NYR Creations Private Ltd., New Delhi V. ITO Ward-18(4), New Delhi

ITA 1637/DEL/2022

AI Insights

The case involves NYR Creations Private Limited appealing against the order of the National Faceless Appeal Centre (NFAC), which dismissed their appeal by mistakenly believing the company had opted for the DTVSVA 2020. The NFAC's dismissal was based on this incorrect assumption, leading to the appeal being considered withdrawn. The assessee contested this, stating no such declaration was filed under the DTVSVA 2020. Additionally, the NFAC's order was challenged on grounds of lack of adequate opportunity for the assessee to be heard, and the confirmation of additions made by the Assessing Officer (AO) regarding unexplained bank credits under section 68 of the Income Tax Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113820 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 19-03-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 18-07-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Borrowed satisfaction
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.1637/Del./2022 (ASSESSMENT YEAR : 2016-17) NYR Creations Private Limited, vs. ITO, Ward 18 (4), 327, Near Shani Bajar Road, New Delhi. Shiv Kunj, Jharoda, New Delhi – 110 072. (PAN : AACCN3969J) (APPELLANT) (RESPONDENT) ASSESSEE BY : Ms. Supriya Mehta, CA Ms. Uma Upadhyay, CA REVENUE BY : Shri S.L. Anuragi, Sr. DR Date of Hearing : 20.03.2023 Date of Order : 23.03.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal by the assessee is directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 08.07.2022 pertaining to the Assessment Year 2016-17. 2. The grounds of appeal taken by the assessee read as under :- “1. On the facts and circumstances of the case, the order passed by the National Faceless Appellate Centre (NFAC) is bad both in the eyes of law and on facts. ITA No.1637/Del./2022 2 2. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in dismissing the appeal holding the same as withdrawn due to DTVSVA 2020 despite the fact that no declaration under Direct Tax Vivad se Vishwas Act, 2020 was filed by the assessee in relation to this appeal. 3. On the facts and circumstances of the case the order passed by the NFAC is bad in law, having been passed without giving the assessee an appropriate and adequate opportunity of being heard in clear violation of the principles of natural justice. 4. On the facts and circumstances of the case NFAC has erred on facts and in law in confirming the action of the AO passing the assessment order against the non-existing company. 5. (i) On the facts and circumstances of the case NFAC has erred both on facts and in law in confirming the addition of Rs. 1,74,40,090/- made by the AO on account of credits in the bank account invoking section 68 of the Income Tax Act. (ii) That the abovesaid addition has been confirmed ignoring the submissions submitted by the assessee company before the AO. 6. On the facts and circumstances of the case NFAC has erred both on facts and in law in confirming the addition, ignoring the contention of the assessee that the order has been passed by the AO without independent application of mind and is based on borrowed satisfaction only. 7. On the facts and circumstances of the case NFAC has erred both on facts and in law in confirming the addition despite the fact that the addition has been made by the AO on the basis of material collected at the back of the assessee without giving him an opportunity to rebut the same. 8. On the facts and circumstances of the case NFAC has erred both on facts and in law ignoring the contention of the assessee that the addition has been made by the AO on the basis of extraneous consideration by grossly indulging into conjecture and surmises.” ITA No.1637/Del./2022 3 3. Although assessee has raised various grounds, the crux of the issue is that the ld. CIT (A) under wrong impression that the assessee has opted for DTVSVA 2020 and accordingly, he has dismissed the appeal. However, factually it is incorrect. Hence, ld. Counsel of the assessee prayed that the matter may be remitted to the ld. CIT (A) to decide the issue on merits. 4. Upon careful consideration, we agree with the submission of the ld. Counsel of the assessee and this issue is remitted to the file of ld. CIT(A) for fresh adjudication. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 23 rd day of March, 2023. Sd/- sd/- (ASTHA CHANDRA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 23 rd day of March, 2023 TS Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A). 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.