GURVIR MOTOR PRIVATE LIMITED,PATIALA V. INCOME TAX OFFICER, WARD-4, PATIALA

ITA 1250/CHANDI/2024

AI Insights

The case involves Gurvir Motor Private Limited, which appealed against the order passed by the CIT(A) National Faceless Appeal Centre, Delhi, for the assessment year 2013-14. The primary contention was that the CIT(A) erred in upholding the assessment made under section 144 of the Income Tax Act, 1961, which was claimed to be in violation of directions under section 263. The Assessee challenged several additions made by the Assessing Officer, including those related to short-term loans, employee benefit expenses, genuine expenses, and fresh share capital introduction. The Tribunal noted the lack of opportunity given to the Assessee to present its case at both the assessment and appellate stages, leading to the decision to remand the case for a fresh assessment on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705301 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: SHRUTI KHANDELWAL; VIRTUAL
• Keywords: Opportunity of being heard; Principle of natural justice; Revision of order
• Section: 144; 263

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. 1250/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2013-14 Gurvir Motor Private Limited, 97, New Officers Colony, Patiala 147001 बनाम Vs. The ITO, Ward -4, Patiala èथायी लेखा सं./PAN NO: AABCG9342B अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( Hybrid Mode ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Ms. Shruti Khandelwal, Adv. (Virtual) राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई कȧ तारȣख/Date of Hearing : 01.07.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 03.07.2025 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Assessee against the order dt. 31.10.2024 passed by the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi for A.Y. 2013-14. 2. Grounds of appeal are as under: 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT(A), Patiala/10038/2019-20 has 1250-Chd-2024 Gurvir Motor Private Limited, Patiala 2 erred in passing order dt. 31.10.2024 in contravention of provisions of S. 250 of the Income Tax Act, 1961 2. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the actions of Ld. AO where he had framed the impugned assessment u/s 144 in violation of directions u/s 263 and hence the impugned assessment order deserves to be quashed. 3. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 49,02,786/-on account of increase in short term loans. 4. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 9,05,405/- by erroneously disallowing the employees benefit expenses debited in profit and loss account. 5. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 4,19,754/- by erroneously disallowing the expenses even when they were genuine. 6. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 30,00,000/-on account of fresh introduction of share capital. 7. That on facts, circumstances and legal position of the case, the orders passed by Ld. AO and 1250-Chd-2024 Gurvir Motor Private Limited, Patiala 3 then by Worthy CIT(A) deserves to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant. 8. That the appellant craves leave for any addition, deletion, or amendment in the grounds of appeal on or before the disposal of the same. 3. During proceedings before us, at the very outset, ld. Counsel for the Assessee submitted that the assessment order in this case was passed u/s 144 of the Income Tax Act, 1961 (in short 'the Act') and, thus, the Assessee had no opportunity to file its detailed submissions before the Assessing Officer. Even during appellate proceedings, there is no compliance made by the Assessee despite the fact that several notices were issued. The ld. Counsel of the Assessee requested the Bench that Assessee could not made submissions before the authorities below, therefore, the matter may be remanded back to the Assessing Officer. 4. Per contra, the ld. DR relied on the orders of the authorities below. 5. We have considered the findings of the Assessing Officer in the assessment order and the finding given in the appellate order by the ld. CIT(A). Although the Assessee did not comply 1250-Chd-2024 Gurvir Motor Private Limited, Patiala 4 with any notices before the Ld. CIT(A), however, the CIT(A) should have passed the appellate order on merits on the basis of material available on record. It has not been done so by the Ld. CIT(A). Therefore, we are of the considered view that the matter should be remanded back to the Assessing Officer to enable the Assessee to file its submissions and get the matter assessed and adjudicated on merit. Therefore, keeping in view the element of natural justice, we remand this case back to the file of the Assessing Officer for passing an order de novo, 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 A.O. All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced on 03.07.2025. Sd/- Sd/- ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President Accountant Member “आर.क े.” 1250-Chd-2024 Gurvir Motor Private Limited, Patiala 5 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 सहायक पंजीकार/ Assistant Registrar "