Bluechip Construction Co. Pvt. Ltd., V. DCIT, Circle-3(1),

ITSSA 136/DEL/2003

• Counselvise Citation: [2010] 124 COUNSELVISE.COM (IT) 8805 (ITAT-DELHI)
• Duration Of Justice: 7 year(s) 7 month(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 22-11-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 22-11-2010
• Assessment Year: misc
• Appeal Filed On: 22-04-2003
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJNI KANT GUPTA
• Keywords: Opportunity of being heard; Question of law; Block assessment

Judgement Text

IT(SS)A. NO. 136/DEL/2003 BLOCK ASSTT. 1986-87 TO 14.9.1995 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.(SS)A. NO. 136/DEL/2003 BLOCK ASSTT. 1986-87 TO 14.9.1995 M/S BLUECHIP CONSTRUCTION CO. PVT. LTD., G-13, SAKET, NEW DELHI (PAN: AAACB1116F) VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(1), NEW DELHI (APPELLANT ) (RESPONDENT ) ASSEESSEE BY : SH. SALIL AGGARWAL, ADVOCATE DEPARTMENT BY : SHRI RAJNI KANT GUPTA, C.I.T.(D.R.) ORDER PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(1), NEW DELH I DATED 31.3.2003 PERTAINING TO BLOCK ASSESSMENT 1986-87 TO 14.9.95. 2. THE TRIBUNAL HAS ALREADY BEEN PASSED AN ORDER IN THIS CASE AND THE SAME HAS TRAVELLED IN THE HONBLE HIGH COURT IN ITA NO. 1169 OF 2005. VIDE ORDER DATED 25.10.2007 THE HONBLE HIG H COURT HAD REMITTED ONE OF THE MATTERS TO THE TRIBUNAL. THE REL EVANT PORTION READS AS UNDER:- (II) AN AMOUNT OF ` 4,95,045/- HAS BEEN ADDED TO TH E INCOME OF THE ASSESSEE BEING COMMISSION RECEIVED BY IT THROUGH ITS DIRECTOR P.K. DANG. THE SUBSTANTIAL QUESTION OF LAW T HAT HAS ARISEN IN THIS REGARD IS : WHETHER THE INCOME TAX A PPELLATE TRIBUNAL WAS CORRECT IN LAW IN DELETING THE ADDITIO N OF IT(SS)A. NO. 136/DEL/2003 BLOCK ASSTT. 1986-87 TO 14.9.1995 2 ` 4,95,045/- ON THE GROUND THAT THE ASSESSMENT ON THIS AMOUNT TO A DOUBLE ASSESSMENT IN THE HANDS OF THE ASSESSEE? LD. COUNSEL FOR THE ASSESSEE FAIRLY STATES THA T THE VIEW EXPRESSED BY THE TRIBUNAL IN THIS REGARD IS N OT TENABLE AND THERE WAS NO QUESTION OF ANY DOUBLE ASSESSMENT OF THIS AMOUNT. HE FRANKLY SUBMITS THAT THIS AMOUNT IS LIABL E TO BE TAXED IN THE HANDS OF THE ASSESSEE AFTER EXCLUDING THE EXPENDITURE OF ` 1,74,911/-. WE FIND FROM A PERUSAL OF THE ORDER OF THE TRIBUNA L THAT THERE IS NO FINDING GIVEN BY IT WHERE THE ASSESSEE HAD IN FACT INCURRED THE EXPENDITURE OF ` 1,74,911/- AND, THEREFORE, WE THINK IT IS APPROPRIATE IF THE MATTER TO THIS EXT ENT IS REMANDED TO THE FILE OF THE TRIBUNAL TO DETERMINE WHE THER THE AMOUNT OF ` 4,95,045/- MINUS ` 1,74,911/- IS TO BE TAXED IN THE HANDS OF THE ASSESSEE. 3. ON THIS ASPECT OF THE REMAND, WE HAVE HEARD BOT H THE COUNSEL AND PERUSED THE RECORDS. LD. COUNSEL OF THE ASSE SSEE SUBMITTED THAT DETAILS OF EXPENDITURE OF ` 1,74,911/- ARE AVAILABL E AND THE MATTER MAY BE REMITTED TO THE FILES OF THE ASSESSING OFFICE R TO EXAMINE THE SAME. 3.1 LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAN D SUBMITTED THAT THE ASSESSEE HAS NOT PRODUCED NECESSARY EVIDEN CE REGARDING THE FACT THAT EXPENDITURE ON ` 174911/- WAS ACTUALLY IN CURRED. 3.2 WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS. IN OUR CONSIDERED OPINION, INTEREST OF JUSTICE WILL BE SERVED, IF THE MATTER IS REMITTED TO IT(SS)A. NO. 136/DEL/2003 BLOCK ASSTT. 1986-87 TO 14.9.1995 3 THE FILES OF THE ASSESSING OFFICER TO EXAMINE THE F ACT AS TO WHETHER ASSESSEE HAS IN FACT INCURRED EXPENDITURE OF ` 1749 11/- OR NOT. ACCORDINGLY, THIS ASPECT OF EXAMINATION IS REMITTED T O THE FILES OF THE ASSESSING OFFICER. NEEDLESS TO ADD THAT THE ASSESSE E SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22/11/2010 UP ON CONCLUSION OF HEARING. SD/- SD/- [A.D. JAIN] [SHAMIM YAHYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATE 22/11/2010 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES