Sunil Ram & Co, New Delhi V. ACIT, circle-2, Ghaziabad

ITA 6859/DEL/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1274 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 29-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 144

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G”: NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE PRESIDENT AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 6859/Del/2018 Asstt. Year : 2014-15 O R D E R PER ASTHA CHANDRA, JM The appeal by the assessee is directed against the order dated 31.08.2018 of the Ld. Commissioner of Income Tax (Appeals), Muzaffrnagar (“CIT(A)”) pertaining to the Assessment Year (“AY”) 2014-15. 2. The assessee has taken the following grounds :- “1. “The Ld. CIT(A) has erred in law in not specifically adjudicating ground No. 1 and 2 raised before him which pertains to the jurisdiction of the Assessing Officer of passing the assessment order. 2. The Ld. CIT(A) has erred in law in not appreciating that the Assessing Officer at Ghaziabad, has no jurisdiction to pass the assessment order, this is a nullity in the eyes of the law.” Sunil Ram & Co. 807, Antriksh Bhawan, 22- K.G. Marg, Connaught Place, New Delhi – 110 001 PAN AAEFS757588K. Vs. ACIT, Circle-2 Ghaziabad. (Appellant) (Respondent) Assessee by: None Department by : Shri Umesh Takyar, Sr. DR Date of Hearing 12.04.2022 Date of Pronouncement 30.06.2022 ITA No.6859/Del/2018 2 3. Briefly stated, the assessee is an individual. He is a Chartered Accountant and proprietor of M/s. Sunil Ram & Co. For the AY 2014-15 he filed his return on 06.10.2014 declaring total income of Rs.31,62,230/-. His case was selected under complete scrutiny through CASS. The statutory notices issued by the Ld. Assessing Officer (“AO”) Ghaziabad were not complied with as the assessee submitted that the notices were without jurisdiction because the assessee is being regularly assessed with ITO Ward 37(1), New Delhi. The Ld. AO, however, was of the opinion that he had the jurisdiction over the assessee and proceeded to pass ex-parte assessment order under section 144 of the Income Tax Act, 1961 (the “Act”) on 22.12.2016 on total income of Rs. 56,44,310/- including therein addition of Rs. 18,19,547/- under section 68 and disallowance of Rs. 6,62,529/- out of expenses claimed in P & L Account. 3.1 The assessee appealed before the Ld. CIT(A) challenging the jurisdiction of Ld. AO Ghaziabad over his case as also the said addition under section 68 and disallowance out of expenses. The Ld. CIT(A) deleted the addition of Rs. 18,19,547/- made by the Ld. AO under section 68 and held that the Ld. AO was not justified in making disallowance out of expenses and deleted the disallowance. 3.2 As regards assessee’s challenge to exercise jurisdiction over his case by the Ld. AO Ghaziabad, the Ld. CIT(A) dealt with the issue in para 9 and 10 of his order as under :- “9. Grounds of appeal Nos. 1 & 2 are against the validity of proceedings u/s 144 of the Act being out of jurisdiction. 10. In these grounds of appeal the appellant has stated that the order passed by the AO was without jurisdiction. It has been stated that the appellant has been filing its return of income regularly with ITO Ward-37(1), Delhi and therefore, the ACIT, Circle-2, Ghaziabad was not having any jurisdiction over the case. The appellant has challenged the jurisdiction during the course of the assessment proceedings itself. The AR furnished a copy of letter dated 06-03- ITA No.6859/Del/2018 3 2018 written by the ACIT Circle-2, Ghaziabad to the Principal CIT, Ghaziabad in which he has mentioned that as per the data available on ITD, the territorial jurisdiction of the appellant lies with ITO Ward 37(1), Delhi. The AR also argued that the business place of appellant was at 22, KG Marg, New Delhi which was not under the jurisdiction of ACIT, Circle-2, Ghaziabad. The AR furnished copies of the said letters sent by appellant to the AO during the assessment proceedings, copies of returns of income furnished for AYs 2013- 14, 2014-15 and the said letter sent by ACIT, Circle-2, Ghaziabad to support the claim. However, in the proceeding paras the addition/disallowance have already been deleted, therefore these grounds of appeal lose their relevance and are not adjudicated upon separately. Thus grounds of appeal Nos. 1 & 2 are accordingly disposed off.” 4. Aggrieved thereby the assessee is in appeal before the Tribunal. 5. On the date of hearing, none appeared for the assessee. The Ld. DR conceded that the Ld. CIT(A) has not decided the issue raised by the assessee before him that the Ld. AO Ghaziabad had no jurisdiction to assess the assessee. 6. We, therefore, deem it fit to restore the matter back to the file of the Ld. CIT(A) with a direction to him to decide the issue afresh after allowing reasonable opportunity of hearing to both the parties and in accordance with law. We do so. 7. In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 30 th June, 2022. Sd/- sd/- (G. S. PANNU) (ASTHA CHANDRA) PRESIDENT JUDICIAL MEMBER Dated: 30/06/2022 Veena ITA No.6859/Del/2018 4 Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order