M/s. Versatile Datamatics Pvt. Ltd., New Delhi V. ACIT, New Delhi

ITA 5619/DEL/2014

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0787 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 17-10-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NAINA SOIN KAPIL
• Assessee Lawyers: ASHWANI TANEJA; SAURABH GOYAL
• Keywords: Principle of natural justice; Additional evidence; Date of conversion
• Section: 142(1)

Judgement Text

1 ITA NO. 5619/DEL/2014 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEM BER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER ITA NO. 5619/DEL/2014 ( A.Y 2009-10) VERSATILE DATAMATICS PVT. LTD. 25, BAZAR LANE, BENGALI MARKET NEW DELHI AABCV8793K (APPELLANT) VS ACIT CIRCLE-17(1) NEW DELHI (RESPONDENT) APPELLANT BY SH. ASHWANI TANEJA, ADV & SH. SAURABH GOYAL, CA RESPONDENT BY SH. NAINA SOIN KAPIL, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 14/08/2014 PASSED BY CIT (A)-19, NEW DELHI FOR ASSESSMENT YEAR 2009-10. 2. DURING THE YEAR, THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF IT ENABLED COMPANY ALSO DEALING IN SALE AND PURCHASE O F SHARES. THE ASSESSEE FILED RETURN OF INCOME ON 30.09.2009 FOR THE A.Y. 2 009-10 DECLARING INCOME OF RS. 11,49,191/-. THE CASE WAS PROCESSED UNDER SECTI ON 143(1) OF THE INCOME TAX ACT, 1961. SUBSEQUENTLY, THE CASE WAS TAKEN UP IN SCRUTINY AND NOTICE U/S 143(2) WAS ISSUED ON 19.08.2010 AND SERVED UPON THE ASSESSEE. THEREAFTER, NOTICES U/S 142(1) ALONG WITH QUESTIONNAIRES WAS IS SUED AND DULY SERVED UPON THE ASSESSEE WHEREIN CERTAIN SPECIFIC DETAILS WERE CALLED FOR. THE ASSESSING DATE OF HEARING 19.09.2018 DATE OF PRONOUNCEMENT 20.09.2018 2 ITA NO. 5619/DEL/2014 OFFICER OBSERVED THAT THE ASSESSEE CONVERTED HIS IN VESTMENT IN THE BALANCE SHEET OF SHARES RS. 65,00,000/- INTO STOCK IN TRADE DURING THE YEAR. THE ASSESSEE WAS ASKED TO FILE THE SHARES SALE/PURCHASE DOCUMENTS, CONFIRMATIONS, STOCK IN TRADE CALCULATION, CALCULATION OF THE SHAR E VALUE. IN RESPECT OF THE SAME, THE ASSESSEE FILED THE REVISED COMPUTATION IN WHICH THE CALCULATION OF THE INCOME WAS SHOWN AT RS. 23,65,260/- AS INCOME FROM CAPITAL GAIN AS ON THE DATE OF CONVERSION ON 01.05.2008. HOWEVER, THE ASSE SSING OFFICER FURTHER OBSERVED THAT IN RESPECT OF PROFIT, THE ASSESSEE CO NVERTED THE SAME TO A LOSS OF RS. 12,16,069 INSTEAD OF THE INCOME DECLARED OF RS. 11,49,191/-. THE ASSESSEE DID NOT GIVE ANY EVIDENCE BEFORE THE ASSESSING OFFI CER, THEREFORE, THE ASSESSING OFFICER MADE TOTAL TAXABLE INCOME OF RS.50,94,450/- . 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING THE LD. AR SUBMITTED THAT THE CIT(A) HAS NOT ADMITTED THE ADDITIONAL EVIDENCE FILED BEFORE THE C IT(A) WITHOUT GIVING PROPER OPPORTUNITY TO THE ASSESSEE. 6. THE LD. DR RELIED UPON THE ORDER OF THE ASSESSIN G OFFICER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIAL AVAILABLE ON RECORD. FROM THE PERUSAL OF THE ORDER OF THE CIT(A), IT IS FOUND THAT THE CIT(A) HAS NOT GIVEN A PROPER OPPORTUNITY OF HE ARING TO THE ASSESSEE. THE ASSESSEE FILED CERTAIN EVIDENCES BEFORE THE CIT(A) WHICH WAS NOT ADMITTED BY THE CIT(A) UNDER RULE 46A, AND THE ASSESSEE WAS NOT REPRESENTED PROPERLY BEFORE THE CIT(A). THEREFORE, IN THE INTEREST OF JU STICE, WE ARE INCLINED TO GRANT ONE MORE OPPORTUNITY TO THE ASSESSEE TO REMAIN PRES ENT BEFORE THE CIT(A) AND PROPERLY PLEAD THE CASE BEFORE THE CIT(A). IF THE A SSESSEE FAILS TO APPEAR BEFORE THE CIT(A), THEN THE CIT(A) SHOULD PROCEED WITH THE DOCUMENTS FILED BY THE 3 ITA NO. 5619/DEL/2014 ASSESSEE AND DECIDE THE ISSUE ON MERIT AFTER THOROU GHLY VERIFYING THE DOCUMENTS. THUS, WE ARE REMANDING BACK THIS MATTER BEFORE THE CIT(A) TO DECIDE THE ISSUE AFTER GIVING OPPORTUNITY OF HEARIN G TO THE ASSESSEE BY FOLLOWING PRINCIPLES OF NATURAL JUSTICE. 3. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 20TH SEPTEM BER, 2018. SD/- SD/- (N. K. SAINI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 20/09/2018 R.N* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 5619/DEL/2014 DATE OF DICTATION 1 9 .09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 1 9 .09.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 2 0 .09.2018 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 2 0 .09.2018 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 0 .09.2018 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER