APEX HEIGHTS PVT.LTD.,NEW DELHI V. ITO,WARD-3(1), DELHI

ITA 1976/DEL/2024

AI Insights

The case involves Apex Heights Pvt. Ltd., which appealed against the order of the CIT, NFAC, Delhi for the assessment year 2018-19. The assessee had filed a return declaring a total income of Rs.61,80,000, which was later assessed at Rs.2,13,62,580 after additions under section 68 of the Income Tax Act. The CIT(A) dismissed the appeal for non-prosecution as the assessee failed to submit required documents despite multiple adjournments. The Tribunal found that the CIT(A) had not discussed the issues on merits and had effectively provided only one opportunity of hearing during the COVID period, leading to the decision to remand the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23544 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI
• Keywords: Set aside
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1976/Del/2024 (ASSESSMENT YEAR 2018-19) Apex Heights Pvt. Ltd., S-672, GF School Block, ShakarPur, Delhi-110 092 PAN-AACCR2231A Vs. ITO, National e-Asst. Centre, Delhi. (Appellant) (Respondent) Assessee by None Department by Sh. Ashish Tripathi, Sr. DR Date of Hearing 17/02/2025 Date of Pronouncement 17/02/2025 O R D E R PER MANISH AGARWAL, AM: This is appeal filed by the Assessee against the order CIT, NFAC, Delhi in appeal No. NFAC/2017-18/1008861 dated 15/03/2024 Assessment Year 2018-19. 2. Brief facts of the case are that the assessee is private company and filed his return of income on 31/10/2018 declaring a total income of Rs.61,80,000/-. The assessment was taken up for scrutiny under CASS and after considering the submissions, the assessment was completed u/s 143(3) vide order dated 26/03/2021 at a total 2 ITA No.1976 /Del/2024 Apex Heights Pvt. Ltd. vs. ITO income of Rs.2,13,62,580/- by making additions of Rs.1,51,00,000/- u/s 68 of the Act. 3. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) observed in its order that four opportunities were granted to the assessee by delivery of notice through the registered email. On three occasions adjournment petition was filed, however, the Ld. CIT(A) observed that no submission was filed and repeated adjournments were taken, thus, it appears that the appellant is not serious in pursue its appeal and, therefore, the appeal of the assessee was dismissed for non-prosecution. 4. Before us, none represented on behalf of the assessee, however, the Department submitted that reasonable opportunities were provided but assessee has not complied with, therefore, order of Ld. CIT(A) should be deserves to be upheld. 5. After considering the facts, we find that the Ld. CIT(A) given first opportunity in July, 2021, 2nd opportunity was given in Sep, 2021 and 3rd opportunity was given in March, 2022. The last opportunity was given on 6th March, 2024 for making compliance. Except first date, on last three occasions, the assesse sought adjournments which is not in dispute. The first three opportunities were during the Covid period and thus effectively only one opportunity of hearing is provided to the assessee. The Ld. CIT(A) dismissed the appeal of the assessee without discussing the issues on merits which in our 3 ITA No.1976 /Del/2024 Apex Heights Pvt. Ltd. vs. ITO opinion is not correct to dispose of the appeal, where the assesse has filed the details before the AO and thus the Ld. CIT(A) should have pass the order after making discussion on merits. Under these circumstances, we set aside the order of Ld. CIT(A) and sent back the same to the file of Ld. CIT(A) with the direction to decide the appeal of the assessee on merits after providing reasonable opportunities of being heard to the assessee. 4. In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced in the open Court on 17/02/2025. Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 17/02/2025 PK/Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "