Shirdi Properties Co. Pvt. Ltd, New Delhi v. ITO, New Delhi

ITA 4135/DEL/2009 | 2006-2007
Pronouncement Date: 12-05-2010 | Result: Allowed

Appeal Details

RSA Number 413520114 RSA 2009
Assessee PAN AAEVD2264B
Bench Delhi
Appeal Number ITA 4135/DEL/2009
Duration Of Justice 6 month(s) 22 day(s)
Appellant Shirdi Properties Co. Pvt. Ltd, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 12-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 12-05-2010
Date Of Final Hearing 10-05-2010
Next Hearing Date 10-05-2010
Assessment Year 2006-2007
Appeal Filed On 21-10-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : G NEW DELHI) BEFORE SHRI A.D. JAIN JUDICIAL MEMBER AND SHRI A.K. GARODIA ACCOUNTANT MEMBER ITA NO.4135/DEL./2009 (ASSESSMENT YEAR : 2006-07) SHIRDI PROPERTIES CO. PVT. LTD. VS. ITO WARD 8 (3) C-8 GREATER KAILASH-I NEW DELHI. DELHI-110 048 (PAN/GIR NO.AAEVD2264B) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAKESH K. SEHGAL CA. REVENUE BY : SHRI NIKHAL CHOUDHARY SR.DR ORDER PER A.K. GARODIA: THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE O RDER OF CIT(A)-XI NEW DELHI DATED 2.6.2009 FOR AY 2006-07 IN CONNECTION WITH FR INGE BENEFIT TAX (FBT) IMPOSED BY THE AO. THE GROUNDS RAISED BY THE ASSESSEE READ AS UNDER: 1. IGNORANCE OF DOCUMENTS AND EXPLANATIONS FURNISH ED IN RESPECT OF ADVERTISEMENT EXPENDITURE AND ENTERTAINMENT EXPENSE S BY THE COMMISSIONER OF INCOME TAX (APPEALS)-XI NEW DELHI IS CONTRARY TO FACTS AND LAW AND THEREFORE THE ADDITION SUSTAINED ON SUCH IGNORANCE IS LIABLE TO BE DELETED. 2. CONSIDERATION OF THE EXPENDITURE INCURRED ON ADV ERTISEMENT AND ENTERTAINMENT EXPENSES AMOUNTING TO RS.2 48 109/- AND RS.70 580/- RESPECTIVELY FOR THE PURPOSE OF CALCULATION OF FBT IS CONTRARY TO FACTS AND LAW AND THEREFORE SUCH EXPENDITURE IS LIABLE TO BE DELETED/IGNORED FOR THE PURPOSE OF CALCULATING OF FBT AND THEREFORE THE FBT CALCULATED IS LIABLE TO BE REDUCED. 2. IT IS SUBMITTED BY THE LD.AR OF THE ASSESSEE THA T THE ASSESSMENT ORDER HAS BEEN PASSED BY THE AO WITHOUT GIVING ANY OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE RELEVANT DETAILS AND EVIDENCES. IT IS ALSO SUBMITTED THAT T HE SAME WERE PRODUCED BEFORE THE CIT(A) AS ADDITIONAL EVIDENCES BUT THE SAME WERE NOT ADMITTED BY HIM FOR THE REASON THAT NO PROPER APPLICATION UNDER RULE 46A WAS FURNI SHED BEFORE THE CIT(A). HE FURNISHED AN APPLICATION FOR SEEKING PERMISSION TO FILE ADDITIONAL EVIDENCE. IT WAS ITA NO.4135/DEL./2009 (AY : 2006-07) 2 SUBMITTED BY HIM THAT THE ADDITIONAL EVIDENCE SHOUL D BE ADMITTED AND THE MATTER SHOULD BE RESTORED BACK TO THE FILE OF THE AO FOR A FRESH DECISION AFTER CONSIDERING THE ADDITIONAL EVIDENCES AND AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. LD.DR OF THE REVENUE SUPPORTED THE ORDER OF THE CIT (A). 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT IN THE ASSESSMENT ORDER THERE IS NO MENTION BY THE AO THAT ANY QUERY WAS RA ISED BY HIM ASKING THE ASSESSEE TO FURNISH SOME DETAILS WHICH WERE NOT FURNISHED BY T HE ASSESSEE. THERE IS NO MENTION ALSO THAT ANY SHOW-CAUSE NOTICE WAS ISSUED. UNDER THESE FACTS WE ARE IN AGREEMENT WITH LD.AR OF THE ASSESSEE THAT THERE WAS REASONABLE CAU SE FOR NOT FURNISHING THESE ADDITIONAL EVIDENCES BEFORE THE AO AND HENCE WE ADMIT THE ADDI TIONAL EVIDENCES. SINCE THE SAME WAS NOT EXAMINED BY THE AO WE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THIS MATTER BACK TO THE FILE OF THE AO FOR A FRESH DECISION AFT ER EXAMINING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE AND AFTER PROVIDING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. IT GOES WITHOUT SAYING THAT THE ASSESSEE HAS TO FURNISH THE COPY OF ADDITIONAL EVIDENCE BEFORE THE AO ALONG WITH ANY OTHER DETAIL WHICH THE ASSESSEE MAY LIKE TO FURNISH. IN VIEW OF OUR DECISION NO ADJUDICATION IS CALLED FOR ON MERIT AT THIS STAGE. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 5. ORDER PRONOUNCED IN OPEN COURT ON THE DATE OF HE ARING I.E. ON 12.05.2010. SD/- SD/- (A.D.JAIN) (A.K. GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED MAY 12 2010. *SKB* COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A)-XI NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DELHI. BY ORDER ITA NO.4135/DEL./2009 (AY : 2006-07) 3 (ITAT NEW DELHI).