This article provides a comprehensive analysis of the tribunal proceedings in ITA No. 1111/DEL/2019, involving Mahanivesh (India) Ltd., a private limited company based in New Delhi, and the Income Tax Officer (ITO) Ward-16(1), New Delhi, for the assessment year 2013-14.
The appellant, Mahanivesh (India) Ltd., filed its return of income on 31st October 2013, declaring an income of Rs. 4,78,400/-. However, the Assessing Officer (AO) completed the assessment under section 143(3) on 18th March 2016, determining the total income at Rs. 27,95,190/-. The appellant challenged this assessment in the Income Tax Appellate Tribunal (ITAT).
The case was heard by the ITAT Delhi Bench ‘SMC’ on 15th July 2019, with the order pronounced on the same day. The bench consisted of Shri R.K. Panda, Accountant Member.
The appellant, represented by Shri Anunav Kumar, Advocate, raised various grounds of appeal, primarily challenging the ex parte order dated 30th November 2017 passed by the Commissioner of Income Tax (Appeals) [CIT(A)]-22, New Delhi. The appellant contended that the CIT(A) dismissed the appeal for non-prosecution without deciding the merits of the case.
During the hearing, the appellant’s counsel argued that the notice from the office of the CIT(A) was not received, resulting in the non-appearance before the CIT(A). The counsel requested the tribunal to restore the matter to the file of the CIT(A) for a fair opportunity to present the case. The respondent’s representative, Shri S.L. Anuragi, Sr. DR, had no objection to this request.
‘After hearing the rival arguments made by both the sides, I am of the considered opinion that the matter requires to be restored to the file of the CIT(A) with a direction to give one more opportunity to the assessee to substantiate its case.’
The tribunal agreed that the CIT(A) did not decide the appeal on merit and emphasized the need for a fair hearing. Consequently, the tribunal directed the CIT(A) to provide the appellant with an opportunity to present its case and to decide the issue based on facts and law.
The tribunal concluded that the appeal filed by the appellant should be allowed for statistical purposes. The decision was pronounced in the open court on 15th July 2019, directing the CIT(A) to reconsider the case and provide a fair hearing to the appellant.
The tribunal’s final judgment stated:
‘In the result, the appeal filed by the assessee is allowed for statistical purposes. The decision was pronounced in the open court on 15.07.2019.’
This judgment highlights the tribunal’s commitment to ensuring procedural fairness and the principles of natural justice in tax litigation.
This case serves as a precedent for similar disputes, emphasizing the importance of adhering to procedural guidelines and ensuring fair hearings in tax appeals. It underscores the role of the ITAT in safeguarding the rights of taxpayers and ensuring that appeals are decided on their merits.
The following sections provide a detailed account of the tribunal’s deliberations and the legal arguments presented by both sides during the hearing of ITA No. 1111/DEL/2019.
Mahanivesh (India) Ltd. is a private limited company engaged in trading activities. The company’s appeal challenged the assessment order passed by the AO, which significantly increased the assessed income.
The appellant argued that the CIT(A) dismissed the appeal for non-prosecution without properly considering the merits of the case. The tribunal examined the procedural aspects and noted that the appellant did not receive the notice, which led to the non-appearance before the CIT(A).
‘The ld.CIT(A) has not decided the appeal on merit. He accordingly submitted that in the interest of justice this matter should be restored to the file of the CIT(A) and the assessee should be given an opportunity of being heard.’
The tribunal emphasized the importance of ensuring that all parties receive a fair opportunity to present their case and that procedural fairness is maintained throughout the appeal process.
The tribunal’s decision in ITA No. 1111/DEL/2019 underscores the importance of procedural fairness in tax litigation. By restoring the case to the CIT(A) and directing a fair hearing, the tribunal reinforced the principles of natural justice and ensured that the appeal would be decided on its merits.
This case serves as an important reference point for future tax litigation, highlighting the need for proper notice and fair hearings in tax appeals. It also underscores the role of the ITAT in ensuring that tax disputes are resolved efficiently and justly.
Order pronounced in open court on this 15th day of July, 2019.
Per R.K. Panda, Accountant Member.
Tax Appeal: Mahanivesh (India) Ltd. vs. ITO, Ward-16(1), New Delhi – ITA No. 1111/DEL/2019
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