SAVITA RAJ, NOIDA V. ACIT, CIRCLE- 3, NOIDA

ITA 7305/DEL/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3214 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 07-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ABHIMANYU JHAMBA
• Keywords: Business expenditure; Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: FRIDAY-G NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER I.T.A. NO. 7305/DEL/2017 ASSESSMENT YEAR: 2014-15 SAVITA RAJ, VS. ACIT, CIRCLE-3, C-14, SECTOR-56, NOIDA NOIDA, ROOM NO. 410, 4 TH FLOOR UTTAR PRADESH-201301 A-2D, SECTOR-24, NOIDA (PAN: ALXPC1772D) (ASSESSEE) (RESPONDENT) ASSESSEE BY : SH. ABHIMANYU JHAMBA, ADVOCATE REVENUE BY : SH. PRADEEP SINGH GAUTAM, SR. DR. ORDER PER H.S. SIDHU, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 29.9.2017 PASSED BY THE LD. CIT(A)-I, NEW DELHI REL ATING TO ASSESSMENT YEAR 2014-15 ON THE FOLLOWING GROUNDS. 1. THAT ON FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER PASSED BY THE LD. CIT(A) IN SUMMARILY DISMISS ING THE APPEAL FILED BY THE APPELLANT WITHOUT ADJUDICATING IT ON MERITS IS UNJUSTIFIED, ILLEGAL AND AGAINST THE LEGA L TENETS. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ACTION OF THE LD. CIT(A) IS SUMMARILY DISMISSIN G THE APPEAL OF THE APPELLANT DEFIES THE PRINCIPLE OF NAT URAL JUSTICE. 2 3. WITHOUT PREJUDICE TO GROUND NO. 1 AND 2, IN THE FAC TS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A ) ERRED IN NOT APPRECIATING THAT THE PROFESSIONAL FEE OF RS . 28,54,803/- PAID BY THE APPELLANT WAS A LEGITIMATE BUSINESS EXPENDITURE. 4. WITHOUT PREJUDICE TO GROUND 1 AND 2, IN THE FACTS A ND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A ) ERRED IN NOT APPRECIATING THAT THE SERVICE TAX AGGREGATIN G TO RS. 88,54,429/- COLLECTED BY THE APPELLANT WAS NOT THE UNDISCLOSED INCOME OF THE ASSESSEE. * THE ABOVEMENTIONED GROUNDS ARE INDEPENDENT AND WITHOUT PREJUDICE TO EACH OTHER. * THAT THE APPELLANT PRAYS FOR LEAVE OF THE HONBL E TRIBUNAL TO ADD, ALTER, AMEND AND / OR VARY THE GRO UND(S) OF APPEAL AT OR BEFORE THE TIME OF HEARING. 2. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE STATED THAT LD. CIT(A) HAS PASSED THE EXPARTE AND NON-SPEAKING ORDE R WITHOUT GIVING SUFFICIENT OPPORTUNITY TO REPRESENT AND SUBSTANTIAT E THE CASE OF THE ASSESSEE. HENCE, HE REQUESTED THAT THE ISSUES IN DI SPUTE MAY BE SET ASIDE TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATI ON, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIE S BELOW. 3 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS ESPECIALLY THE IMPUGNED ORDER DATED 29.9.2017 PASSED BY THE L D. CIT(A). WE ARE OF THE VIEW THAT LD. CIT(A) HAS PASSED THE EXPARTE AN D NON-SPEAKING ORDER, WHICH IS CONTRARY TO LAW AND FACTS ON THE FILE AND AGAINST THE PRINCIPLE OF NATURAL JUSTICE. THEREFORE, IN THE INTEREST OF JU STICE, WE ARE SETTING ASIDE THE ISSUES IN DISPUTE TO THE FILE OF THE LD. CIT(A ) TO DECIDE THE SAME AFRESH, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS DIRECTED THROUGH HIS COUNSEL TO FULLY C OOPERATE WITH THE LD. CIT(A) IN THE PROCEEDINGS AND DID NOT TAKE ANY UNN ECESSARY ADJOURNMENT WITH THE LIBERTY TO FILE ANY EVIDENCE BEFORE THE LD . CIT(A) TO SUBSTANTIATE ITS CASE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 04/12/2019. SD/- SD/- [R.K. PANDA] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 04/12/2019 SRB COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES