M/s. Himachal Futuristic Communications Ltd., New Delhi V. DCIT, New Delhi

MA 103/DEL/2022

AI Insights

The case involves M/s. Himachal Futuristic Communications Ltd. appealing against the orders of the Deputy Commissioner of Income Tax (DCIT), New Delhi, concerning the Assessment Years 2007-08 and 2008-09. The appellant sought recall/rectification of the ITAT's consolidated order dated 26.10.2021, which inadvertently failed to adjudicate specific grounds raised for the mentioned assessment years. The Tribunal acknowledged the oversight and allowed the recall for the limited purpose of addressing the unadjudicated grounds.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121586 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 05-01-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 29-05-2022
• Laws Referred To: Section 254(2) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER MAs No.102 & 103/DEL/2022 (Arising from ITAs No.2252 & 2253/Del/2014) Assessment Years 2007-08 & 2008-09 M/s. Himachal Futuristic Communications Ltd., 8, Commercial Complex, Masjid Moth, Greater Kailash-II, New Delhi. vs. DCIT, New Delhi. TAN/PAN: AAACH4041D (Appellant) (Respondent) Appellant by: Shri Rishab Shah, CA Respondent by: Shri Vijay Kumar Kataria, Sr.DR Date of hearing: 06 01 2023 Date of pronouncement: 06 01 2023 O R D E R PER PRADIP KUMAR KEDIA - A.M.: By these Misc. Applications, the assessee has urged for recalling/rectification of order dated 26.10.2021 passed in ITAs No. 2 25 2 & 22 53/ De l/ 20 14 concerning Assessment Years 2007-08 & 2008-09. 2. W h en th e mat te r w as cal le d f or h ear in g, th e l d. co un se l f or th e ass es se e s ub mi tt ed th at th e i mp ug ne d ap pe lla te or der of th e I TA T has ad ju di ca te d t he ap pea ls re la ti ng t o A ss es s men t Y ea r s 2 00 5- 06, 20 06- 07 , 2 00 7- 08 a nd As se ss me nt Ye a r 20 0 8-0 9 t og et he r b y wa y of con so li da te d o rd e r da te d 26. 10 .2 02 1 i n I TA s No. 8 16 & 81 7/ Del /2 01 4 a nd 22 52 & 2 25 3/ De l/ 2 01 4 a nd ot he rs. In the matt er , the l d. co un se l poi nte d ou t t ha t Tri bu nal w hi le pa ss in g t he or de r h as MAs No.102 & 103/Del/2022 2 app li ed t he pr inc ip les of the e ar li er ye a rs i n t he l at er ye a rs , i. e. , As ses s me nt Y ea rs 20 07- 08 an d 2 00 8- 09 i n q ue st io n. In t he c on te xt, it wa s p oi nte d o ut t hat t he a ss es se e ha d tak en ne w Gr ou n ds N o. 1 an d 2 i n A ss es s men t Y ear s 2 00 7- 08 an d 2 00 8-0 9 wh ich d id not ar is e i n the ear li er A ss es s me nt Y ea rs 2 00 5- 06 a nd 2 00 6- 07 . The ref or e ina dv er te ntl y, t he Gro u nd s N o. 1 an d 2 h as n ot be en ad j udi ca te d i n As ses s me nt Ye ars 20 07 -0 8 a nd 2 00 8-0 9. T he Gr o un ds no t adj ud ic at ed b y mi s t ake i n As se ss me nt Yea r 20 07 -0 8 rea ds as u nd er : “ 1 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a s e , L d . C I T (A ) e r r e d i n c o n f i r m i n g t h e a d d i t i o n o f R s . 6 0 , 16 , 3 6 9 / - , m a d e b y t h e A . O . h o l d i n g t h e p u r c h a s e s f r o m O P M T r a d i n g P v t . L t d . ( O P M ) t o b e b o g u s p u r c h a s e s b y n o t a p p r e c i a t i n g t h e f a c t t h a t t h e A . O . h a d n o t p r o v i d e d o p p o r t u n i t y t o t h e a s s e s s e e to c r o s s e x a m i n e S h . A s h i s h M a d a n , D i r e c t o r o f O P M , w h o s e s t a t e m e n t w a s r e l i e d u p o n b y h i m t o m a k e t h e e d i t i o n . 