EVERITE AGENCIES (P) LTD,DELHI V. ITO WARD - 8(4), DELHI

ITA 2501/DEL/2024

AI Insights

The case involves Everite Agencies (P) Ltd., the appellant, contesting an order from the National Faceless Appeal Centre (CIT(A)) which arose from an initial assessment order passed under section 144 of the Income Tax Act, 1961 by the ITO, Ward-8(4), Delhi. The primary contention of the appellant was the lack of a proper opportunity of hearing as claimed as notices were not adequately served by the tax authorities. The CIT(A) had dismissed the appeal based on the grounds that the assessee did not fully comply with the requirements to the satisfaction of the AO, leading to the rejection of books. The Tribunal found merit in the appellant's argument regarding the inadequate opportunity of hearing and thus restored the matter back to the CIT(A) for a comprehensive re-evaluation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23761 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 17-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B. K. SINGH
• Assessee Lawyers: PRANAV YADAV
• Keywords: Set aside
• Section: 144; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2501/Del/2024 Assessment Year: 2017-18 Everite Agencies (P) Ltd., 5, Central Market, Punjabi Bagh West, Delhi – 110 026. PAN: AAACE2281J Vs ITO, Ward-8(4), Delhi. (Appellant) (Respondent) Assessee by : Shri Pranav Yadav, Advocate Revenue by : Shri B.K. Singh, Sr. DR Date of Hearing : 03.10.2024 Date of Pronouncement : 03.10.2024 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 14.03.2024 of the National Faceless Appeal Centre (hereinafter referred to as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No.CIT(A), Delhi-3/10230/2019-20 arising out of the appeal before it against the order dated 16.12.2019 passed u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward-8(4), Delhi (hereinafter referred to as the Ld. AO). ITA No.2501/Del/2024 2 2. Heard and perused the record. The ld. AR has submitted that the assessee was not given a proper opportunity of hearing by serving notices by the ld. tax authorities below. The ld. DR has opposed the same submitting that proper notices were issued as per law and the same stands mentioned in the assessment order and also in the order of the ld. FAA. 3. After going through the orders of the ld. tax authorities below, it comes up that the ld. AO has observed that in response to the notice u/s 142(1) of the Act dated 19.11.2019, the assessee had provided part of the details/information. Further, on 28.11.2019, the assessee uploaded some part of the details. Further details were filed by the assessee on 03.12.2019. The AO had further issued notice on 07.12.2019 through e-mail. However, there was no compliance and, accordingly, the assessment order was passed u/s 144 of the Act. The ld. CIT(A) mentions of issuance of notices of hearing of appeal. However, as to what was the mode of service of notices is not coming up. The ld. CIT(A) had accordingly dismissed the appeal. It appears that the assessee has a sustainable argument that the ld. FAA has not given an opportunity of hearing. 4. Further going on facts of the case it appears that Ld. CIT(A) has endorsed the order of AO for the reasons that assessee had not responded completely to the satisfaction of the AO and accordingly books were rejected. Thus it will be appropriate to rest the issues back to the CIT(A), so assessee can file requisite ITA No.2501/Del/2024 3 information/ documents to the satisfaction of CIT(A) and counter the allegations of AO. 5. Accordingly, the impugned order is set aside and the issue is restored to the files of Ld. CIT)A) for a fresh order on merits, after giving due opportunity of hearing, as per law. Appeal is allowed for statistical purposes. Order pronounced in the open court on 03.10.2024. Sd/- Sd/- (PRADIP KUMAR KEDIA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 03rd October, 2024. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "