Haryana Seed Development Corporation Limited , Panchkula V. ACIT, Circle, Panchkula

ITA 542/CHANDI/2022

AI Insights

The case involves Haryana Seed Development Corporation Limited, the appellant, contesting the order of the Ld. CIT(A), NFAC, Delhi, which upheld the additions and disallowances made by the Assessing Officer (AO) for the Assessment Year 2017-18. The primary issues included the addition of prior period expenses amounting to Rs. 3,91,23,996, disallowance of Rs. 19,33,51 under Section 36(1)(iii) for interest on capital borrowed, and the non-direction to give TDS credit of Rs. 23,208. The Tribunal noted that the appeal was decided ex-parte by the CIT(A) without merit consideration, leading to the decision to remand the case back to the CIT(A) for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127599 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 04-07-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NALIN. K. NOHARIA; B.K. NOHARIA
• Keywords: TDS; Set aside
• Section: 143(3); 142(1); 143(2)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “ए” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ी आकाश द प जैन, उपा य एवं ी #व$म &संह यादव, लेखा सद+य BEFORE: SHRI. AAKASH DEEP JAIN, VP & SHRI. VIKRAM SINGH YADAV, AM ITA NO. 542/Chd/ 2022 Assessment Year : 2017-18 Haryana Seed Development Corporation Limited Bay No. 3-6, Sector -2, Panchkula- 134112 The Asstt. CIT Circle Panchkula Aayakar Bhawan Sector-2, Panchkula-134112 PAN NO: AAACH3951J Appellant Respondent ! " Assessee by : Shri Nalin. K. Noharia & Shri B.K. Noharia, C.A # ! " Revenue by : Shri Vivek Nangia, CIT, DR $ % ! & Date of Hearing : 11/05/2023 '()* ! & Date of Pronouncement : 12/05/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 17/12/2021 pertaining to Assessment Year 2017-18 wherein the assessee has taken the following grounds of appeal: 1. That on the facts and in the circumstances of the case the learned CIT NFAC Delhi has erred in law and facts in upholding the contention of the learned AO in addition of prior period expenses of Rs. 3,91,23,996/- without any merit and recording its findings. 2. That on the facts and in the circumstances of the case the Learned CIT NFAC Delhi has erred in law and facts in upholding the contention of the learned AO in disallowance of Rs. 19,33,51 under Section 36(1)(iii) on account of interest on capital borrowed for the purpose of acquisition. 3. That on the facts and in the circumstances of the case the learned CIT NFAC Delhi has erred in law in not directing the learned AO in giving TDS credit of Rs. 23,208/- though deducted on 31.03.2016 when the income has been 2 disclosed in the year under consideration as per Section 199 of the Income Tax Act, 1961 under the head from house property. 4. That the appellant reserves the right to add, amend or delete one or more of the grounds of appeal before the appeal is disposed off. 2. Briefly the facts of the case are that the assessee filed its return of income on 07/11/2017 declaring loss of Rs. 5,22,28,636/-. The case of the assessee was selected for complete scrutiny through CASS. Notice under section 143(2) of the Act was issued and served upon the assessee electronically and questionnaire alongwith notice under section 142(1) was issued. After scrutinizing the documents furnished by the assessee, the AO assessed the loss of the assessee at Rs. 1,19,81,680/- under section 143(3) of the Act. 3. Against the said order, the assessee moved an appeal before the Ld. CIT(A) who has since sustained the said additions and against the said findings, the assessee is in appeal before us. 4. During the course of hearing, the Ld. AR submitted that the Ld. CIT(A), NFAC, Delhi has passed an ex-parte order stating that the assessee is not interested in prosecuting the appeal. It was submitted by the ld AR that the assessee is very much interested in prosecuting the present appeal and given that the appeal has been decided ex-parte by the ld CIT(A), the assessee may be allowed one more opportunity to represent its case and file necessary submissions / information before the Ld. CIT(A), NFAC, Delhi. It was stated by the ld AR that the assessee shall not seek any adjournment in the matter except in any exceptional circumstances subject to satisfaction of the ld CIT(A) and shall duly co-operate in timely completion of the proceedings before the ld CIT(A) and 5. Per contra, the Ld. DR has relied on the order of the lower authorities. 3 6. We have heard the rival contentions and perused the material available on the record. We find that the matter has been decided ex-parte qua the assessee without deciding on the merits of the case holding that the assessee is not interested in prosecuting the same. Taking into considerations aforesaid submissions made by the ld AR on behalf of the assessee, we believe that assessee deserves one more opportunity to represent its case and file necessary information / documentation so that the matter may be decided on merits after providing reasonable opportunity to the assessee. Therefore, we set aside the matter to the file of the Ld. CIT(A), NFAC, Delhi to decide the same afresh as per law after providing reasonable opportunity to the assessee. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 12/05/2023 . Sd/- Sd/- आकाश द प जैन #व$म &संह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा य / VICE PRESIDENT लेखा सद+य/ ACCOUNTANT MEMBER AG Date: 12/05/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. - 0 ग 2 3 & 2 3 456 ग7 DR, ITAT, CHANDIGARH 5. ग 6 8 % Guard File ( + $ By order, 9 # Assistant Registrar