Wellisen Nutraceuticals Private Limited, Pune V. ACIT Circle-27(2), New Delhi

ITA 778/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7971 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2016-2017
• Appeal Filed On: 12-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: GAURAV GUPTA
• Keywords: Depreciation; Principle of natural justice; Bogus

Judgement Text

1 ITA NO. 778/DEL/2020 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT ME MBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 778/DEL/202 0 (A.Y 2016-17) (THROUGH VIDEO CON FERENCING) WELLISEN NUTRACEUTICALS PVT. LTD. 401A, 4 TH FLOOR, AMAR SYNERGY SADHU VASWANI CHOWK, PUNE, MAHARASHTRA AACCV3730F (APPELLANT) VS ACIT CIRCLE-27(2) NEW DELHI (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDERS DATED 28/12/2018 PASSED BY ACIT, CIRCLE 27(2), NEW DELHI FOR ASSE SSMENT YEAR 2016-17. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. IN LAW AND ON THE FACTS & CIRCUMSTANCES OF THE ASS ESSEES CASE, THE IMPUGNED ORDER U/S.250 IS BAD IN LAW, INASMUCH IT I S PASSED EXPARTE. 2. IN LAW AND ON THE FACTS & CIRCUMSTANCES OF THE ASS ESSEES CASE, THE LD. CIT(A) HAS ERRED IN UPHOLDING THE ADDITION OF RS.2, 55,54,231 MADE BY THE AO ON ACCOUNT OF GOODWILL WHICH WAS HELD BY THE AO TO BE BOGUS. 2.1 BOTH, THE AO AND THE LD.CIT(A) HAVE FAILED TO ESTA BLISH AS TO HOW THE GOODWILL WAS BOGUS AND FURTHER HAS FAILED TO AP PRECIATE THAT SUCH GOODWILL WAS NOT CLAIMED IN THE RETURN BY WAY OF DE DUCTION, AND HENCE, THE ADDITION WAS NOT JUSTIFIED. APPELLANT BY SH. GAURAV GUPTA, ADV RESPONDENT BY SH. MAHESH THAKUR, SR. DR DATE OF HEARING 30.03.2021 DATE OF PRONOUNCEMENT 30.03.2021 2 ITA NO. 778/DEL/2020 2.2 HAVING REGARD TO THE FACTS & CIRCUMSTANCES OF THE A PPELLANT'S CASE, THE ADDITION OF RS.2,55,54,231 SO MADE MAY PLEASE B E DELETED. 3. IN LAW AND ON THE FACTS & CIRCUMSTANCES OF THE ASSE SSEES CASE, THE LD.CIT(A) HAS ERRED IN UPHOLDING THE ADDITION OF RS .8,79,736 MADE BY THE AO ON ACCOUNT OF DISALLOWANCE OF CLAIM FOR DEPRECIATIO N ON GOODWILL. 3.1. HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE ASSESSEES CASE THE ADDITION OF RS. 8,79,736/0 SO MADE MAY PLEASE BE DELETED. 3. THE ASSESSEE FILED RETURN OF INCOME ON 5/10/2016 DECLARING LOSS OF RS. 84,17,018/-. THE ASSESSING OFFICER PASSED ASSESSMEN T ORDER DATED 28/12/2018 DETERMINING TOTAL INCOME AT RS. 1,80,16, 950/- AFTER MAKING ADDITIONS ON ACCOUNT OF GOOD WILL AND ADDITION ON A CCOUNT OF DISALLOWANCE OF DEPRECIATION. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE AS SESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. THE LD. AR SUBMITTED THAT THE CIT(A) HAS ELECTRO NICALLY E-MAILED THE NOTICE OF HEARING TO ONE OF THE EX-EMPLOYEES AND TH E NOTICES WERE NOT PROPERLY SERVED UPON THE ASSESSEE. THE LD. AR SUBMITTED THAT THE CIT(A) HAS PASSED EX- PARTE ORDER AND IT MAY BE APPROPRIATE TO REMAND BAC K THIS APPEAL TO THE FILE OF THE CIT(A) FOR PROPER ADJUDICATION OF THE GROUND ON MERITS AFTER HEARING THE ASSESSEE. 6. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A). 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT THE CIT(A) HA S NOT GRANTED PROPER OPPORTUNITY TO THE ASSESSEE FOR GIVING AN ELABORATE HEARING. THEREFORE, IT WILL BE APPROPRIATE TO REMAND BACK ALL THE ISSUES TO THE FI LE OF THE CIT(A) FOR PROPER ADJUDICATION OF ALL THE GROUNDS IN DETAIL AFTER GIV ING OPPORTUNITY OF HEARING TO THE ASSESSEE. NEEDLESS TO SAY, THE ASSESSEE BE GIV EN OPPORTUNITY OF HEARING BY 3 ITA NO. 778/DEL/2020 FOLLOWING PRINCIPLES OF NATURAL JUSTICE. THE APPEA L OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. 8. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT IN PRESENCE OF B OTH THE PARTIES ON THIS 30TH DAY OF MARCH, 2021. SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 30/03/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 4 ITA NO. 778/DEL/2020