Archit Securities P.Ltd, New Delhi V. ITO, Ward-2(4), New Delhi

ITA 7997/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5110 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 17-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: SUBHI GOYAL
• Section: 271(1)(c); 147; 148; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO.7997/DEL/2018 ASSESSMENT YEAR: 2005-06 ARCHIT SECURITIES P. LTD., 26A, SADHNA ENCLAVE, NEW DELHI. PAN: AAACA7849J VS. ITO, WARD-2(4), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VED JAIN, ADVOCATE & MS SUBHI GOYAL, CA REVENUE BY : SHRI S.L. ANURAGI, SR. DR DATE OF HEARING : 07.05.2019 DATE OF PRONOUNCEMENT : 13.05.2019 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE EX PARTE ORDER DATED 13 TH APRIL, 2016 PASSED BY THE CIT(A)-32, NEW DELHI, REL ATING TO ASSESSMENT YEAR 2005- 06. 2. LEVY OF PENALTY OF RS.44,82,582/- U/S 271(1)(C) OF THE IT ACT BY THE ASSESSING OFFICER WHICH HAS BEEN UPHELD BY THE CIT(A) IS THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE FILED ITS RETURN OF INCOME ON 29 TH OCTOBER, 2005 DECLARING THE TOTAL INCOME OF RS.3,24 ,055/-. ON THE BASIS OF THE ITA NO.7997/DEL/2018 2 INFORMATION RECEIVED FROM THE INVESTIGATION WING OF THE DEPARTMENT THAT THE ASSESSEE COMPANY HAS MADE TRANSACTIONS WITH M/S TARUN GOEL & ASSOCIATES GROUP COMPANIES/FIRMS WHICH WAS DETECTED DURING THE SEARC H PROCEEDINGS U/S 132 AND IT WAS NOTED THAT THE GROUP WAS PROVIDING ACCOMMODATION EN TRIES IN THE SHAPE OF SHARE CAPITAL/SHARE PREMIUM, THE CASE OF THE ASSESSEE WAS REOPENED U/S 147 AND NOTICE U/S 148 WAS ISSUED. THE ASSESSING OFFICER COMPLETED TH E ASSESSMENT U/S 143(3)/148 ON 15 TH MARCH, 2013 DETERMINING THE TOTAL INCOME AT RS.1,2 5,74,055/- WHEREIN HE MADE AN ADDITION OF RS.1,22,50,000/-. SUBSEQUENTLY, THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE IT ACT. REJECTING THE VARIOUS EXPLANATIONS GIVEN BY THE ASSESSEE THE ASSESSING OFFICER LEVIED PENALTY O F RS.44,82,582/- U/S 271(1)(C) OF THE IT ACT. SINCE NONE APPEARED ON BEHALF OF THE A SSESSEE, THE CIT(A), IN THE EX PARTE ORDER PASSED BY HER, DISMISSED THE APPEAL FOR NON-P ROSECUTION. 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING VARIOUS GROUNDS. 5. I HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH TH E SIDES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. IT IS AN ADMITTED FACT TH AT DUE TO NON-APPEARANCE, THE LD.CIT(A), RELYING ON THE DECISION OF THE TRIBUNAL IN THE CASE OF CIT VS. MULTIPLAN INDIA LTD. REPORTED IN 38 ITD 320 (DEL), THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. B.N. BHATTACHARYA REPORTED IN 118 ITR 461 ( SC) AND VARIOUS OTHER DECISIONS, DISMISSED THE APPEAL FOR NON-PROSE CUTION. HOWEVER, SHE HAS NOT DECIDED THE APPEAL ON MERIT. CONSIDERING THE TOTAL ITY OF THE FACTS OF THE CASE AND IN ITA NO.7997/DEL/2018 3 THE INTEREST OF JUSTICE, I DEEM IT PROPER TO RESTOR E THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSES SEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) AND EXPLAIN ITS CASE FAILI NG WHICH THE CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. I HOLD AND DIRE CT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE S. 6. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 1 3.05.2019. SD/- (R.K. PANDA) ACCOUNTANT MEMBER DATED: MAY, 2019 DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI