M/S. RITSPIN SYNTHETICS LTD., Pithampur V. THE DCIT,/CPC, Banglore

ITA 341/Ind/2022

AI Insights

The case involves M/s Ritspin Synthetics Ltd., the appellant, who filed an appeal against the order of the Commissioner of Income-Tax (Appeals) dated 14.07.2022. This order arose from an intimation by the CPC, Bangalore, under section 143(1) of the Income-tax Act, 1961, for the assessment year 2018-19. The primary issues in the appeal were the disallowances made by the Assessing Officer (AO) under sections 40A(7) and 2(24)(x) read with section 36(1)(va) of the Act, concerning the provision for gratuity and employees' contributions to PF/ESI, respectively. The CIT(A) had decided the appeal ex-parte due to the non-response of the assessee to multiple notices. However, the assessee later submitted an adjournment application which was allegedly not considered by the CIT(A), leading to the appeal before the Tribunal on grounds of violation of the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130605 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 18-09-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(1)

Judgement Text

Page 1 of 3 आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER (Conducted through Virtual Court) ITA No. 341/Ind/2022 (Assessment Year:2018-19) M/s Ritspin Synthetics Ltd. Plot No.2, Kheda Industrial Growth Center, Pithampur District - Dhar Vs. DCIT, CPC, Bangalore (Appellant / Assessee) (Respondent/ Revenue) PAN: AAACR 8303 E Assessee by Shri S.N. Agrawal & Pankaj Mogra ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 06.02.2023 Date of Pronouncement 13.03.2023 O R D E R Per B.M. Biyani, AM: Feeling aggrieved by appeal-order dated 14.07.2022, passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of intimation dated 04.11.2019 passed by CPC, Bangalore [“Ld. AO”] u/s 143(1) of Income-tax Act, 1961 [“the act”] for assessment-year [“AY”] 2018-19, the assessee has filed this appeal on the grounds mentioned in Appeal Memo. 2. Heard the learned Representatives of both sides and case records perused. ITA No.341/Ind/2022 Ritspin Synthetics Ltd. Page 2 of 3 Page 2 of 3 3. Briefly stated the facts are such that the assessee filed his return of income alongwith auditors’ report in Form No. 3CD. Based thereon, the Ld. AO made twin-disallowances, viz. (i) provision for gratuity u/s 40A(7) of Rs. 32,70,362/-; and (ii) employees’ contributions to PF/ESI u/s 2(24)(x) read with section 36(1)(va) of Rs. 1,28,43,256/-. Being aggrieved by same, the assessee filed first-appeal but could not succeed. Now, the assessee has come in this appeal before us. 4. On perusal of Para No. 2 of the order of first-appeal, we observe that the Ld. CIT(A) has given notices dated 14.01.2021, 04.05.2022, 24.05.2022 and 24.06.2022 fixing the hearings on 29.01.2021, 11.05.2022, 30.05.2022 and 29.06.2022 on ITBA portal, but the assessee had failed to respond; therefore the Ld. CIT(A) decided appeal ex-parte. In this regard, the assessee has submitted a letter dated 03.02.2023 accompanied by an affidavit duly sworn by Shri B.S. Suryawanshi, director of assessee-company, wherein it has been averred that on 29.06.2022 i.e. the date of hearing fixed by Ld. CIT(A), the assessee- company filed an adjournment-application on the ITBA Portal, designated by Income-tax Department, but the same was not taken into consideration by Ld. CIT(A). The assessee has also filed a printout of the said adjournment-application/acknowledgement downloaded from ITBA Portal to support this averment. Ld. AR submitted that the Ld. CIT(A) has passed appeal-order without considering the adjournment-request of assessee, therefore the action of Ld. CIT(A) is against the principle of natural justice. Hence, the Ld. AR prays, the matter may be remanded to the file of Ld. CIT(A) for a fair and proper adjudication after giving due opportunity of hearing to assessee. Ld. DR does not have any objection but prays to direct the assessee to represent his case before Ld. CIT(A) and do not seek unnecessary adjournments. In view of such pleadings by parties and also having regard to the principle of natural justice and fair play, we deem it fit and appropriate to remand this matter back to the file of Ld. CIT(A) for a proper adjudication after giving opportunity of hearing ITA No.341/Ind/2022 Ritspin Synthetics Ltd. Page 3 of 3 Page 3 of 3 to assessee, uninfluenced by his earlier decision. We order accordingly. The assessee is also directed to ensure participation in the hearings fixed by Ld. CIT(A) and do not seek unnecessary adjournments. 5. Resultantly, this appeal of assessee is allowed for statistical purpose. Order pronounced as per Rule 34 of I.T.A.T. Rules, 1963 on 13/03/2023. Sd/- Sd/- (SUCHITRA KAMBLE) (B.M. BIYANI) Judicial Member Accountant Member Indore, 13.03. 2023 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore