Case Number: ITA 1065/DEL/2021
Appellant: Jubilant Biosys Limited being the merged company (Jubilant Chemsys Limited), Noida
Respondent: ACIT, Noida
Assessment Year: 2014-15
Case Filed On: 2021-09-07
Order Type: Final Tribunal Order
Date of Order: 2022-05-05
Pronounced On: 2022-05-05
This case involves an appeal by Jubilant Biosys Limited, being the merged company (Jubilant Chemsys Limited), against the ACIT, Noida, for the assessment year 2014-15. The appellant challenged the order passed by the CIT(A), Noida, on June 25, 2018, on the grounds that the order was non-speaking, incomplete, and passed without providing a reasonable opportunity of being heard.
The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘C’, comprising Shri C.M. Garg (Judicial Member) and Shri Pradip Kumar Kedia (Accountant Member). The primary contention of the appellant was that the CIT(A) had issued a non-speaking order without addressing the grievances raised in the grounds of appeal.
The appellant, represented by Sh. K.M. Gupta, Advocate, argued that the CIT(A) had erred in passing the order without providing a reasonable opportunity of being heard and that the order was cryptic and lacked any substantial deliberation or adjudication. The appellant also contended that the order was unsigned and thus invalid.
The respondent, represented by Sh. J.S. Minhas, CIT/DR, argued that the appeal should not be maintainable as the CIT(A) had not provided any deliberation or adjudication on the grounds raised by the appellant.
The tribunal examined the arguments and found that the order issued by the CIT(A) was indeed non-speaking and lacked proper adjudication on the issues raised by the appellant. The tribunal noted that the order merely reproduced the grounds of appeal without providing any reasons or conclusions.
The appellant had filed the appeal with a delay of 176 days. The tribunal, after considering the explanations provided by the appellant, condoned the delay, recognizing that the appellant had acted in good faith and there was a bona fide cause for the delay. The tribunal emphasized that refusing to condone the delay could result in a meritorious matter being dismissed at the threshold.
Given the cryptic nature of the CIT(A)’s order, the tribunal decided to remand the matter back to the CIT(A) for a fresh adjudication on merits. The CIT(A) was directed to issue a speaking order addressing the grounds of appeal raised by the appellant, ensuring that the principles of natural justice were upheld.
The tribunal’s decision underscores the importance of issuing speaking orders that provide clear reasons and adjudications on the issues raised by the parties. The case was remanded back to the CIT(A) to ensure a fair and just resolution of the appellant’s grievances.
The appeal of Jubilant Biosys Limited was allowed for statistical purposes, with the matter being sent back to the CIT(A) for a fresh hearing and adjudication in accordance with the law.
Order Pronounced: May 5, 2022
By: Shri C.M. Garg (Judicial Member) and Shri Pradip Kumar Kedia (Accountant Member)
Source: Income Tax Appellate Tribunal, Delhi Bench ‘C’, New Delhi
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