OK Play India Ltd., MEWAT V. DCIT, CIRCLE- 3, Gurgaon

ITA 6732/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 3602 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAUSHLENDRA TIWARI
• Keywords: Opportunity of being heard

Judgement Text

1 ITA.NO.6732/DEL./2017 M/S. OK PLAY INDIA LIMITED, TEHSIL-NUH, DIST. MEWAT, HARYANA. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.6732/DEL./2017 ASSESSMENT YEAR 2013-2014 M/S. OK PLAY INDIA LTD., 17- 18, ROZ KA MEO INDUSTRIAL ESTATE, TAHSIL NUH, DISTRICT MEWAT, HARYANA 122 103. PAN AAACO2623G VS. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3, GURGAON. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI LALIT MOHAN, ADVOCATE FOR REVENUE : SHRI KAUSHLENDRA TIWARI, SR. D.R. DATE OF HEARING : 24.01.2018 DATE OF PRONOUNCEMENT : 01.02.2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-1, GURGAON, DATED 30 TH AUGUST, 2017, FOR THE A.Y. 2013-2014. 2. THE A.O. ON PERUSAL OF THE BALANCE SHEET NOTICE D THAT CERTAIN INTEREST FREE ADVANCE TO CREDITORS OF CAPIT AL NATURE HAVE BEEN GIVEN IN ASSESSMENT YEAR UNDER APPEAL. HOWEVER , NO PROPORTIONATE DISALLOWANCE HAVE BEEN MADE. THE ASSE SSEE COMPANY HAS GIVEN ADVANCE TO TWO PARTIES NAMELY ARD EE 2 ITA.NO.6732/DEL./2017 M/S. OK PLAY INDIA LIMITED, TEHSIL-NUH, DIST. MEWAT, HARYANA. INFRASTRUCTURE VENTURE AMOUNTING TO RS.1.15 CRORES AND RO SCREENAGE CONSULTANCY SERVICES PVT. LTD., OF RS.30 LAKHS, ON WHICH, PROPORTIONATE DISALLOWANCE @ 12% COMES TO RS.17,40,000 WAS DISALLOWED AND ADDED TO THE INCOME OF ASSESSEE. THERE WERE NO COMPLIANCE BEFORE LD. CIT(A ). THEREFORE, APPEAL OF ASSESSEE HAS BEEN DISMISSED. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, I AM O F THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT TH E LEVEL OF THE A.O. THE A.O. HAS NOT GIVEN ANY DETAILS ABOUT THE A VAILABILITY OF THE FUNDS WITH THE ASSESSEE AND HOW THE INTEREST FR EE ADVANCE HAVE BEEN GIVEN TO CREDITORS OF CAPITAL NATURE. THE LD. CIT(A) WITHOUT GOING INTO THE DETAILS, MERELY IN THE ABSEN CE OF ASSESSEE, DISMISSED THE APPEAL OF ASSESSEE. ACCORDI NG TO SECTION 250(6) OF THE I.T. ACT, THE LD. CIT(A) IS R EQUIRED TO PASS A REASONED ORDER ON MERITS EVEN IF THE ASSESSEE APP EARS BEFORE HIM OR NOT. SINCE, NO DETAILS ARE MENTIONED IN THE IMPUGNED ORDERS AND NO BASIS HAVE BEEN SHOWN AS TO WHY ADDIT ION HAVE BEEN MADE AND LD. CIT(A) DISMISSED THE APPEAL OF AS SESSEE WITHOUT CONSIDERING THE ISSUE ON MERIT AND WITHOUT GIVING 3 ITA.NO.6732/DEL./2017 M/S. OK PLAY INDIA LIMITED, TEHSIL-NUH, DIST. MEWAT, HARYANA. REASONS FOR DECISION OF THE SAME, I AM OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE A.O. I , ACCORDINGLY, SET ASIDE THE ORDER OF THE AUTHORITIES BELOW AND RE STORE THE MATTER TO THE FILE OF A.O. WITH A DIRECTION TO DECI DE THE ISSUE IN ACCORDANCE WITH LAW BY MENTIONING ALL THE DETAILED FACTS IN THE ASSESSMENT ORDER. THE A.O. SHALL GIVE REASONABLE, S UFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 01 ST FEBRUARY, 2018 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.