ITA No. 722/Del/2020 is a significant case involving Srishti Azad Trading & Exim Private Limited and the Assistant Commissioner of Income Tax (OSD), Ward-24(2), Delhi, pertaining to the assessment year 2011-12. The case was filed on February 7, 2020, and the order was pronounced on July 5, 2022, by the Income Tax Appellate Tribunal in New Delhi. This case delves into various procedural and substantive tax law issues.
The appeal by Srishti Azad Trading & Exim Private Limited was directed against the order of the CIT (Appeals)-8, New Delhi dated December 3, 2019. The main contention in the appeal was the lack of proper opportunity given to the appellant company by the CIT (A), who dismissed the appeal for non-prosecution and confirmed the additions made by the Assessing Officer.
The appellant raised several issues, primarily arguing that the CIT (A) erred in law by not providing an adequate opportunity to the company to represent its case. The appellant also contested the procedural validity of the email notices served, claiming they were not adequate for legal proceedings. Further, the appellant challenged the addition of Rs. 50,00,000 under section 68 of the Income Tax Act, 1961, as unexplained cash credits.
The Tribunal, consisting of Shri Shamim Yahya, Accountant Member, and Shri Chandra Mohan Garg, Judicial Member, found that the CIT (A) had indeed dismissed the appeal without proper legal basis, particularly highlighting that no proper service of notice had been executed. Consequently, the Tribunal set aside the order of the CIT (A) and remanded the matter back to the CIT (A) for a fresh decision after providing an opportunity to be heard to the assessee.
The Tribunal’s decision to remand the case back to the CIT (A) underscores the importance of following due legal process in tax assessments and appeals. This case highlights critical aspects of procedural justice in tax litigation and emphasizes the need for tax authorities to adhere strictly to legal norms and practices.
The case concluded with the Tribunal allowing the appeal for statistical purposes and marking a significant point on procedural improprieties in tax appellate proceedings. The final judgment, pronounced in the open court on July 5, 2022, reflects the ongoing challenges in ensuring fairness and legality in tax administration.
Detailed Analysis and Outcomes of Srishti Azad Trading & Exim vs ACIT (ITA 722/DEL/2020)
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