Anand Nishikawa Company Ltd., New Delhi v. ITO, New Delhi

ITA 437/DEL/2011 | 2006-2007
Pronouncement Date: 16-12-2011 | Result: Allowed

Appeal Details

RSA Number 43720114 RSA 2011
Assessee PAN AAECA0338G
Bench Delhi
Appeal Number ITA 437/DEL/2011
Duration Of Justice 10 month(s) 21 day(s)
Appellant Anand Nishikawa Company Ltd., New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 16-12-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted I
Tribunal Order Date 16-12-2011
Date Of Final Hearing 30-11-2011
Next Hearing Date 30-11-2011
Assessment Year 2006-2007
Appeal Filed On 25-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: I NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI A.N. PAHUJA ACCOUNTANT MEMBER I.T.A NO. 437/DEL/11 ASSTT. YEAR 2006-07 ANAND NISHIKAWA COMPANY LTD. 25/31 ANBROS HOUSE EAST PATEL NAGAR NEW DELHI. AAECA0338G VS. ITO COMPANY WARD 1(4) NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI BALJEET SINGH CA RESPONDENT BY: SHRI A.K. MONGA SR. DR ORDER PER RAJPAL YADAV JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. CIT(A) DATED 25 TH AUGUST 2010 PASSED FOR ASSTT. YEAR 2006- 07. THE ASSESSEE HAS TAKEN FIVE GROUNDS OF APPEAL. OUT OF THEM ONLY TWO ARE SUBSTANTIAL GROUNDS WHEREIN IT CHALLE NGED DISALLOWANCE OF ` 36 49 370/- OUT OF JOB WORK EXPEN SES AND ADDITION OF `. 13 89 645/- IN THE VALUE OF FRINGE BENEFIT. ITA NO. 437/DEL/11 ASSTT. YEAR 2006-07 2 2. WITH THE ASSISTANCE OF LD. REPRESENTATIVE WE HA VE GONE THROUGH THE RECORD CAREFULLY. WE FIND THAT ASSESSEE COMPANY HAS FILED ITS RETURN OF INCOME ON 30 TH OCTOBER 2006 DECLARING NIL INCOME AN ASSESSMENT WAS FRAMED U/S 143 (3) ON 30 TH DECEMBER 2008 WHEREBY LD. AO HAS MADE CERTAIN DISALLOWANCES AND ADDITIONS. THE ASSESSEE CARRIED T HE MATTER IN APPEAL BEFORE LD. CIT(A). IT IMPUGNED THREE ADDITIO NS THE FIRST ADDITION RELATES TO DISALLOWANCE OF JOB WORK EXPENS ES AMOUNTING TO `. 36 49 370/-. THE SECOND ADDITION RE LATES TO DISALLOWANCE OF `. 2 69 490/- U/S 43B ON ACCOUNT O F DELAYED PAYMENT OF EMPLOYEES CONTRIBUTION TOWARDS PROVIDEN T FUND ETC. AND THE THIRD ADDITION IS OF `. 13 89 645/- WH ICH WAS ADDED IN THE VALUE OF FRINGE BENEFIT. THE LD. CIT(A) HAS DELETED THE DISALLOWANCE OF `. 2 69 490/- BY FOLLOWING THE DECI SION OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. PM ELECTRONICS LTD. REPORTED IN 15 (DEL) DTR PAGE 258. HOWEVER TH E OTHER TWO ADDITIONS HAVE BEEN CONFIRMED. THE OBSERVATIONS OF LD. FIRST APPELLATE AUTHORITY IN RESPECT TO THESE TWO ADDITIO NS READ AS UNDER :- ITA NO. 437/DEL/11 ASSTT. YEAR 2006-07 3 3. THE ASSESSEE IS IN APPEAL AND HAS TAKEN FIVE GROUNDS OF APPEAL. I SHALL ADJUDICATE GROUND OF APP EAL NO. 1 AT THE VERY OUTSET WHEREIN DISALLOWANCE ON JO B WORK EXPENSES TO THE EXTENT OF `. 36 49 370/- HAS BEEN MADE. THIS ISSUE HAS NOT BEEN DEALT IN GREAT DETAIL BY THE LD. AO AND HAS MADE AN ADDITION BASED ON THE TAX AUDIT REPORT FILED VOLUNTARILY BY THE ASSESSEE. THE ADDITION HAS BEEN MADE U/S 40A. 4. THE CASE WAS FIXED FOR HEARING AND SHRI SANJAY ROHILLA ADVOCATE APPEARED ON BEHALF OF THE ASSESSEE. HE HAS NOT ARGUED ON THIS GROUND OF APPEAL. NO FACTS WERE ALSO BROUGHT TO THE KNOWLEDGE OF THE UNDERSIGNED. THE NEXT DATE OF HEARING WAS PLACED FOR 18.8.2010 ON WHICH DATE NONE APPEARED NOR ANY ADJOURNMENT PETITION WAS FILED. 5. IN VIEW OF THE NON-SUBMISSION OF ANY ARGUMENT OR EVIDENCE ON THIS GROUND OF APPEAL THE ADDITION MAD E BY THE LD. AO IS UPHELD. THE ASSESSEE FAILS IN GROU ND OF APPEAL NO. 1. 10. I SHALL NOW ADJUDICATE GROUND OF APPEAL NO. 3 W HEREIN NO ARGUMENTS HAD BEEN PUT FORTH BY THE LD. AR. AS SUCH THE ADDITION DESERVES TO BE UPHELD IN GROUND OF APPEAL NO. 3. 3. WE FIND THAT LD. FIRST APPELLATE AUTHORITY HAS N OT MADE ANY DISCUSSION ABOUT THESE TWO ISSUES AND FAILED T O CONSIDER THE MATERIAL ON RECORD. THE ORDER OF THE LD. FIRST APPELLATE AUTHORITY ON THE ISSUES IMPUGNED IN THE PRESENT APP EAL CANNOT BE IN ACCORDANCE WITH THE MANDATE OF SUB SECTION (6 ) OF SECTION 250 OF THE INCOME TAX ACT 1961. THEREFORE WE ALLOW THE ITA NO. 437/DEL/11 ASSTT. YEAR 2006-07 4 APPEAL OF ASSESSEE AND SET ASIDE THE ORDER OF LD. C IT(A). BOTH ISSUES ARE RESTORED TO THE FILE OF LD. FIRST APPELL ATE AUTHORITY FOR READJUDICATION. LD. FIRST APPELLATE AUTHORITY SHALL DECIDE THE ISSUES AFTER PROVIDING DUE OPPORTUNITY OF HEARING T O THE ASSESSEE. ORDER PRONOUNCED IN THE OPEN COURT ON 16.12.2011. SD/- SD/- [A.N. PAHUJA] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16.12.2011 VEENA COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT