2022 (10) TMI 114

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....same are not being repeated for sake of brevity. 4. Revised grounds of appeal for assessment of 2008-09: "1. That the Learned CIT (Appeal) has erred in law by confirming the reopening of the assessment u/s 148 of the Income Tax Act, 1961. 2. That the Learned CIT (Appeal) has further erred in law by confirming an addition of Rs. 14,99,753/- as rental income after all owing standard deduction and without considering the facts submitted to him at the time of hearing. 3. That the Learned CIT (Appeal) has also erred in law by confirming penalty proceedings u/s 274 r.w.s. 271 (1)(c) of the Income Tax Act. Any other ground that may meet at the end of justice shall be submitted at the time of hearing." 5. Additional grounds of appeal for assessment of 2008-09: "Appellant craves leave to raise this additional ground of appeal before the Hon'ble ITAT. This is a legal ground and therefore as per the decision of Hon'ble Supreme Court in the case of National Thermal Power (229 ITR 383) it can be raised before the Hon'ble ITAT. 1. Ld. CIT (A) erred in law and on facts in dismissing the appeal by holding that there was no rea....

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....plication made under Regulation 44 of the Company Law Board Regulations etc. Before us, the counsel for the assessee also submitted that for all the years under consideration, no income had been received by the assessee company which is sought to be taxed since the same was illegally siphoned off by the ex-directors, who have now been removed. Therefore, in the interests of justice, the assessee company may be allowed to present its case on merits. We have heard the arguments of the counsel for the assessee and documents placed before us. We are of the considered view that there is reasonable cause for delay in filing of the appeals for the years under consideration, in light of the facts placed before us. The Supreme Court in the case of Collector, Land Acquisition v. Mst. Katiji 1987 taxmann.com 1072, analyzed the provisions of law qua limitation Act and held that the expression 'sufficient cause' employed by the legislature in the Limitation Act is adequately elastic to enable the Courts to apply the law in a meaningful manner which sub-serves the ends of justicethat being the life purpose for the existence of the institution of Courts. It was further observed that a lib....

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....hed Mr Khurana with the proposal for development of commercial property at Noida on 50-50 sharing basis. Accordingly, the company submitted request with Noida Authority on 04- 04-2000 for allotment of commercial plot, which was allotted by way of lease deed on 04-07-2002. Mr Deepak Ochhaney was authorised to sign the lease deed on behalf of the company. Thereafter, Mr Deepak Ochhaney (and 3 of his family members) were admitted as shareholders the assessee company, with the Khurana group holding 35,720 shares and Deepak Ochhaney group holding 10,645 shares respectively. However, subsequently the Khurana group observed that the Ochhaney group was not working in the interest of the assessee company and therefore EGM was called on 28 March 2006 for removal of the Mr Deepak Ochhaney and his family members as directors of the assessee company. Public notice was issued in "Business Standard" newspaper in New Delhi on 24 March 2006 intimating the public removal of these directors from the company's Board of Directors and necessary Form number 32 was also filed with Registrar of Companies. Both the groups also approached the Company Law Board, who vide order dated 11-12-2008 passed an order....

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.... has not disclosed same in it's return of income and shown nil rent income for the year under consideration. Instead of to make the offer of the undisclosed rent income for tax by the assessee, the AR of the assessee requested to drop the reopening proceedings, however, same can not be entertained as it is evident from the records that it has received rent income which is not shown by it in the return furnished for the year under consideration. 8. The verification of the bank account held by the assessee with the Axis Bank Limited and its reconciliation has been made with the 26AS Details as well as with the details called u/s 133(6) of the Income-tax. The reconciliation shows that huge amount of clearing entries have been made during the year under consideration. The credit entries made in the bank account reveals that an amount of Rs. 21,42,504/- has been received as rent from the above named three tenants during the year. Since, the deductors have also deducted TDS u/s 1941 of the Act treating the same as "income from house property". Thus, the income from house property is calculated as under- Total rent received during the year Rs. 21,42,504/- Less: st....

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..... 40,30,495/- after allowing deduction u/s 24(a) is upheld. Thus appellant fails in respect of Ground No. l." 4.2.1 Since the facts are identical in this year also, I hold that AO has rightly assessed the rental income in the hands of appellant company and hence the addition made is sustained. 4.2.2 The appellant has also objected to initiation of penalty proceedings. Since no appeal lies against initiation of penalty proceedings, this ground also deserves to be dismissed and accordingly the same is dismissed. Thus appellant fails in respect of Second Ground." 8. The assessee is in appeal before us against the aforesaid order of Ld. CIT(Appeals). The counsel for the assessee submitted that the order has been passed by Ld. CIT(Appeals) without granting adequate opportunity of hearing to the assessee. The assessee had sought adjournment, which was not granted by Ld. CIT(Appeals), and he proceeded to dismiss the appeal of the assessee, relying solely upon the order passed by AO, and without appreciating the merits of the case. Accordingly, in the interest of justice, the counsel for the assessee requested that the matter may kindly be set aside to the file of Ld. ....