Archit Securities Pvt. Ltd (Earlier known as Anirudh Overseas Pvt. Ltd.), New Delhi V. ITO, Ward-2(4), New Delhi

ITA 7998/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7517 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 17-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SURBHI GOYAL
• Keywords: Accommodation entries
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F+SMC, NEW DELHI BEFORE SH. R. K. PANDA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.7998/DEL/2018 ASSESSMENT YEAR: 2008-09 ARCHIT SECURITIES PVT. LTD. (EARLINER KNOWN AS ANIRUDH OVERSEAS PVT. LTD. 26 A, SADHNA ENCLAVE, NEW DELHI- 110017 PAN NO. AAACA7849J VS. ITO WARD- 2 (4) NEW DELHI (APPELLANT) (RESPONDENT) APPELLANT BY MS. SURBHI GOYAL, CA RESPONDENT BY SHRI PRADEEP SINGH GAUTAM, SR. DR DATE OF HEARING: 30/01/2020 DATE OF PRONOUNCEMENT: 30/01/2020 ORDER PER R.K PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER DATED 26.10.2018 OF THE CIT(A)-32, NEW DELHI RELATING TO A.Y.2008-09. 2. ALTHOUGH A NUMBER OF GROUNDS HAVE BEEN RAISED BY THE ASSESSEE, THESE ALL RELATE TO THE EXPARTE ORDER PAS SED BY THE CIT(A) CONFIRMING THE DETERMINATION OF INCOME OF RS.25,62, 362/- BY THE AO AS AGAINST THE RETURNED LOSS OF RS.292/-. PAGE | 2 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESS EE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 22.09.200 8 DETERMINING THE LOSS AT RS.292/-. THE CASE OF THE ASSESSEE WAS REOPENED U/S. 147 AFTER RECORDING REASONS AND NOTIC E U/S. 148 WAS ISSUED AND SERVED ON THE ASSESSEE. THE CASE WA S REOPENED ON THE BASIS OF INFORMATION RECEIVED FROM THE INVES TIGATION WING THAT THE ASSESSEE HAS TAKEN ACCOMMODATION ENTRY OF RS. 25 LACS FROM M/S. SINGHAL SECURITIES PVT. LTD., A BOGUS AND DUMB COMPANY FLOATED BY S. K. JAIN GROUP FOR FACILITATIN G ACCOMMODATION ENTRIES ON CHARGING COMMISSION FROM T HE PARTIES SEEKING SUCH ENTRIES. THE AO COMPLETED THE ASSESSM ENT U/S. 147/143 (3) ON 09.03.2016 WHEREIN HE MADE ADDITION OF RS. 25 LACS TAKEN BY THE ASSESSEE AS ACCOMMODATION ENTRY F ROM M/S. SINGHAL SECURITIES PVT. LTD., RS. 43,750/- FOR ARRA NGING SUCH ACCOMMODATION ENTRY AND FURTHER DISALLOWED AN AMOUN T OF RS.18,904/- U/S. 14A. 4. SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE DE SPITE SERVICE OF NOTICE THE LD. CIT(A) IN THE EXPARTE ORD ER PASSED BY HER DISMISSED THE APPEAL FILED BY THE ASSESSEE. 5. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASS ESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY B OTH THE SIDES, PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE FIND THE AO IN THE INSTANT CASE COMPLETED THE ASSESSMENT ON A TOTAL IN COME OF RS.25,62,362/- AS AGAINST THE RETURNED LOSS OF RS.2 92/-. WE FIND THE LD. CIT(A) IN THE EXPARTE ORDER PASSED BY HER S USTAINED THE PAGE | 3 VARIOUS ADDITIONS / DISALLOWANCES MADE BY THE AO. HOWEVER, SHE HAS NOT DECIDED THE ISSUE ON MERIT BY PASSING A SPE AKING ORDER. IT IS THE SUBMISSION OF THE LD. COUNSEL FOR THE ASS ESSEE THAT IN THE INTEREST OF JUSTICE THE ASSESSEE SHOULD BE GIVE N AN OPPORTUNITY TO SUBSTANTIATE ITS CASE SINCE ASSESSEE WAS NOT GIV EN ADEQUATE OPPORTUNITY. CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE WE DEEM IT PROPER TO RES TORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ON E FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CAS E AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALS O HEREBY DIRECTED TO APPEAR BEFORE THE CIT(A) ON THE APPOINT ED DAY WITHOUT SEEKING ANY ADJOURNMENT UNDER ANY PRETEXT FAILING W HICH THE LD. CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS P ER LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 30.01.2020. SD/- SD/- (SUCHITRA KAMBLE) (R.K PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA* DATE:-30.01.2020 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI PAGE | 4 DATE OF DICTATION 30.01.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 30.01.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 30.01.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 30.01.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 30.01.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 30.01.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 30.0 1.2020 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER