STG Lifecare Limited, Delhi V. ACIT, Circle-24(2), New Delhi

ITA 602/DEL/2020

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0427 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Appeal Filed On: 30-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3); 251

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘G’ : NEW DELHI) SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER and SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER ITA No.602/Del./2020 (ASSESSMENT YEAR : 2016-17) STG Life care Limited, vs. ACIT, Circle 24 (2), 108, Himalaya Place, New Delhi. 65, Vijay Block, Laxmi Nagar, East Delhi, Delhi – 110 092. (PAN : AAACS3551M) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri Abhishek Kumar, Sr. DR Date of Hearing : 05.07.2022 Date of Order : 05.07.2022 ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER : This appeal filed by the assessee is directed against the order of the ld. CIT (Appeals)-8, New Delhi dated 03.12.2019 pertaining to Assessment Year 2016-17. 2. The grounds of appeal taken by the assessee in this appeal are as under :- “1) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO u/s 143(3) without appreciating that the additions of Rs.24,02,228/- on account of Sundry Balances Written off and ITA No.602/Del./2020 2 Rs.114,01,171/- on account of damages on account of PF to returned income of the assessee is bad in law, non-jurisdictional and hence the impugned assessment is void-ab-initio and is liable to quashed. 2) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO u/s 143(3) without appreciating that the Ld AO has exceeded its jurisdiction, as the case was selected for "Limited Scrutiny" and the additions made were never the part of "Limited Scrutiny". 3) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO u/s 143(3) without appreciating that all the additions were made are null and void because no co-relation to corresponding material 1 information submitted during the assessment proceedings. None of the replies 1 submissions 1 information has been considered by the Ld AO and kept away / brushed away the genuine claim of the assessee. Violation of Audi Altrem partem (ie Principles of Natural Justice) 4) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO u/s 143(3) without appreciating that That the Assessment order of Learned Assessing Officer is bad in Law and facts as it is prejudice to the interests of the Assessee due to lack of natural justice or violation of principles natural justice.” 3. Consequent upon assessment order dated 16.12.2018 framed in this case, where addition was made for an amount of Rs.1,38,02,399/-. Assessee filed appeal before the ld. CIT (A). Ld. CIT (A) noted that within a span of about 1&1/2 month, 4 emails were sent to the assessee. But there was no response. There is no mention of any notice being served upon the assessee. Ld. CIT (A) dismissed the appeal for non- ITA No.602/Del./2020 3 prosecution. After doing so, he further also held that on merits also, he is confirming the order of AO as there was no representation before him. 4. Against this order, assessee is in appeal before us. 5. We have heard ld. DR of the Revenue and perused the record. It transpires that on the basis of claim of service of notice through emails, ld. CIT(A) has dismissed the appeal for non-prosecution and held that due to non-prosecution, he was dismissing the appeal on merits also. We note that ld. CIT (A) has no power to dismiss the appeal for non- prosecution u/s 251 of the Income-tax Act, 1961 (for short ‘the Act’). Further, the service of notice on assessee is not on firm grounds. Hence we set aside the order of the ld. CIT (A) and remit the issue back to ld. CIT (A) to decide afresh after providing an opportunity of being heard to the assessee. 6. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on this 5 th day of July, 2022 after the conclusion of the hearing. SD/- SD/- (CHANDRA MOHAN GARG) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated the 5 TH day of July, 2022 TS ITA No.602/Del./2020 4 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT (A)-8, New Delhi. 5.CIT(ITAT), New Delhi. AR, ITAT NEW DELHI.