Case Number: ITA 778/DEL/2020
Appellant: Wellisen Nutraceuticals Private Limited, Pune
Respondent: ACIT Circle-27(2), New Delhi
Assessment Year: 2016-17
Result: Case remanded for fair hearing
Case Filed on: 2020-02-12
Order Type: Final Tribunal Order
Date of Order: 2021-03-30
Pronounced on: 2021-03-30
The appellant, Wellisen Nutraceuticals Pvt. Ltd., filed an appeal against the order of the ACIT, Circle 27(2), New Delhi, concerning the assessment year 2016-17. The appeal was prompted by an ex parte order and significant additions made to the appellant’s assessed income, particularly concerning the treatment of goodwill in financial statements.
The primary issues in the appeal include the ex parte nature of the CIT(A)’s order and the correctness of the additions made by the Assessing Officer (AO) regarding goodwill. The appellant challenges both the procedural aspects of the case and the substantive tax determinations made.
The appellant argued that the notice of the hearing was sent to an ex-employee’s email, resulting in a lack of proper notification and an unfair ex parte decision. There was a clear failure in following due process, affecting the appellant’s ability to contest the additions effectively.
The appeal contests the addition of Rs. 2,55,54,231 attributed to goodwill, which the AO considered bogus, and a further disallowance of depreciation on goodwill amounting to Rs. 8,79,736. The appellant contends that these additions were not justified as the goodwill was not claimed as a deduction in the return.
The tribunal acknowledged the procedural shortcomings and the need for a comprehensive hearing. It remanded the case back to the CIT(A) to reconsider the issues after providing a proper opportunity for the appellant to be heard, adhering to the principles of natural justice.
Order Pronounced in the Open Court on 30/03/2021
Members:
Assistant Registrar: R. Naheed
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