JINDAL RAIL INFRASTRUCTURE LIMITED, DELHI V. DCIT, Circle-13(2), Delhi, DELHI

ITA 1448/DEL/2023

AI Insights

The case involves Jindal Rail Infrastructure Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal arose from an assessment order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the Assessment Year 2017-18. The primary contention of the assessee was the erroneous dismissal of their appeal by the CIT(A) on grounds of non-compliance and non-prosecution, without discussing the merits of the case. The Tribunal noted that the CIT(A) had not addressed the various points placed for determination and had dismissed the appeal solely for non-appearance, which was against the provisions of Section 250(6) of the Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121587 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 13-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 08-05-2023
• Other Referred Cases: CIT vs. Premkumar Arjund as Luthra HUF (2017) 29 1 CTR 614 (Bom.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “C” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER I.T.A. No.1448/DEL/2023 Assessment Year 2017-18 Jindal Rail Infrastructure Ltd. 28, Najafgarh Road, Post Office – Ramesh Nagar, New Delhi. v. DCIT, Circle-13(2), Delhi TAN/PAN: AABCJ9516E (Appellant) (Respondent) Appellant by: None Respondent by: Mr. Waseem Arshad, CIT (DR) Date of hearing: 14 09 2023 Date of pronouncement: 14 09 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the order of t he C o mmi ss ione r of Income Tax (A ppeals), National Facel ess A ppeal Cent re, D elhi [ ‘C IT (A ) ’ i n shor t] da te d 11. 03. 2023 aris i ng from the assess me nt order da ted 26. 12. 20 19 passed b y t he A ssessing O ffic er (A O ) unde r Sec tion 1 43(3 ) o f the Income T ax A ct, 1961 (the Act ) conc er ning A Y 2017-18. 2. T he grounds of appeal ra ise d by the assesse e read as un der: “1 . O n t h e f a c t s a n d c i r c um s t a n c e s of t he c as e L d. C I T ( A ) ha s e r r e d i n di s m i s s i n g a pp e l l an t ap p e al i n l i m i ne . 2 . O n t h e f a c t s an d c i r c u m s t a nc e s o f t h e c as e L d . CI T ( A ) h a s e r r e d i n u p h ol d i ng i l l e g a l a s s e s s m e nt , w h i c h w a s b as e d o n i s s u e s n ot s p e c i f ie d i n C A S S. I.T.A. No.1448/Del/2023 2 3 . O n t h e f a c t s an d c i r c u m s t a nc e s o f t h e c as e L d . CI T ( A ) h a s e r r e d i n no t ap p r e c i at i n g t h at A O 's a c t i on i n c a l l i ng i ndi s c r i m i n a te l y e n ti r e v o u c h e r s o f e x pe n s e s a m o un t i ng t o R s . 1 8 0 c r or e s a nd n um be r i n g i n t h ou s a nd s by g i v i ng o ne d ay ti m e , w h i ch w a s t o t al l y a r b it r ar y a n d i l l e g a l a c t , a n d r e pr e s e n t n on gr a n t of s u f f i c i e nt o pp o r t un i t y . 4 . O n t h e f a c t s an d c i r c u m s t a nc e s o f t h e c as e L d . CI T ( A ) h a s e r r e d i n up h ol d i ng t h e a d h o c ad d i t i o n o f R s . 2 7 , 0 9 , 4 9 , 23 1/ - m ad e b y A O i n ap p e ll a n t as s e s s a bl e i n c om e , w it h o ut p oi n t i ng o ut an y d e f e c t o r i n ac c u r ac y i n t he b i l l s o f e x p e ns e s s u bm i t t e d t o h im . 5 . O n t h e f ac t s a nd c i r c u m s t a nc e s o f t he c as e , Ld . C I T (A ) h a s e r r e d i n n o t a dj u di c a t i n g th e gr ou n d o f i n c o r r e c t g r a n t of i nt e r e s t u / s . 2 44 A . ” 3. N one ap peared for the assess ee. A ccordingl y, the ma tte r w as proceed ed e x- par te . 4. O n pe rusa l o f th e case r ec or ds, i t was noted t hat an est i mated addit ion @ 15% o f the tota l ex penses i ncurred at Rs. 180. 63 c ror e w as added to t he tot al i nc ome o f t he a ssessee on the g roun ds of unve ri fiable ex pen ses by a ve ry brief and cr ypt ic order allegin g pa rt r ep li es filed b y th e asse ssee. It is n oticed t hat in the fir st app eal , the C IT (A ) has dis mi sse d t he appeal of th e assessee on the ground of non complia nc e. It is further not ice d that a comp lia nce peri od of 7 da ys w ere gi ve n for thr ee di ff er ent noti ces s o iss ue d in this rega rd. T he assesse e ha s r es po nded on each occ asi on s eeki ng a reasona bl e period f or res p ons e. The CIT (A ) rej ect ed t he reques t a nd pass ed an e x -part e order on the gro unds of non prosecuti on. 5. O n pe rusa l o f the or de r of the C IT (A), w e st ra ightawa y noti ce t ha t t he C IT (A) has dismi ssed the a ppeal before i t f or w ant of prosec uti on and non comp lia nce of s tatut or y not ices b y a ve r y cr ypti c orde r wit hout an y dis cus sion on me ri t. Th e CIT (A ) h as decli ned t o entertain the adjournm ent invoke d t he doct ri ne of I.T.A. No.1448/Del/2023 3 vigi lant i bus non d orm ie nt ibus w herei n its i s ordained so- • L a w w i l l h el p on ly t ho se w ho a re v i g i l an t . L aw w i ll n ot as s is t t h o se w h o ar e c a r e l ess o f h i s/ h e r ri gh t . In o r de r to c l ai m o ne ’ s r i g ht , s h e/ h e m u st b e w at c h f ul o f h i s/ he r r i gh t . O nly t ho se p e r so n s, w ho a r e w a t c h ful a n d c a re fu l o f usi n g h i s/he r r i ght s, a r e e nt i t l e d t o t h e b e n e f i t s o f l aw . • A pe r s on w ho ha s k e pt m u m du r i ng t he st at ut o r y p e r io d c a n n ot c l a i m fo r t he e n for c e m e nt o f r i g ht a ft e r t he st a t uto r y l i mi t a t i o n . 6. We st ra ightw ay refe r t o Secti on 250(6) of the A ct whic h enjo ins that the C IT (A ) sh al l st at e the po ints for determinat ion be fore i t a nd t he decis ion s hall be rende re d on s uch points alon gw it h reas ons for t he decisi on. Thus, i t is i ncumben t upo n the CIT (A ) to deal w it h the grounds on me rits even in ex parte orde r. In view of Sec tion 250 (6) of t he A ct, t he C IT(A ) has no pow er to dis mi ss an a ppea l on ac count o f non -prosecutio n. This view is als o taken by t he H on’b le Bomb ay H igh C ourt in cas e of C IT vs. Prem kumar Arj und as L ut hra H UF ( 2017) 29 1 CTR 614 (Bom . ). A ba re glace of the or der of the C IT (A ) show s that C IT (A ) has not addressed i tse l f o n the va rious poi nts placed for its de terminat ion at all and dis mi ssed the appe al of assess ee for de fa ul t i n nonappea rance. N eedless t o sa y, t he CIT (A ) pla ys role of both adju dicati ng au tho ri t y as wel l as a ppel la te authority. Thus, the CIT (A ) co ul d n ot have shunne d the app eal fo r non- comp li ance w ithout address i ng the iss ue on mer it s. 7. In t he total it y of t he circums ta nces, w e cons ider it j us t and exped ie nt to res tore t he matter bac k to the C IT (A ) i n the l arge r inte res t of j us ti ce w it h a view to ena bl e t he assess ee t o ava il I.T.A. No.1448/Del/2023 4 pro per opp ort uni t y fo r dis posal of appea l b y t he CIT (A ) on va ri ous points. Ne edl ess t o s ay, the assessee s ha ll exte nd full c o- ope ration t o t he CIT (A ) w i thout a ny demur, f ai ling w hich, the CIT (A ) s ha ll at li be rt y t o conclude the appella te proc eedings i n accorda nce wit h l aw. H ence, the or de r of the CIT (A ) appea le d agains t, is set as ide a nd al l the is s ues ra ised i n the i mpugne d appea l a re res tored back t o t he f ile of t he C IT(A ) for fres h adju dicati on i n accordance w ith l aw afte r givi ng reaso nable opportunit y of hea ri ng to the asses se e. 8. In t he result, appeal of the as sesse e i s al lowed for s tati stical pur pos es. Order pronounced in the open Court on 14/09/2023. Sd/- Sd/- [YOGESH KUMAR US] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /09/2023 Prabhat