The case ITA 587/DEL/2021 involves an appeal by Movie Times Cineplex Pvt. Ltd., New Delhi, against the revisional order passed by the Principal Commissioner of Income Tax (Pr. CIT), Range-4, Delhi, for the assessment year 2011-12. The appeal addresses the alleged arbitrary exercise of revisional powers under section 263 of the Income Tax Act, 1961.
The details of the case are as follows:
The case was heard on 01.06.2023 before the Delhi Bench “E” of the Income Tax Appellate Tribunal (ITAT), comprising Hon’ble President Shri G.S. Pannu and Judicial Member Shri Anubhav Sharma. The appellant was represented by Shri Salil Aggrawal, Sr. Adv., Shri Shailesh Gupta, Adv., and Shri Mihir Aggrawal, Adv. The respondent was represented by Ms. Deepshikha Sharma, CIT DR.
The appellant raised several grounds in the appeal, primarily challenging the order passed by the Pr. CIT under section 263 of the Income Tax Act, 1961. The grounds included:
The appellant’s counsel argued that the revisional powers were exercised arbitrarily and without providing a reasonable opportunity of hearing. The counsel highlighted that the show cause notice under section 263 was issued on 05.03.2021, requiring a reply by 10.03.2021 during the severe Covid-19 pandemic. The appellant requested an adjournment and reasonable time to prepare and represent its case due to the pandemic, the suspension of cinema exhibition activities, the death of an Accounts Manager on 14.02.2021, and the departure of two accountants without notice.
The Tribunal found that the Pr. CIT did not consider the appellant’s request for adjournment and proceeded with the order on the presumption that the appellant did not wish to make any submission. The Tribunal emphasized that the revisional authority is expected to give a reasonable and appropriate opportunity of hearing to the appellant, especially during the Covid-19 crisis.
Based on the grounds that the appellant was not given a reasonable opportunity of hearing, the Tribunal allowed the appeal. The Tribunal set aside the impugned order and directed the Pr. CIT to take on record the reply of the appellant and decide the matter afresh after providing a reasonable opportunity of hearing. The Tribunal scheduled the appellant to appear before the Pr. CIT on 07.09.2022.
Order pronounced in the open court on 30th June, 2023.
G.S. PANNU
HON’BLE PRESIDENT
ANUBHAV SHARMA
JUDICIAL MEMBER
Dated: 30th June, 2023
A K Keot
Copy forwarded to:
1. Applicant
2. Respondent
3. CIT
4. CIT (A)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT, New Delhi
ITA 587/DEL/2021: Movie Times Cineplex Pvt. Ltd., New Delhi vs. Pr. CIT, Range-4, Delhi
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