Saurer Embroidery Systems (as known as SIPL TEXTILES PVT. LTD.), NEW DELHI V. ITO WARD 22(4), NEW DELHI

ITA 2794/DEL/2019

AI Insights

The case involves Saurer Embroidery Systems, the appellant, contesting an addition of Rs.9,00,266 to their income as per the assessment order for the year 2014-15. The addition was related to two parties, Bharat Sales Corporation and Mahavir Enterprises, for which the notices issued by the AO were unserved. The CIT (Appeals) upheld the AO's decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal found the time granted for compliance by the AO was insufficient and remitted the issue back to the AO for a thorough investigation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113728 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 31-03-2019
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘B’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.2794/Del./2019 (ASSESSMENT YEAR : 2014-15) Saurer Embroidery Systems vs. ITO, Ward 22 (4), (as known as SIPL Textiles Pvt. Ltd.), New Delhi. D-41, South Extension Part – II, New Delhi – 110 049. (PAN : AABCS7541Q) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Sanjay Kumar, Sr. DR Date of Hearing : 27.09.2023 Date of Order : 05.10.2023 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of ld. CIT (Appeals)-XXV, New Delhi dated 07.02.2019 pertaining to assessment year 2014-15. 2. The only ground of appeal taken by the assessee read as under :- “That on the facts and circumstances of the case and under the provision of law the ld. Commission of Income Tax (Appeals) has erred in upholding the addition of Rs.9,00,266/- in respect of two parties i.e. Bharat Sales Corporation and Mahavir Enterprises as notices issued on 16.12.2016 for 16.12.2016 remained unserved.” ITA No.2794/Del./2019 2 3. The assessee is engaged in the business as manufacturers, buyers, sellers, importers, exporters, distributors, processors and dealers of embroidery/ embroidered and other textiles and other related goods and merchandise. In the assessment order, AO made addition of Rs.9,00,266/- in respect of two parties i.e. Bharat Sales Corporation and Mahavir Enterprises and noted that notice was issued on 16.12.2016 for compliance on 16.12.2016. But the same remained uncomplied. AO concluded in the order that assessee has failed to substantiate the creditors i.e. Bharat Sales Corporation and Mahavir Enterprises. In these circumstances, AO made addition which was upheld by the ld. CIT (A). 4. Against this order, assessee is in appeal before us. None present on behalf of the assessee. We have head ld. DR for the Revenue and perused the records. 5. Upon careful consideration, we find that AO has issued notice on 16.12.2016 for compliance on 16.12.2016. This is very short time which was granted to assessee for compliance. Hence, in the interest of justice, we remit the issue the file to the AO. AO shall make proper enquiry and thereafter pass an order as per law. 6. In the result, assessee’s appeal is allowed for statistical purposes. Order pronounced in the open court on this 5 th day of October, 2023. Sd/- sd/- (ANUBHAV SHARMA) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 5 th day of October, 2023/TS ITA No.2794/Del./2019 3 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A)-XXV, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.