HOUSING BOARD HARYANA,PANCHKULA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE PANCHKULA, PANCHKULA

Briefly, the facts of the case are that the assessee, Housing Board Haryana, is a statutory body constituted under the provisions of the Haryana Housing Board Act, 1971 with the primary object of providing housing accommodation to the people of the State of Haryana. The assessee is engaged in developmental activities relating to housing projects and derives income from sale of houses, commercial units and booths, interest received from allottees and interest earned on deposits with banks.

During the course of assessment proceedings, the Assessing Officer made various additions and disallowances. The principal additions included

Aggrieved by the assessment orders, the assessee carried the matter in appeal before the learned CIT(A). The learned CIT(A) recorded that despite issuance of several notices of hearing from time to time, no effective compliance was made by the assessee. Consequently, the appeals were treated as liable for dismissal for want of prosecution. However, the learned CIT(A) proceeded to examine the issues on merits on the basis of material available on record and upheld most of the additions made by the Assessing Officer. In certain years, relief was granted on issues already covered in favour of the assessee by judicial precedents in assessee’s own case.

Against the order of the Ld. CIT(A) the assessee preferred an appeal before the Tribunal.

During the course of hearing before us, the Ld. AR submitted that the orders passed by the lower authorities suffer from violation of principles of natural justice. It was contended that the assessee possesses substantial documentary evidence in support of its claims, which could not be effectively examined by the authorities below. The learned AR submitted that the issues involved are highly fact-intensive and require fresh verification and examination by the Assessing Officer. It was therefore prayed that the impugned orders may be set aside and the matters restored to the file of the Assessing Officer for fresh adjudication.

The Ld. DR relied upon the orders of the Assessing Officer and the learned CIT(A). However, he fairly submitted that if the Bench deems it fit, the 3 matters may be restored to the file of the Assessing Officer with appropriate directions.

We have heard the rival submissions and carefully perused the material available on record. We find that the Ld. CIT(A) has primarily proceeded on the basis of non-compliance by the assessee and has adjudicated the issues largely on the basis of material available on record. We further find that the additions sustained by the lower authorities involve substantial factual verification relating to outstanding liabilities, allowability of interest expenditure, nature of expenditure incurred and various supporting evidences maintained by the assessee. The determination of these issues requires detailed examination of books of account, supporting records and explanations of the assessee.

1 In our considered opinion, the ends of justice would be adequately met if one more opportunity is granted to the assessee to substantiate its claims before the Assessing Officer. Accordingly, without expressing any opinion on the merits of the additions/disallowances made in the respective years, we set aside the impugned orders of the Ld.CIT(A) and restore all the issues involved in these appeals to the file of the Assessing Officer for fresh adjudication in accordance with law. The Assessing Officer shall provide adequate and effective opportunity of hearing to the assessee and shall pass a speaking order after duly considering all evidences, explanations and submissions that may be furnished by the assessee. The assessee is also directed to extend full cooperation and shall not seek unnecessary adjournments.

2 Before parting, considering the larger public interest and environmental concerns, we deem it appropriate to issue certain directions while restoring the matters to the file of the Assessing Officer. Accordingly, as a condition attached to the present remand, the assessee is directed to deposit a sum of Rs.15,000/- with JAN VIKAS SHIKSHA SAMITI TRUST (PAN: AACTJ8160E), House No. 1577, Sector 38-B, Chandigarh, an organization engaged in plantation activities on the riverbank of the Yamuna near

3 The aforesaid plantation activity shall be undertaken within a period of three months from the date of receipt of this order. The assessee shall furnish documentary evidence regarding compliance of the above direction, including proof of deposit, photographs of the plantation undertaken and a certificate from the concerned local authority/nursery or the aforesaid Trust evidencing completion of the plantation activity. Such evidence shall be filed before the Assessing Officer as well as before the