Deusch Kyosel Engineering P.Ltd’s Appeal Against CIT(A) Order in ITA No.1669/DEL/2022 for AY 2016-17

Introduction

The case of Deusch Kyosel Engineering Pvt. Ltd. vs. ACIT, Circle-7(1), New Delhi, bearing ITA No.1669/DEL/2022, for the assessment year 2016-17 stands as a significant altercation in the realm of income tax appeals. It unfolds the procedural intricacies and the judicial scrutiny involved in the appeal processes of the Indian Tax Appeals system. This document articulately delves into the factual matrix, the legal contentions, proceedings, and the landmark judgment delivered by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘B’.

The Filing of the Appeal

The appeal was instituted by M/s. Deusch Kyosel Engineering Pvt. Ltd., a renowned engineering firm based in New Delhi, against the order of the Commissioner of Income Tax (Appeals)-3, New Delhi. The bone of contention revolved around the order dated 16.08.2019 which confirmed the addition of Rs.87,90,000/- made under section 68 of the Income Tax Act, 1961 by the assessing officer, thus necessitating a legal recourse to the ITAT.

Grounds of the Appeal

The appellant challenged the CIT(A)’s decision on various grounds, predominantly arguing that the appeal was dismissed in limine without considering the merits of the case. The contention was that the CIT(A) should have adjudicated the appeal based on the substantive merits rather than procedural lapses.

Proceedings Before the ITAT

During the proceedings before the ITAT, it was noted that no representation was made on behalf of the assessee despite notice. Consequently, the tribunal decided to proceed ex parte. Upon perusal of the facts and the orders passed by the lower authorities, the ITAT found that the CIT(A) had erred in dismissing the appeal summarily without delving into the merits of the case. The tribunal, emphasizing justice and fair play, remitted the issue back to the file of the CIT(A) with directions to adjudicate afresh after providing a reasonable and sufficient opportunity of being heard to the assessee.

The Final Judgment

The tribunal’s decision to allow the appeal for statistical purposes underscores a pivotal aspect of the judicial process, wherein procedural justice is deemed as critical as substantive justice. The outcome not only represents a victory for Deusch Kyosel Engineering Pvt. Ltd. but also sets a precedent for how appeals are to be tackled when procedural discrepancies overshadow the merits of the case.

Conclusion

This comprehensive assessment of ITA No.1669/DEL/2022 demonstrates the appellate tribunal’s role in ensuring that justice is delivered by meticulously examining both procedural and substantive aspects of tax litigation. The case highlights the importance of fair trial norms and provides insights into the procedural safeguards meant to uphold the principles of justice in the tax adjudication process.

Deusch Kyosel Engineering P.Ltd’s Appeal Against CIT(A) Order in ITA No.1669/DEL/2022 for AY 2016-17