DCIT, New Delhi v. M/s. Reliable Securities Ltd., New Delhi

ITA 3429/DEL/2010 | 2001-2002
Pronouncement Date: 27-11-2014 | Result: Dismissed

Appeal Details

RSA Number 342920114 RSA 2010
Assessee PAN AABCR5787M
Bench Delhi
Appeal Number ITA 3429/DEL/2010
Duration Of Justice 4 year(s) 4 month(s) 14 day(s)
Appellant DCIT, New Delhi
Respondent M/s. Reliable Securities Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 27-11-2014
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 27-11-2014
Date Of Final Hearing 10-11-2014
Next Hearing Date 10-11-2014
Assessment Year 2001-2002
Appeal Filed On 13-07-2010
Judgment Text
IN TH E INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI G.D. AGARWAL HON BLE VICE PRESIDENT AND SHRI I.C. SUDHIR JUDICIAL MEMBER ITA NO . 3429 / DEL / 201 0 ASSESSMENT YEAR : 200 1 - 0 2 DCIT CIRCLE 15 (1) C.R. BLDG. I.P. ESTATE NEW D ELHI. VS. M/S RELIABLE SECURITIES LTD. F - 19 GEETANJALI ENCLAVE NEW DELHI. (PAN AA BCR 5787 M ) (APPELLANT ) (RESPONDENT) APPELLANT BY : SHRI VIKRAN SAHAY SR. D.R. RESPONDENT BY: SHRI V.P. GUPTA ADVOCATE ORDER PER SHRI I.C. SUDHIR J M : 1. THE REVENUE HAS IMPUGNED FIRST APPELLATE ORDER ON TWO GROUNDS. FIRSTLY THAT THE LD. CIT(A) HAS ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE AND ANNULLING THE ASSESSMENT BY MAKING AN OBSERVATION THAT THE EX - PARTE ASSESSMENT ORDER U/S 147 /143(3) HAVE BEEN DONE WITHOUT SERVICE OF THE REQUIRED NOTICE U/S 148/143(2) OF THE I.T. ACT. SECONDLY THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.50 80 000/ - MADE U/S 68 OF T HE ACT ON ACCOUNT OF SHARE CAPITAL BEING BOGUS/ACCOMMODATION ENTRY. ITA NO. 3429 /DEL /201 0 ASSESSMENT YEAR : 200 1 - 200 2 2 2. GROUND NO.1 . I N SUPPORT OF THIS GROUND LD. D.R. SUBMITTED THAT THE NOTICES U/S 148 AND 143(2) WERE ISSUED THROUGH SPEED POST ON THE GIVE N ADDRESS OF THE ASSESSEE AVAILABLE ON RECORD A ND THOSE NOTICES WERE NOT RETURNED UNSERVED. HENCE THERE WAS SUFFICIENT PRESUMPTION OF SERVICE OF THE ABOVE SAID NOTICES UPON THE ASSESSEE. WITHOUT APPRECIATING THIS MATERIAL FACT THE LD. CIT(A) WAS NOT JUSTIFIED IN HOLDING THAT NOTICES ISSUED U/S 148/14 3(2) OF THE ACT WERE NOT SERVED UPON THE ASSESSEE AND IN ABSENCE THEREOF THE ASSESSMENT FRAMED WAS INVALID. LD. A.R. ON THE OTHER HAND PLACED RELIANCE ON THE FIRST APPELLATE ORDER IN THIS REGARD AND RELIED UPON THE DECISIONS CITED . 3. HAVING GONE THRO UGH THE ORDERS OF THE AUTHORITIES BELOW WE FIND THAT THE ASSESSEE IS A NON BANKING FINANCE COMPANY REGISTERED WITH RBI. THE RETURN OF INCOME FOR AY 2001 - 02 WAS FILED BY THE ASSESSEE ON 31.10.2001 SHOWING THE ADDRESS AT 104 - MUKUND HOUSE COMMERCIAL COMPLEX NEW DELHI. ASSESSMENT U/S 143(3) WAS FRAMED ON 13.01.2003. SUBSEQUENTLY THE REGISTERED OFFICE OF THE ASSESSEE WAS SHIFTED TO F - 19 GEETANJILI ENCLAVE MALVIYA NAGAR NEW DELHI ON 01.03.2006. 