Arora Infracon Pvt. Ltd., New Delhi V. ITO, Ward- 3(2), New Delhi

ITA 6513/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9090 (ITAT-DELHI)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 10-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Rejection of books of accounts; Set aside
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 6513/DEL/2018 ASSESSMENT YEAR: 2014-15 ARORA INFRACON PVT. LTD. A-4/68, GROUND FLOOR, PASCHIM VIHAR, NEW DELHI. PAN NO. AAJCA4415H VS ITO WARD 3(2) NEW DELHI. APPELLANT RESPONDENT ASSESSEE BY SHRI CHANDRA SHEKHAR, CA REVENUE BY SHRI S.L. ANURAGI, SR. DR ORDER THE ASSESSEE FILED THE PRESENT APPEAL AGAINST THE I MPUGNED ORDER DATED 08.08.2018 PASSED BY THE LD. CIT(A) ON THE FO LLOWING GROUNDS: 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A)-1 AND ASSESSING OFFICER HAS ERRED IN CALCULA TING THE VALUE OF UNSOLD FLAT AT RS. 25,00,000/- WITHOUT ANY BASIS AND ADDING BACK THE SAME IN TAXABLE INCOME IN ASSESSMENT ORDER IN PLACE OF RS. 8,76,918/-. HENCE , THE ORDER PASSED IS UNJUSTIFIED. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E ASSESSING OFFICER HAS WRONGLY REJECTED THE BOOKS OF ACCOUNTS INSPITE OF SUBMITTING ALL DETAILS OF TRADI NG STOCK SUCH AS OPENING, CLOSING, SALE AND PURCHASE OF STOC K. THEREFORE, ORDER PASSED IS UNJUSTIFIED. 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE ENTIRE SALE VALUE OF THE 2 ND FLOOR FLAT IS CONSIDERED IN THE FY 2014- 15 AS REVENUE INCOME AND DUE TAXES WERE PAID WITHOU T ANY DEDUCTION OF COST. THEREFORE, APPELLANT HAS NO T CONCEALED ANY AMOUNT OF INCOME AND TAXES THEREON. 2 ITA NO . 6513/DEL/2018 HENCE, ASSUMPTION OF LD. CIT(A)-1 AND ASSESSING IS WRONG AND ORDER PASSES IS UNJUSTIFIED AND AGAINST THE FAC TS. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR MODIFY ANY GROUND OF APPEAL AT THE TIME OF HEARING. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, THEREFORE, NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE DRAW MY ATTENTION TOWARDS PAGE NO. 39 OF THE PAPER BOOK AND STATED THAT THE REPLY DATED 19/12/2016 FILED BY THE ASSESSEE TO THE INCOME TAX OFFICER, WARD 3(2), ROOM NO. 381, C.R. BUILDING, NEW DELHI I N RESPONSE TO THE NOTICE ISSUED U/S 142(1) OF THE ACT FOR AY 2014-15 HAS NOT BEEN CONSIDERED BY THE ASSESSING OFFICER AND DECIDED THE ISSUE IN DISPUTE AGAINST THE ASSESSEE. HE REQUESTED THAT AO MAY BE D IRECTED TO DECIDE THE REPLY DATED 19/12/2016 AND DECIDE THE ISSUE IN DISPUTE AFRESH AS PER LAW AND AFTER GIVING OPPORTUNITY TO THE ASSESSE E. 4. ON THE CONTRARY, LD. DR DID NOT STRONGLY OBJECT ON THE REQUEST OF ASSESSEES COUNSEL. 5. I HAVE HEARD THE LD. COUNSEL FOR THE ASSESSEE AS WELL AS THE LD. DR AND I HAVE ALSO GONE THROUGH THE ORDERS PASSED BY T HE REVENUE AUTHORITIES AND I AM OF THE VIEW THAT SPECIALLY PAG E NO. 39 I.E. REPLY DATED 19/12/2016 THE AO HAS NOT CONSIDERED THE REPL Y DATED 19/12/2016 AND DECIDED THE ISSUE IN DISPUTE. IN TH E INTEREST OF JUSTICE AS REQUESTED BY THE LD. COUNSEL FOR THE ASSESSEE, I AM DIRECTING THE AO TO DECIDE THE ISSUE IN DISPUTE AFRESH AS PER LAW AF TER GIVING OPPORTUNITY TO THE ASSESSEE AS WELL AS AFTER CONSIDERING THE RE PLY DATED 19/12/2016 3 ITA NO . 6513/DEL/2018 FILED IN RESPONSE TO NOTICE U/S 142(1) FOR AY 2014- 15. ASSESSEE IS ALSO DIRECTED TO COOPERATE IN COMPLETION OF ASSESSMENT P ROCEEDINGS AND NOT TO TAKE UNNECESSARY ADJOURNMENT. I SET ASIDE THE I SSUE IN DISPUTE TO THE AO AS DIRECTED ABOVE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 10/07/2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO . 6513/DEL/2018 DATE OF DICTATION 09.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 09.07.2019/ 10.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 10.07.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 10.07.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 10.07.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 10.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.0 7.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER