Case Number: ITA 5043/DEL/2019
Appellant: Bulktrans Supply Chain Management, New Delhi
Respondent: ITO Ward-5(2), New Delhi
Assessment Year: 2015-16
Result: Final Tribunal Order
Case Filed On: 2019-05-31
Date of Order: 2020-01-07
Pronounced On: 2020-01-07
This appeal was filed by the assessee, Bulktrans Supply Chain Management, against the order dated 27.03.2019 passed by the Ld. CIT(A)-2, New Delhi, relating to the Assessment Year 2015-16. The primary issue in dispute was the addition of Rs. 12,37,048/- levied under section 40(i)(ia) of the Income Tax Act on account of non-deduction of TDS.
The appeal was based on the following grounds:
Shri Arun Kumar Gupta, Authorized Representative of the assessee, appeared and stated that the learned First Appellate Authority had passed an ex parte order without hearing the assessee. He requested that the issues in dispute be set aside to the learned First Appellate Authority to decide the same afresh, as per law, after giving a reasonable opportunity of hearing to the assessee.
Learned DR, Sh. Manoj Kumar Chopra, did not raise any serious objections to the request of the learned AR.
Upon hearing both parties and reviewing the orders passed by the Revenue authorities, especially the impugned order dated 27.03.2019, the tribunal found that the learned First Appellate Authority had passed an ex parte order against the assessee without providing sufficient opportunity of hearing to the assessee.
In the interest of justice, the tribunal decided to set aside the issues in dispute to the learned First Appellate Authority to decide afresh, as per law, after giving an adequate opportunity of being heard to the assessee. The tribunal also directed the assessee through his counsel to appear before the learned First Appellate Authority on 24.03.2020 at 10:00 AM. It was made clear that no separate notice would be issued to the assessee for this date as the order had already been pronounced in the Open Court.
In conclusion, the tribunal allowed the appeal for statistical purposes and set aside the issues in dispute to the file of the Ld. CIT(A) with directions to decide the same, as per law, after giving an adequate opportunity of being heard to the assessee. The order was pronounced on 07/01/2020.
This case highlights the importance of ensuring sufficient opportunity of hearing is provided to the assessee in tax-related disputes, adhering to principles of natural justice.
The tribunal’s decision to set aside the issues to the First Appellate Authority ensures that the assessee’s arguments and submissions are duly considered, providing a fair chance for redressal. This case underscores the necessity for tax authorities to follow due process and ensure justice is served by allowing all parties to present their case adequately.
Taxpayers must remain vigilant about their compliance with TDS provisions to prevent similar disputes. Additionally, tax authorities should ensure fair and transparent proceedings to maintain the integrity of the tax adjudication process.
Bulktrans Supply Chain Management vs. ITO Ward-5(2), New Delhi: Non-Deduction of TDS
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