This article provides a comprehensive review of the Income Tax Appellate Tribunal’s (ITAT) decision in ITA No. 2084/DEL/2019, where Primus Capital Pvt Ltd, New Delhi, contested the assessment made by the Assistant Commissioner of Income Tax (ACIT) Circle-20(1), New Delhi, for the assessment year 2010-11. The appeal, filed on March 8, 2019, concluded with a final tribunal order on February 8, 2023.
The case originated from the income tax return filed by Primus Capital Pvt Ltd for the assessment year 2010-11. The appellant challenged the assessment order passed by the ACIT Circle-20(1), New Delhi. The dispute was escalated to the Commissioner of Income Tax (Appeals)-7, New Delhi, whose order dated January 15, 2019, was subsequently contested by the appellant at the ITAT.
The legal proceedings began with the filing of the appeal by Primus Capital Pvt Ltd against the assessment made by the ACIT Circle-20(1). The appellant raised several grounds of appeal, challenging the assessment order and the conclusions drawn by the CIT(A). However, the CIT(A) passed an ex-parte order, which the appellant sought to contest.
The appellant presented various grounds of appeal, including procedural lapses by the ACIT and CIT(A), failure to adhere to principles of natural justice, and erroneous conclusions regarding the assessment. The appellant highlighted that due to a death in the family, they could not make an appearance before the CIT(A), and requested an opportunity to be heard afresh.
The tribunal, consisting of Dr. B. R. R. Kumar, Accountant Member, and Sh. Yogesh Kumar US, Judicial Member, examined the request for remanding the case. The tribunal acknowledged the appellant’s situation and noted that no prejudice would be caused to the revenue if an opportunity of being heard was given to the assessee.
The tribunal found that the CIT(A)’s ex-parte order did not provide the appellant with a fair opportunity to present their case. Consequently, the tribunal decided to remand the matter to the file of the CIT(A) for fresh adjudication. The tribunal directed the CIT(A) to adjudicate the issue afresh, ensuring that the appellant is given a fair opportunity to be heard.
The tribunal’s decision was influenced by the need to uphold the principles of natural justice and ensure that the appellant had a fair chance to present their case. The tribunal noted that the revenue would not be prejudiced by this decision, and it was in the interest of justice to allow the appellant another opportunity to comply with the requirements of the appeal process.
This case highlights the importance of adhering to principles of natural justice in tax proceedings. The tribunal’s decision to remand the matter for fresh adjudication underscores the necessity of providing all parties with a fair opportunity to present their case. The case also illustrates the tribunal’s role in ensuring that justice is served, even if it means remanding cases for further examination.
1. Income Tax Appellate Tribunal records.
2. Income Tax Act, 1961.
3. Relevant case laws and tribunal orders.
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