Indu Jain, New Delhi v. DCIT, Central Circle-25, New Delhi

ITA 7094/DEL/2018 | 2016-2017
Pronouncement Date: 17-03-2021 | Result: Allowed

Appeal Details

RSA Number 709420114 RSA 2018
Assessee PAN ACSPJ5717D
Bench Delhi
Appeal Number ITA 7094/DEL/2018
Duration Of Justice 2 year(s) 4 month(s) 11 day(s)
Appellant Indu Jain, New Delhi
Respondent DCIT, Central Circle-25, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 17-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 17-03-2021
Assessment Year 2016-2017
Appeal Filed On 06-11-2018
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI G BEN CH NEW DELHI BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI N.K. BILLAIYA ACCOUNTANT MEMBER ITA NO. 7094/DEL/2018 [ASSESSMENT YEAR: 2016-17] SMT INDU JAIN VS. THE DY. C.I.T C/O KAPIL GOEL ADV CENTRAL CIRCLE- 25 F-26/124 SECTOR 7 NEW DELHI ROHINI DELHI PAN: ACSPJ 5717 D ITA NO. 7093/DEL/2018 [ASSESSMENT YEAR: 2016-17] SHRI ANAND KUMAR JAIN VS. THE DY. C.I.T C/O KAPIL GOEL ADV CENTRAL CIRCLE- 25 F-26/124 SECTOR 7 NEW DELHI ROHINI DELHI PAN: ACSPJ 5717 D [APPELLANT] [RESPONDENT] DATE OF HEARING : 17.03.2021 DATE OF PRONOUNCEMENT : 17.03.2021 ASSESSEE BY : SHRI KAPIL GOEL ADV REVENUE BY : SHRI AMITABH KUMAR SINHA CIT-DR 2 ORDER PER N.K. BILLAIYA ACCOUNTANT MEMBER WITH THESE APPEALS BOTH THE ASSESSEES HAVE CHALLEN GED THE CORRECTNESS OF THE SEPARATE ORDERS OF THE COMMISSIO NER OF INCOME TAX [APPEALS]-29 NEW DELHI DATED 10.09.2018 PERTAINING TO ASSESSMENT YEAR 2016-17. SINCE BOTH THESE APPEALS INVOLVE COM MON ISSUES THEY ARE BEING DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. ITA NO. 7094/DEL/2018 2. BEFORE US THE LD. COUNSEL FOR THE ASSESSEE CHAL LENGED THE JURISDICTION OF THE ASSESSING OFFICER BY RAISING TH E FOLLOWING ADDITIONAL PLEA OF APPEAL: THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSED BY LD AO U/S 143(3) WITHOUT APPRECIATING THAT AS STATED IN OPENING PORT ION OF IMPUGNED ASSESSMENT ORDER REGULAR RETURN U/S 139(1) OF THE A CT WAS SUBMITTED ON 04.08.2016 AND NOTICE U/S 143(2) IS AD MITTEDLY ISSUED ON 16/10/2017 AS NOTED AT SECOND PAGE OF ASSESSMENT ORDER WHICH IS MANIFESTLY TIME BARRED AS LAST DATE FOR ISSUANCE OF NOTICE U/S 3 143(2) AS RECKONED FOR PERIOD UNDER CONSIDERATION ( WHICH IS SEARCH YEAR) FROM 31.03.2017 WOULD BE 30.09.2017 AND SO NO TICE U/S 143(2) ISSUED ON 16/10/2017 IS TIME BARRED AND ACCORDINGLY ASSESSMENT FRAMED U/S 143(3) AND ORDER OF CITA MAY PLEASE BE Q UASHED. 3. ADMITTEDLY THIS ISSUE WAS NEVER RAISED BEFORE T HE LOWER AUTHORITIES. BUT SINCE THE CHALLENGE TO THE JURISD ICTION OF THE ASSESSING OFFICER GOES TO THE ROOT OF THE MATTER IN LIGHT OF THE RATIO LAID DOWN BY THE HON'BLE SUPREME COURT IN THE CASE OF NTPC 229 ITR 383 THE SAME DESERVES TO BE ADMITTED AND ADJUDICATED. ACCO RDINGLY THE ADDITIONAL PLEA RAISED FOR THE FIRST TIME IS ADMITT ED SINCE IT REQUIRES NO VERIFICATION OF FACTS AND THE FACTS ARE VERY MUC H IN THE BODY OF THE ASSESSMENT ORDER IN THE FIRST PAGE ITSELF. 4. THE CHALLENGE IS IN RESPECT OF VALIDITY OF NOTIC E ISSUED U/S 143(2) OF THE ACT WHICH ACCORDING TO THE ASSESSEE IS BAR RED BY LIMITATION. 5. FACTS ON RECORD SHOW THAT THE ORIGINAL RETURN OF INCOME U/S 139(1) OF THE INCOME-TAX ACT 1961 [HEREINAFTER REF ERRED TO AS 'THE ACT'] WAS FILED ON 04.08.2016 DECLARING INCOME OF R S. 35 02 630/-. THE SAID RETURN OF INCOME WAS PROCESSED U/S 143(1) OF T HE ACT ON 4 02.12.2016. SUBSEQUENTLY PURSUANT TO SEARCH AND S EIZURE OPERATION U/S 132 OF THE ACT WHICH WAS CARRIED OUT ON 18.11. 2015 THE CASE OF THE APPELLANT WAS CENTRALISED FROM WARD-1 FARIDABAD TO CENTRAL CIRCLE 25 NEW DELHI. 6. CONSEQUENTLY THE NOTICE U/S 142(1) OF THE ACT W AS ISSUED ON 22.09.2017 ASKING THE ASSESSEE TO FILE RETURN WITHI N 15 DAYS OF RECEIPT OF NOTICE. THE SAID NOTICE READS AS UNDER: OFFICE OF THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE - 25 ROOM NO. 322 3 RD FLOOR E-2 ARA CENTER JHANDEWALAN EXTENSION NE W DELHI. NOTICE UNDER SECTION 142(1) OF THE INCOME TAX ACT 1961 FAN: ACSPJ6904A MS. INDU JAIN H.NO. 1443-1446 SECTOR-14 FARIDABAD HARYANA IN CONNECTION WITH THE ASSESSMENT FOR THE ASSESSMEN T YEAR 2016-17 YOU ARE REQUIRED TO: - (A) PREPARE A TRUE AND CORRECT RETURN OF YOUR INCO ME/ THE FIRMS INCOME/ FAMILYS INCOME/ THE LOCAL AUTHORITYS INCOME/ THE COMPANYS INCOME/ INCOME OF THE A.O.P./ INCOME OF THE BODY OF INDIVIDUALS/ INCOME OF A.Y. 2016-17 IN RESPECT OF WHICH YOU ARE ASSESSABLE UNDE R THE INCOME TAX ACT 1961 FOR THE PREVIOUS YEAR REL EVANT TO THE ASSESSMENT YEAR MENTIONED ABOVE. THE RETURN SHOULD BE IN THE APPROPRIATE FORM AS PRESCRIBED IN RULE 12 OF. THE INCOME TAX RULES 1962. IT SHOULD BE DULY VERIFIED AND SIG NED IN ACCORDANCE WITH THE' PROVISIONS OF SECTION 140 OF THE INCOME TAX ACT 1961 AND SHOULD BE DELIVERED AT MY OFFICE ON OR BEFORE 09-10-2017. (B) PRODUCE OR CAUSE TO PRODUCE BEFORE ME AT MY OFFICE AT NEW DELHI ON 09-10- 2017 AT 11:00 AM THE ACCOUNTS AND OR DOCUMENTS AS SPECIFIE D IN THE LETTER ANNEXED HEREWITH. (C) . FURNISH IN WRITING AND VERIFIED IN THE PRESCRIBED MANNER INFORMATION CALLED FOR AS PER COMBINED QUESTIONNAIRE FOR ................. MA Y BE FILED WHICH ARE RELEVANT TO THE ASSESSMENT YEAR 2016-17 DATED - AND ON THE POINT OR MATTERS S PECIFIED THEREIN BEFORE ME AT MY OFFICE AT NEW DELHI ON 09-10-2017 AT 11:00 AM. DATED: 22 - 09 - 2017 5 YOURS FAITHFULLY (RAMESH KUMAR) DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-25 NEW DELHI CERTIFIED TRUE COPY RAMESH KUMAR DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-25 NEW DELHI 7. NOTICE U/S 142(1) OF THE ACT IN THE CASE OF ANAN D KUMAR JAIN WAS ISSUED ON 22.09.2017 ASKING THE ASSESSEE TO FILE RE TURN WITHIN 15 DAYS OF RECEIPT OF NOTICE. THE SAID NOTICE READS AS UND ER: OFFICE OF THE DEPUTY CO MMSSIONER OF INCOME TAX CENTRAL CIRCLE -2S. ROOM NET. 322. E-2. ARA CENTRE JHANDEWALAN L EXTN. NEW DELHI-110055 PH. 011-23593422 NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT 1961 NO. DCIT/C C-25 2017-18 -1307 DATED:16.10.2017 PAN: AAVPKJJ95IB SH ANAND KUMAR JAIN 672. SECTOR - 14. FARIDABAD. HARYANA - 121002 THERE ARC CERTAIN POINTS IN CONNECTION WITH THE RET URN OF INCOME SUBMITTED BY YOU FOR THE ASSESSMENT YEAR 2016-17 WHICH I WOULD LIKE SOME FURTHER INFORMATION 6 YOU ORE HEREBY REQUIRED TO ATTEND MY OFFICE ON 30. 