M/s. Vikas Holdings Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 6652/DEL/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6567 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-02-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BEDOBANI CHAUDHURI
• Keywords: Opportunity of being heard

Judgement Text

I.T.A .NO.-6652/DEL/2014 VIKAS HOLDINGS PVT.LTD. VS ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO.-6652/DEL/2014 (ASSESSMENT YEAR-2010-11) VIKAS HOLDINGS PVT.LTD., 39/1386, CHANDNI CHOWK, NEW DELHI-110006. PAN-AAACV3866E ( APPELLANT) VS ITO, WARD-17(3), NEW DELHI. (RESPONDENT) ASSESSEE BY SH.PARVEEN KUMAR, DIRECTOR OF THE COMPANY REVENUE BY MS. BEDOBANI CHAUDHURI, SR.DR DATE OF HEARING 08 . 02 .201 7 DATE OF PRONOUNCEMENT 16.02.2017 ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE ORDER DATED 29.09.2014 OF CIT(A)-19, NEW DELHI PERTAINING TO 2010-11 ASSESSMENT YEAR ON VARIOUS GROUNDS INCLUDING GROUND NO.7 WHICH READS AS UNDER: - 7. THE CIT(A) ERRED ON LAW AND ON FACTS WHEREIN HE PASSED THE RODER WITHOUT TAKING INTO THE RECORDS THE WRITTEN SUBMISSION FILE D WITH HIM AND WITHOUT AFFORDING SUFFICIENT OPPORTUNITY TO HEARD. 2. AT THE TIME OF HEARING, AN ADJOURNMENT PETITION WAS MOVED ON BEHALF OF THE ASSESSEE. IN SUPPORT OF THE SAME, MR. PRAVEEN KUMAR, DIRECTOR OF THE COMPANY WAS PRESENT. CONSIDERING THE FACT THAT THE MEMO OF APPEAL BEFORE THE ITAT HA D BEEN SIGNED BY HIM AND HE HAD APPEARED BEFORE THE CIT(A) ALSO IN PERSON, HE WAS REQUIRED T O ADDRESS FROM THE IMPUGNED ORDER HOW OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED TO THE ASSESSEE. THE LD.AR ADDRESSING THE FACTUAL POSITION AS SET OUT IN PARA 2.1 OF THE IMPU GNED ORDER, SUBMITTED THAT INITIALLY ADJOURNMENTS WERE MOVED BY THE ASSESSEE SUBSEQUENTL Y IN THE MONTH OF SEPTEMBER 2014, THE ASSESSEE HAD FILED WRITTEN SUBMISSIONS WHICH ARE AV AILABLE IN THE PAPER BOOK FILED. THUS, IT WAS HIS SUBMISSION THAT THE OBSERVATIONS IN PARA 2. 2 OF THE IMPUGNED ORDER THAT THE ASSESSEE FAILED TO MAKE COMPLIANCE ON 22.09.2014 IS INCORREC T ON FACTS. ACCORDINGLY, IT WAS HIS PRAYER THAT AN OPPORTUNITY OF BEING HEARD MAY BE GRANTED T O THE ASSESSEE AS THE IMPUGNED ORDER WAS PASSED WITHOUT HEARING THE ASSESSEE. THE LD.SR.DR THOUGH HAD NO OBJECTION TO THE REMAND OF THE ORDER TO THE CIT(A) SUBMITTED THAT THE ASSESSEE AS PER RECORD HAS NOT PARTICIPATED BEFORE THE CIT(A) FAIRLY. PAGE 2 OF 2 I.T.A .NO.-6652/DEL/2014 VIKAS HOLDINGS PVT.LTD. VS ITO 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL AVAILABLE ON RECORD. IT IS SEEN THAT THE ASSESSEE RETURNED NIL INCOME AND IN T HE COURSE OF THE SCRUTINY PROCEEDINGS, ADDITIONS WERE MADE BY THE AO TO THE SAID RETURN FO R THE REASONS SET OUT IN THE ASSESSMENT ORDER. THESE ADDITIONS WERE CHALLENGED IN APPEAL B EFORE THE CIT(A) WHERE THE ASSESSEE INITIALLY SOUGHT ADJOURNMENT AND THEREAFTER ON THE LAST DATE I.E. 22.09.2014 FAILED TO MAKE ANY COMPLIANCE LEADING TO PASSING OF THE IMPUGNED ORDER WHEREIN THE ADDITIONS MADE BY THE AO WERE SUSTAINED. ACCEPTING THE ORAL UNDERTAKING OF THE AR THE IMPUGNED ORDER IN THE INTERESTS OF JUSTICE IS SET ASIDE AND THE ISSUES ARE RESTORED BA CK TO THE FILE OF THE CIT(A). IT IS HOPED THAT THE OPPORTUNITY SO PROVIDED IN GOOD FAITH IS USED BY PA RTICIPATING FULLY AND FAIRLY BEFORE THE CIT(A) AND IS NOT ABUSED. IN THE EVENTUALITY OF ABUSE OF THE TRUST REPOSED, IT IS MADE CLEAR THAT THE CIT(A) WOULD BE AT LIBERTY TO PASS A SPEAKING ORDER ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. ACCORDINGLY, IN TERMS OF THE ABOVE, THE ISSUE IS RE STORED BACK TO THE CIT(A) WITH A DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 16 TH OF FEBRUARY 2017. SD/- (DIVA SINGH) JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI