M/S. HINDUSTAN SPORTS CLUB LTD.,NEW DELHI V. ITO, NEW DELHI

MA 2/DEL/2021

AI Insights

The case revolves around Hindustan Sports Club Limited, which filed a Miscellaneous Application against an earlier Tribunal order dismissing their appeal on merits. The application argued that the assessment order was passed before the scheduled hearing date, thus breaching the principles of natural justice. The Tribunal, however, found that the assessee had not complied with several statutory notices and had previously been given ample opportunity to present their case at various stages of the litigation, including before the CIT(A) and the Tribunal itself. The Tribunal emphasized that its powers under Section 254(2) are limited to rectification of mistakes apparent from the records and do not extend to reviewing its own decisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712366 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2005-2006
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: SALIL KAPOOR; ANKIT
• Keywords: Set aside; Additional evidence; Period of limitation; Principle of natural justice; Rectification of order; Time period of passing order; Non compliance
• Section: 143(3)

Judgement Text

"1 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” NEW DELHI BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER M.A No. 02/Del/2021 Arising out of ITA No.5487/Del/2013) (Assessment Year 2005-06) Hindustan Sports Club Limited B-7, Pragati Chambers Ranjit Nagar Commercial Complex New Delhi-110008 v. Income Tax Officer Ward 12(4) New Delhi \u0001थायीलेखासं./जीआइआरसं./PAN/GIR:AAACH3222Q Applicant .. Respondent Assesseeby : Sh. Salil Kapoor, Adv & Shri Ankit Gupta, Adv. & Shri Shivam Yadav, Adv. Respondent by : Sh. Harpreet Kaur Hansra, Sr. DR Date of Hearing 04.07.2025 Date of Pronouncement 29.07.2025 O R D E R PER RAMIT KOCHAR, AM: This Miscellaneous Application(MA) bearing No. 02/Del/2021 arising out of ITA No. 5487/Del/2013, for assessment year 2005-06,is filed by the Assessee before Income Tax Appellate Tribunal, Delhi Bench, Delhi. This MA was filed on Printed from counselvise.com 2 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited 24.12.2020against the Tribunal’s order dated 31.10.2019. Admittedly this misc. application is filed beyond the period of six months from the end of the month in which order of the Tribunal is passed. It is submitted by ld. Counsel for the assessee, Shri Salil Kapoor, Advocate that Hon’ble Supreme Court extended limitation period keeping in view Covid-19 pandemic. Hence, there is no delay , as it is covered under the said period. The prayers are made by ld. Counsel for the assessee, who made submissions that the assessment order u/s 143(3) of the Income-tax Act, 1961 was passed on 24.12.2007 , while the date of hearing granted was 26.12.2007. It was submitted that the principles of natural justice are breached as the AO was the assessment order prior to date of hearings, and hence the order of the ITAT bearing no. 5487/Del/2013, dated 31.10.2019 needs to be recalled. 2. The ld. Sr. DR vehemently opposed the plea of the ld. Counsel for the assessee, and submitted that the Tribunal has passed an elaborate order dated 31.10.2019, and there is no mistake apparent from record. It was submitted that scope of Section 254(2) is limited , and the Tribunal cannot review its order. The assessee appeal was dismissed by the Tribunal on merits vide order dated 31.10.2019, after elaborate and detailed discussions on merits. Thus, she oppose the plea of ld. Counsel for the assessee. 3. We have considered rival contentions and perused the material on record. We have observed that the assessee has filed return of income on 30.10.2005 declaring Nil Income. The assessment was framed u/s 143(3) by the AO , vide assessment order dated 24/12/2007. It is the contention of the assessee that date fixed for hearing by the AO was 26.12.2007, but assessment order was framed on 24.12.2007, and hence principles of natural justice are breached , and the order of the Tribunal was to be recalled. We have observed that there are several non- Printed from counselvise.com 3 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited compliances by the assessee i.e. seven non compliances in complying with the statutory notices issued by the AO, out of nine statutory notices issued by the AO , during the course of assessment proceedings. We have observed that being aggrieved by the assessment framed by the AO, the assessee carried the matter to ld. CIT(A), and the ld. CIT(A) dismissed appeal of the assessee ex-parte, vide order dated 06th July, 2010.Still aggrieved, the assessee carried the matter to ITAT, and the Tribunal vide appellate order dated 01.02.2011 set aside and restored the appeal of the assessee to ld. CIT(A) for re-adjudication. While setting aside and restoring the appeal of the assessee to ld. CIT(A) for re-adjudication, the Tribunal also commented as under: “3.Before Parting with the order we would like to make a mention that assessee fail to appear before the Ld. CIT(A) on two three dates according to it proper service of notice was not effected to the office