10.20 17 AT 11.30 A.M. EITHER IN PERSON OR BY A REPRESENTATIVE DULY AUTHORIZED IN WRITING IN THIS BEHALF OR PRODUCE OR C AUSE THERE TO BE PRODUCED AT THE SAID TIME ANY DOCUMENTS ACCOUNTS AND ANY OTHER EVIDENCE ON WHICH YOU MAY RELY IN SUPPORT OF THE RETURN FILED BY YOU. 8. A PERUSAL OF THE AFOREMENTIONED NOTICE SHOWS THA T THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO FURNISH HIS RETURN OF INCOME. AS MENTIONED ELSEWHERE THE ASSESSEE HAD ALREADY FILED RETURN OF INCOME ON 04.08.2016 WHICH WAS PROCESSED U/S 143(1) OF THE ACT ON 02.12.2016. THESE GLARING FACTS ARE VERY MUCH AVAI LABLE ON THE FACE OF THE ASSESSMENT ORDER WHICH HAVE BEEN TOTALLY IGNORE D BY THE ASSESSING OFFICER WHILE ISSUING NOTICE U/S 142(1) OF THE ACT DATED 22.09.2017. 9. SUBSEQUENTLY NOTICE U/S 143(2) OF THE ACT WAS I SSUED ON 16.10.2017. ONCE AGAIN THE ASSESSING OFFICER COMP LETELY IGNORED THE FACT THAT NOTICE U/S 143(2) OF THE ACT WAS TO BE IS SUED AND SERVED UPON THE ASSESSEE WITHIN SIX MONTHS FROM THE END OF THE F.Y. IN WHICH THE RETURN OF INCOME WAS FILED I.E. 20.03.2017. THIS MAKES THE NOTICE ISSUED U/S 143(2) OF THE ACT BARRED BY LIMITATION. YOU RS FAITHFULLY 7 10. IN OUR CONSIDERED OPINION ONCE A VALID RETURN OF INCOME WAS AVAILABLE ON RECORD WHICH WAS ALREADY PROCESSED IS SUING NOTICE U/S 142(1) OF THE ACT ASKING THE ASSESSEE TO FURNISH FR ESH NOTICE IN ITSELF IS INVALID MAKING SUBSEQUENTLY PROCEEDINGS VOID AB INI TIO. 11. CONSIDERING THE FACTS OF THE CASE IN TOTALITY I N LIGHT OF THE RELEVANT PROVISIONS OF THE ACT DISCUSSED HEREINABOV E WE ARE INCLINED TO QUASH THE ASSESSMENT ORDER DATED 29.12.2017 FRAM ED U/S 143(3) OF THE ACT FOR WANT OF JURISDICTION AS NOTICE ISSUED U /S 143(2) OF THE ACT IS BARRED BY LIMITATION. SINCE WE HAVE QUASHED THE ASS ESSMENT ORDER ON THE VALIDITY OF JURISDICTION WE DO NOT FIND IT NEC ESSARY TO DWELL INTO THE MERITS OF THE CASE. 12. IN THE RESULT THE APPEAL FILED BY THE ASSESS EE IN ITA NO. 7094/DEL/2018 IS ALLOWED. ITA NO. 7093/DEL/2018 13. AS THE FACTS AND CIRCUMSTANCES OF THE INSTANT A PPEAL ARE ADMITTEDLY MUTATIS MUTANDIS SIMILAR TO THOSE DISCUSSED AND DISPOSED OF IN ITA NO. 7094/DEL/2018 HEREINABOVE WE HOLD ACCOR DINGLY AND ALLOW THE APPEAL OF THE ASSESSEE. 8 14. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE IN ITA NO. 7094 AND 7093/DEL/2018 ARE ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 17.03. 2021. SD/- SD/- (BHAVNESH SAINI) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 17 TH MARCH 2021. VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT ASST. REGISTRAR 4. CIT(A) ITAT NEW DELHI 5. DR 9 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P S/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER