The Nindana Rathee Co-Op L/C Society Ltd., Rohtak V. ITO, ward-3, Rohtak

ITA 969/DEL/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5880 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 04-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NAVEEN GUPTA
• Keywords: Opportunity of being heard

Judgement Text

ITA. 969/DEL/2020. IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH : SMC1 NEW DELHI ] BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER, S. M. C. ITA. NO. 969/DEL/2020 ASSESSMENT YEAR : 2015-16 (THROUGH VIDEO CONFERENCING) THE NINDANA RATHEE CO- OPERATIVE L/C SOCIETY LIMITED, C/O. DEVENDER SINGH, 39C/14, GALI NO. 2, KIRPAL NAGAR, NEAR SAINI COLLEGE, ROHTAK, PIN : AAAAN1274E (APPELLANT) VS. INCOME TAX OFFICER, WARD : 3, ROHTAK, HARYANA. (RESPONDENT) ASSESSEE BY : SHRI NAVEEN GUPTA, ADVOCATE; DEPARTMENT BY : SHRI R. K. GUPTA, SR. D.R.; O R D E R THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT (APPEALS), ROHTAK, DATED 7.01.2020 PERTAINING TO ASSESSMENT YEAR 2015-16. 2. THE GRIEVANCE OF THE ASSESSEE RELATES TO THE ADDITION OF RS.13,01,072 MADE BY THE ASSESSING OFFICER BY NOT ALLOWING DEDUCTION UNDER SECTION 80P(2)(VI) OF THE INCOME TAX ACT, 1961 (THE ACT). THE ASSESSEE IS FURTHER AGGRIEVED BY THE ADDITION OF RS.2,44,634/- MADE BY THE ASSESSING OFFICER BY MAKING AD-HOC DISALLOWANCE OF 1%. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME DECLARING NIL INCOME. THE RETURN WAS SELECTED SCRUTINY ASSESSMENT UNDER CASS AND ACCORDINGLY STATUTORY NOTICES WERE ISSUED AND SERVED UPON THE ASSESSEE. DATE OF HEARING 2 7 .0 4 .2021 DATE OF PRONOUNCEMENT 2 7 .0 4 .2021 ITA. 969/DEL/2020. 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTION 80P(2)(VI) OF THE ACT FOR WHICH THE ASSESSEE WAS ASKED TO EXPLAIN WHY THE SAME SHOULD NOT BE DENIED AS THE ASSESSEE HAS NOT FULFILLED THE CONDITIONS LAID DOWN IN THE SAID SECTION. ASSESSEE FURNISHED A DETAILED REPLY SUBSTANTIATING ITS CLAIM OF DEDUCTION WHICH DID NOT FIND ANY FAVOUR WITH THE ASSESSING OFFICER, WHO DENIED THE CLAIM OF DEDUCTION AND MADE THE ADDITION. THE ASSESSING OFFICER FURTHER DISALLOWED 1% OF TOTAL MATERIAL PURCHASED IN THE ABSENCE OF BILLS. 5. THE ASSESSEE STRONGLY AGITATED THE MATTER BEFORE THE CIT (APPEALS), BUT FOR SOME REASON COULD NOT ATTEND THE APPELLATE PROCEEDINGS AND THE CIT (APPEALS) DISMISSED THE APPEAL EX-PARTE. 6. IN MY CONSIDERED OPINION, THE CIT (APPEALS) OUGHT TO HAVE GIVEN A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE WHILE DISPOSING THE APPEAL EX-PARTE. I, THEREFORE, DEEM IT FIT TO RESTORE THE APPEAL TO THE FILE OF THE CIT (APPEALS) WITH A DIRECTION TO DECIDE THE APPEAL ON MERITS OF THE CASE AFRESH AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED, FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF APRIL, 2021. SD/- ( N. K. BILLAIYA ) ACCOUNTANT MEMBER DATED : 27/04/2021. *MEHTA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT ITA. 969/DEL/2020. 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 27.04.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 27.04.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 27.04.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 27.04.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 27.04.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 27.04.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 27.04.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 27.04.2021 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK