GOODEARTH INFRASTRUCTURE DEVELOPMENT LIMITED,PATIALA V. DEPUTY COMMISSIONER OF INCOME TAX, CC-1, CHANDIGARH

ITA 1117/CHANDI/2024

AI Insights

The case involves Goodearth Infrastructure Development Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2014-15. The primary contention was the addition of Rs. 99,76,599 as alleged share premium in excess of the fair market value, invoking provisions of section 56(2)(viib) of the Income Tax Act, 1961. The Assessee argued that the orders were passed without a reasonable opportunity of being heard. The Income Tax Appellate Tribunal found merit in the Assessee's plea and remanded the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652673 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: PARIKSHIT AGGARWAL; ISSUING
• Keywords: Condonation of delay; Opportunity of being heard; Fair market value; Principle of natural justice

Judgement Text

" आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1117/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2014-15 Goodearth Infrastructure Development Limited, 6458/1, Lahori Gate, Patiala 147001 Vs. बनाम The DCIT, Central Circe 1(1), Chandigarh èथायी लेखा सं./PAN No: AAICA9869Q अपीलाथȸ/ APPELLANT Ĥ×यथȸ/ REPSONDENT ( Physical Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Parikshit Aggarwal, CA राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई कȧ तारȣख/Date of Hearing : 04.06.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 16.06.2025 आदेश/Order Per Krinwant Sahay, A.M.: The appeal in this case has been filed by the Assessee against the order dated 09.11.2023 of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 2. Registry has pointed out a delay of 285 days in filing of the appeal. The Counsel for the Assessee submitted that an application dt. 3.6.2025 along with an Affidavit for condonation of delay, which is reproduced as under: 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 2 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 3 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 4 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 5 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 6 3. We have considered the issue brought on record and gone through the contents of the Application which is supported by an Affidavit for condonation of delay and we feel it appropriate to condone the delay because of the nature of issue discussed in the application for condonation of delay. 4. The ld. DR had no objection for condonation of delay. 5. The grounds of appeal taken by the Assessee are as under: - 1. That on the facts, circumstances and legal position of the case, the CIT(A), NFAC in Appeal No. CIT (A), Gurgaon-3/11498/2016-1, has erred in passing order dtd. 09.11.2023 in contravention of provisions of S. 25 Income Tax Act, 1961 2. That on facts, circumstances and legal position of the case, Worthy C erred in confirming the addition made by the Ld. AO of Rs. 99,76,599/- on account of alleged share premium in excess of the fair market value by invoking the provisions of section 56(2)(viib) of the Act. 3. That on facts, circumstances and legal position of the case, the orders passed by Ld. AO and then by Worthy CIT(A) deserve to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant. 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 7 4. That the appellant craves leave for any addition, deletion or amendment in the grounds of appeal on or before the disposal of the same. 6. At the very outset, the ld. Counsel for the Assessee submitted before the Bench that ld. CIT(A) has dismissed the appeal ex-parte without giving opportunity of hearing to the Assessee. 7. The ld. CIT(A) in his appellate order has mentioned that various opportunities of being heard were given to the Assessee by issuing notices on 24.10.2020, 23.6.2023, 12.10.2023 fixing the case for 31.12.2020, 17.7.2023 and 23.10.2023 but despite different opportunities given to the Assessee, nobody did appear. The Counsel for the Assessee submitted that the orders passed by the Ld. Assessing Officer and the CIT(A) deserve to be quashed since the same have been passed without affording reasonable opportunity of being heard to the Assessee. He further requested that in the interest of natural justice, the matter may be remanded back to the CIT(A) for adjudication of the appeal on merits. 8. The ld. DR did not have any objection. 9. We have considered the submissions made by the Counsel of the Assessee during the proceedings before us and we have also seen the order passed by ld. CIT(A). We find that in the instant case the Ld. 1117-Chd-2024 – Goodearth Infrastructure Development Limited, Patiala 8 CIT(A) has passed the order without hearing the Assessee. In our considered opinion, in the fitness of things, we are remanding this matter back to the CIT(A) for adjudication afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. The appeal of the Assessee is allowed for statistical purposes. 7. In the result, the appeal is allowed for statistical purposes. Order pronounced on 16.06.2025 Sd/- Sd/- ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "