision of law. 4. That the learned CIT (A) has erred both in law and on facts in upholding the levy of interest under section 234 B of the Act which is to leviable on the facts and circumstances of the case of the appellant. 5. That the appellant craves leave to add, amend or alter any of the grounds of the appeal. 3. Wh en t he m a t t er w a s c al l e d fo r h ea ri n g , no n e a tte nd e d f o r t h e a s s es s e e. Cons e que nt l y, t he ma t t e r w a s pr oc ee de d e xp a r t e. It i s a ls o no ti c ed t ha t t h e C I T ( A ) ha s a l s o pa s s ed a n e x par t e or d e r i n t he a bs e n ce o f t he a ss e s s ee . 4. O n p er us al o f t he or d e r o f t he CI T (A ), w e s t ra ig ht wa y n ot i c e t ha t t he CI T (A ) h a s di s mi s s e d th e a pp e a l b e fo re i t f or w a n t o f pr os e cu t i on a n d no n at t en da nce . 5. We s t r ai gh tw a y r e f er t o S ec t io n 2 5 0( 6 ) o f t he A c t whi c h e nj oi ns t h at t h e C I T( A ) sh a l l s t a t e t he p oi nt s f or d e t er mi n a t i o n be fo r e i t a nd t h e de c is i o n s ha l l b e re n d e r e d o n s u ch p o i nt s a lo ngw i th r e a so ns f or t h e d ec i s io n. T h us , i t i s i nc u mb e n t up on t he CI T( A ) t o de a l w i t h t he gr ou nds o n m er i t s ev en i n e x pa r t e o rd e r . I n vi e w o f S e ct i o n 2 50 ( 6 ) o f th e A c t , t he C I T ( A ) h as n o pow e r to di s mis s an a p pe al o n ac c o un t o f n on- p ro s ec ut io n. Th is v i ew is a ls o t ak en by t he H o n ’ bl e B o mb a y H i g h C ou rt in c as e o f CI T V s . P r em k um ar A rj un d as L ut hr a H U F ( 20 1 7) 2 97 CT R 6 14 ( Bo m . ). A ba r e gl a c e o f t he ord e r o f t he C IT ( A ) s how s th at CIT (A ) h a s n o t a dd r es s e d it s e l f o n th e v a r i o us p oi n t s pl a c e d f or its d e t e r mi na t i o n a t a ll a n d d is m is s e d t h e a pp e a l o f a s s e ss ee fo r de fa u lt i n no n a pp e a r a n ce . N e e dl e s s t o sa y, th e CI T (A ) p la ys ro l e o f bo th a dj ud i c a t in g a ut ho ri t y a s w e l l as a p pe l la t e a u t h or it y. T h us , t h e CT I( A ) c ou ld n ot ha v e s h un ne d t he app ea l fo r n o n- co m pl ia nc e w i th o ut a d d re s s in g th e i s s ue o n me r i t s . 6. In t he to t a l i t y o f t he c i r c u ms t a n ce s , w e c on s i d e r it j us t a n d e xp e d i e n t t o re s t o r e t he ma t te r ba c k to t h e CI T (A ) i n th e la rg er i nt er es t o f j us t i c e w it h a vi e w t o en a bl e t h e a s s e ss ee t o a va i l p r op er op por t u n i t y for di s po sa l o f a p pe a l by th e C IT (A ) on va ri ous p oi nt s . N e edl e s s t o s a y, t h e a s s e ss e e sh al l e x t e n d f ul l c o-op er a t i on t o t h e CI T( A ) w i th o u t a ny de m u r , fa il i n g w h ic h, t h e C IT ( A ) sh al l a t l i b er ty t o c o nc l u d e th e a pp el l at e pr o ce ed in gs i n a cc or dan ce w i t h l aw . H e nc e, th e o r de r o f t he C IT (A ) ap p ea l e d a g a i ns t , i s s et a s i d e a nd a ll t h e i s s ue s r ai s ed i n t h e i m p ug n ed a p pe a l a re r es t o r e d ba c k t o t he f il e o f t he C I T( A ) fo r fr es h a d j u di ca t io n in a cc o r d an c e w i t h l a w a ft er gi vi n g r e as o n a bl e op p o rt un i t y o f h ea r i n g t o th e as s e s s ee . 7. In t h e r es u l t , th e a pp e a l o f t he a s s e ss ee i s al low e d fo r s t at i s t i c a l pu r p os e . Sd/ - Sd/- (C. N. PRASA D) (PRADI P KUMA R KEDI A) JUDI CI AL M EMBER ACCOUN TANT M EM BER Dated: 16/06/2022 *Neha, Sr. Private Secretary Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI This Order pronounced on 16/06/2022 Date of dictation 14.06.2022 Date on which the typed draft is placed before the dictating Member 15.6.2022 Date on which the typed draft is placed before the Other Member 16.06.2022 Date on which the approved draft comes to the Sr. PS/PS 16.06.2022 Date on which the fair order is placed before the Dictating Member for pronouncement 16.06.2022 Date on which the fair order comes back to the Sr. PS/PS 16.06.2022 Date on which the final order is uploaded on the website of ITAT 16.06.2022 Date on which the file goes to the Bench Clerk 16.06.2022 Date on which the file goes to the Head Clerk