AGGARWAL HOTELS PVT LTD,DELHI V. ACIT, CIRCLE1(1), DELHI

MA 313/DEL/2023

AI Insights

Aggarwal Hotels Pvt. Ltd. filed a Miscellaneous Application seeking recall of an order from the Income Tax Appellate Tribunal, which mistakenly referenced Ground No. 4 as Ground No. 3 in its order dated 31.05.2023. The error pertained to the late deposit of PF & ESI, which the assessee had requested to withdraw during the appeal. The Tribunal acknowledged the mistake and corrected the order, ensuring that the procedural integrity was maintained and the assessee's request was honored. Furthermore, the Tribunal restored the issues related to Ground No. 2 & 3 back to the CIT(A) for a fresh examination, emphasizing the need for adherence to principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 22924 (ITAT-DELHI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Other Referred Cases: Checkmate Services Pvt. Ltd. vs. CIT-1
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: D. K. GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 139(1)

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “Friday-A”, NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR US, JUDICIAL MEMBER MA NO. 313/DEL/2023 (IN ITA NO. 2756/DEL/2022) A.YR. 2019-20 AGGARWAL HOTELS PVT. LTD. vs. ACIT, CIRCLE 1(1), 16/90, CONNAUGHT CIRCUS, C.R. BLDG., I.P. ESTATE, DELHI NEW DELHI – 1 (PAN: AADCA9416A) (Appellant) (Respondent) Assessee by : Sh. D.K. Gupta, CA Department by : Sh. Sahil Kumar Bansal, Sr. DR. Date of Hearing : 14.02.2025 Date of pronouncement : 19.02.2025 ORDER PER YOGESH KUMAR US, JM: By way of this Miscellaneous Application assessee seeks recall of the order dated 31.05.2023 of this Tribunal passed in Assessee’s I.T.A. No. 2756/Del/2022 for AY 2019-20. 2. At the outset, Ld. Counsel for the Assessee has submitted that during the course of hearing of the corresponding appeal the assessee had requested for 2 withdrawal of Ground no. 4 relating to addition of Rs. 2,35,098/- being employees share of PF and ESI paid late. However, in the Tribunal’s order dated 31.05.2023 Ground No. 3 has been mentioned as against Ground No. 4 and therefore Ground no. 2 & 4 have been mentioned which should have been mentioned as Ground No. 2 & 3 instead of Ground No. 2 & 4, as the issues involved in Ground No. 2 & 3 were restored to the file of the CIT(A) for denovo verification and Ground No. 4 which was in respect of late deposit of PF & ESI for which it was requested for permission to withdraw this ground. Hence, he submitted that since there is an apparent mistake in the Tribunal’s order dated 31.05.2023, hence, the same may be rectified accordingly. 3. Ld. DR did not raise any objection for the aforesaid proposition of the ld. AR. 4. We have heard the rival contentions and perused the records. We find considerable cogency in the contention of the ld. AR that there is an apparent mistake in the order of the Tribunal dated 31.5.2023, which needs to be rectified. Accordingly, we modify the relevant paragraphs of the Tribunal’s order dated 31.05.2023 as under:- “…(4) The ld. Counsel for the assessee fairly submitted that the Ground No. 4 which is on addition of Rs. 2,35,000/- being employee share of PF & ESI paid belatedly but before the due of filing of return of income u/s. 139(1) of the Act and the said issue is decided against 3 the assessee in the case of Checkmate Services Pvt. Ltd. vs. CIT-1 in Civil Appeal No. 2833 of 2016, vide order dated 12/10/2022 by the Hon’ble Supreme Court. Therefore, submitted that the Assessee will not be pressing Ground No. 4 of the appeal. Thus, the Ground No. 4 of the appeal is dismissed as not pressed. 5. The ld. Counsel for the assessee further submitted that in so far as other two additions which are the subject matter of Ground No. 2 & 3, the CIT(A) has not given proper opportunity of being heard to the assessee and the order of the CIT(A) has been passed in violation of principles of natural justice. 6. The ld. DR justified the order impugned order passed by the CIT(A) and submitted that the opportunity has been provided to the assessee but the assessee failed to appear before the CIT(A), therefore, sought for dismissal of the appeal. 7. We have heard the parties, perused the material available on record. The Ld. CIT(A) while dismissing the appeal on merit has observed as under:- “In spite of providing several hearing opportunities on 15.07.2022, 12.\\/09/2022 & 28.10.2022, the assessee has only sought for adjournment vide letter dated 16/09/2022 and failed to produce the supporting documents substantiating the claim of the assessee.” 8. From the reading of the above, it is found that the Assessee had sought for adjournments vide letter dated 16/09/2022 who has apparently not participated actively before the CIT(A), therefore, the ld. CIT(A) proceeded to pass the order on merit and dismissed the appeal. 9. Considering the above facts we deem it fit to restore the matter to the file of the ld. CIT(A) for denovo adjudication of the Appeal with a direction to assessee to participate in the Appeal proceedings without fail. Accordingly, the issue involved in Ground No. 2 & 3 are restored to the file of the CIT(A) for denovo verification. Accordingly, Ground No. 5 of the assessee is allowed for statistical purpose. 4 10. In the result, the appeal of the assessee is partly allowed for statistical purpose.” 5. The rest of the contents of the Tribunal’s order dated 31.05.2023 passed in ITA No. 2756/Del/2022 (AY 2019-20) will remain unchanged. 6. In the result, the Misc. Application filed by the Assessee is allowed in the aforesaid manner. Order pronounced in the Open Court on 19.02.2025. Sd/- Sd/- [SHAMIM YAHYA] [YOGESH KUMAR US] ACCOUNTANT MEMBER JUDICIAL MEMBER SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR, ITAT By Order, Assistant Registrar, ITAT, Delhi Benches "