Income Tax Appellate Tribunal - Chandigarh
M/S Greater Mohali Area Development ... vs Dcit, C-6(1), Mohali on 12 November, 2021
आयकर अपील य अ धकरण, च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'A', CHANDIGARH
ी संजय गग , याय क सद य एवं ीमती अ नपण
ू ा गु%ता, लेखा सद य
BEFORE: SHRI SANJAY GARG, JUDICAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No.1177/Chd/2019
नधा रण वष / Assessment Year : 2010-11
M/s Greater Mohali Area बनाम The D.C.I.T.,
Development Authority, Circle 6 (1),
PUDA Bhawan, Sector 62, Mohali.
Mohali.
थायी लेखा सं./PAN NO: AAALG0872G
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No.1237/Chd/2019
नधा रण वष / Assessment Year : 2010-11
The D.C.I.T., बनाम M/s Greater Mohali Area
Circle 6 (1), Development Authority,
Mohali. PUDA Bhawan, Sector 62,
Mohali.
थायी लेखा सं./PAN NO: AAALG0872G
अपीलाथ /Appellant यथ /Respondent
&
आयकर अपील सं./ ITA No.1202/Chd/2019
नधा रण वष / Assessment Year : 2011-12
M/s Greater Mohali Area बनाम The D.C.I.T.,
Development Authority, Circle 6 (1),
PUDA Bhawan, Sector 62, Mohali.
Mohali.
थायी लेखा सं./PAN NO: AAALG0872G
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : Shri Sudhir Sehgal, Adv.
& Shri Ramesh Trehan, CA
राज व क ओर से/ Revenue by : Smt.C.Chandrakanta, CIT
ITA Nos.1177, 1237 & 1202/Chd/2019
A.Ys. 2010-11 & 2011-12
Page 2 of 15
सन
ु वाई क तार$ख/Date of Hearing : 16.08.2021
उदघोषणा क तार$ख/Date of Pronouncement: 12.11.2021
(Hearing through Webex)
आदे श/ORDER
Per Annapurna Gupta, Accountant Member :
Th e a b ove cr oss a pp e a ls i n I TA N o. 1 17 7 /C h d /2 0 1 9 & I TA N o. 1 23 7 /C h d /2 0 1 9 h a ve be e n pr e fe r re d b y the a sse ssee a nd th e Re ve nue re spe c ti ve l y a ga i ns t th e or de r of the Com mis si one r of I nc ome Ta x ( Ap p e a l )-2 , C ha nd ig a rh ( in sho rt C I T(A ) d a te d 0 5 .0 6 .2 0 1 9 r e l a ti ng to a s se s sme nt ye a r 2 0 10 -1 1 p a s se d u/s 2 5 0( 6 ) ) of th e I ncome Ta x A ct, 1 96 1 ( he re in a f te r r e fe r re d to a s 'A ct') . The a p pe a l in I TA N o .1 2 02 / C h d /20 1 9 h a s b ee n pre fe rre d b y th e a ss e ssee a ga i nst the or de r of th e C ommi ss ion e r of I n co me Ta x ( Ap p e a l ) -2 , C h a nd i gar h d a te d 0 7 .0 8 .20 1 9 r e l a ti ng to a ss e ss me n t yea r 20 1 1 -1 2 .
2. At t he outse t its e l f it wa s p oi nte d out tha t the i ssue i nv olv e d i n t he a pp e a ls is i de nti ca l, he nce a l l the a p p e a l s we re h e a r d t oge t he r an d a r e be i ng d i sp os e d off by thi s c ons ol id a te d or d e r for the s a ke of con ve nie n ce .
3. Fi r st w e s ha l l be ta k i ng th e a ppe a l of th e a sse ssee re l a ti ng to a s se ssme nt ye a r 2 0 10 -1 1 si nce t he fa c ts a dmi tte d l y a re i de nt ic a l i n the a p p e a l o f the a s se s se e f or a sse ssme nt ye a r ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 3 of 15 2 0 11 -1 2 a l so, our d e ci s ion re n de re d the re i n w i l l ap p l y muta t is mut a nd i s to the s a id a pp e a l a l so.
4. Th e Ld .C oun se l fo r t he a s se s se e a t th e ou tse t stat e d tha t h e w oul d fi r st a r g ue on the lega l gr ou nd s r a ise d v i s-à -vi s va l i d ity of th e a sse s sme n t f r a me d u/s 1 4 7 of t he A ct r a i se d in gr ou nd N o.2 ( a ) , 2 (b ) & 2( c) a s un de r :
"2(a) That the Ld. CIT (Appeals) has erred in law and on facts in not quashing order u/s 143(3) r.w.s. 147 of Income Tax as all the facts relating to "External Development Charges"
and "EDC" under Papra Act amounting to Rs.
127,70,37,351/- and Rs. 36,89,350/- respectively, were fully and truly disclosed and discussed at the time of Scrutiny Assessment u/s 143(3} of Income Tax. 2(b) That the CIT(A) has failed to appreciate that the Assessing Officer had duly applied his mind on these issues at the time of framing original assessment and, as such, this was merely a charge of opinion, which is not permitted by law.
2(c) That the CIT(A) has erred in not following the Judgment of the Hon'ble ITAT, Chandigarh Bench for the earlier years in the case of the Appellant for the AYs 2008-2009 and 2009-2010, where such re-assessment proceedings have been quashed."
5. Ta k i ng u s th r oug h the f a cts of th e ca se the Ld. Cou ns e l for th e a sse ssee d r e w our a tte n ti on to p a r a 6 of C I T(A )' s or de r w he re i n a b ri e f h is tor y o f t he a cti vi ti e s un d er ta k e n b y the a ss e s see a l on gw ith ob je cts c la u se w a s st a te d a s un de r :
"6. Before adjudicating the issues raised by the assessee, it would be pertinent to mention brief history of activities undertaken by the assessee alongwith its object clause. The Greater Mohali Area Development Authority (GMADA) was constituted ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 4 of 15 under section 29(1) of PUNJAB REGIONAL AND TOWN PLANNING AND DEVELOPMENT ACT, 1995 covering the area of S.A.S. Nagar and the adjoining areas by Punjab Government Notification no.13/52/2006-lHG2/#7443 dated 14-08-
2006.The Punjab Urban And Development Authority was demerged and GMADA was constituted through the above mentioned gazette notification as a Special Authority for the planning and development of S.A.S- Nagar and its adjoining areas. The objects of the authority are as follows-
(1) To promote and secure better planning and development of any area of the State and for that purpose the Authority shall have the powers to acquire by way of purchase transfer, exchange or gift or to hold, manage, plan, develop and mortgage or otherwise dispose of land or other property or to carry out itself or in collaboration with any other agency or through any other agency on its behalf, building, engineering, mining and other operations to execute works in connection with supply of-water, disposal of sewerage, control of pollution and other services and amenities and generally to do anything with the prior approval or on direction of the State Government, for carrying out the purposes of this Act.
(2) The Authority itself or in collaboration with any other agency or through any other agency on its behalf,-
(i) if' so required by the State Government or the Board, take up the works in connection with the preparation and implementation of Regional Plans, Master Plans and New Township Plans and town improvement schemes;
(ii) undertake the work, relating to the amenities and services to be provided in the urban areas, urban estates, promotion of urban development as well as construction of houses ;
(iii) promote research, development of new techniques of planning, land development and ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 5 of 15 house construction and manufacture of building material;
(iv) promote companies, association and other bodies for carrying out the purposes of the Act;
and
(v) perform any other function which are supplemental, incidental or consequential to any of the functions referred to in this sub- section or which may be prescribed.
6. Th e r e a fte r he d re w our a t te n ti on t o p a r a 6 .1 of C I T( A) 's or d e r a nd p oin te d ou t the re f ro m th a t th e ca se of th e a sse ssee f or t he i mp ug ned ye a r w a s re open e d re co rd i ng re a son s l e a d i ng to b e lie f of e sc ap e me n t of in com e b y th e AO a s r e p r od uce d th e re i n and th er e a f te r the a ss ess me n t was f r a me d ma k i ng va r i ou s a d d i tio ns to the i nc ome of t he a sse ssee . He p oi nte d out th a t r e ope n in g w a s r e so rte d to on a cc oun t of th e b e l ie f of t he AO t ha t Exte r nal D e ve l op me nt Ch a r ge s (E DC ) re ce i ve d b y the a ss e s see we re in th e na tu r e of i ts in co me w h il e t he a sse ssee h a d r e fle cte d the s a me me re ly a s a l i a bi l it y i n it s B a l a n ce S he e t. Th e AO , th e Ld .C o u ns e l f or th e a ss e ssee st a te d , w a s o f th e vie w th a t the in come o n a cc oun t of E DC r e ce i ve d d u r in g th e ye a r h a d a cc or d in gl y e s ca pe d a sse ssme nt a n d, t he re fore , pr oc ee d i ng s f or r e ope ni n g t he ca s e of t he a ss e s see we re re sor te d to . B ef or e p r oce e d in g fu r th e r t he Ld .C o un se l f or t he a sse ssee s ta te d th a t ce r ta i n f ur th e r fa c ts r e l a ti ng to the ca s e ne e de d to be br ou gh t t o o ur noti ce w h i ch w e re to t he e f fe ct tha t th e a s s e s see h a d fi l e d a C i vi l W r it ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 6 of 15 P e ti ti on (C W P ) in H on 'bl e P u nj a b & Ha ry a na H i gh C our t a g a in st th e re o pe ni n g of a sse ss me nt u/s 14 7 of th e Ac t in the i mpu gn e d ca se wh i ch h a d b e e n d ismi ss e d b y th e H on 'b le H i gh C ou r t v id e i ts or de r d a te d 2 7-04 -2 0 1 8 in C WP N o.2 6 1 2 5 of 2 0 17 ( O& M) . Th a t the re a f te r the a ss e ssee h a d f i le d S LP b e fore th e H on 'b le S up re me C ou rt a ga i nst t he j ud gme n t of the H on' ble P un j a b & Ha r ya na H ig h C ou rt an d the H on 'b le Su pr e me C ourt h a d di smi ss e d th e s a me n oti ng th a t si n ce re -a ss e ss me n t h ad b ee n comp l e te d a n d th e A O ha d p a ss e d t he a s se ssme nt or d e r , th e re w a s no re a son to i nt e r fe re i n th e or de r of th e H on 'ble H ig h C our t. He fu r th e r p oi nte d ou t t ha t the H on 'b le S up re me C ou r t fu r the r cl a r if i e d th a t the a ss e s see w a s op e n to ch a ll e nge th e or de r of the AO in re gu l ar a p p e a l a n d wou l d a l so b e p e r mi tte d to ch a ll e n ge the cor re ctn e ss of the n oti ce u /s 1 4 7 of th e Act . Th a t the H on 'b le Ap e x c our t d ir e c te d tha t th e a ppe ll a te a u thor i ty w oul d a d ju d ic a te t he i ssu e u ni n fl ue nc e d by t he ob se r va ti on ma d e b y the H on 'b le H i gh C ou rt . Ou r a tte nti on w a s d r a w n to th e or d e r of the H on' bl e S up re me C our t in SLP ( C ) N o. 1 51 0 2 /2 01 8 d a t e d 2 0 -0 7- 20 18 , ho ld i ng s o a s u nd e r :
"Since the reassessment is already complete and the assessing officer has passed the assessment order, we do not find any reason to interfere with the impugned order passed tni the High Court in exercise of our power under Article 136 of the Constitution of India.
The special leave petitions are accordingly dismissed. However, we make it clear that it will be open to the petitioner- Authority to challenge the order of the assessing officer by fling ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 7 of 15 statutory appeal and in the said appeal the petitioner would also be permitted to challenge the correctness of notice under Section 147/148 of the Income Tax Act, 1961. The appellate authority may go into the said question uninfluenced by the observations which are made in the impugned order. Pending applications, if any, shall also stand disposed of."
7. Th e L d. C ou ns e l f or th e a sse ssee fu r the r p oi nte d ou t th a t a r e v ie w pe ti ti on f ile d b y the Re ve nue in the or de r pa s se d b y t he H on' bl e Su p re me C our t w a s a ls o d i smi ss e d vi d e ord e r d a te d 2 4- 0 7 -2 01 9 in RP C N o.1 0 2 6/2 0 1 9 , fi nd i ng no e rr or in the j ud ge me nt . He a lso poi n te d ou t th a t id e nti ca l i ssue h a d a r ise n i n the c a se of th e a s se sse e i n a s se s sme n t ye a r s 2 00 8 -0 9 a n d 2 0 09 -1 0 , w he re in re ope n in g u/s 1 4 7 of th e Ac t w a s r e so rte d to b y th e AO f or id e n ti ca l re a so ns o f e s ca pe me nt of i nc ome b e i ng ED C ch a r ge s a nd wh e re in the ITA T ha d a l lo we d t he ap pe a l of th e a s se s se e h oldi n g th e a s se ssme nt fr a me d u /s 1 4 7 of the a ct to b e not i n a cc or da n ce w ith l a w a nd i nv a li d . H a v i n g st a te d so th e Ld . C oun se l for th e a sse ssee con te n de d tha t c ons id e r i n g t he d ir e cti on of th e Ho n'b l e S up r eme C ou r t tha t th e a pp e ll ate a u thor i ty a d j ud i ca te the i ssue of r e ope n i ng un in fl u e nce d b y th e or d e r of the Hon 'b l e H ig h C ou r t in W r it P e t iti on , t he i ss ue st ood cove re d by the o rde r of the I TA T i n th e p rec e d in g ye a r s. C op i e s of a l l the or d e r s we re pl a ce d be f ore us d ur in g t he cou rse of h e a r i ng .
8. B e si de s sta ti n g s o, Ld . C oun se l f or the a s se sse e a l so p oi nte d out th a t th e f a ct s fo r t he imp ug ne d ye a r d e mon str a te d ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 8 of 15 th a t t he r e ope n ing w a s n ot in a c c or d a nc e w i th la w . H e p oi nte d ou t th a t r e ope n ing of the ca se in t he imp u gne d ye ar w a s done b e yo nd f ou r ye a rs f r om th e a sses sme n t ye a r a nd the A O h ad f a il e d to comp l y w it h th e s ta tu tor y r e q u i re me n t of p oin ti ng out th e ma te r i a l f a ct no t d i scl os e d by th e a sse ssee . He c onte nde d th a t the f a ct of ED C r e ce i ve d b y th e a sse ssee d ur i ng th e ye a r w a s a d mi tte dl y, a s pe r the AO h ims e l f i n hi s re a son s r e cor de d, d is cl ose d in the f in a n ci a l s ta teme nt of t he a sse sse e , th a t no n e w ma te r i a l h ad come i n t he k n ow le dge of the AO . Th e r e f ore , th e a sse ssee c ould not be s a i d to h a ve con ce a le d a n y ma te r i a l f a ct so a s to emp ow e r the AO to i nv ok e h i s p ow e rs of re - a ss e s sme n t u /s 1 4 7 of the Ac t. Re l ia nce w a s p l a ce d on va r i ous ca s e la w s .
9. Th e Ld . D R, o n th e o the r ha n d , h e a v il y re lie d up on t he or d e r of the Hon 'b le H i gh C ou r t s ta ti ng th a t the H on 'b le S up r e me C ou r t ha d n ot q ua s he d t he o rde r o f the H on' bl e H i gh C ou r t a nd th e f in d in gs o f th e H on 'bl e H i gh C our t c oul d not b e i gn or e d or w is he d a w a y.
10. W e h a ve he a r d the con te n ti on s of b oth the p a rt ie s a n d h a ve ta ke n note of the fa c t tha t t he re ope nin g had be e n ch a l le nge d i n a W r it P e ti ti on f il ed b y th e a s se s se e t o H on 'b le P un j a b & H a r yan a Hi gh C our t w h ic h w a s de ci de d a ga i ns t it h a ve a ls o ta ke n n ote of t he SLP f il e d b y the ass e ssee to t he ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 9 of 15 H on' bl e Su pre me C ou r t a ga i n st t he de ci si on of th e H on' ble P un j a b & H a ry a na H igh C o ur t. I n c omp li a n ce w ith t he d ire cti on of th e H on'b le Sup r e me C our t, i n i ts or de r d is mis si ng the SLP , th a t the a p p e l l a te a uth or i ty a re to d e c ide th e i ssue of r e ope n i ng un i nf lu e n ce d b y th e or de r of t he H i gh C our t, we pr ocee d to a d j ud ic a te t he issu e . Si nce t he con te n ti on of t he asse ssee is th a t t he con d ition n e ce ss a ry a nd sta t utor i l y r eq u ir e d to be f ul fi l le d to re ope n the ca se , we re not comp l i ed w i th, t he a ss e s sme n t or der f r a me d w a s i n va l id , it is ne ce ssa r y to f ir st st a te the f a ct s he re un de r :
Th e i mp ugn e d a s se s sme n t ye a r is a ss e ss me n t yea r 2 0 1 0- 1 1 . N ot ic e fo r r e ope ni n g the ca s e of the a sse sse e u /s 1 47 /1 4 8 of the Ac t w a s i ssu e d to the a s se sse e on 07 .0 2. 2 0 17 a n d r e a s ons re cor de d b y th e AO f or re op e n in g a re a s un de r :
"6.1 Brief facts of the issue are that the case of assessee was reopened on the basis of following recorded reasons:
"During perusal of records in this case, it was seen that the assessee had received External Development Charges (EDC) from Land Developers/ Colonizers /Real Estate Builders/Promoters during the F. Y. 2008-09. The said External Development Charges were not brought to the ambit of tax by the assessee but were instead shown as a liability in its Balance Sheet under the head "Other Liabilities". It is pertinent to mention here that External Development Charges are received from the Land Developers/Colonizers/Real Estate Builders/Promoters who seek approval from the assessee (i.e. Greater Mohali Area Development Authority) or other Competent Authority to develop a Residential or Commercial or Institutional Zone on their piece/ chunk of land. The said ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 10 of 15 amount received under the nomenclature "External Development Charges" is supposed be used by the assessee for carrying on of External Development Works and other related jobs outside the land of the Land Developer/Colonizer/Real Estate Builder/Promoter who has paid the External Development Charges (EDC).
Thus, it is seen that the receipt of External Development Charges by the assessee is attributable to its regular business. Further, the receipt and expenditure of the said amount is a regular, routine and re-occurring phenomenon as External Development C h a r g e s a r e b e i n g r e g u l a r l y received by the assessee from Land Developers/Colonizers/ Real Estate Builders/Promoters in every year and similarly these are being regularly expended/utilized/spent for the purpose of carrying out External Development Works and other related jobs. In light of the above, it is observed that both the receipts as well as the expenditure related to External Development Charges (EDC) are clearly revenue in nature as they are attributable to the regular business of the assessee and are also a routine, regular and re-occurring phenomenon. Accordingly, the assessee was required to credit the receipts of External D e v e l o p m e n t C h a r g e s to its P&L Account and debit the expenses incurred on account of the same. Since, the assessee is following Cash System of accounting, therefore, the net amount received bu the assessee during the year as External Development Charges was required to be brought to the ambit of tax by crediting the receipts earned during the year and debiting the expenses incurred on account of external development work and other related jobs. However, the assesses had failed to do so and has rather shown the External Development Charges (EDC received as a liability in its Balance Sheet. The said failure on the part of the assessee has led to escapement of taxable income as the net income earned on account of the External Development Charges has escaped the ambit of taxation. Thus, after independent verification of records with respect to the above mentioned facts, I have reasons to believe that an income of Rs.1,27,70,37,351 /- has escaped assessment within the meaning of Section 147 of the Income Tax Act, 1961.
A calculation of the same is as under:-
ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 11 of 15 Opening Balance of External i Development Charges (EDC) Rs.327,96,93,897/-
as on 01. 04.2009.
ii EDC Received during the year Rs.136,41,70,883/- iii Utilization during the year Rs.8,71,33,532/-
Closing Balance of External iv Development Charges (EDC) Rs.455,67,31,248/-
as on 3 1.03.20 10.
v Net amount received during Rs. 127,70r37,351/-
the year on account of EDC This escapement of income is due to failure of the assessee to fully and truly disclose all the material facts relating to its income and due to default on its part by not treating the amount received on account of External Development Charges (EDC} as Revenue receipt."
11. C le a r ly the re ope ni ng w a s re sor te d to be y ond f ou r ye a rs f ro m the re le van t a ss e s sme n t ye a r a n d la w s ti pu l a te s t hat r e ope ni ng c a n be re sor te d to bey ond fou r ye a r s onl y i f a ny i nc ome c ha r ge a bl e t o ta x h a s e sca p e d a s se ssme nt by re a son of f a il ur e o f the a ss e ssee , a mon gst ot he r th i ngs , to d i sc los e fu l ly a n d tr ul y a l l ma te ri a l f a cts ne ce ss a r y f or h i s a sse ssme nt for th a t ye a r . Th e r e is n o di sp u te vi s-à -v i s t hi s r e q ui reme nt of l a w .
12. Goi n g for w a r d fr om h e r e & e xami n in g a n d p e r u si ng t he co nte nts of the r e a so ns re cor de d we fi nd th a t th e re is no ma te ri a l fa c t, r e l a ti ng t o the e sc ape me n t of i nc om e , wh i ch t he a ss e s see cou l d be sa i d to ha ve not d i sc los e d tr u ly a nd f ul l y.
Th e r e a s on s r e cor d e d e sc a pe me n t of i n come on a ccou nt of ED C , ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 12 of 15 n ot b e i n g ta xe d . Th e a s se s se e ou gh t to h a ve be e n f oun d b y t he AO to ha ve c on ce a le d some ma te r ia l f a ct re l a ti ng to the sa me f or hi m to va l i dl y a s su me j ur i sd i cti on to r e ope n th e ca se o f the a ss e s see u /s 1 4 7 of the A ct, a nd th e re a son s rec or d e d s ho ul d h a ve me n ti one d th is a c t o f con ce a lme nt. B u t on the c on tr a ry we f in d , the re a s on s n ote th a t the ED C cha rg e s we re sh ow n b y t he a ss e s see a s a l ia b i l ity i n i ts B a l a nc e Shee t u nd e r the he a d "oth e r li a b il i tie s" ( 1 s t p a r a of t h e re a son s) . Th e re s t of t he r e a s ons is on ly the i nte r pre ta ti on o f the A O r e ga r d in g t he n a tur e of the rec e i pt s of EDC be in g r e ve n ue i n na tu r e . I n t he l a st pa r a of the r e a s ons the A O aga i n re ite r a te s th e d i sc los ure of th e ED C re ce ive d by the a sse ss ee a s a l ia b i l ity i n it s B a l a n ce S he e t. Exce p t for th e f a ct tha t t he a sse ssee r e ce i ve d E DC d ur i ng th e ye a r , n o oth e r fa c t h a s come to t he k nowl e d ge of the AO a nd t hi s fa c t a s p e r h i s ow n a d mi ss ion , w a s di sc lo se d b y th e a sse ssee in hi s B a la n ce S he e t a s li a b il i ty. Fur th e r it i s a f a ct on r e co rd , w h ic h w a s br ou g h t t o th e no tic