Blue Bird Hotels Pvt. Ltd., New Delhi v. ITO, New Delhi

ITA NO. 5041/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 5041/DEL/2010 A.Y. : 2007-08 M/S BLUE BIRD HOTELS PVT. LIMITED 106 BABAR ROAD NEW DELHI 110 001 (PAN/GIR NO. : AACCB6766B) VS. INCOME TAX OFFICER WARD 3(1) NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : CA MS. RANO JAIN VENKATESH MOHAN DEPARTMENT BY : MS. ASHOK PANDEY C.I.T.(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 TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 13.10. 2010 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCO ME TAX (APPEALS) ERRED IN CONFIRMING THE ADDITION MADE BY TH E ASSESSING OFFICER. 3. IN THIS CASE ASSESSMENT WAS FRAMED U/S 144 OF THE IT ACT. ASSESSING OFFICER IN THE ASSESSMENT ORDER NOTED THAT SEVERAL TIMES NOTICES WERE SENT BUT NO ONE APPEARED. ASSESSING OFFICER PROCEEDED ITA NO. 5041/DEL/2010 2 TO MAKE THE ORDER U/S 144 OF THE IT ACT BY MAKING T HE FOLLOWING ADDITIONS:- I) ADDITION U/S 68 FOR SHARE APPLICATION MONEY 69 30 000/- II) ADDITION U/S 68 FOR AMOUNT SHOWN AS SECURED LOA NS 4 30 15 194/- III) ADDITION U/S 68 FOR AMOUNT SHOWN AS SUNDRY CRE DITORS 8 97 371/- TOTAL = 5 08 42 565/- 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ADDITION. LD. COMMISSIONER O F INCOME TAX (APPEALS) HAS ALSO NOTED IN HIS ORDER THAT SEVERAL TIMES THE CASE WAS FIXED BUT COMPLIANCE WAS NOT MADE BY THE ASSESSEE BEFORE HIM ALSO. 5. AGAINST THE ABOVE ORDER OF THE LD. COMMISSIONER O F INCOME TAX (APPEALS) THE ASSESSEE IS IN APPEAL BEFORE US. 6. ASSESSEES COUNSEL SUBMITTED THAT ASSESSEE WAS IN AN IMPRESSION THAT ASSESSEES CASE IS BEING REPRESENTED BEFORE TH E AUTHORITIES BELOW. ASSESSEE HAS ALSO FILED AN AFFIDAVIT FOR DIRECTOR OF THE COMPANY THAT THE NON-APPEARANCE WAS SOLELY BECAUSE OF THE DEFAUL T ON THE PART OF THE C.A. WHO WAS ENGAGED BY THE ASSESSEE TO REPRE SENT ITS CASE. IT IS CLAIMED THAT THERE WAS NO REASON FOR THE COMPANY NOT TO COOPERATE. EVEN ` 4.30 CRORES LOAN TAKEN FROM BANK OF BARODA HA S BEEN ADDED AS UNDISCLOSED INCOME. ASSESSEE HAS FURTHER SUBMITTED A DDITIONAL EVIDENCE BEFORE US & PRAYED FOR THE ADMISSION OF T HE SAME. ASSESSEES COUNSEL REQUESTED THAT ASSESSEE MAY BE G RANTED ONE MORE OPPORTUNITY TO APPEAR BEFORE THE ASSESSING OFFICER TO CANVASS THE CASE PROPERLY. ITA NO. 5041/DEL/2010 3 6.1 LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAN D DID NOT HAVE ANY SERIOUS OBJECTION TO THIS PROPOSITION. 7. ACCORDINGLY IN THE INTEREST OF JUSTICE WE REMIT THE ISSUE TO THE FILES OF THE ASSESSING OFFICER TO CONSIDER THE CAS E AFRESH AFTER GIVING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9. ORDER PRONOUNCED IN THE OPEN COURT ON 18/01/2011 UPON CONCLUSION OF HEARING. SD/- SD/- [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [R.P. TOLANI] [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 18/01/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES