Case Number: ITA 1103/DEL/2020
Appellant: DSD Homes Pvt Ltd, New Delhi
Respondent: ACIT Circle-7(1), New Delhi
Assessment Year: 2016-17
Result: Final Tribunal Order
Case Filed On: 2020-03-17
Date of Order: 2022-11-15
Pronounced On: 2022-11-15
This case pertains to the addition of Rs. 3,15,25,200/- as unexplained cash credit under Section 68 for the assessment year 2016-17 involving DSD Homes Pvt Ltd, New Delhi, and the Assistant Commissioner of Income Tax (ACIT), Circle-7(1), New Delhi. The primary issue in this appeal was the dismissal of the appeal by the CIT(A) due to non-prosecution, leading to the ex-parte decision without proper adjudication of the grounds raised by the assessee.
DSD Homes Pvt Ltd, New Delhi, filed an appeal against the order dated 06/11/2019 passed by CIT(A)-3, New Delhi, for the assessment year 2016-17. The appeal was dismissed by the CIT(A) due to non-prosecution, and the assessee sought relief from the Income Tax Appellate Tribunal (ITAT) for re-adjudication of the issues on merits.
The AO made an addition of Rs. 3,15,25,200/- under Section 68 by treating the amount as unexplained cash credit. The AO directed the assessee to provide evidence to support the loan transaction, but the assessee failed to do so. The AO concluded that the assessee had received accommodation entries, and the transaction was not genuine.
The CIT(A) dismissed the appeal ex-parte due to non-appearance and non-submission of required documents by the assessee. The CIT(A) relied on the order of the Tribunal in CIT vs. Multiplan India Pvt. Ltd. (38 ITD 320) and did not decide the issue on merits.
During the proceedings before the ITAT, the appellant did not appear, nor was any authorized representative present. The Tribunal decided to proceed with the hearing ex-parte after considering the submissions of the Senior Departmental Representative (Sr. DR). The key points discussed were:
Appellant: None
Revenue: Shri Rajendra Jha, Sr. D.R.
The appellant did not appear for the hearing, and no adjournment application was filed. The Tribunal proceeded to hear the case ex-parte and considered the submissions of the Sr. DR.
The learned Sr. DR candidly agreed with the Tribunal’s observations that the CIT(A) had passed the order in the absence of the assessee, without proper adjudication of the grounds raised in the appeal. The Sr. DR did not oppose the proposal to remit the matter back to the CIT(A) for fresh consideration.
The Tribunal analyzed the submissions and the circumstances surrounding the ex-parte dismissal by the CIT(A). The key findings were:
Therefore, the Tribunal concluded that the ex-parte order passed by the CIT(A) was not sustainable and remitted the issue back to the CIT(A) for fresh adjudication on merits after granting the appellant a proper opportunity of being heard. The appellant was also directed to cooperate with the proceedings before the CIT(A).
The ITAT concluded that the non-prosecution and ex-parte decision for the assessment year 2016-17 involving DSD Homes Pvt Ltd, New Delhi, required fresh consideration by the CIT(A) due to the lack of proper opportunity for the appellant to present their case. As a result, the appeal was allowed for statistical purposes and remitted back to the CIT(A) for fresh consideration.
Order pronounced in the open court on 15th November 2022 by Shamim Yahya, Accountant Member, and Yogesh Kumar U.S., Judicial Member.
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