e of th e C I T(A ) a l so a nd h a s re ma in e d u nc ontr ov e r te d be fo re us, tha t d ur i ng a ss e s sme n t pr ocee di n gs the a sse ssee was a sk e d to su b mit d e ta i l s of ot he r li a b il i ti e s, i n re sp on se to w h ic h the a sse ssee su b mit te d th e sa id de ta i ls d is closi n g th e re i n the f a ct o f E DC r e ce i ve d f r om land de ve lope rs . The r e fore , to say th a t t he a ss e s see ha d c on ce a le d a n y ma t e r ia l f a ct re la t ing to ED C , is n ot co rr e ct. Tha t he ha d re fle c te d i t i s a s a l iab i l ity i n t he ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 13 of 15 B a l a nc e Shee t a nd no t s how n i t a s r e ve n ue r e ce i pt i n it s P r of it & Loss Acc oun t, is not a ma tte r of fa c t b ut o n the c ont ra ry it i s a n in te r p r e ta tio n of the fa c t of r e ce i pt of ED C r e g a r di n g its n a tur e and the r e a son s do not br i ng ou t an y ma te r i a l /i nf or ma ti on w i th th e AO le a di ng hi m to for m th is opi n io n of th e ED C ch a r ge s b e i n g Re ve nue in n a tu re . The Ld . DR h a s b e e n un a b l e to e n li gh te n u s a s to w ha t ma te r i a l fa c t r e la ti ng to EDC w a s c on ce a le d by t he a sse ssee so a s to e mp ow e r the AO to a ss ume ju r is d ic tio n t o r e op e n th e c a se of the a ss e ssee be yon d f our ye a r s f ro m th e re le va n t a sse ss me n t y e a r .
13. I n vie w of th e a b ov e , we ha v e n o he s it a ti on in h ol d in g tha t si n ce the AO ha s f a il e d to p oin t out co nce a lme n t of a ny ma te ri a l f a ct r e la ti ng to in come e s ca p i ng a sse ss me n t, b e i ng ED C , th e re open i ng of th e ca s e o f the a s se sse e re sor te d to b e yo nd f our ye ar s f ro m the a ss e ssme nt ye a r s , i s a ga in st t he p r ovi si on s of law. Th e j u ri sd i cti on a s sume d by th e AO th e re f ore , to f r a me th e a s se ssme nt u/s 1 4 7 of the Ac t i s, th e re f ore , n ot a s p e r l a w. Th e or de r p a sse d , b y the AO a s a co ns e q ue nti a l i s n ot sus ta i na b l e i n l a w a nd i s , t he re fore , set a si d e .
14. Si nc e we ha ve set a s i de the a s se ssme nt or de r the gr ou nd s r a i se d on the me ri ts of the ca s e ar e me re l y a ca de mic in n a tur e ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 14 of 15 a n d t he a pp e a l f ile d b y t he De pa rt me n t r a is in g gr ou nd s on t he me r i ts of th e ca se a ls o be come i nfr uc tuou s.
15. I n the re su l t; th e a p pe a ls f i le d b y th e a sse ssee i n I TA N o. 1 17 7 /C h d /2 0 1 9 & I TA N o.1 2 0 2/C h d /2 01 9 a r e a l l ow e d a n d th e a p pe a l of the Re ve nue in I TA N o .1 2 3 7 / C h d /20 1 9 is d is mi sse d.
Sd/- Sd/-
(SANJAY GARG) (ANNAPURNA GUPTA)
या)यक सद य/ Judicial Member लेखा सद य/ Accountant Member
Dated: 12th November, 2021
*रती*
आदे श क त*ल+प अ,े+षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आयु-त/ CIT
4. आयकर आयु-त (अपील)/ The CIT(A)
5. +वभागीय त न0ध, आयकर अपील$य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar ITA Nos.1177, 1237 & 1202/Chd/2019 A.Ys. 2010-11 & 2011-12 Page 15 of 15