M/s. Whitefields International (P) Ltd., New Delhi V. ACIT, New Delhi

ITA 850/DEL/2016

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5247 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: H
• Assessment Year: 2009-2010
• Appeal Filed On: 18-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAGDISH SINGH
• Section: 13; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI H.S.SIDHU, JUDICIAL MEMBER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.-850/DEL/2016, A.Y. 2009-10 WHITEFIELDS INTERNATIONAL (P) LTD. D-5/5, VASANT VIHAR NEW DELHI PAN : AAACW2721M VS . A CIT CENTRAL CIRCLE-27(1) NEW DELHI APPELLANT RESPONDENT ASSESSEE BY : NONE REVENUE BY : SH. JAGDISH SINGH, SR. DR ORDER PER ANADEE NATH MISSHRA, A.M.: (A) THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED APPELLATE ORDER DATED 18.11.20 15 PASSED BY LEARNED COMMISSIONER OF INCOME TAX (APPEA LS)- 22, NEW DELHI [IN SHORT, LD. CIT(A)] PERTAINING TO ASSESSMENT YEAR 2009-10. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL :- 1) THE ADDITION OF RS. 81,75,000/- ON ACCOUNT OF UNEXPLAINED SHARE APPLICATION MONEY MADE TO THE RETURNED INCOME BY THE LD. ASSESSING AUTHORITY U/S 68 OF THE ACT IS BASED ON SURMISE AND CONJUNCTURES AND IS ARBITRARY, AGAINST THE FACTS AND BAD AT LAW. 2 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 2) THE ADDITION OF RS. 1,87,20,000/- ON ACCOUNT OF INCREASE IN UNSECURED LOAN MADE TO THE RETURNED INCOME BY THE LD. ASSESSING AUTHORITY U/S 68 OF THE ACT IS BASED ON SURMISE AND CONJUNCTURES AND IS ARBITRARY, AGAINST THE FACTS AND BAD AT LAW. 3) THE DISALLOWANCE OF RS. 1,25,100/- MADE BY THE LD. ASSESSING AUTHORITY ON ACCOUNT OF PAYMENT OF BONUS CONTENDING SUCH SUM WAS OTHERWISE PAYABLE AS PROFITS OR DIVIDENDS IS ARBITRARY, AGAINST THE FACT S AND BAD AT LAW. 4) THE DISALLOWANCE OF RS. 90,49,493/- MADE BY THE LD. ASSESSING AUTHORITY ON ACCOUNT OF EXPENSES CLAIMED BY THE ASSESSEE UNDER THE VARIOUS HEADS IS BASED ON SURMISE AND CONJUNCTURES AND IS ARBITRARY, AGAINST THE FACTS AND BAD AT LAW. 5) THE APPELLANT CRAVES LEAVE TO ADD, TO AMEND, TO ALTER, TO SUBSTITUTE OR WITHDRAW ANY OF THE GROUNDS OF THE APPEAL ON OR BEFORE THE DATE OF DISPOSAL OF THE APPEAL. 6) THE ORDER IS AGAINST THE LAW AND FACTS OF THE CASE. (B) THIS APPEAL WAS FILED ON 18/02/2016; WHEREAS IMPUGNED ORDER OF LD. CIT(A) WAS COMMUNICATED TO TH E ASSESSEE ON 07/12/2015. THUS, THIS APPEAL IS BARRED BY LIMITATION HAVING REGARD TO TIME LIMIT PRESCRIBED U /S 253(3) OF I.T. ACT. VIDE LETTER DATED 16/02/2016 OF M/S. N ATH AHUJA & CO., CHARTERED ACCOUNTANTS AND AFFIDAVIT OF MR. S ANJEEV ARORA, CHARTERED ACCOUNTANT, THE DELAY IN FILING OF THE APPEAL HAS BEEN SOUGHT ON THE GROUND THAT AFORESAID MR. SANJEEV ARORA (TO WHOM TASK FOR PREPARING AND SUBMI SSION OF APPEAL WAS ENTRUSTED) WAS OUT OF TOWN DUE TO SOM E PERSONAL PROBLEMS/REASONS. HOWEVER, ON PERUSAL OF R ECORDS, WE FIND THAT THERE IS NO AUTHORIZATION BY ASSESSEE, APPOINTING EITHER AFORESAID M/S. NATH AHUJA & CO. O R AFORESAID MR. SANJAY ARORA TO ACT OR STATE ON BEHAL F OF THE 3 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) ASSESSEE FOR THE PURPOSES OF APPELLATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL. THEREFORE, WE DECLIN E TO TAKE COGNIZANCE OF THE AFORESAID LETTER OF M/S. NATH AHU JA & CO. AND AFFIDAVIT OF MR. SANJAY ARORA. ACCORDINGLY, THI S APPEAL IS DISMISSED IN LIMINE, BEING BARRED BY LIMITATION HAV ING REGARD TO