ITO, New Delhi v. M/s Sai Contractors Pvt. Ltd., New Delhi

ITA 4581/DEL/2010 | 2007-2008
Pronouncement Date: 23-12-2010 | Result: Allowed

Appeal Details

RSA Number 458120114 RSA 2010
Assessee PAN AAFCS0787G
Bench Delhi
Appeal Number ITA 4581/DEL/2010
Duration Of Justice 2 month(s) 8 day(s)
Appellant ITO, New Delhi
Respondent M/s Sai Contractors Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 23-12-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted G
Tribunal Order Date 23-12-2010
Date Of Final Hearing 15-12-2010
Next Hearing Date 15-12-2010
Assessment Year 2007-2008
Appeal Filed On 15-10-2010
Judgment Text
ITA NO. 4581/DEL/2010 A.Y. 2007-08 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 4581/DEL/2010 A.Y. : 2007-08 INCOME TAX OFFICER WARD 7(2) ROOM NO. 306 C.R. BUILDING NEW DELHI VS. M/S SAI CONTRACTORS PVT. LTD. D-64 NAVKUNJ APPTT. I.P. EXTENSION PATPARGANJ NEW DELHI 110092 (PAN/GIR NO. : AAFCS0787G) (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. ANAND K. VERMA CA DEPARTMENT BY : SH. R.P. SINGH 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 REVENUE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 26.7.2 010 PERTAINING TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED PERTAINS TO DELETION OF VARIOU S ADDITIONS BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) MADE BY THE ASSESSING OFFICER. 3. THE ASSESSMENT IN THIS CASE WAS FRAMED U/S 144 O F THE IT ACT AS ASSESSEE HAS NOT RESPONDED TO THE QUESTIONNAIRE AN D NOTICES BY THE ASSESSING OFFICER. ASSESSING OFFICER HAD PROCEED ED TO ASSESS THE UNDISCLOSED INCOME. ASSESSEE HAS FILED COPIES OF BALANCE SHEET AND ITA NO. 4581/DEL/2010 A.Y. 2007-08 2 COPY OF BANK ACCOUNT WITH FEDERAL BANK AND OTHER DE TAILS WERE FILED. THE BOOK OF ACCOUNTS WERE ALSO NOT FURNISHED. AS SESSING OFFICER FOUND THAT ASSESSEE HAS SHOWN RECEIPT OF UNSECURED LOAN OF ` 2 93 266/-. FROM THE BALANCE SHEET OF THE ASSESSEE ASSESSING OFFICER FOUND LOANS AND SUNDRY CREDITORS AND PROCEEDED TO H OLD THAT ` 9 82 797/- WAS THE UNDISCLOSED INCOME IN THIS REGARD . ASSESSING OFFICER FURTHER FOUND THAT ASSESSEE HAS SHOWN STAT UTORY DUES PAYABLE OF ` 8 55 063/-. NO DETAIL AND PROOF OF PAYMENT W ITHIN TIME WAS FURNISHED IN THIS REGARD. HENCE THIS WAS ALSO A DDED BACK. IN THE ABSENCE OF THE BOOKS AND VOUCHERS THE ASSESSING OF FICER ESTIMATED 8% PROFIT ON THE TURNOVER OF ` 6668394/- AMOUNTING T O ` 533472/-. ASSESSEE HAS ALSO SHOWN RECEIPT OF SHARE APPLICATIO N MONEY OF ` 1 LAC AS NO DETAIL OF THE SAME HAS BEEN FURNISHED THE SAM E WAS ALSO ADDED AS UNDISCLOSED INCOME. THUS ASSESSING OFFICER MADE TOTAL ADDITION OF ` 2371332/-. 4. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ASSESSEE SUBMITTED ELABORATE SUBMISSIONS AND ALSO ADDITIONAL EVIDENCES WERE FURNISHED. LD. COMMISSIONER OF INCOME TAX (APPEALS ) HAS SENT THESE SUBMISSIONS TO THE ASSESSING OFFICER FOR GIVING TH E REMAND REPORT BUT THE ASSESSING OFFICER RECOMMENDED THAT THE ADDITION AL EVIDENCES FILED BY THE ASSESSEE SHOULD NOT BE ENTERTAINED. THOU GH LD. COMMISSIONER OF INCOME TAX (APPEALS) ACCEPTED THE AS SESSING OFFICERS CONTENTION IS THAT ASSESSEE DID NOT ATT END THE PROCEEDINGS WAS NOT ENTIRELY INCORRECT. HE ACCEPTED THAT ASS ESSEES CONTENTION THAT WHATEVER INFORMATION AND DOCUMENTS WERE AVAILABL E AT THAT TIME WERE DULY PLACED BEFORE THE ASSESSING OFFICER. THI S CLEARLY IS AN ACCEPTANCE ON THE PART OF THE ASSESSEE THAT AL THE REQUIRED DETAILS WERE NOT GIVEN TO ASSESSING OFFICER. THEREAFTER LD. COMMISSIONER OF ITA NO. 4581/DEL/2010 A.Y. 2007-08 3 INCOME TAX (APPEALS) PROCEEDED TO GRANT RELIEF TO T HE ASSESSEE ON THE BASIS OF FRESH DOCUMENTS AND SUBMISSION MADE BEFORE H IM. 5. AGAINST THIS ORDER THE REVENUE IS IN APPEAL BEFO RE US. 6. AT THE OUTSET LD. DEPARTMENTAL REPRESENTATIVE S UBMITTED THAT THERE IS A COMPLETE VIOLATION OF RULE 46A(3) WHICH P ROVIDES THAT LD. COMMISSIONER OF INCOME TAX SHALL NOT TAKE INTO ACCOU NT ANY EVIDENCE PRODUCED UNDER SUB-RULE (1) UNLESS THE ASSESSING OF FICER HAS BEEN ALLOWED THE REASONABLE OPPORTUNITY : (A) TO EXAMINE THE EVIDENCE OR DOCUMENTS OR TO CROSS EXAMINE THE WITNESS PRODUCED BY THE APPELLANT OR (B) TO PRODUCE ANY EVIDENCE OR DOCUMENTS OR ANY WITNESS IN REBUTTAL OF THE ADDITIONAL EVIDENCE PRODUCED BY THE APPELLA NT. 6.1 WE FIND THAT IN THIS CASE THOUGH ADDITIONAL EVI DENCES WERE SENT TO THE ASSESSING OFFICER FOR FILING THE REMAND REP ORT. ASSESSING OFFICER HAD NOT COMMENTED AS THE SAME AND HE OPINE D THAT THE DOCUMENTS SHOULD NOT BE ACCEPTED. LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ACCEPTED THOSE ADDITIONAL EVIDENCES THEN IT WAS INCUMBENT UPON HIM TO SEND THE SAME TO THE ASSESSING OFFICER AFTER ADMITTING ADDITIONAL EVIDENCES TO ENABLE THE ASSESS ING OFFICER TO GO THROUGH THEM AND GIVE A REPORT IN THIS REGARD. UNDER THE CIRCUMSTANCES WE ACCEPT THE REVENUES CONTENTION T HAT THERE HAS BEEN A VIOLATION OF RULE 46A. 6.2 LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT HE H AS GIVEN REQUISITE INFORMATION DOCUMENTS IN THIS REGARD AND HE CAN VERY WELL PRODUCED THE SAME BEFORE THE ASSESSING OFFICER. UN DER THE CIRCUMSTANCES WE REMIT THIS ISSUE RAISED IN THE APPE AL TO THE FILES OF ITA NO. 4581/DEL/2010 A.Y. 2007-08 4 THE ASSESSING OFFICER TO CONSIDER THE SAME AFRESH. NEEDLESS TO ADD THAT THE ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUN ITY OF BEING HEARD. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23/12/2010. 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 23/12/2010 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES