Das Aviation Services Private Limited, New Delhi V. ITO WARD - 7(2), New Delhi

ITA 7690/DEL/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7631 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 19-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 142(1); 147; 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, SMC: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.7690/DEL/2019 [ASSESSMENT YEAR: 2010-11] DAS AVIATION SERVICES PRIVATE LIMITED, SHOP NO.16, D-978, SECTOR-7, DWARKA, NEW DELHI-110075 INCOME TAX OFFICER, WARD-7(2), ROOM NO.406, 4 TH FLOOR, C.R. BUILDING, NEW DELHI PAN-AACCD9980B ASSESSEE REVENUE ASSESSEE BY NONE REVENUE BY SH. RAMESH KUMAR, SR. DR DATE OF HEARING 23.08.2021 DATE OF PRONOUNCEMENT 23.08.2021 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE EX-PARTE ORDER DATED 06.08.2019 OF THE LEARNED CIT( A)-03, NEW DELHI, RELATING TO ASSESSMENT YEAR 2010-11. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, HOWEVER, THESE ALL RELATE TO THE EX-PARTE ORDER OF THE LEARNED CIT(A) IN CONFIRMING THE VARIOUS ADDITIONS MADE BY THE AO. 2 ITA NO.7690/DEL/2019 2.1. DESPITE ISSUE OF NOTICE BY THE REGISTRY, THER E WAS NON-APPEARANCE FROM THE SIDE OF THE ASSESSEE. THERE FORE, THIS APPEAL IS BEING DECIDED ON THE BASIS OF MATERIAL AV AILABLE ON RECORD AND AFTER HEARING THE LEARNED DR. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSES SEE IS A PRIVATE LIMITED COMPANY AND HAS NOT FILED ITS RETUR N OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR. AS PER INFORMATI ON AVAILABLE IN ITD SYSTEM, THE AO OBSERVED THAT THE A SSESSEE COMPANY HAS PURCHASED BANK DRAFT/BANKER CHEQUE IN C ASH AMOUNTING TO RS.3,00,000/- RELEVANT TO AY 2010-11. AFTER CONDUCTING AN INDEPENDENT ENQUIRY, THE AO REOPENED THE CASE OF THE ASSESSEE BY RECORDING REASONS AS PER PROVISI ONS OF SECTION 147 OF THE ACT. THEREAFTER, THE AO ISSUED NOTICE U/S 148 OF THE ACT DATED 25.03.2017 WHICH WAS DULY SERV ED ON THE ASSESSEE. HOWEVER, NEITHER THERE WAS ANY COMPLIANC E TO THE SAID NOTICE NOR THERE WAS ANY APPEARANCE BEFORE THE AO. THERE WAS ALSO NON-COMPLIANCE TO THE STATUTORY NOTICES IS SUED U/S 142(1) OF THE ACT. SUBSEQUENTLY, THE AR OF THE ASS ESSEE APPEARED BEFORE THE AO WHEREIN, HE WAS DIRECTED TO EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE BANK ACCOUNT TOTALL ING TO RS.4,24,109/-. SINCE, THERE WAS NO SATISFACTORY EX PLANATION, 3 ITA NO.7690/DEL/2019 THE AO MADE ADDITION OF THE SAME BY INVOKING THE PR OVISIONS OF SECTION 68 OF THE ACT. SIMILARLY, DUE TO INABILITY OF THE ASSESSEE TO SUBSTANTIATE THE CLAIM OF VARIOUS EXPENSES DEBIT ED IN THE PROFIT & LOSS ACCOUNT, THE AO DISALLOWED AN AMOUNT OF RS.13,643/- BEING 20% OF THE EXPENSES CLAIMED. TH US, THE AO DETERMINED THE TOTAL INCOME AT RS.4,37,743/-. 3.1. SINCE, THERE WAS NON-APPEARANCE BEFORE THE LE ARNED CIT(A) DESPITE NUMBER OF OPPORTUNITIES, THE LEARNED CIT(A) IN HIS EX-PARTE ORDER DISMISSED THE APPEAL FILED BY TH E ASSESSEE. 4. AGGRIEVED WITH SUCH ORDER OF THE LEARNED CIT(A) , THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. I HAVE HEARD THE LEARNED DR AND PERUSED THE REC ORD. IT IS AN ADMITTED FACT THAT DUE TO NON-APPEARANCE B EFORE THE LEARNED CIT(A) DESPITE THREE STATUTORY NOTICES ISSU ED BY HIS OFFICE, THE LEARNED CIT(A) DISMISSED THE APPEAL FIL ED BY THE ASSESSEE FOR WANT OF PROSECUTION. HOWEVER, HE HAS NOT DECIDED THE ISSUE ON MERIT WHICH HE IS REQUIRED TO DO. AS PER PROVISIONS OF SECTION 250(6) OF THE I.T. ACT, 1961, THE ORDER OF THE LEARNED CIT(APPEALS) DISPOSING OF THE APPEAL SHALL BE IN WR ITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE DECIS ION THEREON 4 ITA NO.7690/DEL/2019 AND THE REASON FOR THE DECISION. HOWEVER, IN THE I NSTANT CASE, THE LEARNED CIT(A) HAS NOT DECIDED THE APPEAL ON ME RIT. CONSIDERING THE TOTALITY OF FACTS OF THE CASE AND I N THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTORE THE ISSUE T O THE FILE OF THE LEARNED CIT(A) WITH A DIRECTION TO GRANT ONE LAST O PPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE TH E ISSUE AS PER FACT AND LAW BY PASSING A SPEAKING ORDER ON MER IT. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE T HE LEARNED CIT(A) WITHOUT SEEKING ANY ADJOURNMENT UNDER ANY PR ETEXT FAILING WHICH THE LEARNED CIT(A) IS AT LIBERTY TO P ASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ABOVE DECISION WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF I.E. ON 23.08.2021. SD/- SD/- [KUL BHARAT] [R.K.PANDA] JUDICIAL MEMBER ACCOUNTANT MEMBER DELHI; DATED: 23/08/2021. F{X~{T? F{X~{T? F{X~{T? F{X~{T? FA FA FA FA P.S P.SP.S P.S 5 ITA NO.7690/DEL/2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI