C. D. INTEGRATED SERVICES LTD.,AHMEDABAD V. .THE DCIT, CIRCLE-1(3) PRESENT JURISDICTION THE DCIT, CIRCLE-1(1)(1), AHMEDABAD

ITA 1549/AHD/2024

AI Insights

This case involves an appeal by C.D. Integrated Services Ltd. against an ex-parte appellate order from the NFAC, which arose from an assessment order under section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2016-17. The primary contention was regarding the addition of Rs. 42,28,034 as unexplained commission expenditure to the total income of the assessee. The assessee argued that the CIT(A)-10 had not considered the submissions and confirmation letters provided, which substantiated the commission payments. The Tribunal found merit in the assessee's argument and decided to set aside the NFAC's order, directing a fresh examination of the case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474784 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice; TDS
• Section: 143(3); 133(6); 194J

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: DR. BRR Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member C.D. Integrated Services Ltd. A-101/102, B-802, Premium House, Opp. Gandhigram Railway Station, Ashram Road, Ahmedabad-380009 Gujarat PAN: AABCC2483R (Appellant) Vs The DCIT, Circle-1(3), Ahmedabad Present Jurisdiction The DCIT, Circle-1(1)(1), Ahmedabad (Respondent) Assessee Represented: Shri Dhinal Shah, A.R. Revenue Represented: Shri Rignesh Das, Sr.D.R. Date of hearing : 12-12-2024 Date of pronouncement : 18-12-2024 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the ex-parte appellate order dated 13.06.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2016-17. ITA No. 1549/Ahd/2024 Assessment Year 2016-17 I.T.A No. 1549/Ahd/2024 A.Y. 2016-17 Page No C.D. Integrated Services Ltd. vs. DCIT 2 2. The registry has noted that there is a delay of 382 days in filing the above appeal. The assessee filed its Account’s Manager Notarized Affidavit stating that appeal against the assessment order was filed on 07-12-2018 before Ld. CIT(A)-10, Ahmedabad wherein written submissions dated 14-08-2019, 02-03-2020 and 16-03- 2020 were filed. Then the appeal migrated to NFAC in August 2020 and hearing notices said to have been issued on 14-01-2021 and 29-03-2023 which were not responded by the assessee, thereby NFAC dismissed the appeal vide order dated 13-06-2023. When the Assessing Officer issued penalty notice dated 06-08-2023, the assessee came to know about the exparte appellate order thereby the delay of 382 days in filing the appeal and requested to condone the delay. We are satisfied with the above reason and we hereby condone the delay of 382 days in filing the appeal. 3. Ld. Counsel submitted that the Ld. CIT(A)-10 called for a remand report from the Assessing Officer, but without considering the same as well as the submissions filed before Ld. CIT(A), NFAC passed exparte appellate order. Therefore in the interest of justice, the matter be set aside to the file of Ld. CIT(A) for fresh adjudication. 4. Per contra Ld. CIT-DR appearing for the Revenue has no objection in setting aside the matter back to the file of NFAC for adjudication on merits of the case. 5. We have given our thoughtful consideration and perused the materials available on record. Brief facts is that the assessee filed its Return of Income for the Asst. Year 2016-17 on 17-10-2016 declaring total income of Rs. 6,83,73,910/-. During the assessment I.T.A No. 1549/Ahd/2024 A.Y. 2016-17 Page No C.D. Integrated Services Ltd. vs. DCIT 3 proceedings, the assessee was requested to provide the commission paid to professional traders above Rs. 5,00,000/- which totals to Rs. 56,51,716/-. On summoning them u/s. 133(6) two persons replied to the queries raised by the A.O., which amounts to Rs.14,23,682/- and remaining persons failed to make any reply. Thereby the Assessing Officer added Rs. 42,28,034/- as unexplained commission expenditure and added to the total income of the assessee. 6. On appeal before ld. CIT(A), assessee filed a detailed submissions including confirmation letter, Address, PAN, details of commission paid to professional traders with TDS and also the agreements with them. The confirmation letters from the parties confirmed the receipt of the commission amount along with TDS u/s. 194J of the Act. This materials papers which were filed before Ld. CIT(A)-10 were not taken note by any NFAC and dismissed the appeal by giving only two opportunities of hearing. Therefore in the interest of Principle of Natural Justice, we deem it fit to set aside the matter back to the file of Ld. CIT(A), NFAC and direct to pass order on merits by giving proper opportunity of hearing to the assessee as well as to look into the confirmations and other details filed by the assessee. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 18 -12-2024 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER I.T.A No. 1549/Ahd/2024 A.Y. 2016-17 Page No C.D. Integrated Services Ltd. vs. DCIT 4 Ahmedabad : Dated 18/12/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "