INCOME TAX OFFICER, WARD 23(3), NEW DELHI, DELHI V. SHREEVAR OVERSEAS LIMITED, DELHI

ITA 3794/DEL/2024

AI Insights

The case involves appeals by the Income Tax Officer against Shreevar Overseas Limited concerning the deletion of additions and penalties by the Ld. CIT(A). The Tribunal found procedural errors in how the Ld. CIT(A) handled additional evidence submitted by the Assessee without waiting for the A.O.'s Remand Report, which contravened Rule 46A of the Income Tax Rules, 1962. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case for a thorough re-examination following proper procedural guidelines.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 38795 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYA CHAUDHARY
• Assessee Lawyers: DHRUVDEV GUPTA
• Keywords: Set aside; Opportunity of being heard; Additional evidence
• Section: 271(1)(c)

Judgement Text

"1 ITA Nos. 3793 & 3794/Del/2024 ITO Vs. Shreevar Overseas Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘G’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 3793/DEL/2024 (A.Y. 2014-15) ITA No. 3794/DEL/2024 (A.Y. 2014-15) Income Tax Officer Ward 23(3), Room No. 246, 2nd Floor, Central Revenue Building, I. P. Estate, New Delhi Vs. Shreevar Overseas Limited A-20, Phase-1, Naraina Industrial Area, New Delhi PAN: AADCS5853R Appellant Respondent Assessee by Sh. DhruvDev Gupta, Adv Revenue by Ms. Jaya Chaudhary, CIT(DR) Date of Hearing 27/02/2025 Date of Pronouncement 28/02/2025 ORDER PER YOGESH KUMAR, U.S. JM: In the captioned Appeals, the Department of Revenue is aggrieved by the orders of the Ld. CIT(A) dated 28/06/2024, whereinthe Ld. CIT(A) has deleted the addition made by the A.O. and consequentlyalso deleted the penalty imposed u/s 271(1)(c) of the Act. 2. The captionedAppeals have been fixed for hearing on 24/02/2025, none appeared on that day for the Assessee, therefore, the Appeals have been adjourned to 27/02/2025. When the Appeals were called, the Ld. 2 ITA Nos. 3793 & 3794/Del/2024 ITO Vs. Shreevar Overseas Ltd. Assessee's Representative sought adjournment. Considering the issue involved in the present Appeal, we find that no purpose will be achieved by keeping the above Appeals pending and as we have already provided opportunities to the Assessee, we deem it fit to decide the Appeal on hearing the Ld. Departmental Representative and verifying the material available on record. ITA No. 3793/Del/2024 3. The Ld. Departmental Representative without going into the merits of the case,submittedthatthe Ld. CIT(A) committed error in admitting the additional evidence submitted by the Assessee without waiting for the Remand Report of the A.O. and allowed the quantum Appeal which is on contravention of Rule 46A of Income Tax Rules, 1962. The Ld. Departmental Representative submitted that the requisition for Remand Report has been uploaded in the portal on 11/06/2024 and the impugned order has been passed on 28/06/2024 without providing sufficient opportunity to the A.O. to comment on the additional documents produced by the Assessee. Therefore, the Ld. Departmental Representative submitted that the order impugned require to be set aside. 3 ITA Nos. 3793 & 3794/Del/2024 ITO Vs. Shreevar Overseas Ltd. 4. We have heard both the parties and perused the material available on record. We have gone through the orders of the Ld. CIT(A). During the appellate proceedings, the Assessee furnished additional evidence before the Ld. CIT(A) as per Rule 46A of the Income Tax Rules. The Ld. CIT(A) has called for Remand Report on 11/06/2024, however, the Ld. CIT(A) passed the order impugned on 28/06/2024 within span of 15 days by deciding the issue on merits without even waiting for the Remand Report by giving sufficient time to the A.O. In our considered opinion, the Ld. CIT(A) committed error.Therefore, we set aside the order of the Ld. CIT(A) and restore the issue involved in the Appeal to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to call for the Remand Report from the A.O. by giving sufficient opportunity and after obtaining the Remand Report from the A.O., decide the issue in hand on its merit in accordance with law.Needless to say, the Assessee shall be provided with opportunity of being heard. ITA No. 3794/Del/2024 5. The Ld. CIT(A) has passed an order by deleting the order of penalty dated 30/06/2016 on the ground that ‘since the quantum addition has been deleted, the penalty u/s 271(1)(c) does not stand’. Since, we have set aside the order of the Ld. CIT(A) and remanded the matter to the file 4 ITA Nos. 3793 & 3794/Del/2024 ITO Vs. Shreevar Overseas Ltd. of the Ld. CIT(A) for fresh adjudication, the issue involved in the penalty appeal of the Revenue is also restored to the file of the Ld. CIT(A) to decide the same in accordance with law after deciding the quantum appeal. 6. In the result Appeal in ITA Nos. 3793/Del/2024 and 3794/Del/ are partly allowed for statistical purpose. Order pronounced in the open court on 28TH February, 2025 Sd/- Sd/- (BRAJESH KUMAR SINGH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 28.02.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "