DCIT, Circle-9(1), Room No.-163, C.R.Building, New Delhi Vs. M/s Software Technologies Group International Ltd., G-31, IInd Floor, Cellular House, Kalkaji, New Delhi
February, 13th 2015
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: `G' NEW DELHI
BEFORE SH. H.S.SIDHU, JUDICIAL MEMBER
SH.J.S.REDDY, ACCOUNTANT MEMBER
I.T.A .Nos. 1058 & 1059/Del/2013
(ASSESSMENT YEARs-2002-03 & 2003-04)
DCIT, vs M/s Software Technologies Group
Circle-9(1), Room No.-163, International Ltd., G-31, IInd Floor,
C.R.Building, New Delhi Cellular House, Kalkaji, New Delhi
Appellant by Sh. B.R.R.Kumar, Sr. DR
Respondent by None
Both these appeals are filed by the Revenue and directed against separate
but identical orders of the CIT(A)-XII, New Delhi dated 16.11.2012 for the
assessment years 2002-03 and 2003-04. The grounds read as follows:-
1. "The ld. CIT(A) erred on facts and in law in holding that the
reopening of the assessment was beyond the jurisdiction of the
Assessing Officer as assessee did not disclose material facts
truly & fully in return of Income which was accepted u/s
143(1) of the Income Tax Act, 1961.
2. The appellant craves to amend modify, alter, add or forego any
ground of appeal at any time before or during the hearing of
1. "The Ld. CIT(A) erred on facts and in law in quashing the
assessment order even though proviso to section 147 of the
Income tax Act, 1961 was not applicable.
2 I.T.A .No.1058 & 1059/Del/2013
2. The appellant craves to amend, modify, alter, add or forego
any ground of appeal at any time before or during the hearing
of this appeal."
2. As the issues raised in both the appeals are identical, for the sake of
convenience, they are heard together and disposed off by way of this common
Facts and Briefs
For the assessment year 2002-03
3. The assessee is a public limited company and is engaged in the business of
software development and training to its various centres and franchisee. It filed
its return of income on 22.10.2002 and the return was processed u/s 143(1) on
23.02.2004. Notice re-opening the assessment was issued on 29.01.2008, that is
after 4 years and 10 months.
For the assessment year 2003-04
4. The assessee filed its return of income on 27.11.2003. The assessment was
completed u/s 143(3) on 31.01.2006. Notice u/s 148 re-opening the assessment
was issued on 29.01.2008.
5. For both the assessment years the reasons for re-opening is that the claim
by the assessee of public issue expenditure u/s 35D has caused escapement of
income from assessment.
6. None appeared on behalf of the assessee despite issuance of notice. There
is no petition for the adjournment either. Under these circumstances we dispose
off the case ex-parte qua the assessee on merits.
3 I.T.A .No.1058 & 1059/Del/2013
7. Heard the Ld. DR, Mr. B.R.R.Kumar. The First Appellate Authority has
observed that for both the assessment years the AO issued a notice fixing the case
for hearing on 20.11.2008 and whereas the assessment was completed on
19.11.2008 which is bad in law. This finding of the First Appellate Authority has
not been challenged by the Revenue in its ground of appeal. Thus the appeal of
the Revenue for both the assessment years has to be dismissed.
8. In the result both the appeals are dismissed.
The order is pronounced in the open court on 12th of February 2015.
JUDICIAL MEMBER ACCOUNTANT MEMBER
Copy forwarded to:
5. DR: ITAT
ITAT NEW DELHI