DCIT(LTU), New Delhi v. M/s. Rural Electrification Corp. Ltd., New Delhi

ITA 6098/DEL/2013 | 2003-2004
Pronouncement Date: 30-04-2015 | Result: Dismissed

Appeal Details

RSA Number 609820114 RSA 2013
Assessee PAN AAACR4512R
Bench Delhi
Appeal Number ITA 6098/DEL/2013
Duration Of Justice 1 year(s) 5 month(s) 19 day(s)
Appellant DCIT(LTU), New Delhi
Respondent M/s. Rural Electrification Corp. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2015
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 30-04-2015
Date Of Final Hearing 24-04-2015
Next Hearing Date 24-04-2015
Assessment Year 2003-2004
Appeal Filed On 11-11-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F : NEW DELHI BEFORE SHRI I. C. SUDHIR JUDICIAL MEMBER AND SHRI INTURI RAMA RAO AC COUNTANT MEMBER ITA NO. 6098/DEL/2013 ASSESSMENT YEAR: 2003-04 DCIT VS. RURAL ELECTRIFICATION CORP. LTD. NEW DELHI. CORE-IV SCOPE COMPLEX 7 LODHI ROAD NEW DELHI. (PAN AAAC R4512R) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIKRAM SAYAY SR. DR RESPONDENT BY : SHR I MAYANK MOHANKA FCA ORDER PER I.C. SUDHIR JUDICIAL MEMBER THE REVENUE HAS IMPUGNED FIRST APPELLATE ORDER WHEREBY THE LD. CIT(A) HAS QUASHED THE ORDER OF THE ASSESSMENT MADE BY THE AO U/S 147/143(3) OF THE ACT. 2. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY THE PARTIES IN VIEW OF ORDERS OF THE AUTHORITIES BELOW MATERIAL AVAILABLE ON RECORD AND THE DECISIONS RELIED UPON. 3. LIKE THE ASSESSMENT YEAR 2004-05 IN THE PRE SENT ASSESSMENT YEAR ALSO THE REOPENING PROCEEDINGS HAVE BEEN INITIATED ON THE BA SIS THAT THE ASSESEE HAD ITA NO. 6098/DEL/2013 2 TREATED BOND ISSUES EXPENSE AS REVENUE WHICH THE A O HELD AS CAPITAL IN NATURE. IN BOTH THE YEARS THE REOPENING OF ASSESSMENT HAS BEEN MADE FOUR YEARS AFTER THE END OF ASSESSMENT YEAR AND BEFORE SIX YEARS OF THE END OF ASSESSMENT YEAR. AO WHILE RECORDING THE REASONS HAS NOT RECORDED THA T THE ALLEGED ESCAPEMENT OF INCOME IN THE MATTER WAS BY REASONS OF THE ASSESSEE HAVING MADE FULL AND TRUE DISCLOSURES IN THE RETURN OF INCOME. THE ORIGINAL A SSESSMENT WAS FRAMED U/S 143(3) AND THE NOTICE U/S 148 WAS ISSUED BEYOND TH E PERIOD OF FOUR YEARS FROM THE END OF THE ASSESSMENT YEAR. LD. CIT(A) RESPECT FULLY FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSMENT YEAR 2004-05 VIDE ORDER DATED 23.4.2013 IN WP(C)7943/2011 HAS HELD THAT THE AO WAS REQUIRED TO RECORD A FINDING IN THE REASONS THAT THE ALLEGED ESCAPEMENT OF INCOME WAS DUE TO THE ASSESSEES FAIL URE TO DISCLOSE ALL MATERIAL FACTS FULLY AND TRULY IN THE RETURN OF INCOME. THE LD. CIT(A) HAS ACCORDINGLY HELD THE IMPUGNED ORDER OF REASSESSMENT IN THE PRESENT C ASE AS BAD IN LAW AND HAS QUASHED IT ACCORDINGLY. 4. IN ABSENCE OF REBUTTAL OF THE ABOVE FINDIN G OF THE LD. CIT(A) THAT WHILE RECORDING THE REASONS THE AO HAS NOT RECORDED THAT THE ALLEGED ESCAPEMENT OF INCOME IN THE MATTER WAS BY REASONS OF THE ASSESSEE NOT HAVING MADE FULLY AND TRULY DISCLOSURE IN THE RETURN OF INCOME WE ARE O F THE VIEW THAT THE LD. CIT(A) HAS RIGHTLY HELD THE REASSESSMENT IN QUESTION AS IN VALID AND QUASHED IT RESPECTFULLY FOLLOWING THE RATIO LAID DOWN BY THE H ONBLE JURISDICTIONAL DELHI HIGH ITA NO. 6098/DEL/2013 3 COURT IN THE CASE OF ASSESSEE ITSELF ON AN IDENTIC AL ISSUE FOR THE ASSESSMENT YEAR 2004-05. THE SAME IS UPHELD. THE GROUND IS ACCORDIN GLY REJECTED. 5. IN THE RESULT APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 0 TH APRIL 2015. SD/- SD/- (INTURI RAMA RAO) ( I.C. S UDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 30 TH APRIL 2015 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR ITAT