M/s. Greysham & Co., New Delhi V. ITO, New Delhi

ITA 5634/DEL/2011

• Counselvise Citation: 563420114 RSA 2011
• Duration Of Justice: 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 31-10-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH SR DR HEARING ON
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C NEW DELHI BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI B. C. MEENA, ACCOUNTANT MEMBER I.T.A. NOS. 5634/DEL/2011 ASSESSMENT YEAR: 2007-08 M/S GREYSHAM & CO. VS. ITO, C/O S.P. JAIN & ASSOCIATES WARD 20 (4), F-83, GREEN PARK, NEW DELHI NEW DELHI.-110016 PAN:-AAAFG2709A (ASSESSEE) (REVENUE) ASSESSEE BY : SH. ANIL JAIN, ADV. REVENUE BY: SH.SATPAL SINGH, SR. DR HEARING ON : 31/10/2012 ORDER PRONOUNCED ON THE DATE: .. ORDER PER I.C.SUDHIR, JM: THE ASSESSEE HAS IMPUGNED FIRST APPELLATE ORDER ON SEVERAL GROUNDS. IN GROUND NO. 1 IT HAS BEEN CONTENDED THAT THE LD. CIT (A) HAS PASSED THE EX- PARTE ORDER WITHOUT GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE TO PRESENT HIS CASE. IN THE REMAINING GROUNDS IN TOTO ADD THE ASSESSEE HAS QUESTIONED DISALLOWANCES / ADDITION UPHELD BY THE LD. CIT (A). ITA NO. 5634/DEL/2011 2 2. AT THE OUTSET OF HEARING THE LD. AR POINTED OUT THA T THE ASSESSEE FIRM HAD ENTERED INTO A JOINT VENTURE WITH TITAGARH WAGO N LTD. ON 16.6.2008 DUE TO FINANCIAL PROBLEMS AND THEREAFTER THEY WERE HAND LING ALL THE BUSINESS OF THE ASSESSEE THROUGH THEIR PROFESSIONALS. LATER ON SOME DISPUTE AROSE BETWEEN THEM RESULTING IN SEVERAL LITIGATIONS BEFOR E DIFFERENT COURTS SINCE 2010 AND THEY CARRIED OUT ALL THE RECORDS AND DATA WITH THEM. DUE TO THIS REASON THE ASSESSEE COULD NOT COOPERATE WITH THE AU THORITIES BELOW AND COULD NOT REPRESENT ITS CASE BEFORE THEM WHICH RESULTED I N PASSING OF EX-PARTE ASSESSMENT ORDER U/S 144 OF THE ACT ON 30.12.2009 A ND EX-PARTE FIRST APPELLATE ORDER ON 25.1.2011. HE SUBMITTED THAT IN THE EX-PARTE ASSESSMENT THE AO HAS COMPUTED THE INCOME OF THE ASSESSEE AT R S.1,88,04,207/- AGAINST THE LOSS SHOWN BY THE ASSESSEE AT RS.76,34,506/-. H E SUBMITTED THAT SINCE AFFAIRS OF THE ASSESSEE WERE BEING LOOKED AFTER BY THE JOINT VENTURE PARTNER HENCE, THE NOTICES ISSUED BY THE AUTHORITIES BELOW COULD NOT BE RECEIVED BY THE ASSESSEE TO SECURE ITS APPEARANCE BEFORE THE AU THORITIES BELOW TO PRESENT ITS CASE PROPERLY. 3. THE LD. AR SUBMITTED THAT ALL THESE REASONS FOR NON -APPEARANCE FOR THE ASSESSEE BEFORE THE AUTHORITIES BELOW HAVE BEEN STA TED ON AFFIDAVIT OF SH. SUBODH SINGH WHICH ONE OF THE PARTNERS OF THE ASSES SEE FIRM. THE LD. AR ITA NO. 5634/DEL/2011 3 ALSO UNDERTOOK TO COOPERATE IN THE PROCEEDINGS BEFO RE THE AUTHORITIES BELOW IN CASE THE MATTER IS SET ASIDE TO THEM. 4. THE LD. DR OPPOSED THE APPEAL. 5. CONSIDERING THE ABOVE SUBMISSIONS WE FIND THAT THER E WAS SUFFICIENT REASON WITH THE ASSESSEE FOR ITS NON-APPEARANCE BEF ORE THE AUTHORITIES BELOW DURING ASSESSMENT PROCEEDINGS AND FIRST APPELLATE P ROCEEDINGS AS BOTH THE PROCEEDINGS HAVE BEEN CONCLUDED IN PASSING THE ORDE RS EX-PARTE. WE THUS IN THE INTEREST OF JUSTICE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO THE AO TO MAKE ASSESSMENT AFRESH AFTER AFFORDING OPPORTUNITY BEING HEARD TO THE ASSESSEE. WE HOPE TH E ASSESSEE WILL COOPERATE IN THE PROCEEDINGS BEFORE THE ASSESSING OFFICER AS IT HAS BEEN UNDERTAKEN BY THE LD. AR ON BEHALF OF THE ASSESSEE. 6. THE GROUNDS ARE THUS ALLOWED FOR STATISTICAL PURPOS ES. 7. CONSEQUENTLY APPEAL IS ALLOWED FOR STATISTICAL PURP OSES. 8. THE ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON THE DAY 31/10/2012. SD/- SD/- ( B. C. MEENA ) (I.C.S UDHIR) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 31/10/2012 *AK VERMA* COPY FORWARDED TO: ITA NO. 5634/DEL/2011 4 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR