The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘A’, heard the appeal filed by Bhanot Construction and Housing Ltd. against the order passed by the Additional Commissioner of Income Tax (ACIT), Circle-4(2), New Delhi. The appeal, ITA No. 372/DEL/2021, pertains to the assessment year 2015-16 and was filed on 31/03/2021. The final order was pronounced on 30/08/2023.
Bhanot Construction and Housing Ltd., a company based in New Delhi, challenged the reassessment order issued by the ACIT under Section 147 read with Section 143(3) of the Income Tax Act, 1961. The order in question was dated 16/05/2019, and the appeal was subsequently filed on 31/03/2021.
The reassessment was initiated due to non-compliance by the assessee before the Assessing Officer (AO). The AO proceeded to complete the assessment ex parte under Section 144 of the Act. The assessee argued that they could not appear before the AO due to reasons beyond their control and requested an opportunity to present their case.
The counsel for the assessee, Sh. Gian Bhardwaj, FCA, argued that the non-compliance was not intentional and that the assessee was willing to comply with all the requirements if given another opportunity. The counsel requested the tribunal to remand the matter back to the file of the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh adjudication on merits.
The Departmental Representative, Sh. Kanv Bali, Sr. DR, supported the AO’s findings but did not object to providing another opportunity to the assessee for compliance.
The Tribunal, comprising Sh. C. M. Garg, Judicial Member, and Dr. B. R. R. Kumar, Accountant Member, found merit in the arguments presented by the assessee. The Tribunal held that in the interest of justice, the matter should be remanded back to the file of the CIT(A) to afford the assessee an opportunity to comply and present their case on merits.
The Tribunal quashed the reassessment order, remanding the matter back to the file of the CIT(A) for fresh adjudication. The appeal was allowed for statistical purposes, enabling the assessee to present their case fully and comply with the assessment requirements.
The appeal was allowed for statistical purposes, with the reassessment order being set aside and the matter remanded back to the CIT(A).
Order pronounced in the open court on 30/08/2023.
Signed by:
(C. M. Garg) – Judicial Member
(Dr. B. R. R. Kumar) – Accountant Member
Date: 30 August, 2023
Copy forwarded to:
Assistant Registrar, ITAT, New Delhi
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