Haryana Plywood Industries, based in New Delhi, challenged the order of CIT(A)-38, New Delhi concerning the assessment year 2015-16, where significant additions were made to their income under gross profit (GP) ratio considerations.
The appellant contended that the additions made by the Assessing Officer and upheld by the CIT(A) were excessive and unjust. The primary dispute revolves around the rejection of books of account and the subsequent calculation of income based on a predetermined GP ratio. The lack of appearance by the appellant during hearings was noted, yet the appeal raises significant questions about the opportunity provided for presenting its case.
On September 1, 2022, the tribunal led by Shri N.K. Choudhry (Judicial Member) and Dr. B.R.R. Kumar (Accountant Member) heard the appeal. The tribunal acknowledged procedural failings in how the appellant’s case was handled during the initial assessments and appellate stages, leading to a decision to remand the case back to CIT(A) for a fresh adjudication with directions to ensure a fair hearing.
This case highlights the critical aspects of procedural justice in tax assessments, particularly regarding the fair treatment of corporate entities and the importance of allowing adequate representation during proceedings. The decision to remand the case back for re-assessment underscores the judiciary’s commitment to ensuring fairness and thorough consideration of all relevant materials and arguments.
The detailed analysis of ITA No. 4769/DEL/2019 serves as an essential commentary on the intricacies of tax litigation and the procedural safeguards necessary to uphold the principles of justice within the realm of corporate taxation.
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