2 . T h e L d . C I T ( A ) e r r e d i n l a w a n d t h e c i r c u m s t a n ce s o f t h e c a s e b y c o n f i r m i n g t h e a d d i t i o n m a d e b y t r e a t i n g p ur c h a s e s f r o m , 0 P M a s b o g u s w h e n c o m p l e t e d e t a i l s o f p u r c h a s e s a l on g w i t h c o n f i r m a t i o n o f a c c o u n t w e r e m a d e a v a i l a b l e t o t h e A . O . P u r c h a s e c o n s i d e r a t i o n w a s d u l y p a i d t h r o u g h t h e b a n k i n g c h an n e l a n d S h . A s h i s h M a d a n , D i r e c t o r o f O P M d i d n o t s p e c i f i c a l l y d e n i e d t h e t r a n s a c t i o n s o f p u r c h a s e s a n d r a t h e r c o n f i r m e d t h e t r a n s a c t i o n s . ” 3. The gr ou nd s no t a dju di ca te d b y mis t ake i n A ss es smen t Year 20 08- 09 r ea ds as u nde r: 1 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t he c a s e , L d . C I T ( A ) e r r e d i n c o n f i r m i n g t h e a d d i t i o n o f R s . 2 , 9 1 , 0 5 ,7 5 2 / - , m a d e b y t h e A . O . h o l d i n g t h e p u r c h a s e s f r o m O P M T r a d i n g P v t. L t d . ( O P M ) t o b e b o g u s p u r c h a s e s b y n o t a p p r e c i a t i n g t h e f a c t t h a t t h e A . O . h a d n o t p r o v i d e d o p p o r t u n i t y t o t h e a s s e s s e e t o c r os s e x a m i n e S h . A s h i s h M a d a n , D i r e c t o r o f O P M , w h o s e s t a t e m e n t w a s r e l i e d u p o n b y h i m t o m a k e t h e a d d i t i o n . 2 . T h e L d . C I T (A ) e r r e d i n l a w a n d t h e c i r c u m s t a n ce s o f t h e c a s e b y c o n f i r m i n g t h e a d d i t i o n m a d e b y t r e a t i n g p u r c h a se s f r o m O P M a s b o g u s w h e n c o m p l e t e d e t a i l s o f p u r c h a s e s a l o n g w it h c o n f i r m a t i o n o f a c c o u n t w e r e m a d e a v a i l a b l e t o t h e A . O . P u r c h a s e c o n s i d e r a t i o n w a s d u l y p a i d t h r o u g h t h e b a n k i n g c h an n e l a n d S h . A s h i s h M a d a n , D i r e c t o r o f O P M d i d n o t s p e c i f i c a l l y d e n i e d t h e t r a n s a c t i o n s o f p u r c h a s e s a n d r a t h e r c o n f i r m e d t h e t r a n s a c t i o n s . MAs No.102 & 103/Del/2022 3 4. It w as th us s ub mi tt ed t ha t th e mis ta ke co mmi tt ed b y t he IT AT in f ai li ng t o a dj ud ica te th e gro un ds has r es ult ed in a p par en t e rr or con te mp la te d u nd e r S ec ti on 25 4( 2) of th e Act w hi ch wa rr an ts rec tif ic at io n. 5. The ld . D R f or t he Rev en ue di d no t r ais e a n y o bjec ti on to t he ave r men ts mad e on be ha lf of t he as se ss ee o n f ac t s and n on adj ud ic at io n. 6. Ha vin g re ga rd t o th e ass er ti on s ma de o n beh alf of the as se sse e, we f ind mer it i n th e ple a of the a sse ss ee. G ro un ds N o. 1 a nd 2 of the res pe ct ive a pp ea ls in A ss es s men t Ye ars 2 00 7- 08 an d 2 00 8-0 9 ha s re mai ne d u na dju di cat ed due to in a dve rt en ce. Co ns eq uen tl y, the app el la te or der of the IT A T i n I TA s No .8 16 & 81 7/ Del/2 01 4 a nd 22 52 & 2 25 3/ De l/ 2 01 4 an d oth er s i s r eca ll ed f or li mi te d pur po se of adj ud ic at io n of Gr o un ds N o.1 a nd 2 of the r es pec ti ve a pp e als . 7. The Mis ce ll an eo us Ap pli ca ti on i s t hu s all ow ed t o thi s ex te nt. 8. The ap pe al sha ll be lis te d f or h ea ri ng i n re gu lar gr ou nd s o n 6 t h Ma rch , 20 23 . Order was pronounced in the open Court on 06 January, 2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: January, 2023 Prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar