ITO, New Delhi v. M/s IKM Investment Pvt. Ltd, New Delhi

ITA 1930/DEL/2010 | 2002-2003
Pronouncement Date: 28-03-2011 | Result: Partly Allowed

Appeal Details

RSA Number 193020114 RSA 2010
Assessee PAN AAACI4006P
Bench Delhi
Appeal Number ITA 1930/DEL/2010
Duration Of Justice 10 month(s) 29 day(s)
Appellant ITO, New Delhi
Respondent M/s IKM Investment Pvt. Ltd, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 28-03-2011
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted C
Tribunal Order Date 28-03-2011
Date Of Final Hearing 28-03-2011
Next Hearing Date 28-03-2011
Assessment Year 2002-2003
Appeal Filed On 29-04-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH C BENCH C BENCH C BENCH C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI BEFORE SHRI C.L.SETHI JM AND SHRI K.D.RANJAN K.D.RANJAN K.D.RANJAN K.D.RANJAN AM AM AM AM ITA NO. ITA NO. ITA NO. ITA NO.1930/DEL/2010 1930/DEL/2010 1930/DEL/2010 1930/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2002 2002 2002 2002- -- -03 0303 03 INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -11(3) 11(3) 11(3) 11(3) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. A AA A- -- -14/3 JAM 14/3 JAM 14/3 JAM 14/3 JAMNA BHAWAN NA BHAWAN NA BHAWAN NA BHAWAN ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN NO.AAACI4006P. PAN NO.AAACI4006P. PAN NO.AAACI4006P. PAN NO.AAACI4006P. (APPELLANT) (RESPONDENT) CROSS CROSS CROSS CROSS- -- -OBJECTION NO.206/DEL/2010 OBJECTION NO.206/DEL/2010 OBJECTION NO.206/DEL/2010 OBJECTION NO.206/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2002 2002 2002 2002- -- -03 0303 03 M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. M/S IKM INVESTMENTS PVT.LTD. A AA A- -- -14/3 JAMNA BHAWAN 14/3 JAMNA BHAWAN 14/3 JAMNA BHAWAN 14/3 JAMNA BHAWAN ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD ASAF ALI ROAD NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN NO.AAACI4006P PAN NO.AAACI4006P PAN NO.AAACI4006P PAN NO.AAACI4006P. .. . VS. VS. VS. VS. INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER INCOME TAX OFFICER WARD WARD WARD WARD- -- -11(3) 11(3) 11(3) 11(3) NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) REVENUE BY : MS.MONA MOHANTY SR.DR ASSESSEE BY : SHRI SATISH AGARWAL CA. ORDER ORDER ORDER ORDER PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI PER C.L.SETHI J J J JM : M : M : M : THE REVENUE IS IN APPEAL AGAINST THE ORDER DATED 2 2.2.2010 OF LEARNED CIT(A) PASSED IN THE MATTER OF ASSESSMENT M ADE U/S 144/147 OF THE INCOME-TAX ACT 1961 FOR THE AY 2002-03. 2. THE ASSESSEE HAS FILED CROSS-OBJECTION IN RELATI ON THERETO. THE GROUNDS TAKEN BY THE DEPARTMENT REVOLVE AROUND THE ADDITION OF `34 20 000/- ON ACCOUNT OF SHARE APPLICATION MONEY MADE BY THE AO BUT DELETED BY THE LEARNED CIT(A). 3. IN THE CROSS-OBJECTION THE ASSESSEE HAS TAKEN A GROUND CHALLENGING THE REOPENING OF ASSESSMENT U/S 147/148 OF THE ACT BY THE AO. ITA-1930/D/2010 & CO-206/D/2010 2 4. SINCE THE GROUND TAKEN BY THE ASSESSEE IN CROSS- OBJECTION GOES TO THE QUESTION ABOUT VALIDITY OF JURISDICTION OF T HE AO IN REOPENING THE ASSESSMENT U/S 147/148 OF THE ACT WE PROCEED TO TA KE FIRST THE CROSS- OBJECTION FILED BY THE ASSESSEE. 5. IN THE COURSE OF THE HEARING OF THE CROSS-OBJECT ION THE LEARNED COUNSEL FOR THE ASSESSEE POINTED OUT THAT THE ASSES SEE HAD TAKEN A GROUND CHALLENGING THE VALIDITY OF REOPENING OF ASS ESSMENT U/S 147/148 OF THE ACT BEFORE THE LEARNED CIT(A) BUT TH E LEARNED CIT(A) HAS FAILED TO ADJUDICATE THE SAID ISSUE. 6. WE HAVE HEARD BOTH THE PARTIES AND HAVE GONE THR OUGH THE ORDERS OF THE AUTHORITIES BELOW. 7. ON PERUSAL OF GROUNDS OF APPEAL TAKEN BY THE ASS ESSEE BEFORE THE LEARNED CIT(A) WE FIND THAT ASSESSEE HAS CHALL ENGED THE REOPENING OF ASSESSMENT U/S 148 OF THE ACT VIDE GROUND NO.2. THE ASSESSEES CONTENTION ON THIS ISSUE HAS BEEN DISCUSSED BY LEAR NED CIT(A) IN HIS ORDER AT PAGES 6 TO 9 OF HIS ORDER. HOWEVER WHILE DECIDING THE APPEAL THE LEARNED CIT(A) DELETED THE ADDITION ON MERIT WI THOUT DECIDING THE GROUND TAKEN BY THE ASSESSEE REGARDING THE VALIDITY OF REOPENING OF ASSESSMENT U/S 147/148 BY THE AO. AFTER HEARING BO TH THE PARTIES WE FIND IT JUST AND PROPER THAT THE ISSUE RAISED BY TH E ASSESSEE REGARDING VALIDITY OF REOPENING OF ASSESSMENT SHOULD GO BACK TO THE LEARNED CIT(A) FOR HIS DECISION AND ADJUDICATION INASMUCH A S THE SAID GROUND WAS TAKEN BEFORE HIM AND WAS ARGUED ALSO BUT LEARN ED CIT(A) FAILED TO ADJUDICATE THE SAME. THIS UNDERSTANDING WAS GIVEN TO BOTH THE PARTIES AT THE TIME OF HEARING OF THE APPEAL AND THE CROSS- OBJECTION TO WHICH NO OBJECTIONS WERE RAISED. WE THEREFORE SET ASID E THE ORDER OF LEARNED CIT(A) AND REMIT THE MATTER BACK TO HIM FOR HIS FRESH ADJUDICATION AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO ITA-1930/D/2010 & CO-206/D/2010 3 THE ASSESSEE. THE LEARNED CIT(A) SHALL DECIDE THE ASSESSEES GROUND REGARDING VALIDITY OF REOPENING OF ASSESSMENT U/S 1 47/148 AS PER LAW AND IN THE LIGHT OF THE FACTS OF THE PRESENT CASE. WE ORDER ACCORDINGLY. 8. NOW WE SHALL COME TO THE APPEAL FILED BY THE RE VENUE. 9. SINCE THE VERY ROOT ISSUE HAS BEEN RESTORED BACK TO THE FILE OF THE LEARNED CIT(A) TO DECIDE AS TO WHETHER REOPENING OF ASSESSMENT U/S 147/148 OF THE ACT WAS JUSTIFIED IN THE EYES OF LAW THE GROUND TAKEN BY THE REVENUE AT THIS STAGE HAS BECOME REDUNDANT AND IS ALSO BEING RESTORED BACK TO THE FILE OF THE LEARNED CIT(A) FOR HIS FRESH ADJUDICATION AFTER PROVIDING OPPORTUNITY OF BEING HEARD TO THE A SSESSEE AS WELL AS TO THE AO. WE ORDER ACCORDINGLY. 10. IN THE RESULT THE APPEAL FILED BY THE REVENUE AS WELL AS CROSS- OBJECTION OF THE ASSESSEE IS TREATED TO BE ALLOWED FOR STATISTICAL PURPOSES AS INDICATED ABOVE. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 28 TH MARCH 2011. SD/- SD/- (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN (K.D.RANJAN) )) ) (C.L.SETHI (C.L.SETHI (C.L.SETHI (C.L.SETHI) )) ) ACCOU ACCOU ACCOU ACCOUNTANT MEMBER NTANT MEMBER NTANT MEMBER NTANT MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 28.03.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT ASSISTANT REGISTRAR