Parsvnath Power Projects P.Ltd, Jaipur V. ACIT, Circle-19(2), New Delhi

ITA 6436/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6584 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2016-2017
• Appeal Filed On: 30-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “F” : DELHI BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SHRI N.K. CHOUDHARY, JUDICIAL MEMBER ITA.No.6436/Del./2019 Assessment Year 2016-2017 M/s. Parsvnath Power Projects P. Ltd., Jaipur. PIN 302 006 PAN AAECP6305Q C/o. Jain & Co. 228, City Centre, S.C. Road, Jaipur. [vs. The ACIT, Circle – 19 (2) Delhi. (Appellant) (Respondent) For Assessee : Sh Anunav Kumar, Advocate For Revenue : Sh Toufel Tahir, Sr. DR Date of Hearing : 14.06.2022 Date of Pronouncement : 16.06.2022 ORDER PER ANIL CHATURVEDI, A.M. This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-7, New Delhi, dated 21.05.2019 relating to the A.Y. 2016-2017. 2. The relevant facts as culled from the material on records are as under : 2 ITA.No.6436/Del./2019 M/s. Parsvnath Power Projects (P) Ltd., Jaipur. 3. The assessee is a company dealing in consultancy services regarding power trading through Indian Energy Exchange during the year under consideration. It filed its return of income for the A.Y. 2016-17 on 29.09.2016 declaring total income of Rs.1,64,46,450/-. The case of the assessee was selected for limited scrutiny and thereafter in the assessment order passed under section 143(3) order dated 08.12.2018 the total income of the assessee was determined at Rs.1,86,69,035/- as against the returned income of Rs.1,64,46,450/-. 3.1. Aggrieved by the Order of the A.O. assessee carried the matter in appeal before the Ld. CIT(A) who vide order dated 08.12.2018 in Appeal No.10171/166/CIT(A)- 7/Del./2018-19 dismissed the appeal of the assessee. 4. Aggrieved by the order of Ld. CIT(A), assessee is now in appeal before the Tribunal. Though various grounds are raised by the assessee, but, all grounds relates to the addition of Rs.22,22,585/- made by the A.O. under section 3 ITA.No.6436/Del./2019 M/s. Parsvnath Power Projects (P) Ltd., Jaipur. 36(1)(iii) of the I.T. Act, 1961, which was confirmed by the Ld. CIT(A) in the ex parte order passed by him. 5. The Learned Counsel for the Assessee submitted that in first appeal before the Ld. CIT(A), the Ld. CIT(A) has not passed any speaking order in the matter in issue and the Ld. CIT(A) has not given proper opportunity of being heard while confirming the disallowance made by the A.O and passed the impugned ex parte order . Thus, the Ld. CIT(A) violated the principles of natural justice by not affording an opportunity of being heard to the assessee. He, therefore, prayed that the orders of the lower authorities be set aside and that the assessee be granted one more opportunity to plead his case before the Ld. CIT(A) to meet the ends of justice. 6. On the other hand, the Ld. D.R. relied on the orders of the lower authorities. 7. We have heard the rival submissions and perused the material on record. The perusal of Ld. CIT(A) order 4 ITA.No.6436/Del./2019 M/s. Parsvnath Power Projects (P) Ltd., Jaipur. reveals that Ld. CIT(A) has passed an ex parte order without deciding the issue on merits. Sub Section (6) of Section 250 of I. T. Act mandate the CIT(A) to state the points in dispute and thereafter assign the reasons in support of his conclusion. We are of the view that by dismissing the appeal without considering the issue on merits, Learned CIT(A) has failed to follow the mandate required in Sub Section (6) of Section 250 of the Act. Further it is also a well settled principle of natural justice that sufficient opportunity of hearing should be offered to the parties and no parties should be condemned unheard. In view of these facts, we set aside the impugned order of Ld. CIT(A) dated 21.05.2019 and restore the issue to the file of Ld. CIT(A) for re-adjudication of the issues after granting sufficient opportunity of hearing to the assessee. Assessee is also directed to furnish the details called for by the authorities. In view of our decision to restore the issue to Ld. CIT(A), we are not adjudicating on merits the ground raised by the assessee. Thus the ground of assessee is allowed for statistical purposes. 5 ITA.No.6436/Del./2019 M/s. Parsvnath Power Projects (P) Ltd., Jaipur. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 16.06.2022. Sd/- Sd/- [N.K. CHOUDHARY] [ANIL CHATURVEDI] JUDICIAL MEMBER ACCOUNTANT MEMBER Delhi, Dated 16 th June, 2022 VBP/- Copy to 1. The appellant 2. The respondent 3. Ld. CIT(A) concerned 4. CIT concerned 5. DR ITAT “F” Bench, Delhi 6. Guard File //By Order// Assistant Registrar, ITAT, Delhi Benches, Delhi.