M/s. Global Capital Ltd., New Delhi V. ACIT, New Delhi

ITA 920/DEL/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0214 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 30-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 17-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAGAN SOOD
• Assessee Lawyers: MANU K GIRI
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO. - 920 /DEL/201 4 (ASSESSMENT YEAR - 200 6 - 07 ) GLOBAL CAPITAL LTD., 414/1, 4 TH FLOOR, DDA COMM. COMPLEX, DISTT.CENTER, JANAK PURI, NEW DELHI - 110058. PAN - AAACG3130E (APPELLANT) VS ACIT, CIRCLE - 12(1), NEW DELHI (RESPONDENT ) APPELLANT BY SH.MANU K.GIRI, ADV. RESPONDENT BY SH.GAGAN SOOD, SR.DR ORDER BY THE PRESENT APPEAL THE CORRECTNESS OF THE ORDER DATED 18.12.2013 OF CIT(A) - XV, NEW DELHI PERTAINING TO 2006 - 07 ASSESSMENT YEAR HAS BEEN ASSAILED ON THE GROUND THAT THE ADDITIONS IN THE QUANTUM APPEAL HAVE B EEN SET ASIDE BY THE ITAT VIDE ORDER DATED 11.09.2013. 2. A PERUSAL OF THE RECORD SHOWS THAT THE PENALTY WAS IMPOSED UPON THE ASSESSEE IN VIEW OF THE VARIATION MADE IN THE DECLARED LOSS OF THE ASSESSEE AS A RESULT OF ADDITIONS MADE U/S 14A BY THE AO. T HE PENALTY ORDER WAS CHALLENGED IN APPEAL BEFORE THE CIT(A) UNSUCCESSFULLY RESULTING IN FILING OF THE PRESENT APPEAL BY THE ASSESSEE . 3. THE LD. AR AT THE TIME OF HEARING INVITED ATTENTION TO GROUND NO. - 2 RAISED AND FILED COPY OF THE ORDER DATED 11.09.20 13 IN ITA NO. - 1448/DEL/2011 . RELYING ON THE SAME IT WAS STATED THAT THE IMPUGNED ORDER IN THE PENALTY PROCEEDINGS ALSO NEEDS TO BE RESTORED. REFERRING TO T H E ORDER PASSED BY THE CO - ORDINATE BENCH IN THE QUANTUM PROCEEDINGS IT WAS SUBMITTED THAT THE ISSUE WAS RESTORED FOR RE - CONSIDERATION BACK TO THE AO IN THE QUANTUM PROCEEDINGS WITH THE DIRECTION TO DECIDE IN THE LIGHT OF THE D ECISION OF THE JURISDICTIONAL DATE OF HEARING 30 .0 6 .2015 DATE OF PRONOUNCEMENT 22 .0 7 .2015 I.T.A .NO. - 92 0/ DEL/2014 PAGE 2 OF 2 HIGH COURT IN THE CASE OF MAXOPP INVESTMENT LTD. V S CIT [2012] 347 ITR 272 (DEL.). ACCO RDINGLY THE LD.AR MADE A PRAYER THAT SINCE THE QUANTUM ORDER STAND S RESTORED, THE PENALTY ORDER BASED ON THE SAME MAY ALSO BE SET ASIDE TO THE FILE OF THE AO WITH THE DIRECTION TO PASS THE SAME AFRESH. THE SAID PRAYER OF THE LD. AR WAS NOT OBJECTED TO BY THE LD. SR. DR, MR. GAGAN SOOD. 4 . HAVING HEARD THE RIVAL SUBMISSIONS AND CONSIDERED THE MATERIAL AVAILABLE ON RECORD, I AM OF THE VIEW THAT THE PRAYER OF THE LD. AR ON FACTS HAS TO BE ALLOWED. WHERE ADMITTEDLY THE QUANTUM ORDER STOOD VARIED IN THOSE FA CTS WHETHER PENALTY IS TO BE LEVIED OR NOT IS A DECISION TO BE MADE BY THE AO. CONSIDERING THE SAME, THE IMPUGNED ORDER IS SET ASIDE AND THE ISSUE IS RESTORED BACK TO THE FILE TO THE AO TO CONSIDER THE SAME AFRESH . THE AO WHILE DECIDING THE ISSUE AFRESH SHALL PASS A SPEAKING ORDER IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 2 N D OF JULY , 2015. S D / - (DIVA SINGH) JUDICIAL MEMBER DATED: 2 2 /07 /2015 * AMIT KUMAR * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI