DCIT, CIRCLE- 2, NOIDA v. PHOENIX LAMPS LTD. ( FORMERLY KNOWN AS HALLONIX LTD.), NOIDA

ITA 4373/DEL/2017 | 2009-2010
Pronouncement Date: 28-02-2020 | Result: Dismissed

Appeal Details

RSA Number 437320114 RSA 2017
Assessee PAN AABCP7718G
Bench Delhi
Appeal Number ITA 4373/DEL/2017
Duration Of Justice 2 year(s) 7 month(s) 25 day(s)
Appellant DCIT, CIRCLE- 2, NOIDA
Respondent PHOENIX LAMPS LTD. ( FORMERLY KNOWN AS HALLONIX LTD.), NOIDA
Appeal Type Income Tax Appeal
Pronouncement Date 28-02-2020
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 28-02-2020
Assessment Year 2009-2010
Appeal Filed On 03-07-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI O.P. KANT ACCOUNTANT MEMBER ITA NO.4373/DEL./2017 ASSESSMENT YEAR: 2009-10 AND ITA NO.4374/DEL./2017 ASSESSMENT YEAR: 2010-11 DCIT CIRCLE-2 NOIDA VS. M/S. PHOENIX LAMPS LTD. (FORMERLY KNOWN AS HALLONIX LTD.) 59A NSEZ PHASE-III NOIDA PAN : AABCP7718G (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT AM: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST TWO SEPARATE ORDERS BOTH DATED 28/03/2017 PASSED BY T HE LEARNED CIT(APPEALS)-1 NOIDA [IN SHORT THE LD. CIT(A)] F OR ASSESSMENT YEARS 2009-10 AND 2010-11. IN BOTH THE APPEALS IDE NTICAL GROUNDS HAVE BEEN RAISED BY THE REVENUE IN SAME SET OF FACTS AND CIRCUMSTANCES ACCORDINGLY BOTH THESE APPEALS WERE HEARD APPELLANT BY SMT. SUSHMA SINGH CIT(DR) RESPONDENT BY MS. SWATI RANA ADV. DATE OF HEARING 25.02.2020 DATE OF PRONOUNCEMENT 28.02.2020 2 ITA NO. 4373 & 4374/DEL/2017 TOGETHER AND DISPOSED OF BY WAY OF THIS CONSOLIDATE D ORDER FOR THE SAKE OF CONVENIENCE. THE GROUNDS OF THE APPEAL IN I TA NO. 4373/DEL./2017 FOR ASSESSMENT YEAR 2009-10 ARE REPR ODUCED AS UNDER: 1. THAT THE CIT(APPEALS)-I HAS ERRED IN LAW AND ON FACTS BY PASSING A NON-SPEAKING ORDER WITHOUT GOING INTO THE MERITS OF EACH OF THE ISSUES INVOLVED. 2. THAT THE ORDER OF CIT(APPEALS)-I MAY BE SET ASID E WITH DIRECTION TO PASS SPEAKING ORDER ELABORATING THE FACTS AND REASO NS. 3. THAT THE APPELLANT CRAVES TO LEAVE ADD ALTER A ND AMEND ANY OF THE GROUNDS OF APPEAL ON OR BEFORE HEARING. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE ASSE SSEE FILED RETURN OF INCOME ON 26/09/2009 FOR ASSESSMENT YEAR 2009-10 DECLARING LOSS OF 6 92 02 587/- AND ON 25/09/2010 FOR ASSESSMENT YEAR 2010-11 DECLARING LOSS OF 10 18 82 447/-. THE ASSESSMENT UNDER SECTION 143(3) OF THE INCOME-TAX A CT 1961 (IN SHORT THE ACT) WERE COMPLETED FOR ASSESSMENT YEAR 2009-10 AND 2010-11 ON 23/12/2011 AND 28/03/2013 RESPECTIVELY A FTER MAKING CERTAIN ADDITIONS/DISALLOWANCES. AGGRIEVED THE ASSESSEE FILED APPEALS FOR BOTH THE ASSESSMENT YEARS BEFORE THE LEARNED CIT(A). THE LD. CIT(A) IN ASSESSMENT YEAR 2009-10 A LLOWED THE APPEAL OF THE ASSESSEE OBSERVING AS UNDER: 3. IN VIEW OF THE DISPUTE BETWEEN THE APPELLANT AN D REVENUE MY ID. PREDECESSOR CALLED FOR A REPORT FROM THE ID. A.O. A ND WHEREAFTER THE ID. A.O. VIDE HIS REPORT DATED 08/07/2015 WHICH WAS DULY FORWARDED BY THE ID. JCTI RANGE-2 NOIDA BY HIS LE TTER DATED 11/09/2015 THE ID. A.O. ACCEPTED THE CLAIMS OF THE APPELLANT TO THE EXTENT DISALLOWANCE ON ACCOUNT OF SHIFTING OF EXPEN SES AND IN RESPECT OF DISALLOWANCE ON ACCOUNT OF CAPITAL EXPEN SES CLAIMED AS REVENUE EXPENSES TO THE EXTENT OF RS. 47 40 024/- O UT OF TOTAL EXPENDITURE SO CLAIMED OF RS. 3 74 25 725/-. A COPY OF THE REPORT WAS PROVIDED TO THE APPELLANT FOR ITS NECESSARY RES PONSE AND BY ITS 3 ITA NO. 4373 & 4374/DEL/2017 LETTER DATED 10/03/2016 THE APPELLANT SUBMITTED THA T THE REMAND REPORT IS ACCEPTABLE TO THE APPELLANT. IN VIEW OF THERE BEING NO DISPUTE REMAINING BETWEEN THE PARTIES THE PRESENT APPEAL IS DISPOSED IN TERMS OF THE RECOMMEN DATIONS OF THE ID. A.O BY ITS REMAND REPORT THE ADDITION OF RS. 12 76 45 322/- IS THEREFORE DELETED. THE APPELLANT GETS RELIEF TO TH AT EXTENT. REGARDING THE DISALLOWANCE OF RS. 3 74 25 725/- THE APPELLANT GETS RELIEF TO THE EXTENT OF RS. 47 40 024/-. THE APPEAL IS DISPOSED I N TERMS OF THE ABOVE. 2.1 SIMILARLY IN ASSESSMENT YEAR 2010-11 THE LD. CIT( A) ALLOWED THE APPEAL OBSERVING AS UNDER: 3. IN VIEW OF THE DISPUTE BETWEEN THE APPELLANT AN D REVENUE MY LEARNED PREDECESSOR CALLED FOR A REPORT FROM THE LE ARNED A.O. AND WHERE AFTER THE LEARNED A.O. VIDE HIS REPORT DATED 29.06.2015 THE LEARNED A.O. ACCEPTED THE CLAIMS OF THE APPELLANT. A COPY OF THE REPORT WAS PROVIDED TO THE APPELLANT FOR ITS NECESS ARY RESPONSE AND BY ITS LETTER DATED 10.03.2016 THE APPELLANT SUBMIT TED THAT THE REMAND REPORT IS ACCEPTABLE TO THE APPELLANT. IN VI EW OF THERE BEING NO DISPUTE BETWEEN THE PARTIES THE APPEAL IS DISPOS ED IN TERMS OF THE RECOMMENDATIONS OF THE LEARNED AO. THE IMPUGNED ASSESSMENT ORDER IS ANNULLED. THE APPEAL OF THE APPELLANT SUCC EEDS AND IS ALLOWED. 2.2 AGGRIEVED THE REVENUE FILED APPEALS BEFORE THE TR IBUNAL RAISING THE GROUNDS AS REPRODUCED ABOVE. 3. AT THE TIME OF THE HEARING THE LEARNED COUNSEL OF THE ASSESSEE SOUGHT ADJOURNMENT WHICH WAS REJECTED. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE GROUNDS AND SUBMITTED THAT THE LEARNED CIT(A) HAS N OT PASSED A SPEAKING ORDER AND THAT TOO WITHOUT GOING INTO MERI T OF THE ISSUES WHEREAS THE LEARNED COUNSEL OF THE ASSESSEE RELIED ON THE ORDER OF THE LEARNED CIT(A) AND SUBMITTED THAT IN R EMAND REPORT PROCEEDINGS THE ASSESSING OFFICER HAS ACCEPTED THE CLAIM OF THE ASSESSEE AND DID NOT PROPOSE ANY ADDITIONS/DISALLOW ANCE AND THEREFORE THE REVENUE IS NOT JUSTIFIED IN FILING T HE APPEAL. 4 ITA NO. 4373 & 4374/DEL/2017 5. WE HAVE HEARD THE RIVAL SUBMISSION OF THE PARTIES. IT IS EVIDENT FROM THE PARA 3 OF THE IMPUGNED ORDER FOR A SSESSMENT YEAR 2009-10 THAT THE ASSESSING OFFICER IN REMAND R EPORT DATED 08/07/2015 PROCEEDINGS HAS ACCEPTED THE CLAIM OF TH E ASSESSEE REGARDING THE ADDITIONS AND DISALLOWANCE MADE IN TH E ASSESSMENT ORDER. THE SAID REMAND REPORT WAS DULY FORWARDED BY THE SUPERVISORY OFFICER I.E. JOINT COMMISSIONER OF IN COME TAX RANGE-2 NOIDA VIDE HIS LETTER DATED 11/09/2015. A COPY OF THE SAID REPORT WAS SENT TO THE ASSESSEE FOR HIS COMMEN TS. THE ASSESSEE IN HIS REJOINDER DULY ACCEPTED THE FINDING OF THE ASSESSING OFFICER IN THE REMAND REPORT. WE FIND THA T NOTHING CONTRARY HAS BEEN PRODUCED BEFORE US WHICH COULD S HOW THAT THE LD. CIT(A) HAS ALLOWED THE RELIEF TO THE ASSESSEE I N ANY UNREASONABLE MANNER. THOUGH ADMITTEDLY THE LEARNED CIT(A) HAS NOT MENTIONED THE BRIEF FACTS OF THE ADDITION AS W ELL AS BRIEF FINDING OF THE ASSESSING OFFICER IN THE REMAND REPO RT MENTIONED BUT THAT DOES NOT TAKE AWAY THE SUBSTANTIAL ISSUE T HAT THE ASSESSING OFFICER HAS ACCEPTED THE CLAIM OF THE ASS ESSEE IN THE REMAND PROCEEDING. BEFORE US REVENUE HAS NOT BEEN ABLE TO EXPLAIN AS WHY THE APPEAL HAS BEEN FILED WHEN THE A SSESSING OFFICER HIMSELF HAS ACCEPTED THE CLAIM OF THE ASSES SEE IN THE REMAND REPORT WHICH WAS ENDORSED BY THE SUPERVISOR Y OFFICER ALSO. 6. WE DO NOT FIND ANY REASON FOR FILING THE APPEAL BY THE REVENUE ONCE THE REVENUE HAS ACCEPTED THE CLAIM OF THE ASSESSEE DURING REMAND PROCEEDING. THE LD. CIT(A) H AS DECIDED THE ISSUE ON THE BASIS OF THE REMAND REPORT OF THE ASSESSING OFFICER DULY FORWARDED BY THE SUPERVISORY OFFICER. IN OUR OPINION 5 ITA NO. 4373 & 4374/DEL/2017 THE STAND TAKEN BY THE ASSESSING OFFICER AND THE SU PERVISORY OFFICER IN THE REMAND PROCEEDING IS CONSIDERED TO B E THE STAND OF THE REVENUE UNLESS ANYTHING MALAFIDE IS NOT FOUND I N THE ACTION OF THE ASSESSING OFFICER IN REMAND REPORT. SINCE TH E LD. CIT(A) HAS DECIDED THE ISSUE IN VIEW OF THE REMAND REPORT OF THE ASSESSING OFFICER WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) ON THE ISSUE IN DISPUTE FOR ASSESSMENT Y EAR 2009-10 AND ACCORDINGLY WE UPHOLD THE SAME. 7. THE FACTS AND CIRCUMSTANCES FOR ASSESSMENT YEAR 201 0-11 ARE IDENTICAL AND THEREFORE WE UPHOLD THE ORDER O F THE LD. CIT(A) FOR ASSESSMENT YEAR 2010-11 ALSO. 8. IN THE RESULT BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY 2020. SD/- SD/- (BHAVNESH SAINI) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 TH FEBRUARY 2020. RK/- (D.T.D.S.) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT NEW DELHI