The case number ITA 1720/DEL/2020 was filed by Sparsh Promoters Pvt. Ltd., New Delhi against the DCIT CPC, Bangalore. This appeal pertains to the assessment year 2017-18 and was filed on October 19, 2020. The final order was pronounced on February 28, 2023, by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘G’. The tribunal’s decision highlights significant issues regarding the opportunity provided to the assessee by the CIT(A) amidst the Covid-19 pandemic.
Appellant: Sparsh Promoters Pvt. Ltd., located at 306-308, 3rd Floor, Square One, C-2, District Centre, Saket, New Delhi (PAN: AAJCS7475H).
Respondent: DCIT CPC, Bangalore.
The case was heard by Dr. B. R. R. Kumar, Accountant Member, and Sh. Yogesh Kumar U.S., Judicial Member.
The appeal filed by Sparsh Promoters Pvt. Ltd. was against the order dated August 17, 2020, passed by CIT(A)-08, New Delhi for the assessment year 2017-18. The primary contention of the appellant was that CIT(A) had not provided sufficient opportunity for the assessee to present their case. According to the appellant, the order was passed without adequate opportunity due to the unprecedented situation caused by the Covid-19 pandemic.
The representative for the appellant, Sh. Salil Kapoor, Adv., and Sh. Amarbir Singh, CA, emphasized that the CIT(A) issued notices through email, and despite the appellant’s request for adjournment due to the Covid-19 situation, sufficient time was not granted to gather and present necessary documents. The appellant claimed that they did not receive proper communication regarding the adjournment to August 5, 2020, resulting in non-compliance and the subsequent dismissal of their appeal.
During the hearing, the appellant’s counsel reiterated the need for adequate opportunity to present their case, citing the difficulties in procuring documents due to the pandemic. They argued that the lack of proper communication and consideration by CIT(A) led to an unjust dismissal of their appeal.
The respondent, represented by Sh. Narpat Singh, Sr. DR, contended that the appellant had been issued notices and failed to appear or comply with the requirements, justifying the CIT(A)’s decision. They argued that the order was valid and did not require further adjudication.
The tribunal examined the records and considered the arguments presented by both parties. It was found that the notice of hearing was sent to the assessee on July 21, 2020, with a hearing date fixed for July 28, 2020. Upon the appellant’s request for adjournment, the hearing was postponed to August 5, 2020. However, the appellant failed to comply and did not submit any documents or appear before CIT(A) on the rescheduled date.
The tribunal acknowledged the appellant’s claim that the Covid-19 situation caused significant disruptions and difficulties in gathering necessary documents and communicating effectively. Considering these exceptional circumstances, the tribunal concluded that an opportunity should be given to the appellant to present their case adequately before CIT(A).
In light of the above facts and circumstances, the tribunal allowed the appellant’s primary ground for statistical purposes. The matter was remitted back to the CIT(A) for de-novo consideration, ensuring that the appellant is provided sufficient opportunity to present their case. The tribunal directed the appellant to cooperate with the appeal proceedings before the CIT(A).
As a result, the appeal filed by Sparsh Promoters Pvt. Ltd. (ITA No. 1720/DEL/2020) for the assessment year 2017-18 was partly allowed for statistical purposes. Other grounds on merit were not adjudicated and were kept open for determination by the CIT(A).
The order was pronounced in the open court on February 28, 2023, by the tribunal members, Dr. B. R. R. Kumar, Accountant Member, and Sh. Yogesh Kumar U.S., Judicial Member.
Conclusion: This case highlights the importance of providing adequate opportunities for appellants to present their cases, especially in unprecedented situations like the Covid-19 pandemic. The tribunal’s decision to remit the matter back to CIT(A) for fresh consideration ensures that justice is served by allowing the appellant to present their case fully.
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