In the case of ITA 331/DEL/2019, Ampcor Propmart Pvt. Ltd., located in Noida, filed an appeal against the Deputy Commissioner of Income Tax (DCIT), Central Circle, Noida, for the assessment year 2011-12. The appeal was filed on January 17, 2019, challenging the ex-parte order dated November 19, 2017, passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-IV, Kanpur. The final tribunal order was pronounced on January 31, 2020.
Ampcor Propmart Pvt. Ltd., with its registered office at B-20, 21-22, Sector-16, Noida, filed its return of income for the assessment year 2011-12. The return was processed, and the assessment was completed. However, the CIT(A) passed an ex-parte order without hearing the appellant or considering the merits of the case. Consequently, Ampcor Propmart Pvt. Ltd. filed an appeal before the Income Tax Appellate Tribunal (ITAT) seeking relief from the ex-parte order.
The appellant raised several grounds of appeal, primarily focusing on the procedural lapses by the CIT(A) in passing an ex-parte order without providing sufficient opportunity for hearing and without addressing the merits of the case. The appellant argued that the CIT(A) violated the principles of natural justice by not allowing the appellant to present their case.
The ITAT, consisting of Vice President Ms. Sushma Chowla and Accountant Member Sh. N.K. Billaiya, reviewed the case. The tribunal considered the arguments presented by the appellant, and the respondent, represented by Sr. DR Sh. Pradeep Kumar Gautam.
The tribunal found that the CIT(A) had failed to follow these principles and therefore set aside the ex-parte order. The case was remanded back to the CIT(A) with directions to decide the appeal on merits after providing a reasonable opportunity of hearing to the appellant. The tribunal also directed the appellant to cooperate with the CIT(A) and participate in the appellate proceedings.
In conclusion, the ITAT ruled in favor of Ampcor Propmart Pvt. Ltd., setting aside the ex-parte order passed by the CIT(A). The tribunal directed the CIT(A) to decide the appeal on merits and provide a reasoned order after hearing both parties. The appeal was allowed on the preliminary issue without addressing the merits of the addition.
This case highlights the importance of ensuring that tax authorities adhere to principles of natural justice and procedural fairness. It underscores the necessity for reasoned orders and fair hearing opportunities in the adjudication of tax disputes.
Order pronounced in the open court on 31st January 2020.
sd/-
(N. K. BILLAIYA)
ACCOUNTANT MEMBER
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(SUSHMA CHOWLA)
VICE PRESIDENT
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