4. THE SUBMISSION OF THE ASSESSEE REMAINED THAT ON INTIMATION ABOUT THE ABOVE SAID CHANGE ADDRESS WAS FURNISHED WITH THE REGISTRAR OF COMPANIES AND ALSO WITH THE INCOME TAX DEPARTMENT THROUGH NSDL. IT WAS POINTED OUT THAT THE ASSESSEE HAD ALSO FURNISHED COPY OF FORM - 18 FILED WITH THE ROC AND COPY OF THE LETTER FROM NSDL CONFIRMING UPDATING OF THE NEW ADDRESS OF THE ASSESSEE IN ITA NO. 3429 /DEL /201 0 ASSESSMENT YEAR : 200 1 - 200 2 3 THEIR RECORDS . IT WAS CONTENDED THAT RETURN OF INCOME FOR AY 2006 - 07 WAS ALSO FILED BY THE ASSESSEE WITH THE SAME AO SHOWING THE SAID NEW ADDRESS AND NOTICE U/S 143(2) DATED 22.10.2007 AND U/S 115WE(2) DATED 22.10.2007 FOR THE AY 2006 - 07 WERE ALSO ISSUED BY THE SAME AO AT THE NEW ADDRESS OF THE ASSESSEE AND THE ASSESSMENT ORDER U/S 143(3) WAS ALSO PASSED BY THE SAME AO FOR THE AY 2006 - 07 SHOWING THE NEW ADDRESS F - 19 GEETANJILI ENCLAVE MALVIYA NAGAR NEW DELHI . 5. THE LD. AR THUS ARGUED THAT NO NOTICES U/S 148 OR 143(2) OF THE ACT HAS BEEN RECEIVED BY THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION WITH REGARD TO THE REASSESSMENT PROCEEDING INITIATED BY THE AO U/S 148 AND THE IMPUGNED ORDER U/ S 147 PASSED EX - PARTE BY THE AO. THEREFORE THE REASSESSMENT PROCEEDING IS VOID AB INITIO . ON THE BASIS OF INSPECTION OF THE ASSESSMENT RECORD MAINTAINED BY THE AO THE LD. AR SUBMITTED FURTHER THAT ALL THE NOTICES WITH REGARD TO THE REASSESSMENT PROCEEDIN GS WERE SENT AT THE WRONG ADDRESS I.E. F - 18 G - 19 GEETANJILI ENCLAVE MALVIYA NAGAR NEW DELHI WHICH IS NEITHER THE NEW ADDRESS NOR THE OLD ADDRESS OF THE ASSESSEE AS PER THE RECORD AVAILABLE WITH THE VERY SAME A.O . IT WAS POINTED OUT THAT THE NOTICE U/S 148 WAS ISSUED ON 28.03.2008 AT THE WRONG ADDRESS BY WHICH TIME THE NEW AND CORRECT ADDRESS WAS VERY MUCH AVAILABLE WITH THE AO. 6. THE LD. CIT(A) CALLED FOR THE REMAND REPORT ON THE ABOVE SUBMISSION OF THE ASSESSEE BUT THE AO IN HIS REMAND REPORT HAS N OT BEEN ABLE TO REBUT THE ITA NO. 3429 /DEL /201 0 ASSESSMENT YEAR : 200 1 - 200 2 4 ABOVE CONTENTION OF THE ASSESSEE. HE ONLY COMMENTED AS IN RESPECT OF GROUND NO.1 - NOTICE U/S 148 HAS BEEN ISSUED ON TIME AS PRESCRIBED U/S 148 OF THE IT ACT 1961 AT THE ADDRESS AVAILABLE IN THE RECORD . THE LD. CIT(A) HAS NOTED IN PARA 6.4 OF THE FIRST APPELLATE ORDER THAT ON VERIFICATION OF THE ASSESSMENT RECORD HE ALSO FOUND THAT THE AO HAD SENT THE NOTICE S U/S 148 DATED 28.03.2008 AND U/S 143(2) DATED 15.07.2008 AND 13.10.2008 BY