Star Real Infra LLP, New Delhi V. ITO WARD - 36(4), New Delhi

ITA 901/DEL/2020

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9127 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 24-10-2022
• Assessment Year: 2010-2011
• Appeal Filed On: 24-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER & SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. No.901/DEL/2020 Assessment Year 2010-11 Star Real Infra LLP G-3/39, Model Town, New Delhi. Vs. ITO, Ward-36(4), New Delhi. TAN/PAN: ADDFS8553N (Appellant) (Respondent) Appellant by: None Respondent by: Shri Abhishek Kumar, Sr.DR Date of hearing: 25 10 2022 Date of pronouncement: 02 11 2022 O R D E R PER SHAMIM YAHYA, A.M. Th is ap p eal b y th e Assessee i s d irec t ed ag ain st th e o rd er o f th e Co mmiss io n er o f In co me Tax (Ap p eals)-XII, New Delh i (‘CIT(A)’ in sh o rt) d at ed 2 6 .1 1 .2 01 8 p ertain in g to Assessmen t Year 2 0 1 0 -1 1 . 2 . Gro un d s o f ap p eal read as u n d er: “ 1 . T h a t T h e L d . CI T ( A )- 1 2 Ne w D e l h i h a s e rr e d i n l a w & o n f a c t s i n n o t a f f o rd i n g a n y o p p o r t u n i t y a t a l l t o t he a p p e l l a n t a n d d e c i d e d t h e A s s e e s e e A p p e a l e x - p a r t e a g a i n st t h e pri n c i p a l o f n a t u r a l j u st i c e a n d H e n c e h i s o r d e r i s n o n - e s t i n la w. 2 . T h a t t h e L D CI T ( A )- 1 2 , N e w D e l h i h a s e r re d i n l a w o n f a c t s a n d p a s se d t h e o rd e r wi t h o u t e v e n s e r v i n g o n e No t i c e o f h e a r i n g t o A s s e ss e e t h e o rd e r i s a g a i n st t h e b a s i c p ri n c i p l e s o f I.T.A. No.901/Del/2020 2 Na t u ra l J u st i c e . 3 . T h a t t h e L d CI T ( A ) h a s n o t se r v e d e v e n h i s o rd er o n A s se s s e e . I t w a s j u s t c h e c k i n g o n st a t u s o f a p p e a l b y A ss e s se e ’ s c o u n se l wh e n i t wa s i n f o r m e d t o u s t h a t o rd e r o f t he L d . CI T (A ) h a s si n c e p a ss e d a n d a c c o rd i n g l y i t wa s d o wn l o a d e d a n d a p p e a l i s f i l e d h e r e wi t h b e f o re t h i s H o n ’ b l e I T A T . T h e a c ts o f t h e L d . CI T - (A ) i s w h o l l y a rb i t ra r y a n d p u re l y b a se d o n t h e su s p i c i o n a n d c o n j e c t u r e a n d h i s o r d e r i s l i a b l e t o b e q u a s h ed / A n n u l l e d . 4 . T h a t t h e L d CI T (A ) h a s n o t d e a l t w i t h A s se s s e e ’s g r o u n d o f a p p e a l o f R e - o p e n i n g o f c a s e u / s 1 4 7 / 1 4 8 o f I . T . A c t . T h e e n t i r e o r d e r i s p a s se d i n t o t a l d i s r e g a r d o f a l l p ri n c i p a l s o f Na t u re J u st i c e , J u ri sp r u d e n c e a n d n o n a p p l i c a t i o n of J u d i c i o u s m i n d a n d p u re l y b a se d o n i l l e g a l i t y c o u p l e d wi t h a rb i t r a r i n e s s su s p i c i o n a n d c o n j e c t u r e s. 5 . T h e L d CI T (A ) h a s e r r e d i n l a w a n d a n f a c t s w h il e u p h o l d i n g t h e r e o p e n i n g o f c a se u / s 1 4 8 o f I . T . A c t. T h e N o t i c e u / s 1 4 7 / 1 4 8 o f I . T . A c t wa s n e v e r se r v e d o n t h e A s se s s e e a n d I t i s t i m e b a r re d , M o r e o v e r R e a so n s o f R e - o p e n i n g w e r e a l so v a g u e a n d w i t h o u t a n y b a s i c s a n d e v e n o rd e r u p h e l d u / s 1 43 (3 )/ 1 4 8 A c t f o r u p h o l d i n g R e - o p e n i n g i s a l so b a r r e d b y t i m e . 6 . T h a t T h e L d CI T ( A ) Ne w D e l h i h a s e r r e d i n l a w & o n f a c t s i n u p h o l d i n g t h e a d d i t i o n i n m a k i n g a d d i t i o n o f R s 2 , 2 8 , 5 0 , 0 0 0 / - t o t h e i n c o m e o f A s s e s s e e o n a c c o u n t o f a l l e g e d u n e x p l a i n e d i n c re a s e i n c a p i t a l , d i s re g a r d i n g e v e n t h e m a t e ri a l p l a c e d o n r e c o rd b e f o re t h e L d . A . O . d u ri n g t h e A s se s sm e n t p r o c e e d i n g s t h e re f o re t h e e n t i r e a d d i t i o n i s b a d i n l a w a n d i s l i a b l e t o b e d e l e t e d . 7 . T h a t t h e L d . CI T ( A ) h a s e r r e d i n l a w & o n f a c t s wh i l e u p h o l d i n g a n a d d i t i o n o f R s . 