PROVISIONS OF S. 253(3) OF I.T.ACT. (C) HOWEVER, WE HAVE CONSIDERED THE DISPUTED ISSUE S IN THIS APPEAL, ON MERITS TOO. THE RELEVANT PORTION OF THE ASSESSMENT ORDER DATED 27/12/2011 IS REPRODUCED AS UNDER :- 4 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 5 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 6 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 7 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 8 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) (D) ON MERITS, THE RELEVANT PORTION OF THE AFORES AID IMPUGNED APPELLATE ORDER DATED 18/11/2015 OF THE LD . CIT(A) IS REPRODUCED AS UNDER :- 9 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 10 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 11 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 12 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 13 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 14 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) (E) AT THE TIME OF HEARING, REVENUE WAS REPRESENTE D BY SHRI JAGDISH SINGH, SENIOR DEPARTMENTAL REPRESENTAT IVE (LD. SR. DR, FOR SHORT). HOWEVER, NONE WAS PRESEN T FROM THE ASSESSEES SIDE. IN THE ABSENCE OF ANY REPRESEN TATION FROM ASSESSEES SIDE, AT THE TIME OF HEARING BEFORE US, WE HEARD THE LD. SR. DR; WHO RELIED UPON THE ASSESSMEN T ORDER DATED 27/12/2011 OF ASSESSING OFFICER; UNDER SECT ION 143(3)/144 OF THE I.T.ACT AND THE AFORESAID IMPUGNE D APPELLATE ORDER DATED 18.11.2015 OF THE LD. CIT(A) . AFTER PERUSAL OF THE MATERIALS ON RECORD ; WE FIND THAT T HE LD. CIT(A) HAS PASSED SPEAKING ORDER ON MERITS. RELEVAN T PORTION OF THE IMPUGNED ORDER OF THE LD. CIT(A) HAS ALREADY BEEN REPRODUCED IN FOREGOING PARAGRAPH (D OF THIS O RDER. WE FIND THAT THE LD. CIT(A) HAS GIVEN DETAILED REASONS FOR HIS DECISION ON MERITS IN THE AFORESAID IMPUGNED APPELL ATE ORDER DATED 18.11.2015 OF LD. CIT(A). DURING APPELL ATE PROCEEDINGS IN INCOME TAX APPELLATE TRIBUNAL (ITAT , FOR SHORT) NO MATERIAL HAS BEEN BROUGHT FOR OUR CONSIDE RATION TO PERSUADE US TO TAKE A VIEW DIFFERENT FROM THE VIEW TAKEN BY 15 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) THE LD. CIT(A) IN THE IMPUGNED ORDER ON MERIT. AFTE R HEARING THE LD. SR. DR, AND AFTER PERUSAL OF MATERIALS ON R ECORD, AND FURTHER, IN VIEW OF THE FOREGOING DISCUSSION, WE DE CLINE TO INTERFERE WITH THE AFORESAID IMPUGNED APPELLATE ORD ER DATED 18.11.2015 OF LD. CIT(A), AND ACCORDINGLY, THIS APP EAL IS DISMISSED. (F) IN VIEW OF THE FOREGOING; THIS APPEAL IS DISMI SSED BEING BARRED BY LIMITATION; AND ALSO ON MERITS. BEFORE WE PART; WE EXPLICITLY CLARIFY THAT THE ASSESEE WILL BE AT LIBE RTY TO APPROACH ITAT FOR RESTORATION OF THE APPEAL IN ACCO RDANCE WITH PROVISO TO RULE 24 OF INCOME TAX (APPELLATE TR IBUNAL), RULES, 1963. IF THE ASSESSEE DOES APPROACH ITAT FOR RESTORATION OF THE APPEALS IN ITAT, THE MATTER WILL BE CONSIDERED IN ACCORDANCE WITH LAW HAVING REGARD TO THE FACTS AND CIRCUMSTANCES. (G) IN THE RESULT, APPEAL FILED BY ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20/02/20. SD/- SD/- (H.S.SIDHU) (ANADEE N ATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 20/02/20 *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 16 ITA NO. 850/DEL/2016 (WHITEFIELDS INTERNATIONAL (P.) LTD.) 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 17.02.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.02.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER