This article provides a comprehensive analysis of the tribunal proceedings of ITA No. 1101/DEL/2019, where Shaleen Agencies Pvt Ltd contested the ex parte dismissal of their appeal and the subsequent additions made by the Income Tax Officer (ITO) for the assessment year 2014-15.
The case revolves around the assessment of Shaleen Agencies Pvt Ltd, a company engaged in the trading of gold jewellery. The appellant filed their return of income on 30th September 2014, declaring a total income of Rs. 74,720. However, the assessment was completed under Section 143(3) on 30th December 2016, with the total income being determined at Rs. 17,81,300 due to a Gross Profit (GP) addition of Rs. 17,06,579.
Shaleen Agencies Pvt Ltd faced an ex parte order from the CIT(A), who dismissed the appeal for non-prosecution, thereby sustaining the additions made by the Assessing Officer. The appellant argued that the change of address led to the non-receipt of hearing notices, preventing them from representing their case adequately.
The primary grounds of appeal included:
During the hearing on 15th July 2019, the tribunal acknowledged the arguments from both sides. The counsel for Shaleen Agencies Pvt Ltd, Shri Anup Mehta, highlighted the issue of non-receipt of notices due to the change of address. The Revenue, represented by Shri S.L. Anuragi, opposed the appeal, relying on the order of the CIT(A).
The tribunal, presided over by Shri R.K. Panda, noted that the appeal was dismissed by the CIT(A) due to non-prosecution. Considering the circumstances and in the interest of justice, the tribunal decided to restore the issue to the file of the CIT(A), granting the appellant another opportunity to substantiate their case.
‘Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one more opportunity to the assessee to substantiate its case.’
The tribunal directed both the CIT(A) and the appellant to proceed with the case, ensuring a fair hearing and due consideration of all submissions and evidence.
The tribunal’s decision to remand the case underscores the importance of procedural fairness and the necessity of ensuring that all parties have the opportunity to present their cases adequately. The case of Shaleen Agencies Pvt Ltd highlights the potential impacts of administrative oversights, such as changes of address, on the legal process.
This case serves as a precedent for ensuring that procedural lapses, like non-receipt of notices, do not undermine the principles of natural justice. It emphasizes the tribunal’s role in rectifying such oversights to uphold fairness and equity in tax assessments and appeals.
The detailed analysis of ITA No. 1101/DEL/2019 demonstrates the tribunal’s commitment to ensuring justice by providing appellants with the opportunity to adequately present their cases, thereby reinforcing the integrity of the tax adjudication process.
The tribunal allowed the appeal for statistical purposes, directing the CIT(A) to re-evaluate the case on its merits, providing an adequate opportunity for Shaleen Agencies Pvt Ltd to substantiate their claims.
Order pronounced in open court on this 15th day of July, 2019.
Per R.K. Panda, Accountant Member.
Analysis of ITA No. 1101/DEL/2019: Shaleen Agencies Pvt Ltd vs. ITO, Ward – 23(1), Delhi
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