ITO, New Delhi V. M/s. Spotlight Securities Pvt. Ltd., New Delhi

ITA 6709/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3831 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-06-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 30-12-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: MAJOJ GUPTA
• Keywords: Accommodation entries; Reassessment proceedings
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER ITA.NO.6709/DEL./2016 ASSESSMENT YEAR 2007-2008 THE INCOME TAX OFFICER, WARD-24(2), ROOM NO.236, C.R. BLDG., IP ESTATE, NEW DELHI 02. VS. M/S. SPOTLIGHT SECURITIES PVT. LTD., UG-47, 6, BHIKAJI CAMA PLACE, NEW DELHI. PAN AAJCS6343K (APPELLANT) (RESPONDENT) C.O.NO.135/DEL./2017 ARISING OUT OF ITA.NO.6709/DEL./2016 - ASSESSMENT YEAR 2007-2008 M/S. SPOTLIGHT SECURITIES PVT. LTD., UG-47, 6, BHIKAJI CAMA PLACE, NEW DELHI. PAN AAJCS6343K VS. THE INCOME TAX OFFICER, WARD-24(2), ROOM NO.236, C.R. BLDG., IP ESTATE, NEW DELHI 02 (CROSS - OBJECTOR) (RESPONDENT) FOR REVENUE : SHRI T. VASANTHAN , SR. D.R. FOR ASSESSEE : SHRI MAJOJ GUPTA, C.A. DATE OF HEARING : 21.09.2017 DATE OF PRONOUNCEMENT : 26 .10.2017 ORDER THE APPEAL OF THE DEPARTMENT AND THE CROSS-OBJECT ION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DATE D 19.10.2016 2 ITA.NO.6709/DEL./2016 & CO.NO.135/DEL./2017 M/S. SPOTLIGHT SECURITIES PVT. LTD., NEW DELHI. OF LD. CIT(A)-17, NEW DELHI. IN THE DEPARTMENTAL AP PEAL THE ONLY GROUND RAISED READ AS UNDER : 1. 'THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS.5 LAKH MADE BY THE AO ON ACCOUNT OF ACCOMMODATION ENTRY OF RS.35 LAKHS TOWARDS SHARE APPLICATION MONE Y IGNORING THE STATEMENT OF SH. PRAVEEN KUMAR JAIN WH O HAD ADMITTED DURING THE COURSE OF SEARCH HAVING FLOATED MANY CONCERNS FOR PROVIDING ACCOMMODATION ENTRIES ' 1.1. IN THE CROSS-OBJECTION THE ASSESSEE H AS RAISED THE FOLLOWING GROUNDS : 1. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD. ASSESSING OFFICER PROCEEDED CONTRARY TO PROVISION OF LAW IN INITIATING REASSESSMENT PROCEEDINGS UNDER SECTION 148 OF ACT. 2. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW LD. ASSESSING OFFER ERRED IN ASSUMING JURISDICT ION TO RE-ASSESS THE APPELLANT IN ABSENCE OF SERVICE OF MANDATORY NOTICE UNDER SECTION 143(2) OF ACT POST REJECTION OF OBJECTIONS FILED BY APPELLANT. 3. THAT APPELLANT CRAVES LEAVE TO AMEND, ALTER GROU NDS OF CROSS OBJECTIONS BEFORE HEARING. 3 ITA.NO.6709/DEL./2016 & CO.NO.135/DEL./2017 M/S. SPOTLIGHT SECURITIES PVT. LTD., NEW DELHI. 2. DURING THE COURSE OF HEARING, THE LEARNED COUNS EL FOR THE ASSESSEE AT THE VERY OUTSET STATED THAT THE ISSUE RELATING TO REOPENING OF THE CASE UNDER SECTION 148 OF THE I .T. ACT WAS NOT ADJUDICATED BY THE LD. CIT(A). THE PRESENT CONT ENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE WAS NOT CONTROVERT ED BY THE LD. D.R. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES, IT IS NOTED THAT THE LD. CIT(A) DID NOT ADJUDICATE THE LEGAL ISSUE RAISED BY THE ASSESSEE AGAINST THE REOPENING OF THE CASE WHICH IS EVIDENT FROM THE OBSERVATIONS OF THE LD. CIT(A) IN PARA-2 OF THE IMPUGNED ORDER WHICH READS AS UNDER : 2. GROUND NO.1 RELATES TO CONTENTION OF THE APPELL ANT AGAINST REOPENING THE CASE AND ISSUANCE OF NOTICE U /S.148 OF THE ACT. SINCE, THE APPEAL IS DECIDED IN FAVOUR OF THE APPELLANT ON MERITS, THEREFORE, THIS LEGAL GROUND I S NOT ADJUDICATED. GROUND NO.4 IS GENERAL IN NATURE. 3. WE, THEREFORE, DEEM IT APPROPRIATE TO RE MAND THE CASE BACK TO THE FILE OF THE LD. CIT(A) TO BE ADJUD ICATED AFRESH IN ACCORDANCE WITH LAW AFTER ALLOWING REASONABLE OP PORTUNITY OF 4 ITA.NO.6709/DEL./2016 & CO.NO.135/DEL./2017 M/S. SPOTLIGHT SECURITIES PVT. LTD., NEW DELHI. BEING HEARD, ONLY AFTER ADJUDICATING THE LEGAL ISSU E, THE LD. CIT(A) SHOULD GIVE THE FINDINGS ON THE MERIT OF THE CASE. 4. IN THE RESULT, APPEAL OF THE DEPART MENT AS WELL AS CROSS OBJECTION OF THE ASSESSEE ARE ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 26.10.2017. SD/- (N.K. SAINI) ACCOUNTANT MEMBER DELHI, DATED 26 TH OCTOBER, 2017 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. //BY ORDER// ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.