HPL India Ltd., New Delhi V. ITO Ward-11(1), New Delhi

ITA 545/DEL/2023

AI Insights

HPL India Ltd. filed an appeal against the order of the CIT(A) - NFAC, which arose from an assessment order passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 for the assessment year 2017-18. The primary contention was that the CIT(A) disposed of the appeal ex-parte, violating the principles of natural justice. The Tribunal noted that the notices for the hearing were served on the email IDs of former employees, leading to a situation where the assessee was not aware of the appeal proceedings. The Tribunal set aside the CIT(A)'s order and remanded the case for fresh adjudication, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121537 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 27-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.545/DEL/2023 Assessment Year 2017-18 HPL India Ltd. 1/20, Asaf Ali Road, New Delhi. Vs. ITO Ward-11(1) New Delhi TAN/PAN: AAACH1967L (Appellant) (Respondent) Appellant by: Ms. Supriya Mehta, CA Respondent by: Shri Vivek Kumar Upadhyay, Sr.DR Date of hearing: 31 07 2023 Date of pronouncement: 31 07 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f th e l d. C o mm i ss i o ne r o f In co me T a x (A pp ea ls)- N a t i on al F ac e l es s A ppe a l C e nt re ( N F A C) , D el h i (‘ C I T (A ) ’ i n sh or t ) d a t e d 02 . 0 2. 2 0 2 3 a ri si ng fr o m t he a s se ss me nt o rd er d a t e d 3 0. 12 . 2 01 9 pa s se d by th e A s s e ssi ng O ffi c e r (A O ) un d e r S e c t i on 1 43 ( 3) o f t he In c o me T a x A c t , 19 61 ( t h e A c t ) c on ce r n in g A Y 20 17- 18 . 2. A s pe r t h e g ro un d s o f a p p ea l , t he a ss e ss e e h a s cha l l e n ge d t he a dd i t i o ns / d i s a l l o w a n c e s c a rr ie d o ut b y t h e A ss e s si ng O f fi ce r an d c on f i r me d b y t he C I T( A ) i n a n e x - p ar t e or d e r. 3. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e s u b m i t t e d at t h e ou t s et t h a t t h e CI T ( A ) h as d i sp ose d o f t he a pp e a l e x - pa rt e i n v i o l a t i o n o f pr i n c ip le s o f na t u ra l j u st ic e a n d I.T.A. No.545/Del/2023 2 t he re fo r e , th e o r d er r e q u ir ed t o b e se t a si d e w i t h a pp ro p r i a te di r e c t i o n s. T he l d . c ou n s el su b m i tt e d t h at as p e r pa r a g r ap h 3 o f t h e fi r st a pp e l l a te o rd e r , ce r t a i n n ot ic e s f or h e a r i n g w e r e i ss ue d bu t se r ve d o n t h e e - ma i l I ds o f t h e e m pl o y e e s o f t h e a ss e s se e , na me l y, S hr i S . C. S h a r ma a n d S h ri H i m a n s hu S r i v a s t a v a . H o w ev er , S h ri S ha r m a h a d e x pi r e d on 0 5. 0 1 . 20 2 2 a nd t h e r e for e , t h e a sse ss e e w a s no t aw a r e o f t he i ss ua n ce o f t h e no t i c e b y t h e fi rst a p p el l a te a ut ho r i t y . A n ot he r e mp l oy e e , S h ri S ri v a s t a va w h o w as a n A G M Ta x at i o n an d In t e r na l A u di t ha d a l so l e ft t he e mp l oy m en t o n 26 . 0 2. 2 0 2 0 . O n t h e l a s t o c c a si on, t h e not i c e w as iss ue d o n 18 . 0 1. 2 0 2 3 . T he a sse ss e e r e sp on de d t o t h e a fo re sa i d n o t i ce an d so u g ht a dj ou rn me nt u p t o 0 9. 0 2 . 