Case Number: ITA 1452/DEL/2019
Appellant: Amar Dyeing Works (Regd.), New Delhi
Respondent: ITO, Ward-30(5), New Delhi
Assessment Year: 2015-16
Case Filed On: February 21, 2019
Order Type: Final Tribunal Order
Date of Order: May 9, 2023
Pronounced On: May 9, 2023
The appeal was filed by Amar Dyeing Works (Regd.) against the order dated December 28, 2018, passed by the Commissioner of Income Tax (Appeals)-10, New Delhi, for the assessment year 2015-16. The case revolves around a tax arrears dispute concerning the addition of Rs. 4,36,36,228/- on account of compensation received from DMRC for the acquisition of land, which was treated as long-term capital gain under section 45(5)(a) of the Income Tax Act.
The appellant, Amar Dyeing Works (Regd.), located at 87, Bagh Sambhu Dayal, Okhla Industrial Area, New Delhi-110020, with PAN: AABFA0620P, was represented by Sh. Shrey Jain, Advocate. The appellant argued that the CIT(A) erred in confirming the addition without granting an adequate opportunity of being heard and without observing the principles of natural justice.
The respondent, represented by Sh. Kanv Bali, Sr. DR, contended that the CIT(A) provided multiple opportunities to the assessee, but the assessee failed to comply with the notices issued.
The case was heard by Sh. C. M. Garg, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member, of the Income Tax Appellate Tribunal, Delhi Bench ‘A’. The Tribunal noted that the order was passed ex-parte by both the Assessing Officer and the CIT(A) due to non-compliance by the assessee despite multiple opportunities.
However, the Tribunal acknowledged the plea of the assessee’s representative that given another opportunity, due compliance would be made before the CIT(A). The Tribunal found merit in providing the assessee an additional opportunity to present their case to ensure justice and adherence to the principles of natural justice.
The Tribunal set aside the issues in dispute to the CIT(A) with a direction to pass a speaking order in accordance with the law, ensuring the assessee is given a reasonable opportunity of being heard. The Tribunal emphasized that no prejudice would be caused to the revenue by providing this opportunity.
In the result, the appeal filed by Amar Dyeing Works (Regd.) was allowed for statistical purposes. The order was pronounced in the open court on May 9, 2023.
Signatories:
(C. M. Garg) Judicial Member
(Dr. B. R. R. Kumar) Accountant Member
Date: 9th May, 2023
Assistant Registrar: Subodh Kumar, Sr. PS
Copy of the Order is forwarded to:
BY ORDER
Assistant Registrar, ITAT, New Delhi
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