Garg Alloys Pvt. Ltd., New Delhi V. ITO, New Delhi

ITA 954/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86577 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-01-2015
• Assessment Year: 2000-2001
• Appeal Filed On: 15-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SATPAL SINGH
• Assessee Lawyers: A K SRIVASTAVA
• Keywords: Opportunity of being heard
• Section: 133(6); 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: G NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH. T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NO. - 954 /DEL/20 13 (ASSESSMENT YEAR - 2 000 - 01 ) GARG ALLOYS PVT. LTD., C/O - R.B.ARORA & CO., CA, 38/6, WEST PATEL NAGAR, NEW DELHI - 110008. PAN - AAACG0952G (APPELLANT) VS ITO, WARD - 12(1), NEW DELHI. (RESPONDENT) APPELLANT BY SH. A.K.SRIVASTAVA, CA RESPONDENT BY SH. SATPAL SINGH, SR. DR ORDER PER DIVA SINGH, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 12.12.2012 OF CIT(A) - VIII, NEW DELHI PERTAINING TO 2000 - 01 ASSESSMENT YEAR ON THE VARIOUS ISSUES. THE RECORD SHOWS THAT THE ASS ESSEE RETURNED AN INCOME OF RS.4238/ - BY FILING A RETURN ON 31.1 0.2000 WITH ITO, CO. WARD - 1(2), NEW DELHI AS PER THE ASSESSMENT ORDER DATED 14.12.2007 PASSED U/S 1 4 4 OF THE ACT. IN RESPONSE TO THE NOTICE ISSUED TO THE ASSESSEE, MR. M.M.BHASIN, CA APPEARED ALONGWITH LETTER DATED 12.12.2007 AND REQUESTED FOR REASONS FOR RE - OPENING THE ASSESSMENT . HE ALSO STATED THAT THE RETURN HAD BEEN FILED EVIDENCED BY ACKNOWLEDGEMENT NO. - 219 DATED 31.12.2000 . T HE AO WAS OF THE VIEW THAT THE CONCERNED PERSON WAS NOT AUTHORIZED TO SIGN THE RETURN OF INCOME. THE ASSESSMENT U/S 144 MAKING THE ADDITIONS OF RS.2 LA CS R ELYING UPON THE INFORMATION RECEIVED U/S 133(6) OF THE ACT WHICH WAS CALLED FOR FROM CITI BANK, CONNAUGHT PLACE, NEW DELHI . THE SAID INFORMATION REVEALED THAT THERE WAS A CREDIT OF RS.2 LACS IN THE ACCOUNT OF THE ASSESSEE ALLEGEDLY FROM M.CHAND DISTRIBUTION COMPANY PVT. LTD WHICH WAS TREATED AS A SHAM 2 I.T.A .NO. - 954 /DEL/20 1 3 TRANSACTION BY THE AO . AGAINST THIS ADDITION OF RS.2 LACS THE ASSESSEE CAME IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. APART FROM VARIOUS OTHER GRIEVANCES THE ASSESSEE SOUGHT TO FILE FRESH EVIDENCE IN SUPPORT OF ITS STAND BEFORE THE CIT(A) WHICH WAS NOT ADMITTED I N VIEW OF THE FACT THAT THE CIT(A) WAS OF THE VIEW THAT SUFFICIENT OPPORTUNITY HAD BEEN PROVIDED TO THE ASSESSEE DURING THE ASSESSMENT PROCEEDINGS. T HE RECORD SHOWS THAT IN THE STATEMENT OF FACTS FILED THE ASSESSEE HAS ALLEGE D THAT THE REASONS RECORDED HAVE NOT BEEN CONFRONTED TO THE ASSESSEE. IT IS ALSO FOUND MENTIONED THAT THE LETTER DATED 12.12.2007 BY HIS AR WRONGLY MENTIONED THE RETURN HAV ING BEE N FILED ON 31.12.2000 AND SHOULD BE TREATED AS HAVING BEEN FILED ON 31.10.2000. IT IS ALSO FOUND STATED THAT THE DOCUMENTS IN SUPPORT OF THE SHARE APPLICATION MONEY RECEIVED BY CHEQUE WERE PLACED BEFORE THE AUTHORITIES. ADVERSE INFERENCE S IT IS STATED HA VE BEEN D R A W N WITHOUT CONFRONTING THE ASSESSEE WITH THE SPECIFIC EVIDENCE USED AGAINST IT. CONSEQUENTLY IT IS SUBMITTED THAT THE OPPORTUNITY TO EXAMINE THE EVIDENCE AGAINST THE ASSESSEE AND THE OPPORTUNITY TO PLACE NECESSARY EVIDENCE IN SUPPORT OF ITS C LAIM HAVE BEEN DENIED. 2. WE HAVE HEARD THE PARTIES AND SEEN THE MATERIAL AVAILABLE ON RECORD. CONSIDERING THE GROUNDS AND THE LIMITED PLEA OF THE ASSESSEE THAT LET THE ISSUE GO BACK AND NECESSARY EVIDENCE TO BE TAKEN ON RECORD ALONGWITH PROVIDING ASSES SEE A COP Y OF THE REASONS RECORDED FOR RE - OPENING THE ASSESSMENT PROCEEDINGS WHICH REQUESTS WERE NOT O PPOSED BY THE SR. DR. MR. SATPAL SINGH. WE FIND THAT IN THE INTEREST S OF SUBSTANTIAL JUSTICE IT IS APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER AND THE AS SESSMENT ORDER AND RESTORE THE ISSUE BACK TO THE FILE THE AO WITH THE DIRECTION TO PROVIDE THE ASSESSEE A COPY OF THE REASONS RECORDED FOR R E OPENING THE ASSESSMENT AND ALSO DIRECT THE AO TO TAKE ON RECORD THE EVIDENCE WHICH THE ASSESSEE MAY CHOSE TO RELY ON IN SUPPORT OF ITS CLAIM . IN THE LIGHT OF THE ABOVE DIRECTIONS THE AO NECESSARILY GRANTING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD SHALL DECIDE THE ISSUES IN ACCORDANCE WITH LAW DE NOVO BY WAY OF A SPEA KING ORDER . 3 I.T.A .NO. - 954 /DEL/20 1 3 3. IN THE RESULT THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THE SAID ORDER WAS PRONOUNCED IN THE OPEN COURT ON 0 9 T H OF JANUARY 2015 AT THE TIME OF HEARING ITSELF. S D / - S D / - ( T.S.KAPOOR ) (DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 9 / 01/2015 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI