HARYANA POWER GENERATION CORPORATION LTD.,URJA BHAWAN, PANCHKULA V. DEPUTY COMMISSIONER OF INCOME TAX, PANCHKULA CIRCLE, AAYKAR BHAWAN

ITA 283/CHANDI/2024

AI Insights

The case involves Haryana Power Generation Corporation Ltd., the appellant, contesting an order from the CIT(A)/National Faceless Appeal Centre, which partly allowed their appeal for the Assessment Year 2016-17. The primary issues in dispute included disallowances under Section 40(a)(ia) regarding freight charges, prior period expenses, and guarantee charges, as well as an addition concerning the sale of dry fly ash and the non-grant of set-off of brought forward losses. The Tribunal noted that the assessee, a government undertaking, faced difficulties in representation due to the COVID-19 pandemic, which affected their ability to present comprehensive submissions and supporting evidence. The Tribunal found that the CIT(A) had provided sufficient opportunities to the assessee, which were not effectively utilized, leading to unexamined crucial aspects of the matter. In the interest of substantial justice, the Tribunal decided to remand the case for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126550 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Laws Referred To: Section 40(a)(ia)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT SHARMA
• Assessee Lawyers: HARISH NAYYAR; C.A
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences
• Section: 40(a)(ia)

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: VIRTUAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 283 /Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2016-17 Haryana Power Generation Corporation Ltd. C-7, Urja Bhawan, Sector-6, Panchkula-134109, Haryana बनाम The DCIT Panchkula Circle Panchkula ˕ायी लेखा सं./PAN NO: AABCH4536J अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Harish Nayyar, C.A राजˢ की ओर से/ Revenue by : Shri Rohit Sharma, CIT, DR सुनवाई की तारीख/Date of Hearing : 21/04/2025 उदघोषणा की तारीख/Date of Pronouncement : 22/04/2025 आदेश/Order PER LALIET KUMAR, J.M: The assessee has filed the present appeal against the order dated 27.01.2024 passed by the Ld. CIT(A)/ National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2016-17. The Ld. CIT(A) has partly allowed the appeal of the assessee. 2. The grounds raised by the assessee, inter alia, relate to additions made on account of (i) disallowance under Section 40(a)(ia) in respect of freight charges, (ii) disallowance of prior period expenses, (iii) addition on account of sale of dry fly ash, and (iv) disallowance of guarantee charges, besides non-grant of set-off of brought forward losses. 3. During the course of appellate proceedings before the Ld. CIT(A), despite several opportunities being granted, the assessee failed to file comprehensive 2 submissions and supporting evidences on merits. The appeal was disposed of primarily on the basis of the material available on record, without effective representation from the assessee's side. 4. The Ld. AR submitted that the assessee is a Government undertaking, and due to the unprecedented circumstances arising from the Covid-19 pandemic, there was no proper representation before the Ld. CIT(A). It was further submitted that most of the issues agitated before us are covered by the orders of the Tribunal as well as by the Hon'ble High Courts in earlier years. The Ld. AR thus pleaded that one more opportunity be granted to the assessee to present its case properly before the lower authorities. 5. Per contra, the Ld. DR opposed the submissions of the assessee and contended that despite having notice of the hearing dates, the assessee failed to appear and prosecute the appeal before the Ld. CIT(A). 6. We have heard the rival submissions and perused the material available on record. It is observed that sufficient opportunity was granted to the assessee by the Ld. CIT(A), but the same could not be effectively availed. As a result, several crucial aspects of the matter have remained unexamined. In the interest of substantial justice, we deem it appropriate to set aside the impugned order passed by the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for fresh adjudication. The Assessing Officer shall afford reasonable opportunity of being heard to the assessee and decide the issues afresh, strictly in accordance with law and on merits, after considering all submissions, documents, and judicial precedents relied upon by the assessee, more particularly the decision of the Tribunal in the case of the assessee and also the decision of the Hon'ble High Court. The assessee is also directed to extend full cooperation during the remand proceedings and promptly furnish all required details. 3 7. Accordingly, the impugned order is set aside and the matter is remanded to the file of the Assessing Officer. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 22/04/2025 Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "