Introduction
The Income Tax Appellate Tribunal Delhi Bench ‘H’ rendered a significant judgment on July 18, 2023, involving an appeal filed by Vayas Multi Trading Pvt Ltd, the appellant, against the Assistant Commissioner of Income Tax (ACIT), Circle-26(1), New Delhi, the respondent, concerning an ex parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2011-12 under ITA No. 1780/Del/2022. This case sheds light on the procedural aspects and the fundamental rights of the assessee to be heard, reaffirming the principles of natural justice.
Background
The dispute arose from the CIT(A)’s decision dated June 06, 2022, where an ex parte order was passed against the appellant, Vayas Multi Trading Pvt Ltd, for the assessment year 2011-12. The appellant, dissatisfied with the order, approached the Income Tax Appellate Tribunal (ITAT) challenging the decision and seeking relief on several grounds.
Legal Proceedings
The bench, comprising Judicial Member Shri C.M. Garg and Accountant Member Dr. B.R.R. Kumar, heard the submissions from both the appellant’s and respondent’s representatives on July 18, 2023. The appellant argued that the CIT(A) had erred by not considering the grounds of appeal raised through form No. 35 of the first appeal. Supporting the appellant’s stance, the Senior Departmental Representative (Sr. DR) in a gesture of fairness agreed with the submissions, pointing out the oversight by the CIT(A).
Decision
In the judgment, the ITAT bench highlighted the importance of adjudicating the grounds of appeal as stipulated under sub-section 6 of section 250 of the Income Tax Act. Acknowledging the procedural lapse and the need for a comprehensive hearing, the bench decided to restore the matter to the file of CIT(A) for fresh adjudication. The ITAT directed the CIT(A) to conduct a de novo review of the appeal, affording the appellant an adequate opportunity to be heard. Importantly, the bench instructed that the appellate authority’s re-assessment should be uninfluenced by its prior ex parte decision.
Conclusion
The appeal by Vayas Multi Trading Pvt Ltd was allowed for statistical purposes, setting a precedent on the procedural sanctity of hearing appeals and ensuring the assessment process is both fair and just. This resolution underscores the judiciary’s role in safeguarding the principles of natural justice, especially in complex tax litigation.
The detailed dissection of this case illuminates the procedural nuances and judicial wisdom that play a pivotal role in the realm of tax disputes, offering valuable insights into the appellate process and the safeguarding of assessees’ rights.