In the case of ITA 329/DEL/2019, Cordial Hospitalities Pvt. Ltd. filed an appeal against the Income Tax Officer (ITO), Ward-6(3), New Delhi, for the assessment year 2009-10. The appeal was filed on January 17, 2019, challenging the ex-parte order dated August 24, 2018, passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-2, New Delhi. The final tribunal order was pronounced on December 2, 2021, and the written order was dated December 2, 2021.
Cordial Hospitalities Pvt. Ltd., located at 108-C, United India Apartments, 18, Mayur Vihar, Phase 1-EX., New Delhi, filed its return of income for the assessment year 2009-10. 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, Cordial Hospitalities 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 Judicial Member Shri Amit Shukla and Accountant Member Shri Anadee Nath Misshra, reviewed the case. The tribunal considered the arguments presented by the appellant, represented by Sh. Santosh Pathak, CA, and the respondent, represented by Sr. DR Sh. Vipul Kashyap.
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 Cordial Hospitalities 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 2nd December 2021.
sd/-
(AMIT SHUKLA)
JUDICIAL MEMBER
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(ANADEE NATH MISSHRA)
ACCOUNTANT MEMBER
Cordial Hospitalities Pvt. Ltd. vs. ITO Ward-6(3): Ex-Parte Order Challenge in ITA 329/DEL/2019
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