Paswara Chemicals Ltd. , Delhi V. DCIT, Circle-2, U.P

ITA 154/DEL/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3259 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 27-01-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.154 /DEL/2022 Assessment Year 2015-16 M/s. Paswara Chemicals Ltd., Paswara House, Baghpat Road, Meerut. v. DCIT, Circle-2, Meerut. TAN/PAN: AADCP0846P (Appellant) (Respondent) Appellant by: Shri Rajkumar Gupta, CA Shri Suraj Gupta, Adv. Respondent by: Shri Toufel Tahir, Sr.D.R. Date of hearing: 21 07 2022 Date of pronouncement: 26 07 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: Th e cap tio n ed ap peal h as b een filed at th e in s tan ce o f th e Assessee ag a in st t h e o rd er o f th e C o mmiss io n er o f In co me T ax (Ap p eals), Natio n al Fa cel ess Ap p ea l C en tre [‘CIT(A)’ in sh o rt], d ated 2 3 .1 2 .2 0 21 aris in g fro m t h e assess men t o rd er d ated 2 9 .1 2 .20 1 7 p assed b y th e Assessin g Officer (AO) u n der Sect io n 1 4 3 (3 ) o f th e In c o me Tax Act, 1 9 6 1 (th e Act) co n c ern in g AY 2 0 15 -16 . 2 . Th e g ro u nd s o f ap p eal ra ised b y th e Assessee re ad s as u n d er: “T ha t un de r t he f a cts a nd c ir cu ms ta n ces t he L d. C IT(A ) NF AC err ed i n l a w i n not p ro vi di ng re a so na ble o pp or tu ni ty o f I.T.A. No.154/Del/2022 2 hea ri ng an d in di s mi ssi ng th e ap pe al ex- pa rte , t hu s, g r oss ly vio la te d the p ri nc ip les o f na tu ra l j us ti c e. 2. T ha t u nde r t he f act s a nd c ir cu ms ta nce s, ad dit io n o f R s.4 Cr . u/s .6 8 of the I. T. Act is a bs ol ute ly i lle ga l a nd u nj ust if ied in la w as wel l as on mer it s, m or e so , thi s a mo un t ne ver sto od cre di te d ph ys ica ll y on acc ou nt o f C hq. o f Rs .4 Cr. b ein g dis ho no ur ed , th er ef ore r ev er se d i n th e bo oks a ls o. 3. Th at u nd er th e fa cts an d ci rc um st a nce s t he Ld. A. O. err ed in l aw as w el l as o n m er it s in m aki ng ad di tion u nd er s ec 68 fo r fo ll ow in g Un sec ur ed L oa ns :- 1,1 5, 00 ,0 00 /- P ra s an di Sk il ls T ech P v t. Lt d. 2,1 0, 00 ,0 00 /- E mm Vee I nf ra st ruc tu re s In di a Pv t. Ltd. 3,2 5, 00 ,0 00 /- T ot al 3.1 T ha t in t he ab s enc e of p rov id in g t he cr os s exa mi n ati on of Sh ri V ija y P al Y ad av D ir ect or of thes e co m pa nie s who se sta te me nt h as be en re co rd ed o n t he b ack o f the a ss es se e an d ha s b ee n ad ve rse ly use d no c og ni ze th e reo f ca n be ta ke n. Th at un der th e fac ts an d c ir c um st anc es no in ter es t u/s .2 34 A/ B/ C/ D s h oul d b e c ha rg ed. Wit ho ut pr ej ud ice, in a ny cas e, t he ca lc ul at io ns ar e gr os sl y e rr o neo us a nd e xce ss iv e.” 3 . Wh en th e mat ter was cal led fo r h ea rin g , th e ld . co u n sel fo r th e ass essee in ter a lia p o in ted o u t th at th e CIT(A) h as d ismissed th e ap p eal e x-p a rte o win g to al leg ed n o n-atten d an ce fro m th e assesse e. W ith re feren ce to p arag r ap h 5 o f th e first ap p el la te o rd er, it was su b mit ted th a t th e CIT( A) h as p ro ceeded ex-p a rte o n th e g ro un d th at sev eral n o tices o f h earin g serv ed on the reg istered e-ma il id o f t h e co u n sel o f th e asses see , ‘ssg u p taand I.T.A. No.154/Del/2022 3 co @y ah oo .co .in’ rema in ed u n atten d ed an d u n respon d ed . To ad d ress th is al leg atio n , th e ld . co u n sel fi led an affi d av it d at ed 1 9 .0 7 .20 2 2 by th e assessee an d in tu rn relied u po n the co mmu n icat io n fr o m S.S. Gu p ta & Co ., Ch art ered Accou n tan t d ated 1 9 t h Ju ly , 2 02 2 . It was p o in ted o u t th at th e e-ma il co mmu n icat io n fi x in g th e ap p eal u n fo rtu n ately d el i vered in to ‘sp am fo ld er’ an d th erefo re in ad v erten t ly remain ed u n n o ticed resu lt in g in n o n co mp l ian ce an d co n seq u en t ex-p a rte d is p o sal. 4 . In th e lig h t o f th e su b missio n s mad e o n b eh alf of th e assesse e, we fin d th at rea so n ab le ca u se ex ists fo r n o n at ten d an ce o f th e ap p el la te p ro ceed in g s b efo re t h e CIT(A). In th e ab sen ce o f an y d elib erate o mi ssio n to at ten d th e p ro ceed in g s an d also h av in g reg ard to th e co n te n tio n th at a l it ig an t d o es n o t stan d to b en efi t b y reso rtin g to n o n atten d an ce, we ap p ro ach th e issu e in a ratio n al co mmo n sen se p rag mat ic man n er an d ag ree to resto re th e issu e b ack to th e fil e o f th e CIT(A) fo r d isp o sal o f th e ap p eal a fresh in acco rd an ce with la w. In th is v iew o f t h e ma t ter, we d o n o t p ro p o se to d eal wi th th e iss u e o n meri ts . 5 . In th e to tal i ty o f t h e circu ms tan ces , we co n sid er it ju s t and ex p ed ien t to resto re th e ma tter b ack to th e CIT(A) in th e larg er in teres t o f ju s ti ce with a v iew to en ab le th e asse ss ee to av ai l p ro p er o pp o rtu n ity fo r d isp o sal o f ap p eal b y th e CIT(A) on v ario u s p o in ts. Ne ed less to s ay , th e assesse e sh a ll ex te n d fu ll co - o p eratio n to th e CIT(A) with o u t an y d emu r, fai lin g wh ich , th e CIT(A) sh all at li b erty to co mp le te th e ap p ella te pro ceed in g s in acco rd an ce with law. Hen ce, th e o rd er o f th e CIT(A) ap p ealed ag ain st, is se t as i d e an d all th e is s u es raised in th e imp u g n ed ap p eal are res to red b ack to th e file o f th e CIT(A) fo r fresh I.T.A. No.154/Del/2022 4 ad ju d icat io n in acco rd an ce with law after g iv in g reaso n ab le o p po rtu n ity o f h ea rin g to th e asses se e. 6 . In th e resu l t, ap p eal o f th e as sesse e i s al lo wed fo r s ta ti sti cal p u rpo ses. Order was pronounced in the open Court on 26/07/2022. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /07/2022 Prabhat