Mohan Traders Pvt Ltd, New Delhi V. ITO WARD - 17(1), New Delhi

ITA 5598/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6609 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 27-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC: NEW DELHI BEFORE, SMT. DIVA SINGH, JUDICIAL MEMBER I.T.A NO.5598/DEL/2019 (ASSESSMENT YEAR: 2014-15) M/S MOHAN TRADERS PVT. LTD. 3978-79, NAYA BAZAR, DELHI-110 006. PAN-AAGCM 3052P VS. INCOME TAX OFFICER, WARD-17(1), NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SHRI PRANSHU SINGHAL, CA RESPONDENT BY SH. R.K. GUPTA, SR. DR DATE OF HEARING 16.08.2021 DATE OF PRONOUNCEMENT 09.09.2021 HEARING CONDUCT ED VIA WEBEX ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE W HEREIN THE CORRECTNESS OF THE ORDER DATED 22.04.2019 OF CIT(A) -6, DELHI PERTAINING TO 2014-15 ASSESSMENT YEAR IS ASSAILED VIA THE GROUNDS RAISES ON THE ASSUMPTION OF JURISDICTION AND ON THE MERITS OF THE ADDITION S USTAINED. 2. AT THE TIME OF HEARING, AN ADJOURNM ENT APPLICATION WAS MOVED ON BEHALF OF THE ASSESSEE, HOWEVER, CONSIDERING THE MA TERIAL AVAILABLE ON RECORD IT WAS NOTICED THAT THE HEARING COULD PROCEED. ATTENT ION OF THE COUNSEL AND THE SR. DR WAS INVITED TO GROUND NO.2 RAISED IN THE APP EAL AND THE FINDING ARRIVED AT IN PARA 4.1.1. IT WAS SEEN THAT THE FINDING ARRI VED AT WAS VAGUE AND NON SPEAKING. IN THE CIRCUMSTANCES SINCE THE FACTS NEE D TO BE BROUGHT ON RECORD ITA N O.5598 /DEL/2019 MOHAN TRADERS PVT. L TD. VS. ITO PAGE 2 OF 3 THE ISSUES NECESSARILY IT WAS CONSIDERED NEEDED TO BE RESTORED BACK. CONSIDERING THE FACTS AND THE RECORD THE LD. AR MR PRANSHU SINGHAL, CA AND AGREED TO WITHDRAW THE ADJOURNMENT APPLICATION MOVE D. THE ORAL REQUEST FOR WITHDRAWAL OF THE ADJOURNMENT MOVED WAS GRANTED. 3. BOTH THE PARTIES WERE HEARD. 4. IN THE FACTS OF PRESENT CASE, IT IS SEEN THAT TH E ASSESSEE HAD CHALLENGED THAT THE ASSUMPTION OF JURISDICTION WAS TIME BARRED . THE SAID ISSUES HAS BEEN DECIDED BY THE LD. CIT(A) HOLDING AS UNDER: 4.4 GROUND OF APPEAL NO.4 CHALLENGES THE NOTICE UN DER SECTION 143(2). 4.4.1 FROM THE ASSESSMENT ORDER IN THAT NOTICE WAS SERVED WITHIN TIME REQUIRED UNDER SECTION 143(2) . IT IS ALSO SEEN THAT THE ASSESSEE PARTICIPATED IN THE SCRUTINY PROCEEDINGS AND NO OBJECTIONS WERE RAI SED. HENCE, THIS GROUND OF APPEAL IS DISMISSED. (EMPHASIS SUPPLIED) 5. A PERUSAL OF THE ABOVE SHOWS THAT NO FACTS ARE R EFERRED TO BY THE FIRST APPELLATE AUTHORITY WHICH WOULD DEMONSTRATE THAT TH E CONCLUSION DRAWN WAS IN ACCORDANCE WITH LAW. AN ORDER WHICH IS SUBJECT TO APPEAL MUST NECESSARILY SET OUT THE RELEVANT FACTS TAKEN INTO CONSIDERATION BY THE DECIDING AUTHORITY FOR ARRIVING AT THE CONCLUSION. A CONCLUSION DEHORS TH E RELEVANT FACTS IS INCAPABLE OF BEING CONSIDERED. NO FINDING ON ITS CORRECTNESS OR OTHERWISE CAN BE GIVEN. THE ORDER IS THUS VITIATED AND HOLD TO BE NOT IN AC CORDANCE WITH LAW. THE STATUTORY REMIT AS SET OUT IN SUB-SECTION (6) OF SE CTION 250 OF THE INCOME TAX ACT IS HELD TO BE NOT FULFILLED. THE ABSENCE OF DI SCUSSION ON RELEVANT FACTS AND CONSEQUENT REASONS MAKES THE CONCLUSION DRAWN OPEN TO THE CHALLENGE OF BEING ARBITRARY AND WHIMSICAL. ACCORDINGLY, ON ACCOUNT OF THIS DEFICIENCY ITSELF IT IS ITA N O.5598 /DEL/2019 MOHAN TRADERS PVT. L TD. VS. ITO PAGE 3 OF 3 SET ASIDE DIRECTING THE LD. CIT(A) TO SPECIFICALLY SET OUT THE NECESSARY DETAILS AS TO THE DATE AND THE ADDRESS AT WHICH THE NOTICE WAS STATED TO HAVE BEEN ISSUED AND CONSIDERED TO BE WITHIN THE STATUTORY TIME LIMI TS. IT IS CLARIFIED THAT THE IMPUGNED ORDER IS SET ASIDE IN TOTO. A FTER DECIDING THE JURISDICTION ISSUE IF NEED TO BE THE LD. CIT(A) SHALL DECIDE THE ISSUE AFRESH ON MERITS. SAID ORDER WAS PRONOUNCED AT THE TIME OF VIRTUAL HEARING ITSELF IN THE PRESENCE OF THE PARTIES WEBEX. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 09 TH SEPTEMBER, 2021 SD/- (D IVA SINGH) JUDICIAL MEMBER PK/PS *KAVITA ARORA, SPS COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI