Fabulous Nivesh P.Ltd, New Delhi V. ACIT, Central Circle-13, New Delhi

ITA 1651/DEL/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9419 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 20-07-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 40A(3); 143(3); 142(1); 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER Sr. Nos ITA No(s) Asst. Year(s) Appeal(s) by Appellant vs. Respondent Assessee By Revenue By Appellant Respondent 1. 1648/Del/2022 2017-18 Kanti Commercials Pvt. Ltd., 1, Zamrudpur Community Centre Kailash Colony, New Delhi – 110 048 PAN : AACCK 1191 P ACIT Central Cirlce-13 New Delhi Shri Rishi Raju, Adv. Shri Om Prakash, Sr. D.R. 2. 1649/Del/2022 2017-18 Brawny Nivesh Pvt. Ltd. 1, Zamrudpur Community Centre Kailash Colony, New Delhi – 110 048 PAN : AABCK 4550 B ACIT Delhi --do-- --do-- 3. 1650/Del/2022 2017-18 Adhishwar Nivesh Pvt. Ltd., 1, Zamrudpur Community Centre Kailash Colony, New Delhi – 110 048 PAN : AADCA 6451 H ACIT Central Circle – 13, New Delhi --do-- --do-- 4. 1651/Del/2022 2017-18 Fabulous Nivesh P. Ltd. 1, Zamrudpur Community Centre Kailash Colony, New Delhi – 110 048 PAN : AACCM 2031 Q ACIT Central Circle – 13, New Delhi --do-- --do-- Date of hearing: 07.09.2022 Date of Pronouncement: 07.09.2022 ORDER PER ANIL CHATURVEDI, AM: The present appeals are filed by the above mentioned assesses feeling aggrieved by the orders passed by appellate authority for Assessment Years 2017-18. 2 2. At the outset, Learned AR submitted that though the appeals are filed by four different assesses, but they belong to the same group and the issue involved in all the appeals are identical. He therefore submitted that the arguments made while arguing one appeal would be applicable to other appeals also. Learned DR did not controvert the aforesaid submissions of Learned AR. 3. Since the issue in all the appeals are common, therefore all of them are clubbed together for the sake of brevity and convenience. However, I am taking ITA No.1648/Del/2022 as a lead case. 4. Assessee is a company stated to be engaged in the business of trading of goods and deals in investment in shares and securities and is a non-Banking financial company. Assessee electronically filed its return of income for A.Y. 2017-18 on 09.03.2018 declaring income of Rs.7,700/-. The case was selected for scrutiny assessment through CASS and accordingly notices u/s 143(2) and 142(1) of the Act were issued. In response to the notices, assessee explained the return on e-portal. Thereafter, assessment was framed u/s 143(3) of the Act vide order dated 20.12.2019 determining the total income of Rs.20,88,701/-. 5. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 23.05.2022 in Appeal 3 No.10333/19-20 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assesse is now in appeal and has raised the following ground : 1. “Section 40A(3) is not attracted towards present transactions.” 5. Before me, at the outset, Learned AR submitted that CIT(A) has passed an ex-parte order without deciding the issue on merits. Assessee also submitted that dates on which hearings were granted by CIT(A) were between July 2020 and March 2021. During that period Covid-19 pandemic was at its peak therefore various staff and other persons of the office were not attending the office. He submitted that due to pandemic and the change of staff of the company, the hearing dates were missed. He therefore submitted that in the interest of justice one more opportunity be given to the assessee to submit the necessary details and he further assured that assessee will Co-operate by furnishing all the required details. 6. Learned DR fairly submitted that CIT(A) has not disposed of the appeals of the assessee on merits but however submitted that since there was no appearance by assessee before CIT(A), CIT(A) has rightly dismissed the appeals of the assessee. He thus supported the order of CIT(A). 7. I have heard the Learned DR and perused the material available on record. The perusal of CIT(A) order reveals that CIT(A) has passed an ex parte order without deciding the issue 4 on merits. Sub Section (6) of Section 250 of I. T. Act mandate the CIT(A) to state the points in dispute and thereafter assign the reasons in support of his conclusion. I am of the view that by dismissing the appeal without considering the issue on merits, Learned CIT(A) has failed to follow the mandate required in Sub Section (6) of Section 250 of the Act. Further it is also a well settled principle of natural justice that sufficient opportunity of hearing should be offered to the parties and no parties should be condemned unheard. In view of these facts, I set aside the impugned order of CIT(A) dated 23.05.2022 and restore the issue to the file of CIT(A) for re-adjudication of the issues after granting sufficient opportunity of hearing to the assessee. Assessee is also directed to furnish the details called for by the lower authorities. In view of the decision to restore the issue to CIT(A), I am not adjudicating on merits the grounds raised by the assessee. Thus the ground of assessee is allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. 9. As far as other appeals in ITA Nos. 1649, 1650 & 1651/Del/2022 are concerned, both the parties have submitted that the issues raised in those appeals are identical to that in ITA No.1648/Del/2022. I have hereinabove for the reasons stated therein have allowed the appeal for statistical purposes. I, therefore, for similar reasons allow all the appeals of the assessee. Thus these appeals are allowed for statistical purposes. 5 10. In the combined result, all the four appeals are allowed for statistical purposes. Order pronounced in the open court on 07.09.2022, immediately after conclusion of the hearing of the matter in virtual mode. Sd/- (ANIL CHATURVEDI) ACCOUNTANT MEMBER Date:- 07.09.2022 PY* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI