1 ITA No. 3427/Del/2014 IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: D NEW DELHI BEFORE SHRI R. S. SYAL, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .No.3427/DEL/2014 (ASSESSMENT YEAR 2000-01) Varad Builders P. Ltd. vs DCIT 17/2868, Beadon Pura, First Floor, Central Circle-19 Karol Bagh New Delhi New Delhi AAACV9438L (RESPONDENT) (APPELLANT) Appellant by Shri B. C. Gupta, A/R Respondent by Sh. I. P. S. Bindra, CIT DR Date of Hearing 17.10.2016 Date of Pronouncement 18.10.2016 ORDER PER SUCHITRA KAMBLE, JM This appeal is filed against order dated 6/12/2013 passed by CIT(A), XII, New Delhi for Assessment Year 2000-01. 2. grounds of appeal are as follows:- On facts and in circumstances of case and in law CIT(A) was incorrect and unjustified in 1. Dismissing appeal of assessee. 2. Dismissing appeal of assessee without deciding all 2 ITA No. 3427/Del/2014 grounds of appeal independently particularly grounds of appeal at S. N. 6-7-9 of grounds taken before CIT(A). 3. In holding that CIT(A) was in agreement with A.O in assessing amount of Rs.264,94,000/- and Rs.72813/- on account of unexplained cash advance and interest income. 4. In confirming additions made by A.O in asstt. Order without any reason and evidence. 5. In confirming additions of Rs.26494000/- and Rs.72813/- of Rs.4500000/- made incorrectly by A.O. 6. In dismissing appeal and confirming additions without considering examining various detailed huge submissions filed over period of about 6 years on various dates before various CIT(A) at relevant point of time. 7. Dismissing appeal in hurried, manner without providing adequate opportunity. 3. Search action u/s 132 of Income-tax Act, 1961 was taken on 15/12/2004 in B. M. Gupta Group of cases which also included case of M/s Varad Builders Pvt. Ltd., assessee at 13/13A WEA Karol Bagh, New Delhi. During course of search various incriminating documents were found and seized. Apart from Rs.5,93,000/- was also found, out of which cash of Rs.5,70,000/- was seized. Since there was action u/s 132, notice u/s 153A of Income-tax Act, 1961 was issued on 13/6/2006 requiring assessee to furnish return of income for above block Assessment Year in respect of which assessee company was assessable, within 16 days of service of said notice. 3 ITA No. 3427/Del/2014 4. Since no return was filed by assessee till 20/8/2006, notice u/s 142(1) along with detailed questionnaire based on seized documents was issued on 21/8/2006 fixing date of hearing on 6/9/2006. On 6/9/2006 Shri B. L. Gupta, Counsel for assessee attended and on request case was adjourned to 20/9/2006. On 20/9/2006 Shri B. L. gupta counsel for assessee attended and filed letter with details. Since in above letter which was filed on 20/9/2006, assessee submitted that return filed earlier may be treated to have been filed in response to notice u/s 153A of Act, notice u/s 143(2) along with questionnaire with additional queries was issued on 6/10/2006 fixing date of hearing on 12/10/2006. On 12/10/2006 Shri B. L. Gupta, Counsel for assessee attended and filed letter with enclosures. In this letter assessee challenged search in its case. 5. Assessing Officer made addition of Rs.2,64,94,000/- on account of unexplained cash loan advances and Rs.72,813/- on account of unaccounted interest income. Assessing Officer also made addition on account of unexplained equity share capital for Rs.45 crores. CIT(A) dismissed all grounds without discussing facts of case. assessee is before us. 6. Ld. AR submitted that in subsequent Assessment Year i.e. Assessment Year 2001-02, ITAT, New Delhi Benches has remanded back matter to CIT(A). Tribunal observed that CIT(A) has not cared to record arguments advanced in 4 ITA No. 3427/Del/2014 support of grounds raised. In absence of any recording of arguments, independent reasoning of CIT(A) in upholding action of A.O obviously is not available for judicial scrutiny. In absence of same, conclusion arrived at is open to challenge that Ld.CIT(A) has decided appeal with pre- conceived notion that grounds necessarily have to be dismissed. In absence of any discussion on arguments advanced by assessee, Ground No. 3 raised by assessee deserves to allowed. impugned order accordingly is set aside back to file of CIT(A) with direction to decide same in accordance with law by way of speaking order after giving assessee reasonable opportunity of being heard. 7. Thus, Ld. AR submitted that in this assessment year also CIT (A) has not discussed any facts or has not taken any contentions raised by Ld. AR. Thus, CIT (A) s order has to be set aside. 8. Ld. DR relied on order of Assessing Officer and CIT (A). 9. We have heard both parties. It is pertinent to note that CIT(A) has not at all discussed any factual aspect of assessee s case in fact there is no discussion on submissions of assessee/assessee s representative. While arriving at finding also, CIT(A) has not given any particular reason as to why Assessing Officer s order is just and proper. order of ITAT, New Delhi Benches in ITA No. 1531/Del/2014 Assessment Year 2001-02 passed on 24/7/2015 is also taken on record. In said 5 ITA No. 3427/Del/2014 order correctness of order dated 6/12/2013 of CIT(A)- 12, New Delhi pertaining to Assessment Year 2001-02 was under challenge. Tribunal has observed that CIT(A) decided appeal with pre-conceived notion and there was no judicial scrutiny of Assessing Officer s action. Thus, appeal before us is also on similar line. In light of this, impugned order accordingly is set aside and remanded back to file of A.O CIT(A) with direction to decide same in accordance with law by way of speaking order after giving reasonable opportunity of being heard to assessee. 10. In result, appeal of assessee is partly allowed for statistical purpose. order is pronounced in open court on 18th of October, 2016. Sd/- Sd/- (R.S. SYAL) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 18/10/2016 R. Naheed * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 6 ITA No. 3427/Del/2014 Date 1. Draft dictated on PS 17.10.2016 2. Draft placed before author PS 17.10.2016 3. Draft proposed & placed before .2016 JM/AM second member 4. Draft discussed/approved by JM/AM Second Member. 5. Approved Draft comes to 18.10.2016 PS/PS Sr.PS/PS 6. Kept for pronouncement on PS 7. File sent to Bench Clerk 18.10.2016 PS 8. Date on which file goes to AR 9. Date on which file goes to Head Clerk. 10. Date of dispatch of Order. Varad Builders P. Ltd. v. DCIT, Central Circle-19, New Delhi