ITO, WARD- 7(2), NEW DELHI V. DKG FINANCE & CHITFUND PVT. LTD., NEW DELHI

ITA 5444/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6120 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 25-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIDHI SRIVASTAVA
• Keywords: Set aside
• Section: 143(1); 143(2); 147; 263; 63

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B: NEW DELHI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER AND SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER I.T.A. NO. 5444/DEL/2017 ASSESSMENT YEAR: 2007-08 INCOME-TAX OFFICER, VS. DKG FINANCE & CHITFUND PV T. LTD., WARD 7(2), NEW DELHI. SUSHEEL JAIN, OFFICE NO. 152 , CYCLE MKT., PHASE-I, JHANDEWALAN EXTN. NEW DELHI. PAN: AAACD 4245P (APPELLANT) (RESPONDENT) ASSESSEE BY: MS. NIDHI SRIVASTAVA, CIT/DR DEPARTMENT BY: SH. HIMANSHU AGGARWAL, CA DATE OF HEARING: 21.01.2020 DATE OF PRONOUNCEMENT: 11.02.2020 ORDER PER K. NARASIMHA CHARY, JM CHALLENGING THE ORDER DATED 13/06/2017 IN APPEAL NO . 230/16-17 PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-3 DELHI (THE LD. CIT(A)), FOR THE ASSESSMENT YEAR 2007-08, IN THE C ASE OF M/S. DKG FINANCE AND CHIT FUND PVT. LTD. (THE ASSESSEE), REVENUE PREFE RRED THIS APPEAL. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED THE RETURN OF INCOME ON 17/10/2007 DECLARING A LOSS OF RS. 3,154/-. IT W AS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT). SUBSEQUENTLY THE CASE WAS REOPENED ON SPECIFIC OBSERVATIONS OF THE L D. CIT(A)-XIII, NEW DELHI IN THE CASE OF SH. DEEN DYAL GOEL FOR THE ASSESSMENT Y EAR 2007-08 AND THE 2 ASSESSMENT UNDER SECTION 147 OF THE ACT WAS COMPLET ED ON 31/1/2014 AT AN ASSESSED LOSS OF RS. 3,154/-.THEREAFTER, THE LD. PC IT-3, NEW DELHI VIDE ORDER DATED 23/3/2016 PASSED UNDER SECTION 263 OF THE ACT SET ASIDE THE ASSESSMENT ORDER PASSED UNDER SECTION 147 OF THE ACT ON THE GR OUND THAT THE ASSESSING OFFICER FAILED TO CARRY OUT ANY ENQUIRY BEFORE MAKI NG ASSESSMENT. PURSUANT TO SUCH ORDER PASSED UNDER SECTION 263 OF THE ACT, LEA RNED ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 143(2) OF THE ACT AND C ONCLUDED THE ASSESSMENT BY ORDER DATED 30/12/2016 BY MAKING CERTAIN ADDITIONS AND DETERMINED THE INCOME OF THE ASSESSEE AT 4,47,16,846/-. 3. AGGRIEVED BY SUCH AN ORDER PASSED UNDER SECTION 143(3)/147 OF THE ACT IN COMPLIANCE WITH THE ORDER PASSED UNDER SECTION 2 63 OF THE ACT, ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). LD. CIT(A), BY WAY OF IMPUGNED ORDER, OBSERVED THAT THE TRIBUNAL VIDE ORDER DATED 13/2/20 17 IN ITA NOS. 2455 AND 2456/DEL/2016 FOR ASSESSMENT YEARS 2007-08 AND 2008 -09 QUASHED THE ORDER PASSED BY THE LD. PCIT UNDER SECTION 263 OF THE ACT AND THEREFORE, THE ORDER FRAMED FOR ASSESSMENT YEAR 2007-08 ON 30/12/2016 UN DER SECTION 143(3)/147 OF THE ACT READ WITH SECTION 263 OF THE ACT IS VOID -AB-INITIO AND ON THAT GROUND ANNULLED THE SAME. 4. A COPY OF THE ORDER DATED 13/2/2017 IN ITA NOS. 2455 AND 2456/DEL/2016 FOR ASSESSMENT YEAR 2007-08 AND 2008- 09 IS PRODUCED BEFORE US AND IT ESTABLISHES THAT THE TRIBUNAL HELD THAT T HE ORDER UNDER SECTION 263 OF THE ACT IS NOT SUSTAINABLE AND QUASHED THE SAME. IT IS NOT THE CASE OF THE REVENUE THAT SUCH AN ORDER OF THE TRIBUNAL IS IN AN YWAY DISTURBED AS OF NOW. IN THIS SET OF CIRCUMSTANCES, ON THE FACE OF THE FI NDINGS OF THE TRIBUNAL QUASHING THE ORDER PASSED UNDER SECTION 263 OF THE ACT, THE VERY BASIS FOR THE IMPUGNED ASSESSMENT UNDER SECTION 143(3)/147 OF THE ACT READ WITH SECTION 3 263 OF THE ACT STANDS REMOVED AND, THEREFORE, THERE IS NEITHER ILLEGALITY NOR IRREGULARITY IN THE FINDINGS OF THE LD. CIT(A). WE ACCORDINGLY DO NOT FIND ANY MERITS IN THIS APPEAL. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH FEBRUARY, 2020. SD/- SD/- (PRASHANT MAHARISHI) (K.NARASIMHA CHARY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11/02/2020 . *AKS/-