Case Number: ITA 1544/DEL/2020
Appellant: Arankari Risk Management Services Pvt Ltd, Ghaziabad
Respondent: DCIT Circle-3(1), Ghaziabad
Assessment Year: 2014-15
Result: Ex Parte Order Dismissed, Case Remanded Back to CIT(A)
Case Filed On: 2020-09-04
Order Type: Final Tribunal Order
Date of Order: 2022-11-22
Pronounced On: 2022-11-22
The case of Arankari Risk Management Services Pvt Ltd vs DCIT Circle-3(1), Ghaziabad addresses the dismissal of an ex parte order by the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal, filed by Arankari Risk Management Services Pvt Ltd, pertains to the assessment year (AY) 2014-15.
Arankari Risk Management Services Pvt Ltd, the appellant, filed a return of income declaring a loss of Rs. 9,87,69,937/-. The assessment was completed under scrutiny, and several additions were made by the Assessing Officer (AO), including:
The total assessed loss was reduced to Rs. 2,41,51,480/-. The CIT(A) dismissed the appeal ex parte.
The appellant raised 18 grounds of appeal, but during the hearing, the focus was on the error of the CIT(A) in passing an ex parte order without providing the appellant an adequate opportunity to be heard.
The case was heard by the ITAT Delhi ‘A’ Bench, consisting of Shri Shamim Yahya, Accountant Member, and Shri Anubhav Sharma, Judicial Member, on 21.11.2022, with the order pronounced on 22.11.2022.
It was observed that the CIT(A) had provided various opportunities for hearing and had also granted adjournments as requested. However, on 28.02.2020, despite a request for adjournment by the appellant’s authorized representative (AR), the CIT(A) decided the matter ex parte, citing non-cooperation and lack of interest in pursuing the appeal by the appellant.
The Tribunal noted that the CIT(A) had dismissed the appeal for non-prosecution while also discussing the merits of the additions based on the assessment order. The CIT(A) failed to consider the written submissions made by the appellant, which were on record.
The Tribunal highlighted the importance of providing a fair opportunity for the appellant to present their case and observed that the CIT(A) had not adequately considered the submissions made by the appellant.
In light of these observations, the ITAT Delhi ‘A’ Bench allowed the appeal for statistical purposes. The order of the CIT(A) was set aside, and the issue was remanded back to the CIT(A) for fresh adjudication on merits, ensuring that the appellant is given a fair opportunity to be heard.
Order pronounced in the open court on 22nd November, 2022.
Sd/-
(SHAMIM YAHYA)
ACCOUNTANT MEMBER
Sd/-
(ANUBHAV SHARMA)
JUDICIAL MEMBER
Dated: 22nd November, 2022
Copy forwarded to:
Assistant Registrar
ITAT, New Delhi
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