Vishesh Gupta, New Delhi V. DCIT, Central Circle-19, New Delhi

ITA 6341/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3393 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 04-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Accommodation entries; Set aside
• Section: 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: F NEW DELHI BEFORE SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.6341/DEL/2018 ASSESSMENT YEAR: 2010-11 SH. VISHESH GUPTA, C-3/28-29, SECTOR-15, ROHINI, NEW DELHI VS. DCIT, CENTRAL CIRCLE-19, NEW DELHI PAN :AGJPG0058P (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 14.12.2016 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-27, NEW DELHI, FOR ASSESSMENT YEAR 2010-1 1. 2. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE ORDE RS OF THE LOWER AUTHORITIES ARE THAT THE ASSESSEE, AN INDIVID UAL, IS ENGAGED IN THE BUSINESS OF TRADING IN METALS AND SCRAP. A S EARCH AND SEIZURE OPERATION U/S 132 OF THE INCOME-TAX ACT, 19 61 (IN SHORT THE ACT) WAS CONDUCTED BY, THE INVESTIGATION WING OF THE APPELLANT BY NONE RESPONDENT BY SH. ANIL GANDHI, SR.DR DATE OF HEARING 12.10.2021 DATE OF PRONOUNCEMENT 14.10.2021 2 ITA NO.6341/DEL/2018 DEPARTMENT IN VISHESH GUPTA AND RAKESH GUPTA GROUP O F CASES ON 26.04.2010. THE CASE WAS SELECTED FOR SCRUTINY A ND ASSESSMENT WAS COMPLETED ON 28.03.2013 AT A TOTAL I NCOME OF RS.37,32,730/- AS AGAINST THE RETURNED INCOME OF RS .2,34,850/- WHEREIN THE ASSESSING OFFICER MADE AN ADDITION OF R S.34,97,879/- ON ACCOUNT OF COMMISSION INCOME EARNED BY THE APPEL LANT FROM PROVIDING ACCOMMODATION ENTRIES TO VARIOUS PARTIES, AFTER EXCLUDING THE EXPENSES OF 0.5% AMOUNTING TO RS.3,38 ,286/- (0.5% OF RS.6,76,57,224/- WHICH IS THE TOTAL AMOUNT OF TRANSACTIONS OF ACCOMMODATION ENTRIES) WHICH WOULD HAVE BEEN INCURRED BY THE ASSESSEE FOR EARNING THE SAID COMMI SSION INCOME. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE LEA RNED CIT(A). THE LEARNED CIT(A) OBSERVED THAT THE ASSESSEE WAS GIVE N FIVE OPPORTUNITIES TO REPRESENT HIS CASE BUT NOBODY ATTE NDED THE PROCEEDINGS, NOR FILED ADJOURNMENT APPLICATION, THE REFORE, IT IS PRESUMED THAT THE ASSESSEE HAS NOTHING TO DO WITH T HE APPEAL AGAINST THE ADDITIONS MADE BY THE ASSESSING OFFICER . ACCORDINGLY, THE LEARNED CIT(A) DISMISSED THE APPEAL EX-PARTE WITHOUT DECIDING ON MERIT. 3. NONE PRESENT ON BEHALF OF THE ASSESSEE. WE HAVE HEA RD LEARNED DR THROUGH VIDEO CONFERENCING AND PERUSED T HE RELEVANT MATERIAL ON RECORD. 3. ON PERUSAL OF IMPUGNED ORDER, WE FIND THAT THE ASS ESSEE DID NOT FILE ANY WRITTEN SUBMISSION, NOR ANY MATERIAL W AS PRODUCED BEFORE THE LEARNED CIT(A) TO SUPPORT ITS CASE, DESP ITE REASONABLE OPPORTUNITY BEING PROVIDED TO HIM, AND THE LEARNED CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE EX-PARTE. WE ARE OF THE OPINION THAT IN TERMS OF SECTION 250(6) OF THE ACT THE LD. CIT(A) IS 3 ITA NO.6341/DEL/2018 REQUIRED TO DISPOSE OFF THE APPEAL ON MERIT WITH HI S REASONING EVEN IN THE CASE OF NON-REPRESENTATION BY THE ASSES SEE. AS THE LD. CIT(A) HAS NOT DISPOSED OFF THE APPEAL ON MERIT WIT H A REASONED ORDER, WE SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE APPEAL BACK TO LD. CIT(A) TO DECIDE THE SAME WITH R EASONED AND SPEAKING ORDER AFTER ALLOWING REASONABLE OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE. 4. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH OCTOBER, 2021 SD/- SD/- (KULDIP SINGH) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 14 TH OCTOBER, 2021. RK/- (DTDC) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI