Case Number: ITA 1767/DEL/2020
Appellant: Ammonia Supply Co., New Delhi
Respondent: ACIT CIRCLE – 63(1), New Delhi
Assessment Year: 2013-14
Case Filed On: 2020-10-23
Order Type: Final Tribunal Order
Date of Order: 2022-11-03
Pronounced On: 2022-11-03
This appeal, numbered ITA 1767/DEL/2020, was filed by Ammonia Supply Co. against the order dated 31st November 2016 of the Commissioner of Income Tax (Appeals)-20, New Delhi, concerning the assessment year 2013-14. The appellant contested the ex-parte order passed by the CIT(A) due to the non-service of notice at their new registered address.
The case was heard by the Delhi “A” Bench of the Income Tax Appellate Tribunal (ITAT) on November 3, 2022, with the order pronounced on the same day. The bench comprised Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Pradip Kumar Kedia.
The primary grounds of appeal were:
Ammonia Supply Co. had changed its registered office address from 18, New Colony, Model Basti, New Delhi-110055 to Plaza-1, Unit 1073, Central Square, 20, Manohar Lal Khurana Marg, Bara Hindu Rao, Delhi-110006, effective from May 19, 2016. This change was communicated to the CIT(A) via a letter dated July 14, 2016. However, the CIT(A) sent notices to the old address and did not attempt to communicate via email. Consequently, the appellant did not receive the notices and could not attend the appellate proceedings, resulting in an ex-parte order on November 31, 2016.
The appellant argued that the CIT(A) did not acknowledge the change of address and failed to serve notice at the new address. The appellant also highlighted that no email communication was attempted, despite their registered email address being available with the Income Tax Department. The appellant further contended that there was no intentional negligence on their part in not attending the proceedings.
The ITAT examined the grounds of appeal and the evidence presented:
The tribunal found merit in the appellant’s contention that the non-service of notice at the new address deprived them of the opportunity to present their case. The tribunal noted that the CIT(A) should have served the notice at the updated address or attempted email communication.
The tribunal observed that the ex-parte order passed by the CIT(A) was in violation of the principles of natural justice. The non-attendance of the appellant could not be presumed as culpable negligence, given the circumstances.
The ITAT set aside the ex-parte order of the CIT(A) and remanded the case for a fresh hearing. The tribunal directed the CIT(A) to provide a proper opportunity for the appellant to present their case. The appellant was cautioned to attend the proceedings diligently and without any delay.
The tribunal’s order was pronounced in the open court on November 3, 2022, by Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Pradip Kumar Kedia.
Members: Shri Chandra Mohan Garg, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member
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Ammonia Supply Co. vs. ACIT Circle-63(1), New Delhi – 2013-14 – Appeal for Non-Service of Notice
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