Case of bogus entries by supplying bogus bills of steel

The Income Tax Appellate Tribunal (ITAT) has dismissed four appeals filed by an assessee concerning assessment years 2005-06 to 2008-09. The appeals related to the validity of the Assessing Officer's jurisdiction under Section 153C of the Income Tax Act, 1961, and the subsequent quashing of orders by the CIT (Appeals). The ITAT found no infirmity in the CIT (Appeals)'s direction to the Assessing Officer to proceed under Sections 147 and 148, noting that the assessee retains the right to challenge any future actions.

IN THE INCOME TAX APPELLATE TRIBUNAL
[ DELHI BENCH: ‘E’ NEW DELHI ]
BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
A N D
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
I.T.A. Nos. 4160, 4161, 4162 & 4163/Del/2018
Assessment Years : 2005-06, 2006-07, 2007-08& 2008-09
(THROUGH VIDEO CONFERENCING)

Manoj Kumar Jain,
C/o. M/s. Kapil Goel
Associates,F–26/124,Sector
7,Rohini, Delhi – 110 085.
PAN : ACLPJ4982H
(APPELLANT)

VS

DCIT,
Central Circle,
Ghaziabad.
(RESPONDENT)

Assessee by : N o n e;
Department by: Ms. Parmita M. Biswas,
[CIT] – DR;

Date of Hearing 27.07.2021
Date of Pronouncement 27.07.2021

ORDER

These are the appeals filed by the assessee for assessment years 2005-06 to 2008-09 against the order passed by the ld. CIT (Appeals) Ghaziabad, dated 31st March, 2015. The ld. CIT (Appeals) passed an order holding that the action of the Assessing Officer in assuming jurisdiction under Section 153C of the Income Tax Act, 1961 (the Act) are not valid and, therefore, he quashed the orders passed.

2. There is no doubt that rule 24 of the ITAT rules 1963 give such powers to the ITAT dispose of the appeal in absence of nonappearance by the appellant. We are also conscious that the proviso to that rules requires us to recall the order if appellant satisfies that there was sufficient cause for nonappearance. However at this moment we do not have any such material on record. The assessee may also have a right to do it at letter on as per the rules prescribed. But this cannot be the reason to keep the appeals pending for an indefinite time.

3. Therefore the order of the learned CIT – A in guiding the assessing officer giving a direction to proceed u/s 147 – 148 of the act are in conformity with the income tax act, the direction itself does not prohibit or curtail upon any power of the assessing officer mentioned in those sections, it is in conformity with the provisions of the law and by merely giving this directions the assessee is not aggrieved at all as he has all the rights vested in the income tax act to challenge such action of the assessing officer as and when taken.

4. In view of the above fact, we do not find any infirmity in the order of the ld. CIT (Appeals) in giving direction to the Assessing Officer for issuing notices under Section 151 of the Act. It was not the case that Assessing Officer has already issued notice to the assessee and assessee did not have any opportunity to defend him before the ld. Assessing Officer. In view of this, ground No. 1 of the appeal is dismissed.

5. In view of above facts, all the four appeals do not merit any consideration and hence same are dismissed.
Order pronounced in the open court on : 27/07/2021

Please find attached the enclosed file for the full judgement