1 0 , 0 0 , 0 0 0 / - o n a c c o u n t o f a l l e g e d I.T.A. No.901/Del/2020 3 u n e x p l a i n e d u n se c u re d l o a n s re c e i v e d d u ri n g t h e y e ar f r o m c o n f i rm e d s o u r c e s , t h e r e f o r e t h e a d d i t i o n i s b a d i n l a w a n d i s l i a b l e t o b e d e l e t e d . M o re o v e r T h a t t h e L d . CI T (A ) u p h e l d t h e a c t o f T h e L d A O w h o h a s i g n o r e d / r e j e c t e d e v e n t h e c o n f i rm a t i o n f i l e d f ro m t h e l e n d e r s wi t h o u t e x a m i n in g t h e sa m e a n d t h e L d CI T (A ) a l so d i d n o t t h e a p p re c i a t e e v e n t h e m a t e ri a l o n r e c o rd . 8 . T h a t t h e L d . CI T h a s e r r e d i n l a w & o n f a c t s w hi l e u p h o l d i n g a n g r o s s e st i m a t e d a d d i t i o n o f R s. 1 , 7 7 , 96 1 / - , o n a c c o u n t o f n o t i o n a l d e e m e d i n t e r e st o n a d v a n c e s @ 12 % P A f o r p e ri o d o f so m e d a y s, i n h i s e x - p a rt e o rd e r T h e re f o re u p h o l d i n g t h e a d d i t i o n i s a r b i t r a ry a n d p u r e l y b a se d o n s u sp ic i o n a n d c o n j e c t u r e s. T h e m a t e ri a l / c o n f i r m a t i o n p l a c e d o n r ec o rd f r o m re s p e c t i v e p a rt y wa s i g n o r e d / r e j e c t e d wi t h o u t a n y co g e n t re a so n s o r e v e n a c k n o wl e d g i n g . 9 . T h a t t h e L d . CI T h a s e r r e d i n l a w & o n f a c t s w hi l e u p h o l d i n g a n g ro s s e s t i m a t e d a d d i t i o n o f R s. 3 , 5 7 , 75 0 / - o n a c c o u n t o f n o t i o n a l Co m m i ss i o n p a i d @ 1 . 5 0 % o n 2 , 3 8, 5 0 , 0 0 0 / - , p u re l y o n h i s p r e su m p t i o n s i n e x - p a r t e o r d e r t h e r e fo re t h e a d d i t i o n i s b a d i n l a w i s l i a b l e t o b e d e l e t e d . 1 0 . T h a t y o u r a p p e l l a n t C ra v e l e a v e t o a d d , a m e n d al l o r a n y o f a b o v e g r o u n d s o f a p p e a l a t t h e t i m e o f h e a ri n g . ” 3 . Th e b rief fac ts o f th e case are th at i n th e assess men t o rd er fra med u n d er Sectio n 1 43 (3) r.w. Sectio n 1 4 7 o f th e IT Act, th e Assessin g Officer mad e v ario u s ad d itio n s an d th e total in co me assessed ca me to R s.2 ,4 3 ,8 5 ,7 1 1 /-. 4 . Ag ain st th is o rd er assessee ap p eal ed b efo re th e ld . CIT(A). Th e ld . CIT(A) n o ted th at sev eral n o ti ces were s en t to th e asses see I.T.A. No.901/Del/2020 4 an d n o co mp lian ce was mad e . Th e ld . CIT(A) d id n o t sp eci fy th e mo d e b y wh ich the n o tices were sen t. Th ereafter o n th e v ario u s issu es h e co n fir med th e o rd er of th e Assess in g Officer b y referrin g to Assess in g Offic er’s o b serv atio n u p o n th em. 5 . Ag ain st th is o rd er, th e assess ee fi led ap p eal b efo re u s. Sev eral n o ti ces h a v e b een sen t b u t n o n e h as ap p eared on b eh alf o f th e ass essee . Hen c e, we are d e cid in g th e issu e b y heari n g th e ld . DR an d p eru sin g th e reco rd s. Th e no tices sen t h as als o retu rned u n serv ed . Amo ng th e v ario u s g ro u nd s raised in th e gro un d s o f ap p eal b e fo re u s, o n e g rou nd is th a t p ro p er op p ortun ity h as n o t b een g iv en b y th e ld . CIT(A). Up o n g o in g th rou g h the ld . CIT(A) o rd er, we fin d th at th e ld . CIT(A) h as men tio n ed tha t n o tic es were sen t b u t th e assessee d id n o t co mp ly . Howev er, th e assessee h as d isp u ted th e same an d h as p lead ed th at n o t ev en on e n o tice h as b een serv ed u p on th e a ssess ee. In o u r co n sid ered opin io n , th e in teres t o f ju st ice will b e serv ed if t h e issu e is remit te d to th e file o f th e ld . CIT(A). Hen ce, th e issu e is remi tted to th e fi le o f th e CIT(A). Th e ld . C IT(A) is d irect ed to co n sid er th e is su e afresh after g iv in g th e as s essee o p p o rtun ity o f b ein g h eard . 6 . In th e resu lt, th e ap p eal o f th e a sse ssee st an d s allo we d fo r sta tis ti ca l p u rp o ses. Order pronounced in the open Court on 02/11/2022. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02/11/2022 Prabhat