2 0 2 3 o n t h e g r o u n d t hat t he c on c e rn e d p er so n h an dl i n g t h e ap pe l l a t e ma t t e r i s una v a i l a b l e a n d sha l l r e s u m e o ff i c e i n t he f ir st w e e k o f F e b r ua r y , 2 0 2 3. I n t hi s ba c kd r o p, t he l d . c ou n se l p o i n t e d o ut t ha t t h e C I T (A ) ha s p ro ce e de d e x- pa rt e w i t h ou t ap p re c i a t i ng t h e fa c tu a l c i r c u m st a nc es a n d c on f i r me d t h e a c t i on o f t he A s s e ss i n g O ffi c e r w it h ou t he a ri ng t h e de fe n se o f t h e a s se sse e. Th e l d. co u ns e l t h u s s u b m itt e d t h a t i n v i e w o f j u s t i f i ab l e c i r c u m s t an ce s f or no n a tt e n da n ce , t he or de r o f t h e CI T ( A ) m us t be se t as i d e t o pr e v e n t t h e m i s ca r r i ag e o f j u s ti c e a n d t he a p p e a l o f t h e a sse ss e e be r e m an de d b ac k for fr es h a d j ud ic a t io n by t h e C I T (A ) i n a c co r d a n c e w i th la w . 4. T he l d. D R fo r t h e R e v en ue di d n o t e x pr e ss a n y op i n io n o n t h e pr o po si t i on ma d e o n be h a l f o f t h e a s s e ss e e b ut h ow ev e r su b m it t e d t ha t i t w a s d u t y o f t he a s se ss e e t o at t e n d t he p r oce e d i n g s be fo r e t he CI T ( A ) d i l i ge nt l y a nd c a nn o t t a k e s he lt e r o f s uc h ple a t o w a rd s n o n a tt e n da n ce . 5. W e h a ve h e ar d t h e ri v a l s ub m i ss i o ns. 6. T he a ss es s e e i n t h e i n st a n t c a s e, t o o u r mi n d, ha s de m o ns t r at e d I.T.A. No.545/Del/2023 3 t he re a s on s fo r n o n a t t e nd a n ce b e f or e th e a u t hor it ie s b e l ow . T h e a ss es se e h a s fi l e d doc u m e n t a r y e v i de nc e s t o su pp or t i ts c ase t h a t i ni ti a l t h re e n o t i ce s c o ul d n ot ge t a t t e n t i o n o f t he a s se s se e du e t o de a th o f t h e e m p l o ye e / j o b l e ft by t h e e m p l o y e e o n w ho se e - m a i l Id s t h e no t i c e s w e r e s e r ve d. O n t h e l a st oc c a si o n , t he a s ses s e e ha s re s po nd e d se e k i n g 10 d a y s a d j o u rn me nt b ut ho w e v e r the CI T( A ) i gn o r e d t h e r eq ue s t a nd d is p o se d o f t he a p p e a l i n th e i nt e rv en in g pe r i o d vi de or de r d a t e d 02 . 0 2. 20 23 . 6. 1 U n de r t h e ci r cu ms t a nc es , w e fi n d t ha t re a so n a b le c a u se e xi s t s i n t h e i n st a n t c a se t o de mo n st r a t e t ha t no n c o mp l i an c e o f t he n o t i ce s by t h e C IT (A ) fo r h e ar in g a r e no t d e l ib er a te . I t i s a l so si mu l t a ne ou sl y s e e n th at as se s se e h as a tt e n de d be f ore t h e A sse ss in g O ff ic e r a n d t he a s s e ss m e n t w a s fr a m e d u nd e r S ec t i on 14 3 (3 ) o f t he A ct . 6. 2 W e a l s o b e a r i n mi nd th a t t he a c t o f n on -a tt e nda n ce i s de t ri me nt t o t he in t er e st o f a ss e s se e it s e l f a n d n o pr u d e n t ma n w o ul d a ct i n su c h m a n n e r o rd in ar i ly . G ui d ed by t h e p ri nc ipl e o f t h e ob j e c ti v i t y, fa i r n e s s a n d j u s t i c e , w e c on si de r i t ju st a n d pr o p e r t o re m it t he m a t t e r b ac k to t he fi l e o f th e C IT (A ) t o d r a w lo g i c a l c on c l us i o n a ft e r g i v in g r e a so na bl e o p p or t u n i t y t o the a ss e s se e o f be i ng h ea rd . 6. 3 W e t h us se t a si de t h e o r d er o f t he CI T ( A ) o n e qu i t a b l e gr ou n d s a s a fa i r o p p or t u n i t y t o t he a s se ss e e w i l l c on du c e to t h e m or e e f fe c t iv e a d m i ni st r a ti o n o f j u s t i c e . 6. 4 T he CI T ( A ) s ha l l a dj u d i c a te t he a p p e a l i n a c c orda n c e w i t h l aw a ft er t a k i n g i n t o c o n si de ra ti o n t he d e f e ns e r a i s e d b y t h e ass e s se e i f a ny. T h e a ss es s e e i s c a u t i o n e d t o do u bt f ul ly c o m p l y w i t h t h e n ot i ce o f h e ar in g. I.T.A. No.545/Del/2023 4 7. I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a l lo w e d fo r st a t i st ic a l pu r p os e s . Order dictated and pronounced in the open Court on 31/07/2023 Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 31/07/2023 Prabhat