Case Number: ITA 379/DEL/2019
Appellant: Encraft India Pvt. Ltd., New Delhi
Respondent: DCIT, Circle-8(1), New Delhi
Assessment Year: 2014-15
Case Filed On: 2019-01-18
Order Type: Final Tribunal Order
Date of Order: 2020-01-27
Pronounced On: 2020-01-13
The case ITA 379/DEL/2019 involves the appellant, Encraft India Pvt. Ltd., New Delhi, contesting the assessment made by the DCIT, Circle-8(1), New Delhi, for the assessment year 2014-15. The case was filed on January 18, 2019, and the final order was pronounced on January 13, 2020. The Income Tax Appellate Tribunal (ITAT) restored the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for a decision on merits.
The case was heard before the Delhi Bench ‘D’ of the Income Tax Appellate Tribunal (ITAT), New Delhi. The bench consisted of Ms. Sushma Chowla, Vice President, and Sh. N.K. Billaiya, Accountant Member.
The appeal filed by Encraft India Pvt. Ltd. is against the order dated November 20, 2018, passed by the Commissioner of Income Tax (Appeals)-3, New Delhi, for the assessment year 2014-15.
The appellant, represented by Shri Rakesh Kr. Khiwani, CA, argued that the CIT(A) passed the ex-parte order without allowing sufficient opportunity for a hearing and without addressing the merits of the case.
The respondent, represented by Sh. Pradeep Singh Gautam, Sr. DR, contended that sufficient opportunity had been afforded to the appellant.
After hearing the rival contentions and perusing the record, the tribunal found that the CIT(A) had dismissed the appeal ex-parte and failed to decide the appeal by passing a reasoned assessment order. The tribunal emphasized that under the provisions of Section 250(6) of the Income Tax Act, 1961, it is incumbent upon the CIT(A) to decide the appeal after hearing the parties and state the points for determination, the decision thereon, and the reasons for the decision. The CIT(A) has no power to dismiss the appeal for non-prosecution, relying on the ratio laid down in CIT vs. B.N. Bhattacharya & Another 118 ITR 461 (SC) and Late Tukoji Rao Holker vs. CWT 223 ITR 480 (MP).
In light of these findings, the tribunal set aside the matter and restored it back to the file of the CIT(A). The CIT(A) was directed to decide the issue on merits by a reasoned order after affording a reasonable opportunity of hearing to the appellant. The appellant was also directed to appear before the CIT(A) and participate in the appellate proceedings. The appeal was thus decided on this preliminary issue without addressing the merits of the addition.
The tribunal concluded that the appeal of the assessee is allowed, and the case is restored back to the file of CIT(A) for a decision on merits.
Order pronounced in the open court on January 27, 2020.
Members:
Representatives:
Dated: January 27, 2020.
ITA 379/DEL/2019: Encraft India Pvt. Ltd. vs. DCIT – Appeal Restored for Merits Decision
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