M/s. Empire Motors Pvt.Ltd., Surat V. The ACIT, Circle-1, Surat

ITA 340/SRT/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1779 (ITAT-SURAT)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-05-2024
• Assessment Year: 2010-2011
• Appeal Filed On: 10-05-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Onus to prove; Set aside
• Section: 250

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.340/SRT/2023 Assessment Year: (2010-11) (Physical Court Hearing) Empire Motors Pvt. Ltd. C/o Kapil Goel Adv F-26/124 Sector 7 Rohini Delhi-1100 (only for correspondence) Vs. Assistant Commissioner of Income Tax, Circle-1, Surat, Aaykar Bhawan, Majura Gate, Surat-395001 èथायीलेखासं./जीआइआरसं./85PAN/GIR No: AAACE 5123 F (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Appellant by None राजˢ की ओर से /Respondent by Shri J.K. Chandnani, Sr. DR सुनवाई की तारीख/Date of Hearing 30.05.2024 उद ् घोषणा की तारीख/Date of Pronouncement 05.06.2024 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by the assessee emanates from the order passed under Section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 21.03.2023 by the learned Commissioner of Income Tax (Appeals), [in short, ‘Ld. CIT(A)’], National Faceless Appeal Centre (in short ‘NFAC’), Delhi for the Assessment Year (AY) 2010-11. Grounds of appeals raised by the assessee are as under: “1. That first appeal order passed u/s 250 read with sec. 254 of 1961 Act dated 21.03.2023 is merely ex parte dismissal without any disposal on merits of grounds raised in appeal vide direction of Hon’ble ITAT in set aside order dated 28.04.2017 and is invalid order sans disposal of asessee’s grievance on merits; 2. That there is serious injustice caused to appellant as no valid determination is there vide first appeal order passed u/s 250 read with sec. 254 dated 21.03.2023. 2 ITA No.340/SRT/2023 /AY.10-11 Empire Motors PVt Ltd. 3. That appellant humbly prays with apology for restoration of its appeal to first appeal with solemn assurance to attend first appeal diligently at this time;” 2. The facts of the case in brief are that the assessee filed its e-return of income for the AY.2010-11 on 20.09.2010 declaring total income at Rs.54,69,000/-. The case was selected for scrutiny under CASS. After issuing statutory notices and after hearing the assessee, the AO passed order u/s 143(3) on 14.03.2013 determining total income at Rs.91,97,780/-. He added Rs.19,34,948/- u/s 68 of the Act and disallowed depreciation on Demo cars of Rs.17,93,833/-. 3. Aggrieved by the order of AO, appellant filed appeal before Ld.CIT(A). The Ld. CIT(A) dismissed the appeal for non-prosecution. Aggrieved by the order of Ld.CIT(A), assessee filed present appeal before the Tribunal. The Tribunal vide its order in ITA No.2865/AHD/2014 dated 28.04.2017 set aside the order of Ld.CIT(A) and appeal was restored back to the file of Ld.CIT(A) with a direction to pass the order as per sub-section-(6) of Section 250 of the Act and decide the case on merit. 4. None appeared before us on behalf of assessee. The Ld.Sr-DR for the Revenue has relied on the order of authorities below. 5. We have heard both the parties and perused the materials available on record. We find that in second innings also the Ld.CIT(A) passed a non- speaking order and has not decided the case on merits of the grounds raised in the appeal as directed by Tribunal in its order dated 28.04.2017 (supra). 3 ITA No.340/SRT/2023 /AY.10-11 Empire Motors PVt Ltd. Hence, we find that the order passed by Ld. CIT(A) is not in accordance with mandate of Section 250(6) of the Act. Section 250(6) of the Act contemplates that the Ld. CIT(A) while deciding the appeal is required to pass order on various grounds of appeal, decision therein and reasons for such decision. Therefore, considering the facts and circumstances of the case, the appeal of assessee is restored back to the file of Ld. CIT(A). The assessee is directed to provide all necessary details in discharging its onus to prove the case. The Ld. CIT(A) is also given liberty to call for further details and explanation, if so desired. The assessee is further directed to be more vigilant in attending / responding to the notices of Ld. CIT(A) or National Faceless Appeal Centre (NAFC) and not to cause further delay as the case relates to AY 2010-11. Needless to order that the ld CIT(A) shall grant reasonable opportunity of hearing to the assessee. For statistical purposes, the appeal of the assessee is treated as allowed. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 05/06/2024 in the open court. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER सूरत / Surat िदनांक/ Date: 05/06/2024 Dkp Outsourcing Sr.PS 4 ITA No.340/SRT/2023 /AY.10-11 Empire Motors PVt Ltd. Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // True Copy // Assistant Registrar/Sr. PS/PS ITAT, Surat