THE SPEED POST AT THE ABOVE WRONG ADDRESS. HE NOT ED FURTHER THAT THERE IS NO PROOF OF SERVICE OF THE SAID NOTICES AVAILABLE ON RECORD. HE ACCORDINGLY HELD THAT SINCE THE IMPUGNED REOPENING U/S 148 AND EX - PARTE ORDER U/S 147 HAVE BEEN DONE WITHOUT SERVICE OF THE REQUIRED NOTICE S U/S 148/143(2) UPON THE AS SESSEE THE AO S ACTION IN THIS REGARD IS FOUND TO BE ILLEGAL AND WITHOUT JURISDICTION. THE LD. CIT(A) HAS ACCORDINGLY ANNULLED THE REASSESSMENT ORDER. 7. WE DO NOT FIND ANY INFIRMITY IN THE FIRST APPELLATE ORDER AS DISCUSSED ABOVE ON THE ISSUE. THE PRESU MPTION OF SERVICE AS ARGUED BY THE LD. SR. D.R. WOULD HAVE COME TO THE HELP OF THE REVENUE ONLY IF THE NOTICES U/S 148/143(2) WOULD HAVE BEEN SENT ON THE CORRECT ADDRESS OF THE ASSESSEE. UNDISPUTEDLY THESE NOTICES WERE SENT ON THE WRONG ADDRESS OF THE AS SESSEE DESPITE THIS FACT THAT THE NEW ADDRESS WAS VERY MUCH AVAILABLE ON THE RECORD OF THE ASSESSING OFFICER ON WHICH EARLIER NOTICES U/S 143(2) DATED 22.10.2007 AND U/S 115WE(2) DATED 22.10.2007 FOR AY 2006 - 07 WERE SENT BY THE SAME AO AND ASSESSMENT U/S 143(3) WAS ALSO FRAMED BY THE SAME AO FOR THE SAID AY 2006 - 07 SHOWING THE ITA NO. 3429 /DEL /201 0 ASSESSMENT YEAR : 200 1 - 200 2 5 NEW ADDRESS. IT IS NOW WELL ESTABLISHED PREPOSITION OF LAW THAT IN ABSENCE OF SERVICE OF NOTICES U/S 148/143(2) OF THE ACT THE REASSESSMENT FRAMED U/S 147 R.W.S. 143(3) OF THE ACT W ILL BE NULL AND VOID. UNDER THESE FACTS AND CIRCUMSTANCES THE LD. CIT(A) WAS JUSTIFIED IN HOLDING THE ASSESSMENT IMPUGNED AS NULL AND VOID . T HIS ACTION OF THE LD. CIT(A) IS THUS UPHELD. THE GROUND NO.1 IS ACCORDINGLY REJECTED. 8. GROUND NO.2 . T HE AO MADE AN ADDITION OF RS.50 80 000/ - U/S 68 OF THE ACT ON ACCOUNT OF SHARE CAPITAL BEING BOGUS/ACCOMMODATION ENTRY ON THE BASIS OF INFORMATION RECEIVED FROM THE INVESTIGATION WING OF THE D EPARTMENT. THE LD. CIT(A) HAS DELETED THIS ADDITION AFTER DISCUSSING T HE ISSUE IN DETAIL AND FOLLOWING THE DECISIONS OF THE HON BLE COURT CITED BEFORE HIM. SINCE THE VERY ASSESSMENT HAS BEEN HELD NULL AND VOID WHILE ADJUDICATING UPON THE ISSUE RAISED IN GROUND NO. 1 HEREINABOVE WE FIND THAT THE ISSUE RAISED IN GROUND NO.2 HA S BECOME INFRUCTUOUS AND THUS DOES NOT NEED ADJUDICATION. IT IS ACCORDINGLY DISPOSED OFF. 9. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. TH E DECISION WAS PRONOUNCED IN THE OPEN COURT ON 2 7 TH NOVEMBER 201 4 . SD/ - SD/ - ( G.D. AGARWAL ) ( I.C. SUDHIR ) VICE PRESIDENT J UDICIAL MEMBER DATED: 2 7 TH NOVEMBER 201 4 . AKS/ - ITA NO. 3429 /DEL /201 0 ASSESSMENT YEAR : 200 1 - 200 2 6 COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST . REGISTRAR ITAT NEW DELHI