Case Number: ITA 1749/DEL/2020
Appellant: Delite Buildwell Private Ltd., New Delhi
Respondent: ACIT Circle-7(1), New Delhi
Assessment Year: 2016-17
Case Filed On: 2020-10-22
Order Type: Final Tribunal Order
Date of Order: 2023-03-29
Pronounced On: 2023-03-29
This case involves an appeal filed by Delite Buildwell Private Ltd., New Delhi against the ACIT Circle-7(1), New Delhi for the assessment year 2016-17. The appeal, registered as ITA 1749/DEL/2020, was filed on October 22, 2020, and concerns the ex-parte order passed by CIT(A)-3, New Delhi on December 3, 2019.
The case was heard by the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT) on February 24, 2023, with the order pronounced on March 29, 2023. The bench comprised Judicial Member Shri C.M. Garg and Accountant Member Shri Anadee Nath Misshra.
The primary ground of appeal was the ex-parte order passed by the CIT(A) without serving notice to the appellant. The appellant argued that the CIT(A) failed to provide evidence of issuing notices dated 14.08.2019, 23.09.2019, and 05.11.2019 for the hearings scheduled on 16.09.2019, 04.11.2015, and 02.12.2019, respectively. The appellant also contended that these notices were not received at their registered address as mentioned in Form No. 35 of the appeal.
The appellant’s representative, Shri V.K. Jain, CA, argued that the CIT(A) ignored the specific request of the appellant to not send communications via email, as stated in Form No. 35. The appellant maintained that no such notices were received through email or at their registered address, and therefore, the ex-parte order was in violation of the principles of natural justice.
The respondent, represented by Senior DR Shri Ravinder Singh Yadav, supported the orders of the authorities below and contended that the notices were duly served via email. However, the respondent also expressed no serious objection to restoring the matter back to the authorities below for fresh adjudication, if deemed appropriate by the tribunal.
Upon careful consideration, the tribunal noted that the CIT(A) had passed the ex-parte order applying the ITAT Delhi’s decision in the case of CIT vs. Multiplan India Pvt. Ltd., 38 ITD 320 for non-prosecution. The tribunal observed that the CIT(A) did not adjudicate the grounds of the assessee as required by sub-section (6) of section 250 of the Income-tax Act, 1961.
The tribunal also noted that while the AO issued notices u/s 143(2) and 143(1) of the Act, there was no evidence of any subsequent notice or order sheet entry showing that the assessee was given an opportunity to respond to the issues raised during the scrutiny assessment. This lack of due opportunity constituted a violation of the principles of natural justice.
In light of these findings, the tribunal set aside the orders of the authorities below and restored the matter to the AO for fresh adjudication, ensuring that the assessee is given due opportunity of hearing. The tribunal’s decision emphasized the importance of adhering to the principles of natural justice in tax proceedings.
In the result, the appeal filed by the assessee is allowed for statistical purposes only. The order was pronounced in the open court on March 29, 2023.
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Delite Buildwell Private Ltd vs. ACIT Circle-7(1), New Delhi – 2016-17 – Appeal on Notice Issue
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