Mark Laboratories Ltd, New Delhi V. DCIT, Circle-16(1), New Delhi

ITA 2731/DEL/2022

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 0406 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 11-03-2024
• Assessment Year: 2011-2012
• Appeal Filed On: 20-11-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. K. JAIN
• Keywords: Set aside; Principle of natural justice
• Section: 147; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E” DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.2731, 2732, 2733, 2730, 2734 & 2735/DEL/2022 Assessment Years 2011-12, 2014-15, 2016-17, 2017-18 & 2018-19 MARC Laboratories Ltd. Plot No.5, 2 nd Floor, B.N. Block Central Market, Shalimar Bagh New Delhi. Vs. Deputy Commissioner of Income Tax National E-Assessment Centre Delhi TAN/PAN: AAACM2385F (Appellant) (Respondent) Appellant by: None Respondent by: Shri R.K. Jain, Sr.DR Date of hearing: 12 03 2024 Date of pronouncement: 21 03 2024 O R D E R PER BENCH: The captioned appeals arise from the order of the Commissioner of Income Tax (Appeals)-29, New Delhi in respective assessment orders passed by the Assessing Officer tabulated hereunder: Sr. Nos. ITA/CO Nos. CIT(A) Order dated Assessment Order date and Assessment Year Order passed under Sections 1. ITA No.2730/Del/2022 CIT(A)-29, New Delhi order dated 05.09.2022 Assessment order dated 29.12.2019; A.Y. 2017-18 Assessment Order under section 143(3) of the Income Tax Act, 1961. 2 ITA No.2731/Del/2022 CIT(A)-29, New Delhi order dated 30.08.2022 Assessment order dated 26.12.2016; A.Y. 2011-12 Assessment Order under section 147 of the Income Tax Act, 1961. 3. ITA No.2732/Del/2022 CIT(A)-29, New Delhi order dated 30.08.2022 Assessment order dated 27.12.2016; A.Y. 2014-15 Assessment Order under section 143(3) of the Income Tax Act, 1961. 4. ITA No.2733/Del/2022 CIT(A)-29, New Delhi order dated 30.08.2022 Assessment order dated 24.12.2018; A.Y. 2016-17 Assessment Order under section 143(3) of the Income Tax Act, 1961. 5. ITA No.2734/Del/2022 CIT(A)-29, New Delhi order dated Assessment order dated Assessment Order under section 143(3) of the I.T.A. No.2730 to 2735/Del/2022 2 30.08.2022 29.12.2019; A.Y. 2017-18 Income Tax Act, 1961. 6. ITA No.2735/Del/2022 CIT(A)-29, New Delhi order dated 30.08.2022 Assessment order dated 13.02.2021; A.Y. 2018-19 Assessment Order under section 143(3) r.w. Section 143(3A) & 143(3B) of the Income Tax Act, 1961. 2. It is seen from the record that notice of hearing was duly served upon the assessee. As per the case records, none appeared from the assessee despite service of notice on several occasions. Accordingly, the matter was proceeded ex-parte. 3. As per the grounds of appeal, the assessee has taken various grounds seeking to assail the additions/disallowances of expenses made by the AO. As per the grounds of appeal, the assessee contends that the first appellate order has been passed without any opportunity to the assessee based on un-communicated notice to the assessee and therefore, passed in breach of principles of natural justice. 4. On perusal of the respective first appellate orders, we notice that the CIT(A) has dismissed the appeal in limine on the grounds of non-prosecution of appeal by the assessee before him. The CIT(A) has passed a cryptic order without any cogent discussion on merit. 5. We straightway refer to Section 250(6) of the Act which enjoins that the CIT(A) shall state the points for determination before it and the decision shall be rendered on such points along with reasons for the decision. Thus, it is incumbent upon the CIT(A) to deal with the grounds on merits even in ex parte order. In view of Section 250(6) of the Act, the CIT(A) has no power to dismiss an appeal on account of non-prosecution. This view is also taken by the Hon'ble Bombay High Court in case of CIT vs. Premkumar Arjundas Luthra HUF, (2017) 291 CTR 614 (Bom.). A bare glance of the order of the CIT(A) shows that CIT(A) has not addressed itself on various points placed for its determination at all and dismissed the appeal of assessee for default in non appearance. Needless to say, the CIT(A) plays role of both adjudicating authority as well as appellate authority. Thus, the CIT(A) could not have shunned the appeal for non- compliance without addressing the issue on merits. 6. In the totality of the circumstances, we consider it just and expedient to restore the matter back to the CIT(A) in the larger interest of justice with a view to enable the assessee to avail proper opportunity for disposal of appeal by the CIT(A) on various I.T.A. No.2730 to 2735/Del/2022 3 points. The assessee is cautioned to extend full co-operation to the CIT(A) without any demur, failing which, the CIT(A) shall be at liberty to conclude the appellate proceedings in accordance with law. Hence, the order of the CIT(A) appealed against, is set aside and all the issues raised in the impugned appeal are restored back to the file of the CIT(A) for fresh adjudication in accordance with law after giving reasonable opportunity of hearing to the assessee. 7. In the result, all the captioned appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 21/03/2024 Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /03/2024 Prabhat