Case Number: ITA 5393/DEL/2019
Appellant: Avenue Homes Pvt. Ltd., Delhi
Respondent: ITO Ward-3(4), New Delhi
Assessment Year: 2015-16
Result: 2015-16
Case Filed On: 2019-06-14
Order Type: Final Tribunal Order
Date of Order: 2022-06-16
Pronounced On: 2022-06-16
The Income Tax Appellate Tribunal, Delhi Bench “A”, New Delhi, heard the case ITA 5393/DEL/2019 filed by Avenue Homes Pvt. Ltd., Delhi, against the ITO Ward-3(4), New Delhi. The primary issue was the addition of unsecured loans under Section 68 of the Income Tax Act, 1961, for the assessment year 2015-16.
The appellant, Avenue Homes Pvt. Ltd., challenged the order of the CIT(A)-1, New Delhi, dated 27.03.2019, which upheld the addition of Rs. 5,57,50,000 under Section 68 of the Act on account of unsecured loans. The appellant argued that the Assessing Officer made this addition without proper scrutiny and without giving adequate opportunity to the appellant to present their case.
The grounds raised by the appellant included:
When the matter was called for hearing, none attended for the appellant, and the matter proceeded ex parte. The CIT(A) had also passed an ex parte order in the absence of the appellant. Upon reviewing the CIT(A)’s order, the Tribunal noticed that the CIT(A) dismissed the appeal for want of prosecution and non-attendance without addressing the merits of the grounds raised.
The Tribunal referred to Section 250(6) of the Income Tax Act, which mandates that the CIT(A) state the points for determination and render a decision with reasons. The CIT(A) is required to address the grounds on merits even in an ex parte order, as confirmed by the Hon’ble Bombay High Court in CIT vs. Premkumar Arjundas Luthra HUF (2017) 297 CTR 614 (Bom.).
The Tribunal found that the CIT(A) did not address the various points for determination and improperly dismissed the appeal due to non-compliance. Therefore, the Tribunal considered it just to restore the matter to the CIT(A) for fresh adjudication on merits, ensuring proper opportunity for the appellant to present their case.
The Tribunal set aside the CIT(A)’s order and restored all the issues raised in the appeal to the CIT(A) for fresh adjudication in accordance with law after giving reasonable opportunity of hearing to the appellant.
In the result, the appeal of the assessee was allowed for statistical purposes.
Order Pronounced in the Open Court on: 16/06/2022
Members Present:
Shri C.N. Prasad, Judicial Member
Shri Pradip Kumar Kedia, Accountant Member
Dated: 16/06/2022
Assistants: Neha, Sr. Private Secretary
Copy Forwarded to:
Assistant Registrar
ITAT New Delhi
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