of Ld. CIT(A) . However, it transpires to us that before AO also assessee fail to submit the details called for. To some extent there appears to be a contributory negligence at the end of assessee also. ……” In second round of litigation,the ld. CIT(A) dismissed the appeal of the assessed, vide appellate order dated 08.08.2013. It is recorded by the ld. CIT(A) that in Para5 that the assessee duly filed various additional evidences before ld. CIT(A) and the assessee requested for admission of additional evidences u/r 46A. The ld. CIT(A) admitted these additional evidences and called for remand report from the AO. It is accepted position that proceedings before ld. CIT(A) are extension of assessment proceedings. The ld. CIT(A) has powers co-terminus with the powers of the AO. The AO in pursuance of directions of ld. CIT(A) submitted remand report, dated 16.01.2013. The AO also submitted that detailed report will be submitted subsequently. Vide letter dated 04.02.2023, the ld. AO submitted that the assessee is not complying with various notices and details have not been Printed from counselvise.com 4 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited furnished because of which proper examination on merits and documents was not possible. The AO submitted third remand report dated 08.07.2013 before ld. CIT(A) , which was a detailed remand report(recorded in page 4 and 5 of ld. CIT(A) order). The assessee submitted rejoinder before ld. CIT(A), dated 01.08.2013. The said rejoinder submitted by the assesseewas on merits of the issues before ld. CIT(A). The ld. CIT(A) vide detailed elaborate order on merits, dismissed the appeal of the assessee, vide appellate order dated 08.08.2013. Still aggrieved, the assessee carried the matter before ITAT, in second round of litigation. Again, the assesseedid not appear on the date of hearing before the Tribunal, and the appeal of the assessee was dismissed by the Tribunal in limine vide orders dated 27.05.2014. Still aggrieved, the assessee filed MA before the Tribunal, which was listed as MA no.206/Del/2015 and prayed for recall of the appellate order dated 27.05.2014 in ITA no. 5487/Del/2013. The Tribunal allowed the MA and recalled its order dated 27.05.2014, vide order dated 06.05.2016, and the appeal was restored to its original number. In third round of litigation, the Appeal of the assessee in ITA no. 5487/Del/2014 was heard by the Tribunal, and was dismissed by the Tribunal on merits by passing a detailed and elaborate order. The assesseehad filed paper book before the Tribunal, and relied on various documents and submissions, which are listed at Page No. 15 and 16 of the Tribunal Order dated 31.10.2019. Shri Ankit Gupta, Chartered Accountant appeared before the Tribunal in third round of litigation, and made detailed arguments on behalf of the assessee. The Tribunal passed detailed and elaborate order dated 31.10.2019 on merits in ITA No. 5487/Del/2013, dismissing the appeal of the assessee on merits. Even the proceedings before the Tribunal are extension of assessment proceedings, and it could not be said the ld. CIT(A) as well ITAT , did not gave fair and full Printed from counselvise.com 5 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited hearings and opportunity to the assessee. The orders were passed on merits by both ld. CIT(A) and the Tribunal, after considering all the arguments put forth by the assessee. It is a different matter that the appeal of the assessee was dismissed on merits concurrently by the both ld. CIT(A) and the Tribunal, after considering relied upon documents and after giving full and fair hearing to the assessee. The Tribunal powers u/s 254(2) is limited to rectification of mistakes apparent from the records, and the Tribunal has no power to review its own decision. Thus, it could not be said that there is any mistake apparent from records which could be rectified by us within limited scope of Section 254(2) , nor it could be said that in the factual matrix of the case wherein the assessee did not complied with seven out of nine notices before the AO, that by passing the assessment order on 24.12.2007, any prejudice is caused to the assessee more so that ld. CIT(A) as well the Tribunal has given full and fair opportunity to the assessee to put forth all its contentions. No prejudice is caused to the assessee, which could warrant interference by us within limited scope of Section 254(2). Moreover, the Tribunal passed detailed order on the issues arising in the appeal on merits. We donot have power to review the decision of the Tribunal within limited scope of Section 254(2).We do not find any merits in the MA filed by the assessee, which now stood dismissed. We order accordingly. In the result, this misc. application in MA no. 02/Del/2021 stands dismissed. Order pronounced in the open court on 29.07.2025 Sd/- (MS. MADHUMITA ROY) Sd/- (RAMIT KOCHAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 29.07.2025 Printed from counselvise.com 6 MA No.02/Del/2021 (In ITA no. 5487/Del/2013) Hindustan Sports Club Limited Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT Delhi Printed from counselvise.com "