AIR PRODUCTS PUBLIC LIMITED COMPANY,UNITED KINGDOM V. ASSISTANT COMMISSIONER OF INCOME-TAX (INTERNATIONAL TAXATION) CIRCLE - 1, PUNE, PUNE

SA 10/PUN/2025

AI Insights

The case involves Air Products Public Limited Company, a UK-based entity, appealing against an exparte order from the CIT(A), Pune, which confirmed the assessment order passed by the ACIT (IT), Circle-1, Pune. The assessment included certain additions to the returned income of the company for the assessment year 2022-23. The company contended that it did not receive the notice of hearing from the CIT(A), leading to an exparte decision without discussion on merits. The Tribunal, referencing a decision by the Bombay High Court, found that the CIT(A) is obliged to decide on merits even in exparte cases and thus restored the matter to the CIT(A) for a detailed examination and a reasoned decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315821 (ITAT-PUNE)
• Appeal Type: Stay Application
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Other Referred Cases: PCIT (C) vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PRAKASH L. PATHADE
• Assessee Lawyers: ALISAGAR RAMPURAWALA
• Keywords: Set aside; Reasonable cause; Application of stay

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “C”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.694/PUN/2025 Assessment Year : 2022-23 Air Products Public Limited Company, Hersham Place, Technology Park, Molesey Road, Walton-on-Thames, Surrey KT12 4RZ, United Kingdom PAN : AAJCA1648J Vs. ACIT , (International Taxation), Circle-1, Pune Appellant Respondent S.A.No.10/PUN/2025 (Arising out of ITA No.694/PUN/2025 Assessment Year : 2022-23 Air Products Public Limited Company, Hersham Place, Technology Park, Molesey Road, Walton-on-Thames, Surrey KT12 4RZ, United Kingdom PAN : AAJCA1648J Vs. ACIT , (International Taxation), Circle-1, Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal as well as Stay Application at the instance of assessee are directed against the order dated 09.01.2025 framed by ld.CIT(A), Pune-13 u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) arising out of Appellant by : Shri Alisagar Rampurawala Respondent by : Shri Prakash L. Pathade Date of hearing : 07.05.2025 Date of pronouncement : 13.05.2025 ITA No.694/PUN/2025 and S.A.No.10/PUN/2025 Air Products Public Limited Company 2 Assessment order dated 19.04.2024 passed by ld.ACIT(IT), Circle-1, Pune 2. Along with the Stay application, the impugned appeal is also fixed for hearing and the same has been heard with the assistance of both the sides. Since the main appeal has been heard, the Stay application becomes infructuous. Ld. Counsel for the assessee fairly submitted that since the main appeal has been heard the present stay application may be dismissed as Infructuous. Accordingly, we dismiss the same. 3. At the outset, Ld. Counsel for the assessee submitted that the impugned order is exparte and assessee did not receive the third notice of hearing. He therefore prayed that the issues raised in the instant appeal may please be restored to the file of ld.CIT(A) for necessary adjudication. Ld. Departmental Representative did not oppose to the request made by ld. Counsel for the assessee. 4. We have heard the rival submissions and perused the record placed before us. We observe that assessee is a Limited company and the assessment u/s.143(3) r.w.s.144C(3) of the Act was framed on 19.04.2024 by ld. ACIT (IT), Circle-1, Pune wherein certain additions/ adjustments were made to the returned income of Rs.4,03,405/- declared in the return furnished on 17.11.2022. 5 Aggrieved with the additions made by ld.ACIT, assessee preferred appeal before ld.CIT(A) and filed the appeal on 21.05.2024. On the first two dates of hearing fixed on 05.11.2024 and 25.11.2024 assessee sought adjournment. ITA No.694/PUN/2025 and S.A.No.10/PUN/2025 Air Products Public Limited Company 3 Thereafter, ld.CIT(A) issued notice on 27.12.2024 fixing the hearing on 09.01.2025 but there was no compliance. Before us, ld. counsel for the assessee referring the affidavit from the Authorised Signatory of the assessee company has stated that the notice of hearing dated 27.12.2024 was never received on the Registered post/e-mail address mentioned in Form No.35 and therefore assessee could not plead before ld.CIT(A). We further notice that ld.CIT(A) dismissed the assessee’s appeal without discussing the issues on merits and has summarily confirmed the order of ld.AO. Hon’ble Bombay High Court in the case in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay) has held that ld.CIT(A)/NFAC is obliged to dispose of the appeal on merits even in an exparte order. 6. We therefore considering the facts and circumstances of the case and also in the larger interest of justice deem fit to restore the issues raised on merits to the file of Ld. CIT(A) for necessary adjudication and for deciding the issue in accordance with law and pass a speaking order as contemplated u/s.250(6) of the Act. Assessee is at liberty to adduce evidences in support of its grounds of appeal which it intends to plead before ld.CIT(A). Ld.CIT(A) may call for a remand report from Ld. Jurisdictional Assessing Officer and after obtaining the comments of the assessee to such remand report, decide in accordance with law. Needless to say that the assessee will be given reasonable opportunity of hearing. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not ITA No.694/PUN/2025 and S.A.No.10/PUN/2025 Air Products Public Limited Company 4 to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) is set aside and effective grounds of appeal raised on merits are allowed for statistical purposes. 7. In the result, appeal of the assessee is allowed for statistical purposes and the Stay Application filed by the assessee is dismissed. Order pronounced on this 13th day of May, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 13th May, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “C” ब\u0014च, पुणे / DR, ITAT, “C” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "