GRID INDIA POWER CABLES PRIVATE LIMITED,NEW DELHI V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 10(2), NEW DELHI

ITA 1510/DEL/2024

AI Insights

The case involves Grid India Power Cables P. Ltd., the appellant, who faced proceedings under the Sarfaesi Act 2002 and struggled with financial issues, leading to non-compliance with the Income Tax Act's assessment and appeal procedures for the assessment year 2017-18. The appellant's authorized representative failed to respond to notices from the Commissioner of Income Tax (Appeals), resulting in an ex-parte order. The department defended the impugned order, citing the appellant's consistent non-compliance. The Tribunal, considering the circumstances, decided to set aside the CIT(A)'s order and remand the case back to the AO for a fresh assessment, allowing the appellant an opportunity to present its case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298896 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 03-04-2024
• Laws Referred To: Income Tax Act, 1961, Sarfaesi Act 2002
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK KUMAR UPADHYAY
• Assessee Lawyers: DEEPANSHU SINGLA
• Keywords: Set aside; Non compliance
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “बी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं ŵी एस įरफौर रहमान, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER आअसं.1510/िदʟी/2024 (िन.व. 2017-18) ITA No.1510/DEL/2024 (A.Y.2017-18) Grid India Power Cables P. Ltd., A-2/121, GF, Delhi 110058 PAN: AABCG-0293-K ...... अपीलाथᱮ/Appellant बनाम Vs. Assistant Commissioner of Income Tax, CR Building, ITO, IP Estate, New Delhi 110002 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : Shri Deepanshu Singla, Advocate ŮितवादीȪारा/Respondent by : Shri Vivek Kumar Upadhyay, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 20/11/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 20/11/2024 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 07.02.2024, for assessment year 2017-18. 2. Shri Deepanshu Singla, appearing on behalf of the assessee submitted that proceedings under the Sarfaesi Act 2002 are going on against the assessee. Due to financial crunch, the assessee could not follow assessment and appeal proceedings under Income Tax Act. The assessee had appointed Authorized Representative to represent the assessee before the CIT(A), but he did not respond to any of the 2 ITA No. 1510/DEL/2024 (AY 2017-18) notices issued by the First Appellate Authority. Nor did he appraise the assessee about the proceedings. Resultantly, there was no effective representation before the CIT(A) and order was passed in ex-parte proceedings. He submitted that an opportunity may be granted to the assessee to represent its case before the lower authority. 3. Au contraire, Shri Vivek Kumar Upadhyay representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submits that the assessee has been non compliant right through. Despite repeated notices the assessee failed to appear before the AO and similar was the situation in appellate proceedings before the CIT(A). The notices were served on the assessee on registered and primary email-id given in the latest Income Tax return, but the assessee failed to respond to any of the notices. In absence of assessee’s reply, the CIT(A) was constrained to decide appeal in an ex-parte proceedings. 4. We have heard the submissions made by rival sides and have examined the orders of authorities below. The assessment order has been passed by the AO u/s. 144 of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’) as the assessee failed to assist the AO effectively in the assessment proceedings. Thereafter, in First Appellate Proceedings there was no response from the assessee on repeated notices issued by the CIT(A). The assessee before the Tribunal has filed an affidavit dated 14.11.20214 of Shri Rajesh Gupta, Director of the assessee company. A perusal of the affidavit reveals that proceeding under Sarfaesi Act 2002, are going against the assessee. The assessee was not properly represented by the tax consultant in assessment proceedings and there was no representation at all from the assessee’s side in the First Appellate proceedings. Considering facts of the case, we deem it appropriate to grant an opportunity to the assessee to make submissions before the AO. The AO is directed to reframe the assessment after considering submissions and documents furnished by the assessee. The 3 ITA No. 1510/DEL/2024 (AY 2017-18) AO shall grant reasonable opportunity of making submissions to the assessee, in accordance with law. 5. The assessee upon service of notice shall respond to the same, without fail. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Wednesday the 20th day of November, 2024. Sd/- Sd/- (S RIFAUR RAHMAN) (VIKAS AWASTHY) लेखाकार सद᭭य/ACCOUNTANT MEMBER ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 20/11/2024 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "