Understanding ITA No. 791/DEL/2022: A Landmark Victory for Suresh & Associates

In the Income Tax Appellate Tribunal (Delhi Bench ‘G’, New Delhi), a significant decision was made concerning the appeal filed by Suresh & Associates against Circle-61(1) for the assessment year 2018-19. The case, bearing the reference ITA No. 791/Del/2022, was presided over by Sh. Anil Chaturvedi, Accountant Member, and Sh. Anubhav Sharma, Judicial Member, marking a notable jurisprudential development in the realm of tax litigation.

Background of the Case

The appellant, Suresh & Associates, a partnership firm based in New Delhi engaged in the profession of accountancy, contested the order dated 11.03.2022 passed by the National Faceless Appeal Centre (NFAC), New Delhi. The initial grievance stemmed from an assessment order dated 18/10/2019 u/s 143(1) of the Income Tax Act, 1961 by the Assistant Commissioner of Income Tax, Circle-61(1), pertaining to discrepancies in TDS credits and unwarranted interest enhancement.

Dissatisfaction with the appellate procedure, specifically with the manner in which the first appellate authority, NFAC, managed the appeal, was at the heart of Suresh & Associates’ case. The appellant firm challenged the NFAC’s error-prone system that led to the incorrect adjudication of their appeal based on the grounds of another assessee’s case, thereby completely neglecting the submissions made by Suresh & Associates.

Grounds of Appeal

The appellant raised substantial legal issues, insisting that the learned Commissioner of Income Tax (Appeals) had erred in both the dismissal of their appeal and the adjudication on grounds unrelated to those raised by the firm. Such procedural discrepancies highlighted a significant oversight and misapplication of facts by the appellate authority, calling for a thorough reconsideration of the appeal.

Judgment and Its Implications

After a meticulous examination of the case records and hearing both parties, the Tribunal found merit in the appellant’s grievances. It was acknowledged that the NFAC had indeed erred in its judgment by considering the case of another assessee, hence failing to address the specific concerns of Suresh & Associates. Consequently, the Tribunal allowed the grounds of appeal raised by the appellant, setting aside the impugned order and directing the NFAC to reassess the appeal of Suresh & Associates, taking into account the correct facts and submissions.

This judgment not only corrected a procedural anomaly but also reinforced the importance of precision and accountability in the appellate process. The decision has been celebrated as a victory for Suresh & Associates, bringing to light the critical need for accuracy in the tax appeal system.

Conclusion

The case of ITA No. 791/DEL/2022 is a testament to the judicial system’s capacity to rectify its errors and ensure justice. It underscores the significant role of diligent legal scrutiny and the imperative for appellate authorities to adopt a meticulous approach in the examination of appeals, thereby upholding the principles of fairness and justice in tax litigation.

Order pronounced in the open court on 13th October 2022, marking a pivotal moment in the history of tax jurisprudence, setting a precedent for future cases and affirming the tribunal’s commitment to justice and accurate adjudication.

Appeal Outcome for Suresh & Associates vs Circle-61(1) for AY 2018-19