TRANSCORP INTERNATIONAL LIMITED,JAIPUR vs. DCIT CIRCLE-1, JAIPUR

Aggrieved against the assessment order, the assessee filed an appeal before Ld. CIT(A) with delay of 25 days and also filed the detailed reasons for the delay. The Ld. CIT(A) has reproduced the reasons for the delay at page no. 3 to 5 of his order and in para 1.3.3. condoned the delay by observing as follows:-

Aggrieved against the appellate order, the assessee is in appeal before us raising the following Grounds of Appeal:-

In the facts and circumstances of the case and in law, the NFAC has grossly erred in dismissing the appeal of the assessee company without adjudicating

In the facts and circumstances of the case and in law, the NFAC has grossly erred in confirming the action of the Id. AO in disallowing a lump sum addition of Rs. 5,00,000 out of Repair & Maintenance expenses without assigning cogent reasons and ignoring the details and evidences furnished by the assessee company. The action of the NFAC is illegal and arbitrary and relief may please be granted by quashing the order of the NFAC and by deleting the addition made by the Id. AO and confirmed by the NFAC.

In the facts and circumstances of the case and in law, the NFAC has grossly erred in confirming the action of the Id. AO in making disallowance of Rs. 32,51,200 u/s 14A read with Rule 8D, without recording mandatory satisfaction under section 14A(2) and despite the fact that no exempt income was earned during the year. The action of the NFAC is illegal and arbitrary and relief may please be granted by quashing the order of the NFAC and by deleting the addition made by the Id. AO and confirmed by the NFAC.

In the facts and circumstances of the case and in law, the NFAC has grossly erred in confirming the action of the Id. AO in disallowing Rs. 58,577 by wrongly treating the same as penalty in nature, ignoring that the expenditure was compensatory and allowable u/s 37(1). The action of the NFAC is illegal and arbitrary and relief may please be granted by quashing the order of the NFAC and by deleting the addition made by the Id. AO and confirmed by the NFAC.

In the facts and circumstances of the case and in law, the NFAC has grossly erred in confirming the action of the Id. AO in denying credit of Rs. 8,28,202 being Dividend Distribution Tax duly paid by the assessee company, resulting in unlawful demand and double taxation. The action of the NFAC is illegal and arbitrary and relief may please be granted by quashing the order of the NFAC and by deleting the addition made by the Id. AO and confirmed by the NFAC.

The assessee company craves leave to add, amend, alter or withdraw any of the above grounds at the time of hearing.” 5. Ld. Counsel appearing for the assessee submitted before us a Paper Book containing 88 pages as well as on merits of the case, canvassing that the addition made by the AO is liable to be deleted. The Ld. CIT(A)

Per contra, Ld. DR appearing for the Revenue supported the orders passed by the lower authorities.

We have given our thoughtful consideration and perused the materials available on record including the paper book filed by the assessee. On perusal of the order of Ld. CIT(A) at page no. 5, he clearly mentioned that he considered the submission of the assessee on the issue of condonation of delay and again condoned the delay, but in concluding part of his order, he declined to condone the delay of 25 days in filing the appeal. Thus, Ld. CIT(A) had made hot and cold in the same order which is legally not sustainable. Further, Ld. CIT(A) has reproduced the written submission of the assessee, but not adjudicated on the merits of the case. Thus, the order passed by Ld. CIT(A) is liable to be set aside with a direction to give proper opportunity of hearing to the assessee and then pass fresh order on merits of the case. Thus we are not expressing any opinion on merits of the case and leave it open to the Ld. CIT(A) to adjudicate in accordance with the provisions of law.