Daxin Pharmaceuticals Private Limited, New Delhi V. ITO, ward-7(2), New Delhi

ITA 444/DEL/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7133 (ITAT-DELHI)
• Duration Of Justice: 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 24-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJAT KUMAR KURED
• Assessee Lawyers: PARAS DAWA R
• Keywords: Application of stay; Set aside
• Section: 143(3)

Judgement Text

1 , , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH FIRDAY, NEW DELHI , ! . , * ! BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT & DR. B.R.R. KUMAR, ACCOUNTANT MEMBER . .. . / ITA NO. 444/DEL/2020 + + / ASSESSMENT YEAR 2016-17 DAXIN PHARMACEUTICALS PRIVATE LIMITED, OFFICE NO.T-1, T-2, 3 RD FLOOR, PLOT NO.7, MANISH PLAZA, MLU, SECTOR-10, DWARIKA, OPP. SPORT COMPLEX, SOUTH WEST DELHI, NEW DELHI-110075 PAN-AAECD9603K .......... /APPELLANT VS ITO, WARD NO.7(2), C.R. BUILDING, ITO, I.P. ESTATE, NEW DELHI-110002 . / RESPONDENT AND , . .. . /S.A. NO. 81/DEL/2020 ( . .. . / ITA NO. 444/DEL/2020) + + / ASSESSMENT YEAR 2016-17 DAXIN PHARMACEUTICALS PRIVATE LIMITED, OFFICE NO.T-1, T-2, 3 RD FLOOR, PLOT NO.7, MANISH PLAZA, MLU, SECTOR-10, DWARIKA, OPP. SPORT COMPLEX, SOUTH WEST DELHI, NEW DELHI-110075 PAN-AAECD9603K .......... /APPELLANT VS ITO, WARD NO.7(2), C.R. BUILDING, ITO, I.P. ESTATE, NEW DELHI-110002 . / RESPONDENT ITA NO. 444/DEL/2020 SA NO.81/DEL/2020 2 / APPELLANT BY : SH. PARAS DAWAR, C.A. / RESPONDENT BY : SH. RAJAT KUMAR KURED, ADDL.CIT . / DATE OF HEARING : 31.01.2020 / DATE OF PRONOUNCEMENT: 31.01.2020 / ORDER PER SUSHMA CHOWLA, VP THE PRESENT APPEAL AND THE STAY APPLICATION FILED B Y ASSESSEE ARE AGAINST ORDER OF CIT(A)-3, NEW DELHI DATED 26/11/20 19, RELATING TO ASSESSMENT YEAR 2016-17 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE ACT. 2. THE APPEAL AND THE STAY APPLICATION RELATING TO THE ASSESSEE WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CO NSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 3. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF CIT(A) FOR DECIDING THE APPEAL EX-PARTE QUA THE ASSESSEE AND WITHOUT GOING INTO THE MERITS OF THE ADDITION. 3. THE LEARNED AR FOR THE ASSESSEE POINTED OUT THAT THE CIT(A) HAS PASSED THE EX-PARTE ORDER WITHOUT ALLOWING SUFFICIENT OPPORTUNITY OF HEARING AND WITHOUT GOING INTO THE MERITS OF THE CA SE. 4. THE LEARNED DR FOR THE REVENUE ON THE OTHER HAND POINTED OUT THAT SUFFICIENT OPPORTUNITY HAS BEEN AFFORDED TO TH E ASSESSEE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. UNDER THE PROVISIONS OF SECTION 250(6) OF THE INCOM E TAX ACT, 1961 (IN ITA NO. 444/DEL/2020 SA NO.81/DEL/2020 3 SHORT ACT), IT IS INCUMBENT UPON THE CIT(A) TO DE CIDE THE APPEAL AFTER HEARING THE PARTIES AND STATE THE POINTS FOR DETERM INATION, THE DECISION THEREON AND ALSO THE REASONS FOR THE DECISION. WHIL E DECIDING THE APPEAL, CIT(A) HAS NO POWER TO DISMISS THE APPEAL FOR NON P ROSECUTION BY RELYING ON THE RATIO/S LAID DOWN IN CIT VS. B.N. BHATTACHAR YA & ANOTHER 118 ITR 461 (SC) AND LATE TUKOJI RAO HOLKER VS. CWT 223 ITR 480 (MP). IN THESE FACTS AND CIRCUMSTANCES, WHERE THE CIT(A) HAD DISMISSED THE APPEAL BY APPLYING THE ABOVE SAID RATIOS, THE ORDER OF THE LEARNED CIT(A) SUFFERS FROM INFIRMITY. THE CIT(A) WHILE DECIDING T HE ISSUE ON MERITS HAVE ALSO TO GIVE REASONS FOR COMING TO THE CONCLUS ION AND IN THE ABSENCE OF THE SAME, THE ORDER OF THE CIT(A) AGAIN SUFFERS FROM INFIRMITY. IN THE PRESENT APPEAL, WE FIND THAT THE CIT(A) HAS DISMISSED THE APPEAL EX-PARTE QUA THE ASSESSEE AND HAD FAILED TO DECIDE THE APPE AL BY PASSING REASONED APPELLATE ORDER. 6. ACCORDINGLY, WE SET ASIDE THE MATTER BACK TO THE FILE OF THE CIT(A) WITH DIRECTION TO THE CIT(A) TO DECIDE THE ISSUE ON MERITS BY A REASONED ORDER, AFTER AFFORDING REASONABLE OPPORTUNITY OF HE ARING TO THE ASSESSEE. FURTHER THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEF ORE THE CIT(A) AND PARTICIPATE IN THE APPELLATE PROCEEDINGS. THE APPEA L IS THUS DECIDED ON THIS PRELIMINARY ISSUE WITHOUT GOING INTO THE MERIT S OF THE ADDITION. 7. HENCE THIS APPEAL IS RESTORED BACK TO THE FILE O F CIT(A) TO DECIDE THE ISSUE ON MERITS AFTER AFFORDING REASONABLE OPPO RTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COMP LY WITH NOTICES ISSUED BY THE CIT(A). THE PRELIMINARY ISSUE RAISED IN THIS APPEAL IS THUS ITA NO. 444/DEL/2020 SA NO.81/DEL/2020 4 DECIDED IN FAVOUR OF ASSESSEE. SINCE THE APPEAL IS BEING DECIDED ON THE PRELIMINARY ISSUE, WE ARE NOT ADDRESSING THE ISSUE RAISED ON MERIT. ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED. 10. CONSEQUENT TO THE DECISION OF THE APPEAL AS IN THE CASE OF THE ASSESSEE, THE STAY APPLICATION IS DISMISSED. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D AND STAY APPLICATION OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JANUARY 2020. SD/- SD/- (DR. B.R.R.KUMAR) (SUSHMA CHOWLA ) * /ACCOUNTANT MEMBER ! /VICE PRESIDENT / DATED: 31 ST JANUARY, 2020 SHEKHAR, SR. P.S. COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ! / THE CIT(A) 4. # ! / THE PR. CIT 5. 6. ' / DR, ITAT, DELHI ) GUARD FILE. / BY ORDER , -. , ASSISTANT REGISTRAR, ITAT, DELHI