The case ITA 591/DEL/2021 involves an appeal by Movie Times Cineplex Pvt. Ltd., New Delhi, against the order passed by the Principal Commissioner of Income Tax (Pr. CIT), Range-4, Delhi, for the assessment year 2013-14. The appeal addresses the exercise of revisional powers under section 263 of the Income Tax Act, 1961, by the Pr. CIT.
The details of the case are as follows:
The case was heard on 01.06.2023 before the Delhi Bench “E” of the Income Tax Appellate Tribunal (ITAT), comprising Hon’ble President Shri G.S. Pannu and Judicial Member Shri Anubhav Sharma. The appellant was represented by Shri Salil Aggarwal, Sr. Adv., Shri Shailesh Gupta, Adv., and Shri Mihir Aggarwal, Adv., while the respondent was represented by Ms. Deepshikha Sharma, CIT DR.
The appellant raised several grounds in the appeal, primarily challenging the order dated 15.03.2021 passed by the Pr. CIT under section 263 of the Income Tax Act, 1961. The key issues included the arbitrary exercise of revisional powers and the lack of reasonable opportunity of hearing provided to the appellant.
The appellant’s counsel argued that the Pr. CIT issued a show cause notice under section 263 on 05.03.2021, requiring a reply by 10.03.2021. Due to the Covid-19 pandemic and the suspension of the appellant’s commercial activities, an adjournment request was made, citing difficulties such as the death of an Accounts Manager and the resignation of two accountants. However, the Pr. CIT did not consider this request and proceeded with the order, assuming the appellant did not wish to make any submissions.
The Tribunal found that the Pr. CIT failed to provide a reasonable and appropriate opportunity of hearing to the appellant, especially given the exceptional circumstances caused by the Covid-19 pandemic. The Tribunal noted that the appellant had responded to the show cause notice via email and had requested an adjournment, which was not considered by the Pr. CIT.
Based on the lack of reasonable opportunity of hearing and the arbitrary exercise of revisional powers by the Pr. CIT, the Tribunal ruled in favor of the appellant. The Tribunal set aside the impugned orders and directed the Pr. CIT to take on record the appellant’s reply and decide the matter afresh after providing a reasonable opportunity of hearing.
Order pronounced in the open court on 30th June, 2023.
G.S. PANNU
HON’BLE PRESIDENT
ANUBHAV SHARMA
JUDICIAL MEMBER
Dated: 30th June, 2023
A K Keot
Copy forwarded to:
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
5. DR
Assistant Registrar, ITAT, New Delhi
ITA 591/DEL/2021: Movie Times Cineplex Pvt. Ltd., New Delhi vs. Pr. CIT, Range-4, Delhi
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