Case Number: ITA 679/DEL/2019
Appellant: First Citizen Technologies Ltd., A-61, Kamla Nagar, New Delhi – 110 007
Respondent: Assistant Commissioner of Income Tax, Circle-9(1), New Delhi
Assessment Year: 2010-11
Result: Appeal Partly Allowed for Statistical Purpose
Case Filed On: 2019-01-31
Order Type: Final Tribunal Order
Date of Order: 2023-02-14
Pronounced On: 2023-02-14
First Citizen Technologies Ltd., the appellant, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-3, New Delhi, dated 20th December 2018 and CIT(A)-13, New Delhi, dated 6th December 2019, both relating to the assessment year 2010-11. The primary issues in this case were various additions made by the Assessing Officer (AO) and the subsequent dismissal of the appeal by the CIT(A).
The appellant contested the assessment order on several grounds, including:
The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘B’, New Delhi, with Shri Anil Chaturvedi, Accountant Member, and Shri Yogesh Kumar U.S., Judicial Member, presiding. The appellant did not appear for the hearing, and the notices issued by the registry to the registered address of the appellant were returned with the endorsement “no such person”. Considering the facts and circumstances, the tribunal decided to proceed with the appeal after hearing the Departmental Representative (DR), Shri T. James Singson.
The ITAT noted that the CIT(A) had issued several notices to the appellant, providing sufficient opportunities to present the case, but the appellant failed to appear. Consequently, the CIT(A) dismissed the appeal for non-prosecution by relying on the case of CIT vs. Multiplan Pvt. Ltd., which is no longer considered good law. The tribunal emphasized that revenue authorities and tribunals must decide appeals on their merits and not dismiss them for non-prosecution without a merit-based decision.
Considering these facts, the ITAT deemed it appropriate to remand the matter to the CIT(A) for a de-novo (fresh) consideration. The tribunal directed the CIT(A) to decide the appeal on merit after providing an opportunity of being heard to the appellant in accordance with the law.
In conclusion, the ITAT partly allowed the appeal filed by First Citizen Technologies Ltd. for statistical purposes. The tribunal set aside the order of the CIT(A) and directed the CIT(A) to decide the appeal on its merits after giving the appellant an opportunity to be heard. This case highlights the importance of providing a fair opportunity to appellants to present their case and ensuring that appeals are decided on their merits rather than dismissed for procedural defaults.
Source: Income Tax Appellate Tribunal, Delhi Benches ‘B’, New Delhi
Disclaimer: This article provides an overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
First Citizen Technologies Ltd vs ACIT, Circle-9(1), New Delhi: Assessment Year 2010-11
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