M/s. Sriram Compounds, Noida V. DCIT, Noida

ITA 6194/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6302 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 02-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJESH KUMAR JETLY
• Keywords: Opportunity of being heard; Application of stay
• Section: 143(3); 10AA; 10; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ES , G NEW DELHI BEFORE SHRI BHAVNESH SAINI , JUDICIAL MEMBER AND SHRI. A N MISHRA , ACCOUNTANT MEMBER ITA N O. 6194 / DEL /201 6 A SSESSMENT YEAR: 20 12 - 13 SRIRAM COMPOUNDS PLOT NO. 75, NSEZ NOIDA PAN: ABHFS6764R VS. DCIT CIRCLE - 3 AAYAKAR BHAWAN, A - 2D SECTOR - 24 , NOIDA PIN - 201301 (APPELLANT) (RESPONDENT) WITH SA NO. 216/DEL/2017 ASSESSMENT YEAR: 2012 - 13 SRIRAM COMPOUNDS PLOT NO. 75, NSEZ NOIDA PAN:ABHFS6764R VS. DCIT CIRCLE - 3 AAYAKAR BHAWAN, A - 2D SECTOR - 24, NOIDA PIN - 201301 (APPELLANT) (RESPONDENT) ASSESSEE BY SH. RAJESH KUMAR JETLY, C . A . REVENUE BY SH. N .K BANSAL , SR. D . R . DATE OF HEARING 30 .03.2017 DATEOF PRONOUNCEMENT 31 .0 3.2017 O R D E R PER BHAVNESH SAINI, J .M . : 1 . THIS ORDER SHALL DISPOSE OF THE APPEAL AS WELL AS THE STAY APPLICATION FILED BY THE ASSESSEE. 2 SA NO. 216 /DEL/ 201 7 IN ITA NO . 6194 / DEL /201 6 2. WE HAVE HEARD LEARNED REPRESENTATIVE OF BOTH THE PARTIES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. 3. THE ASSESSEE FILED THE APPEAL AGAINST THE ORDER OF LEARNED CIT(A) - I NOIDA DATED 30 TH SEPTEMBER, 2016 FOR ASSESSMENT YEAR 2012 - 2013 , CHALLENGING THE IMPUGNED ORDER IN ENHANCING ASSESSMENT AND THEREBY QUANTIFYING TAXABLE INCOME AT RS. 3,11,49,960/ - WITHOU T A SPEAKING ORDER. 4. THE ASSESSEE FILED RETURN OF INCOME AT RS. 1.51 CRORE AND THE AO PASSED THE ASSESSMENT ORDER U/S 143(3) DATED 27 TH MARCH, 2015 COMPUTING THE TOTAL INCOME AT RS. 1.59 CRORES. 5. LEARNED CIT(A) NOTED THAT ASSESSEE DID NOT RESPOND TO TH E NOTICE ISSUED FOR HEARING OF THE APPEAL. THE ASSESSEE DID NOT SEEK ADJOURNMENT AS WELL AS DID NOT APPEAR AT THE APPELLATE PROCEEDINGS. IT WAS NOTED THAT ASSESSEE HAS CLAIMED DEDUCTION U/S 10AA OF THE INCOME TAX ACT AMOUNTING TO RS. 1,53,12,486 / - WHICH WA S NOT CONSIDERED BY THE AO DURING THE ASSESSMENT PROCEEDINGS. THE LEARNED CIT(A) NOTED THAT THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S 10AA IS PRIMA FACIE INADMISSIBLE. SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE AS TO WHY THE ASSESSMENT BE NOT ENHANCED BY WITH DRAWING DEDUCTION CLAIMED U/S 10AA OF THE INCOME TAX ACT. IN THE ABSE NCE OF ANY APPEARANCE FROM THE SIDE OF THE ASSESSEE , APPEAL OF THE ASSESSEE WAS DISMISSED FOR NON PROSECUTION. THE DEDUCTION CLAIMED U/S 10AA WAS WITHDRAWN AND ASSESSMENT WAS ENHAN CED BY RS. 1.51 CRORE AND TAXABLE INCOME WAS COMPUTED AT RS. 3,11,49,960/ - . 3 SA NO. 216 /DEL/ 201 7 IN ITA NO . 6194 / DEL /201 6 6. THE ASSESSEE FILED THE STAY APPLICATION SEEKING STAY AGAINST THE OUTSTANDING DEMAND. WITH THE CONSENT OF BOTH THE PARTIES, THE APPEAL WAS ALSO FIXED FOR HEARING ALON G WITH STAY A PPLICATION. 7. AFTER CONSIDERING RIVAL SUBMISSIONS, WE ARE OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE LEARNED CIT(A). THE LEARNED CIT(A) SIMPLY DISMISSED THE APPEAL OF THE ASSESSEE IN DEFAULT FOR NON PROSECUTION WITHOUT DECIDI NG THE APPEAL OF THE ASSESSEE ON MERITS. ACCORDING TO SECTION 250 (6) OF THE INCOME TAX ACT , THE ORDER OF THE LEARNED CIT(A) DISPOSING OF THE APPEAL SHALL BE IN WRITING AND SHALL STA TE THE POINTS FOR DETERMINATION , DECISION THEREON AND THE REASONS FOR THE DECISION. HOWEVER, IN THE PRESENT IMPUGNED ORDER, LEARNED CIT(A) DID NOT PASS THE REASONED ORDER EVEN IF THE ASSESSEE DID NOT APPEAR BEFORE HIM. THE ORDER OF THE LEARNED CIT(A) THEREFORE CANNOT BE SUSTAINED IN LAW. EVEN IF THE ASSESSEE DID NOT APPEAR BEFOR E THE LEARNED CIT(A), THE LEARNED CIT(A) WAS REQUIRED TO DECIDE THE APPEAL OF THE ASSESSEE ON MERITS GIVING REASONS FOR DECISION IN THE APPELLATE ORDER. 8. IN THIS WAY OF THE MATTER, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) AND RESTORE THE APPEAL OF TH E ASSESSEE TO HIS FILE WITH A D IRECTION TO RE - DECIDE THE APPEAL OF THE ASSESSEE ON MERITS BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS DIRECTED TO COOPERATE WITH LEARNED CIT(A) IN FINALIZATION OF THE APPEAL. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE S . 10 IN VIEW OF THE DECISION IN THE APPEAL OF THE ASSESSEE, THE STAY APPLICATION OF THE ASSESSEE STANDS INFRUCTUOUS AND DISPOSED OF ACCORDINGLY. 4 SA NO. 216 /DEL/ 201 7 IN ITA NO . 6194 / DEL /201 6 ORDER PRONOUNCED IN THE OPEN COURT ON TH E DAY OF MARCH , 201 7 . SD/ - SD/ - ( A N MISHRA ) ( BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 . 03 - 201 7 SH COPY OF ORDER TO : - 1 ) THE APPELLANT; 2 ) THE RESPONDENT; 3 ) THE CIT ; 4 ) THE CIT(A) - , NEW DELHI ; 5 ) THE DR, I.T.A.T., NEW DELHI ; BY ORDER //TRUE COPY// ASSISTANT REGISTRAR ITAT , NEW DELHI 5 SA NO. 216 /DEL/ 201 7 IN ITA NO . 6194 / DEL /201 6 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR SR. PS/ PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 FILE SENT TO BENCH CLERK SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9 DATE ON WHICH FILE GOES TO THE A.R. 10 DATE OF DISPATCH OF ORDER