ITO WARD - 29(4), New Delhi V. Ritesh Singh, New Delhi

ITA 5360/DEL/2019

AI Insights

The case involves an appeal by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-33, New Delhi, which pertained to the Assessment Year 2014-15. The Revenue challenged the deletion of additions made by the Assessing Officer (AO) on technical grounds rather than on merit, and the CIT(A)'s decision to treat the assessment proceedings as null and void despite the issuance of a notice under section 143(2) within the limitation period. The CIT(A) had decided in favor of the assessee, Ritesh Singh, who had filed his return electronically declaring an income of Rs. 7,17,470. The case was selected for complete scrutiny, and after initial compliance, subsequent notices were not complied with, leading the AO to pass an ex-parte order. The CIT(A) found the assessment order to be null and void, which the Revenue contested, citing a Supreme Court judgment that supported the validity of the notice issued.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302756 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 20-09-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 11-06-2019
• Other Referred Cases: V.R.A. Cotton Mills Pvt. Ltd. vs. Union of India, Civil Appeal No.34846/2011
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Period of limitation; Time period of passing order
• Section: 144; 143(2)

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 5360/Del/2019 Asstt. Year: 2014-15 O R D E R PER ASTHA CHANDRA, JM 1. The appeal filed by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-33, New Delhi (“CIT(A)”) pertaining to Assessment Year (“AY”) 2014-15. 2. The Revenue has raised the following grounds of appeal:- “1. Whether on the facts & in the circumstances of the case and in law, the Ld. CIT(A) is correct by deleting additions made by the Assessing Officer (AO) merely on technical ground rather on merit? 2. Whether on the facts & in the circumstances of the case and in laws the Ld. CIT(A) is correct by treating the assessment proceeding null and void inspite of the fact that Notice u/s 143(2) was issued to the address of the assessee through Speed Post within limitation period? 3. Whether on the facts & in the circumstances of the case and in law, the Ld. CIT(A) is correct in deleting the additions made by the AO and treated the Assessment null and void, on the ground that issue of Notice is not sufficient as per requirement of proviso u/s 143(2) of 1.T. Act, 1961 but is should be served within limitation period? ITO Ward-29(4) New Delhi. Vs. Ritesh Singh, HR-77/4, Pul Pehladpur, New Delhi -110 044 PAN BHJPS9443L (Appellant) (Respondent) Assessee by: None Department by : Shri Vivek Vardhan, Sr. DR Date of Hearing 21.09.2023 Date of pronouncement 21. 09.2023 ITA No. 5360/Del/2019 2 4. Whether on the facts & in the circumstances of the case and in law, the Ld. CIT(A) is correct in deleting the Additions made by the AO by ignoring the Judgment of Hon'ble Supreme Court, in the case of V.R.A. Cotton Mills Pvt. Ltd. vs. Union of India, Civil Appeal No.34846/2011, wherein it was upheld that the expression "Serve" means the date of issue of Notice? 5. Whether on the facts & in the circumstances of the case and in law, the CIT(A) is correct by treating the Assessment proceeding null and void inspite of the fact that the Assessee had never challenged the jurisdiction or Assessment proceeding before the AO?” 3. The assessee individual filed his return for AY 2014-15 electronically on 03.12.2014 declaring income of Rs. 7,17,470/-. His case was selected under CASS for complete scrutiny. Statutory notice under section 143(2) issued on 30.09.2015 fixing the hearing for 08.10.2015 sent through speed post and e-mail also was responded to by the assessee. His representative attended on 15.10.2015 and filed Power of Attorney. Thereafter, notices sent from time to time remained uncomplied with. The Ld. Assessing Officer (“AO”) therefore passed ex-parte order dated 23.12.2016 under section 144 of the Income Tax Act, 1961 (the “Act”) determining the total income of the assessee at Rs. 1,80,40,240/-. 4. On appeal filed by the assessee before the Ld. CIT(A), challenging the assessment on ground, interalia that the assessment is violative of principles of natural justice; that assessment order is bad in law and that it was framed without providing any opportunity of hearing and the notice(s) issued under section 143(2)/142(1) of the Act were never served on the assessee. The Ld. CIT(A) decided the above grounds in favour of the assessee and held the assessment order as null and void. He did not adjudicate the appeal on merits. 5. Dissatisfied, the Revenue is in appeal before the Tribunal. 6. The grievance of the Revenue is that the Ld. CIT(A) has ignored the judgment of Hon’ble Supreme Court in the case of V.R.A Cotton Mills Pvt. Ltd. vs. Union of India, Civil Appeal No. 34846/2011 wherein it has been ITA No. 5360/Del/2019 3 upheld that the expression “serve” means the date of time of notice, as compliance of the requirement of proviso to section 143(2) of the Act. 7. On the facts and in the circumstances of the case, in our opinion, it would be appropriate and in the interest of justice and fair play to send the matter back to the Ld. CIT(A) with a direction to him to consider the decision of the Hon’ble Supreme Court in V.R.A Cotton Mills Pvt. Ltd. (supra) and decide the appeal afresh on merits after allowing reasonable opportunity of hearing to both the parties. We order accordingly. 9. In the result, appeal of the Revenue is treated as allowed for statistical purposes. Order pronounced in the open court on 21 st September, 2023. sd/- sd/- (N.K. BILLAIYA) (ASTHA CHANDRA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21/09/2023 Veena Copy forwarded to - 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order