Rhodonite Builders Ltd, New Delhi V. ITO WARD - 21(3), New Delhi

ITA 6308/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8742 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 26-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K. C. S. SINGHAL
• Keywords: Unexplained investment; Opportunity of being heard
• Section: 69; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH FRIDAY/A, NEW DELHI BEFORE SH. H. S. SIDHU, JUDICIAL MEMBER AND. SH. R. K. PANDA, ACCOUNTANT MEMBER ITA NO.6308/DEL/2019 ASSESSMENT YEAR: 2015-16 RHODONITE BUILDERS LTD. N-47A, 3 RD FLOOR, KHASRA NO.78, VILLAGE RAIPUR, KHURD, HARGOVIND ENCLAVE, NEW DELHI PAN NO. AACCFG0350N VS. INCOME TAX OFFICER WARD- 21 (3) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY SH. K. C. S. SINGHAL, AR RESPONDENT BY MS. RAKHI VIMAL, SR. DR. DATE OF HEARING: 10/01/2020 DATE OF PRONOUNCEMENT: 17/01/2020 ORDER PER R.K PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 23.05.2019 OF THE CIT(A)-38, NEW DELHI RELATING TO A.Y.2015-16. PAGE | 2 2. THE ASSESSEE IN ITS GROUNDS OF APPEAL HAS CHALLE NGED THE EXPARTE ORDER OF THE CIT(A) IN SUSTAINING THE VARIO US ADDITIONS MADE BY THE AO. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE COMPANY FILED ITS RETURN OF INCOME ON 21.03.2016 DECLARING TOTAL INCOME OF RS.21,08.400/-. DESPITE VARIOUS OPPORTUNITIES GRANT ED BY THE AO THERE WAS NO COMPLIANCE FROM THE SIDE OF THE ASSESS EE FOR WHICH THE AO COMPLETED THE ASSESSMENT U/S. 144/143(3) DET ERMINING THE TOTAL INCOME AT RS.6,84,89,445/- WHEREIN HE MAD E ADDITION OF RS.6,63,09,047/- AS UNEXPLAINED INVESTMENT UNLISTED EQUITIES U/S 69 OF THE IT ACT 1961. SINCE THERE WAS NO COMP LIANCE FROM THE SIDE OF THE ASSESSEE DESPITE NUMBER OF OPPORTUN ITIES GRANTED BY THE CIT(A), THE LD. CIT(A) IN THE EXPARTE ORDER PASSED BY HIM, SUSTAINED THE ADDITION MADE BY THE AO AND DISMISSED THE APPEAL FILED BY THE ASSESSEE. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE NOTICES WERE SENT TO THE OLD ADDRESS BY THE OFFICE OF THE CIT(A), THEREFORE, THERE WAS NO COMPLIANCE BEFORE HIM FOR W HICH THE LD. CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE. FURTHER THE AO HAS ALSO PASSED THE ORDER U/S. 144 OF THE IT ACT. H E ACCORDINGLY SUBMITTED THAT IN THE INTEREST OF JUSTICE THE MATTE R SHOULD BE REMANDED BACK TO THE FILE OF THE AO FOR FRESH ADJUD ICATION. PAGE | 3 6. THE LD. DR ON THE OTHER HAND STRONGLY OBJECTED T O THE ARGUMENTS ADVANCED BY THE LD. COUNSEL FOR THE ASSES SEE. SHE SUBMITTED THAT DESPITE REPEATED OPPORTUNITIES GRANT ED BY THE AO THERE WAS NO COMPLIANCE FROM THE SIDE OF THE ASSESS EE. SIMILARLY DESPITE NUMBER OF OPPORTUNITIES GRANTED BY THE CIT( A) THERE WAS NO COMPLIANCE. THEREFORE, THIS TYPE OF ATTITUDE ON THE PART OF THE ASSESSEE DOES NOT REQUIRE ANY LENIENCY AND THE ORDE R OF THE CIT(A) SHOULD BE UPHELD. 7. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES AND PERUSED THE ORDERS OF THE AUTHORITIES BEL OW. IT IS AN ADMITTED FACT THAT DUE TO NON APPEARANCE OF THE ASS ESSEE DESPITE OPPORTUNITIES GRANTED BOTH THE LOWER AUTHORITIES HA VE PASSED EXPARTE ORDER. IT IS ALSO PERTINENT TO MENTION HERE THAT THE LD. CIT(A) HAS DISMISSED THE APPEAL FOR WANT OF PROSECU TION AND HAS NOT DECIDED THE APPEAL ON MERIT. CONSIDERING THE T OTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIA TE ITS CASE. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE T HE CIT(A) WITH A COPY OF THIS ORDER ON 25.03.2020 FOR HEARING OF ITS CASE. THE LD. CIT(A) IS DIRECTED TO DECIDE THE ISSUE AS PER FACT AND LAW AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. WE HOLD AND DIRECT ACCORDINGLY AND THE GROUNDS RAISED BY TH E ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. PAGE | 4 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 17.01.2020. SD/- SD/- (H. S. SIDHU) (R.K PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA* DATE:- 17.01.2020 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 10.01.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 13.01.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 17.01.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 17.01.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 17.01.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 17.01.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 17.01.2020 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER