M/s Raj Structure Interiors Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 978/DEL/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0589 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 20-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Keywords: Opportunity of being heard; Rule 8D; Set aside
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER I.T.A. NO. 978/DEL/2017 ASSESSMENT YEAR: 2012-13 RAJ STRUCTURE INTERIORS VS. DCIT, CIRCLE 21(1), PRIVATE LIMITED, C.R. BUILDING, 141, POCKET A-4, KONARK I.P. ESTATE, APARTMENT, NEW DELHI KALKA JI EXTENSION, NEW DELHI 19 (PAN: AADCR0248R) (ASSESSEE) (RESPONDENT) ASSESSEE BY : SH. SAURAV ROHTAGI, ADV. REVENUE BY : SH. SURENDER PAL, SR. DR. ORDER PER H.S. SIDHU, JM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 09.1.2017 PASSED BY THE LD. CIT(A), NEW DELHI RELATING TO ASS ESSMENT YEAR 2012-13 ON THE FOLLOWING GROUNDS:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE, THE LD. CIT(A) ERRED IN LAW BY ME RELY DISMISSING THE APPEAL FOR DEFAULT IN ATTENDING THE HEARINGS MADE BY THE APPELLANTS REPRESENTATIVE. HENCE, THE APPELLATE ORDER IS LIABLE TO BE SET ASIDE FOR FRESH CONSIDERATION. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE, THE LD. CIT(A) ERRED BOTH IN FACT S AND IN LAW IN UPHOLDING THE ADDITION OF RS. 3,45,990/- AS MADE BY THE AO UNDER SECTION 14A OF THE ACT READ WITH RULE 8D OF INCOME TAX RULES ON ACCOUNT OF INVESTMENT MADE. 2 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE APPELLANTS CASE, THE LD. CIT(A) ERRED BOTH IN FACT S AND IN LAW IN UPHOLDING THE ADDITION OF RS. 27,35,264/- MA DE BY THE AO UNDER SECTION 36(1)(III) OF THE ACT. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR AL TER ANY OF THE GROUNDS OF APPEAL. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF BREVITY. 3. DURING THE HEARING, LD. COUNSEL FOR THE ASSESSEE HAS STATED THAT LD. CIT(A) HAS NOT GIVEN SUFFICIENT OPPORTUNITY TO THE ASSESSEE FOR SUBSTANTIATING THE CLAIM TO THE ASSESSEE AND PASSE D THE EXPARTE ORDER WITHOUT HEARING THE ASSESSEE. HENCE, HE REQUESTE D THAT THE ISSUES IN DISPUTE MAY BE REMITTED BACK TO THE FILE OF THE LD. CIT(A) TO DECIDE THE SAME AFRESH, AS PER LAW AFTER GIVING ADEQUATE OPPOR TUNITY OF BEING HEARD TO THE ASSESSEE. 4. ON THE CONTRARY, LD. DR DID NOT RAISE ANY SER IOUS OBJECTION ON THE REQUEST OF THE LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS, WE FIND THAT ASSESSEE REMAINED NON-COOPERATIVE BEFORE THE L D. CIT(A). KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE PRESE NT CASE AND IN THE INTEREST OF JUSTICE, THE ISSUES IN DISPUTE REQUIRES TO BE ADJUDICATED BY THE LD. CIT(A), AFRESH. THEREFORE, WE REMIT BACK THE IS SUES IN DISPUTE TO THE FILES OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) FOR HEARING ON 07.10.2019 AT 10.00 AM WITH THE DIRECTIONS TO DECIDE THE SAME AFRESH, AFTER GIVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IT IS MADE CLEAR THAT NO NOTICE FOR HEARING WILL BE ISSUE D BY THE LD. CIT(A). ASSESSEE IS ALSO DIRECTED THROUGH HIS COUNSEL TO AP PEAR BEFORE THE LD. CIT(A) ON 07.10.2019 AT 10.00 AM FOR HEARING TO SUBSTANTIATE HIS CASE AND DID NOT TAKE ANY UNNECESSARY ADJOURNMENT IN THE CASE. 3 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 17/09/2019. SD/- SD/- [O.P. KANT] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 17/09/2019 SRB COPY FORWARDED TO: - 1. APPELLANT - 2. RESPONDENT - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES