Sneh Quality Spices Pvt. Ltd. 6654/11, New Gadodia Market, Khari Baoli, New Delhi. PAN: AAOCS1182L
Vs.
ACIT Circle-24(1) New Delhi
(Appellant)
(Respondent)
Assessee by: None
Department by: Shri Sita Ram Meena, Sr. D.R.
Date of Hearing: 16.06.2022
Date of Pronouncement: 06.07.2022
PER YOGESH KUMAR U.S., JM:
This appeal has been filed by the assessee against the order dated 29/03/2019 passed by CIT(A)-XXV, New Delhi for Assessment Year 2014-15.
“On the facts and in the circumstances of the case and in law the following actions of the Ld. CIT (Appeals) are most arbitrary, erroneous and untenable in:
1. deciding the appeal ex-parte against the assessee without providing due, reasonable, proper and adequate opportunity of hearing;
2. confirming the following additions to the returned income:
Above actions being arbitrary, erroneous and untenable must be quashed with directions for appropriate relief.”
Brief facts of the case are that, the assessee Company is engaged in the business of trading of spices and Kiryana items. Return of income for the A.Y 2014-15 was electronically furnished on 30/11/2014 disclosing total income at Rs. (-) 11,94,75,549/-. The notice u/s 143(2) along with detailed questionnaire under section 142(1) was issued on 06/06/2016 and served on the assessee. In response to notices, the authorized representative appeared on behalf of the assessee company attended and furnished the replies on behalf of the assessee company. The assessment order came to be passed by computing the income of the assessee at Rs.(-) 10,07,51,549/- as against the returned income of Rs. (-) 11,94,75,549/-.
Aggrieved by the same, the assessee has preferred the appeal before the CIT(A). During the Appeal proceedings, the assessee has not appeared before the Ld.CIT(A) for six consecutive dates. The Ld.CIT(A) vide order dated 29/03/2019, dismissed the appeal without deciding the Appeal on merit.
Aggrieved by the order of dismissal dated 29/03/2019, the assessee has preferred the present appeal on the grounds mentioned above.
None appeared on behalf of the assessee, we have heard the Ld. DR, perused the documents on record and gave our thoughtful consideration.
It is pertinent to note that, the CIT(A) has passed an ex-parte order by dismissing the Appeal for non-prosecution without adjudicating the appeal on merits. Therefore, we deem it fit to remand the matter to the file of CIT(A) for fresh adjudication of the Appeal on merit. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. Accordingly, we allow the Ground No. 1 for Statistical Purposes. Since the matter is restored to the CIT(A) to decide on merit, the ground No. 2 need not be adjudicated by us.
In the result, the Appeal of the Assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 06th July, 2022.
Sd/-
(N. K. BILLAIYA)
ACCOUNTANT MEMBER
Sd/-
(YOGESH KUMAR U.S.)
JUDICIAL MEMBER
Dated : 06/07/2022
*R. Naheed*
Copy forwarded to:
ASSISTANT REGISTRAR
ITAT NEW DELHI
The case of Sneh Quality Spices Pvt Ltd, New Delhi vs ACIT Circle-24(1), New Delhi (ITA 4874/DEL/2019) pertains to the assessment year 2014-15. The appeal was filed on 29th May 2019, challenging the order of CIT(A)-XXV, New Delhi. The appellant, Sneh Quality Spices Pvt Ltd, sought relief against the ex-parte order passed by the CIT(A) and the subsequent additions to the returned income.
The primary contention of the appellant was that the CIT(A) had passed the order without providing an adequate opportunity for the assessee to present its case. The ex-parte order confirmed additions of Rs.73,99,500/- for the cost of land used for constructing Cold Storages, Rs. 1,07,00,000/- on account of share application money, and Rs.6,24,500/- due to share allotment exceeding Fair Market Valuation.
The tribunal, comprising Accountant Member N. K. Billaia and Judicial Member Yogesh Kumar U.S., considered the submissions and noted that the CIT(A) dismissed the appeal without adjudicating on its merits. The tribunal found it appropriate to remand the case back to the CIT(A) for fresh adjudication, ensuring that the assessee is given a fair opportunity to present its case, adhering to the principles of natural justice.
This case highlights the importance of ensuring fair hearing and adherence to the principles of natural justice in the appellate process. By remanding the case for fresh adjudication, the tribunal emphasized the need for due process and proper opportunity for the assessee to present its arguments.
In conclusion, the tribunal’s order in ITA 4874/DEL/2019 underscores the significance of procedural fairness in tax appeals. The remand for fresh adjudication ensures that the assessee’s grievances are heard and addressed, providing a just resolution for AY 2014-15.
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