This article examines the appeal by Shri Sidhdata Steel Tubes against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 17.08.2022, for the assessment year 2008-09, highlighting procedural deficiencies in handling the appeal.
The appeal challenges the exparte decision by CIT(A)/NFAC without a merit-based finding. The assessee, represented by CA Rajat Gupta, contested the decision that did not address the substantive issues raised.
The assessee filed his return on 30.12.2015 with a reported income of Rs. 86,37,320, which was selected for scrutiny. The assessment was completed under section 143(3) of the Income Tax Act at the same income level. An appeal was made to the CIT(A), but it was dismissed in limine, citing procedural issues without delving into the substantive merits of the case.
The main issue revolves around the appellate authority’s handling of the case without adequate consideration of the merits and procedural fairness in providing the assessee a proper hearing.
The Income Tax Appellate Tribunal found that the CIT(A) should have addressed the appeal based on the merits of the case. Consequently, the Tribunal restored the matter to the CIT(A), directing a thorough review and a fair opportunity for the assessee to be heard, ensuring a decision grounded in the substantive issues presented.
The Tribunal’s remand for a rehearing underscores the importance of procedural justice and the need for appellate authorities to substantively address the merits of each case. This decision is a reminder of the judiciary’s role in ensuring that tax appeals are conducted fairly and justly.
Shri Sidhdata Steel Tubes vs. ITO, Ward-59(3), Delhi – ITA 2525/DEL/2022
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