Case Number: ITA 1581/DEL/2020
Appellant: MD Metro Transit Pvt Ltd, New Delhi
Respondent: ITO WARD – 16(4), New Delhi
Assessment Year: 2014-15
Case Filed On: 2020-09-10
Order Type: Final Tribunal Order
Date of Order: 2023-02-07
Date of Pronouncement: 2023-02-07
This appeal by the assessee, MD Metro Transit Pvt Ltd, is directed against the order dated 29.11.2019 of the Ld. CIT (Appeals)-16, New Delhi, for the assessment year 2014-15. The primary issues in this case are the ex-parte assessment order passed by the Assessing Officer (AO) and the penalty levied under section 271(1)(c) of the Income Tax Act, 1961.
The assessment order dated 27.12.2016 was passed by the AO, assessing the income at Rs. 96,35,040/- against the returned income of Rs. 27,89,360/-. The assessment order was passed ex-parte qua the assessee. The assessee’s appeal against this order was dismissed by the Ld. CIT(A) on the grounds of delay in filing the appeal and was not entertained on merits.
Separate penalty proceedings were initiated under section 271(1)(c) of the Income Tax Act, resulting in a penalty of Rs. 21,12,981/-. The appeal against this penalty order was also dismissed by the Ld. CIT(A) in limine, observing that the assessee was not interested in pursuing the appeal.
The appeals before the ITAT (ITA No.1581/Del/2020 and ITA No.1582/Del/2020) were filed by the assessee against the impugned appellate orders of the Ld. CIT(A). The assessee argued that the assessment order was not served on them as it was sent to the wrong address by the AO. The assessee obtained a certified copy of the assessment order to file the appeal and argued that the appeal was filed within the time prescribed under Section 249(2) of the Income Tax Act.
The ITAT, comprising Shri Kul Bharat, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member, heard the case on 07.02.2023. The Tribunal observed the following:
In view of the foregoing, the ITAT set aside the impugned appellate orders dated 29.11.2019 and 22.02.2019 of the Ld. CIT(A). The AO was directed to pass a denovo assessment order in accordance with the law after providing reasonable opportunity to the assessee. Consequently, the quantum additions and the penalty levied under section 271(1)(c) were also set aside. However, the AO was given the liberty to initiate penalty proceedings if deemed fit after the denovo assessment proceedings.
Order signed by:
[KUL BHARAT] – JUDICIAL MEMBER
[ANADEE NATH MISSHRA] – ACCOUNTANT MEMBER
Date: 07.02.2023
Location: New Delhi
ITA 1581/DEL/2020: MD Metro Transit Pvt Ltd vs ITO Ward-16(4), New Delhi – Assessment Year 2014-15
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