M/s Mansarovar Builders Pvt. Ltd., New Delhi v. Addl. CIT, New Delhi

ITA 3566/DEL/2011 | 2007-2008
Pronouncement Date: 19-09-2011 | Result: Allowed

Appeal Details

RSA Number 356620114 RSA 2011
Bench Delhi
Appeal Number ITA 3566/DEL/2011
Duration Of Justice 2 month(s) 4 day(s)
Appellant M/s Mansarovar Builders Pvt. Ltd., New Delhi
Respondent Addl. CIT, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 19-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 19-09-2011
Date Of Final Hearing 19-09-2011
Next Hearing Date 19-09-2011
Assessment Year 2007-2008
Appeal Filed On 15-07-2011
Judgment Text
ITA NO. 3566/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 3566/DEL/2011 A.Y. : 2007-08 M/S MANSAROVAR BUILDERS PVT. LTD. 48/12 COMMERCIAL CENTRE MALHCHA MARG CHANKYA PURI NEW DELHI 110 021 (PAN: AACM 6591R) VS. ADDL. C.I.T. RANGE - 6 ROOM NO. 317 CR BUILDING INDRAPRASTHA ESTATE NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. ANIL BHALLA CA DEPARTMENT BY : SH. R.S. NEGI SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 21.2.2 011 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE GROUNDS RAISED READ AS UNDER:- (I) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLAN T COMPANY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED BOTH ON FACTS AND IN LAW IN PASSING THE APPELLATE ORDER EXPARTE BY REJECTING THE ADJOURNMENT PETITION FILED BY THE APPELLANT COMPANY ON THE GROUND THAT THE APPELLANT COMPANYS APPEAL FO R THE A.Y. 2006-07 IN ITA NO. 160/08-09 IS PENDING FO R ADJUDICATION BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). ITA NO. 3566/DEL/2011 2 (II) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLAN T COMPANY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE INTEREST PAID ` 10 06 433/- TO THE M/S MAGNUM INTERNATIONAL TRADING COMPANY PRIVATE LIMITED U/S 40A(2)(A)/(B) OF THE INCOME TAX ACT 1961 ALLEGEDLY ON THE GROUND THAT EXCESSIVE RATE OF INTEREST HAS BEEN PAID BY THE APPELLANT COMPANY. (III) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLA NT COMPANY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE DISALLOWANCE MADE BY ASSESSING OFFICER OF CONSULTANCY CHARGES OF ` 48 78 468/- OUT OF WHICH ONLY 25% OF THE EXPENDITURE AMOUNTING TO ` 12 19 617/- CLAIMED AS REVENUE EXPENDITURE DURING THE YEAR BY THE APPELLAN T COMPANY ALLEGEDLY ON THE GROUND THAT THE SAME IS EXCESSIVE UNREASONABLE AND NOT JUSTIFIED. (IV) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLAN T COMPANY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADHOC ADDITION OF HOUSE KEEPING EXPENSES AMOUNTING TO ` 100 000/- ALLEGEDLY ON THE GROUND THAT THE SAME IS UNREASONABL E AND NOT GENUINE. (V) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLANT COMPANY THE LD. COMMISSIONER OF INCOME TAX ITA NO. 3566/DEL/2011 3 (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADHOC ADDITION OF ` 500 000/- U/S 94(7) OF THE INCOME TAX ACT 1961. (VI) ON THE FACTS AND CIRCUMSTANCES OF THE APPELLAN T COMPANY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN MAKING AN ADDITION OF ` 307 63 1/- U/S 14A OF THE INCOME TAX ACT 1961 IN RESPECT OF DIVIDEND INCOME EARNED DURING THE YEAR. (VII) THE APPELLANT CRAVES LEAVE TO ADD ALTER OR A MEND THE GROUND OF APPEAL AT A LATER STAGE. 3. IN THIS CASE ASSESSMENT WAS COMPLETED U/S 143( 3) AT A TOTAL INCOME OF ` 9 69 39 320/-. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) NOTED THAT THE ASSESSEE WAS SEEKING A LOT OF ADJOURNMENTS. LD. COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT T HE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPEAL. HE FURTH ER OBSERVED THAT ASSESSEE DOES NOT HAVE ANY MATERIAL EVIDENCE IN ITS POSSESSION TO CHALLENGE THE DECISION OF THE ASSESSING OFFICER AS PER THE ASSESSMENT ORDER. HE HELD THAT NOTHING IS AVAILABLE ON RECORD TO SUPPORT THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE. HE FUR THER OBSERVED THAT ONLY THE MATERIAL AVAILABLE ON RECORD IS ASSESSMENT ORDER AND HENCE HE HAS TO DECIDE THE APPEAL ON THE BASIS OF THE SAME . ACCORDINGLY LD. COMMISSIONER OF INCOME TAX (APPEALS) PROCEEDED TO CON FIRM THE ADDITION MADE BY THE ASSESSING OFFICER. 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPEA L BEFORE US. ITA NO. 3566/DEL/2011 4 6. AT THE OUTSET LD. COUNSEL OF THE ASSESSEE SUBMIT TED THAT THE ASSESSEE HAS NOT BEEN GIVEN ADEQUATE OPPORTUNITY TO PURSUE THE CASE BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). HENCE HE PRAYED THAT ONE OPPORTUNITY MAY BE GIVEN TO THE AS SESSEE BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 7. WE HAVE CAREFULLY CONSIDERED THE ISSUE. IN OU R CONSIDERED OPINION THE INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS REMITTED TO THE FILES OF THE LD. COMMISSIONER OF INCOME TAX (A PPEALS) TO CONSIDER THE ISSUE AFRESH AFTER GIVING ADEQUATE O PPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY THIS MATTER ST ANDS REMITTED TO THE FILES OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19/9/2011 UPO N CONCLUSION OF HEARING. SD/- SD/- [ [[ [RAJPAL YADAV] RAJPAL YADAV] RAJPAL YADAV] RAJPAL YADAV] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 19/9/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR I TAT TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT DELHI BENCHES