Income Tax Appellate Tribunal - Delhi
Brij Gopal Construction Co. P.Ltd, ... vs Dcit, Central Circle-3, New Delhi on 28 April, 2023
THE INCOME TAX APPELLATE TRIBUNAL
DELHIBENCH 'A', NEW DELHI
Before Sh. Saktijit Dey, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
ITA No. 2123/Del/2022: Asstt. Year: 2018-19
M/S. Brij Gopal Construction Vs. DCIT,
Company Pvt. Ltd, Central Circle-3,
A-7/2, Shivaji Apartment, Sector- Delhi
14, Rohini, North West Delhi-
110085
(APPELLANT) (RESPONDENT)
PAN No. AADCB7702J
Assessee by : Ms. Monika Agarwal, Adv.
Revenue by : Sh. Kanv Bali, Sr. DR
Date of Hearing: 25.04.2023 Date of Pronouncement: 28.04.2023
ORDER
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of the ld CIT(A)-24, New Delhi dated 28.06.2022 for AY 2018-19.
2. The assessee has raised the following grounds of appeal:-
"1 . Th at t h e l ea rn e d C o m m i s si on e r o f In c o m e Ta x ( A pp e al s) - 2 4, D elh i h as e r r ed b ot h i n l aw an d on fa ct s in u p h old in g t h e d et e rm in at i on o f in c om e o f t h e ap p ell an t c om p an y at R s . 3 8 ,3 2 ,4 1, 7 5 0/ - as a g ain st d e cl ar e d in c o m e o f R s . 3 8 ,2 3, 5 3 ,7 3 0/ - in an in t im ati on d at e d 2 2 . 1 0 .2 0 1 9 u / s 1 4 3 ( 1) o f t h e A ct .
2. Th at t h e l ea rn e d C o m m i s si on e r o f In c o m e Ta x ( A p p e al s) - 2 4, D elh i h as fu rt h e r e r r ed b ot h in l aw an d on fa ct s in n ot con d on in g t h e d e la y in filin g o f t h e ap p ea l b y t h e ap p el lan t c o m p an y.
2 .1 Th at fi n d in g o f t h e l ea rn e d C o m m i s si on e r o f I n co m e Ta x ( A p p e al s) t h at " r ea s on s s t at ed b y t h e ap p ella n t f o r d e la y in fil in g o f a p p e al ca n n ot b e c on sid e r ed a s a su f fi ci en t cau s e f or n ot p r e s en tin g t h e a p p e al in t i m e an d t h er e f o r e c an n o t b e c on d on ed " i s ill eg al, in val id an d u n t en ab l e . 3 Th at t h e l ea rn e d C o m m i s si on e r o f In c o m e Ta x ( A p p eal s) - 2 4, D elh i h as fu rt h e r e r r ed b ot h in la w an d o n fa ct s b y n ot a d j u d ic at in g t h e ITA No. 2123/Del/2022 M/S. Brij Gopal Construction Company Pvt. Ltd d is all ow an c e of R s . 8,1 7, 2 5 0/ - m a d e u n d e r s e ct i on 2( 2 4 ) ( x) r ea d wi t h s ec t i on 3 6 ( 1) ( va) of 2 1 ,0 t h e A ct 4 Th at t h e l ea rn ed Co m m i s si on e r o f In c o m e Ta x ( A p p eal s) - 2 4, D elh i h as al s o e r r ed b o t h in l aw an d on fa ct s b y n ot ad j ud ic at in g t h e d is all ow an c e o f R s.3 5,2 4 6/ - on a cc ou n t o f l o s s on sal e o f fi x ed a s s et s.
5. Th at t h e l e a rn ed C om m i ss i on e r o f In c om e Ta x ( A p p e al s) - 2 4 h a s e r r ed b ot h in l aw a n d on f a ct s b y n ot ad j u d i ca t in g t h e d i s all ow an c e o f su m of R s . 3 5 ,5 2 0/ - m a d e u n d e r s e ct i on 4 3 B o f t h e Ac t .
6. Th at ev en o t h e rwi s e t h e ad j u st m en t s o m ad e in an y i n t im at ion u / s 1 4 3 ( 1 ) of t h e A c t o f a d e b at ab l e an d c on t en t i ou s issu e i s im p e rm i s sib l e an d t h u s u n t en ab l e .
7. Th at t h e l ea rn ed Co m m i s si on e r o f In c o m e Ta x ( A p p eal s) - 2 4, D elh i h as fail e d t o ap p r e cia t e t h at in t im a t i o n d at ed 2 2 .1 0 . 2 0 1 9 wa s m a d e wit h ou t g ran t in g o p p o r t u n it y m u ch l e s s fai r m ean i n gfu l an d e ff e ct i v e op p o rt u n it y an d t h e r e fo r e su ch an in t im at i on is ot h e r wi se vi t iat ed .
8. Th at t h e l e a rn ed C om m i ss i on e r o f In c om e Ta x ( A p p e al s) - 2 4 h a s fail e d t o a p p r ec iat e t h at in t im a t i on d at ed 2 2 .1 0 . 2 01 9 wa s m ad e wi t h ou t j u ri sd i ct io n ; an d t h e r e fo r e d e s e rv e s t o b e q u a sh ed a s su ch .
9. Th at va ri ou s fin d in g s an d , o b se r va t i on s r e c o rd ed b y t h e l ea rn e d Co m m is si on e r o f In c o m e T ax ( A p p ea ls ) a r e b a s ed on su rm i s e s, c on j ec t u r es an d su s p ici on ; an d fa ct u all y in co r r e ct , l eg a lly m is c on c ei v ed an d , in fa ct in d i s r e g ar d o f b in d in g j u d g m en t o f j u ri sd i ct i o n al Hi g h C ou rt an d ; t h u s u n t en ab l e ."
3. Suffice to say that in this case notice u/s 143(2) was issued on 22.09.2019 and intimation u/s 143(1) of the Act has been issued to the assessee on 22.10.2019.
4. On this issue the Hon'ble Supreme Court in the case of CIT Vs. Gujarat Electricity Board 129 Taxmann 65 (SC) held as under:-
"2 . Th e sh o rt q u es t ion wh i ch ar is e s i n t h e s e ap p ea ls i s wh et h e r it is op en t o t h e R ev en u e t o i s su e in t i m at i o n u n d e r S ec t i on 1 4 3 ( 1) ( a) of t h e In c o m e- t a x A ct , a f t e r n o t i c e fo r r eg u lar a s s es s m en t h as b e en i s su ed u n d e r S e ct i on 1 4 3 ( 2 ) of t h e In c om e - t a x A ct , 1 9 6 1 ?
3 . A s fa r a s t h e Gu j ar at H ig h C ou rt wa s con c e rn ed , t h e q u e st i on w as n ot r e s in t e g r a as it h ad b e f o r e it t h e j u d g m en t in Gu j ar at P oly - A v x El e ct r on i c s Lt d . v . D y, C I T [ 1 9 9 6] 2 2 2 ITR 1 4 0 a n d , t h e r e f or e , t h e H ig h Co u r t w a s rig h t in h old in g t h at a su b st an t ial q u e sti on o f law d id n ot ari s e f o r d et e rm in a t ion . M r. T. L .V . I y e r , l ea rn e d sen i o r c o u n s el f o r t h e ap p ell an t , su b m it s t h at t h e q u e st io n n e ed s t o b e d eci d ed b y t h is c ou rt . 4 . L ea rn e d co u n s e l ap p ea rin g f o r t h e r e sp on d en t s h a v e p oi n t ed ou t t h at in a n u m b e r o f j u d g m en t s s ev e r al Hig h C ou rt s h av e con s ist en t ly t ak en t h e vi e w t h at on c e r eg u l a r a s s es sm e n t p r o c e ed i n g s hav e c om m en c e d 2 ITA No. 2123/Del/2022 M/S. Brij Gopal Construction Company Pvt. Ltd u n d e r S e ct i on 1 4 3 ( 2) of t h e In c om e- t a x A ct , 1 9 6 1 , it i s a lim i t at i on on t h e j u ri sd i ct i on o f t h e A ss e s sin g O ffi c e r t o c om m en c e p r o c e ed i n g s u n d e r S e ct i on 1 4 3 ( 1 ) ( a) o f t h e A ct .
5 . Ev e n ot h er wi s e , t h e vi ew t ak en b y t h e Gu j a r at Hig h Co u rt s e em s t o b e c or r e ct on p rin c ip l e. Th e r e is n o d i sp u t e t h at S ec t i on 1 4 3 ( 1 ) ( a) o f t h e A ct en a ct s a s u m m a r y p r oc e d u r e f or q u ic k c oll e ct io n of t ax an d q u ic k r e fu n d s. U n d e r t h e s ch em e if t h e r e is a s er i ou s ob j e ct ion t o an y of t h e o r d er s m a d e b y t h e A s se s sin g Of fi c e r d e t er m in in g t h e in c om e , i t i s op en t o t h e a ss e s s e e t o a sk f o r r ect if ica t i on u n d e r S e ct i on 1 5 4 . A p a rt t h e r e f r om , t h e p r o vi si on s o f S ec t i on 1 4 3 ( 1) ( a) ( i ) in d i c at e t h at t h e in t im a t i on s en t u n d e r S ect i on 1 4 3 ( 1 ) ( a) sh al l b e wit h o u t p r ej u d i c e t o t h e p r ovi si on s o f S u b - s e ct i on ( 2) . Th e L eg i sl at u r e, t h e r ef o r e, in t en d e d t h at , wh e r e t h e su m m a r y p r o c ed u r e u n d e r S u b - s e ct i on ( 1) h a s b e en ad op t ed , t h e r e sh o u ld b e s c op e a vai la b le f o r t h e R ev en u e , e it h e r su o m o t u o r at t h e in st an c e of t h e a s s es s e e t o m ak e a reg u la r a ss e s sm en t u n d e r S u b - s e ct i on ( 2) o f S e ct i on 1 4 3 . Th e c on v er s e i s n ot avail ab l e; a r eg u l a r a s s e ss m en t p ro c e ed in g h avi n g b e en c om m en c e d u n d e r S e ct i on 1 4 3 ( 2 ) , t h e r e i s n o n e e d fo r a su m m a ry p r oc e e d in g u n d e r S e ct i on 1 4 3 ( 1 ) ( a) , 6 . In t h e r e su lt , w e se e n o in fi r m it y in t h e j u d g m en t o f t h e Hig h C ou rt . Th e ap p e al s a r e d is m is s ed . Th e r e sh al l b e n o o r d er a s t o c o st s. "
5. Hence, placing reliance on the order of the Apex Court we hereby hold that the action of the revenue cannot be supported and the intimation issued u/s 143(1) on 22.10.2019 after the issue of notice u/s 143(2) on 22.09.2019 is legally invalid.
6. In the result, the appeal of the assessee is allowed.
Order Pronounced in the Open Court on 28/04/2023.
Sd/- Sd/-
(Saktijit Dey) (Dr. B. R. R. Kumar)
Judicial Member Accountant Member
Dated: 28/04/2023
*Ajay Kumar Keot, Sr. PS*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
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