Sahni Pipes P.Ltd, New Delhi V. ACIT, Circle-22(1), New Delhi

ITA 7573/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3235 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 29-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PUSHPARAJ KUMAR
• Section: 143(3); 201; 144

Judgement Text

IN TH E INCOME TAX APPELLATE TRIBUNAL DE LHI BENCHES : G : NEW DELHI (THROUGH VIRTUAL COURT HEARING) BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 7573 /D EL /201 8 ASSESSMENT YEAR : 20 14 - 15 SAHNI PIPES P. LTD., D - 83 5, NEW FRIENDS COLONY, NEW DELHI. PAN : A ALCS7563G VS A CIT, CIRCLE - 22( 1 ) , NEW DELHI. (APP ELL A NT ) (RESPONDENT) A SSESSEE BY : SHRI PUSHPARAJ KUMAR, CA RE VENUE BY : SHRI RAJESH KUMAR, SR. DR DATE OF HEARING : 1 7 . 1 1 . 20 20 DATE OF PRONOUNCEMENT : 17 . 1 1 . 20 20 ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 19 TH SEPTEMBER, 201 8 OF THE CIT(A), NEW DELHI, RELATING TO ASSESSMENT YEAR 20 14 - 15 . 2. THE ASSESSEE IN I TS VARIOUS GROUNDS OF APPEAL HAS CHALLENGED THE EX PARTE ORDER OF THE CIT(A) SUSTAINING VARIOUS ADDITIONS MADE BY THE AO. 3. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A COMPANY AND FILED ITS RETURN OF INCOME ON 28 TH JUNE, 2015 DECLARING LOSS O F RS.1,20,92,632/ - . THE AO ITA NO. 7573 / D EL /201 8 2 COMPLETED THE ASSESSMENT U/S 143(3) R.W. SECTION 144 OF THE ACT AT A TOTAL INCOME OF RS.1,93,42,963/ - WHEREIN HE MADE ADDITION OF RS.3,14,35,595/ - U/S 68 OF THE ACT. IN APPEAL, THE LD.CIT(A) DISMISSED THE APPEAL ON ACCOUNT OF N ON - APPEARANCE OF THE ASSESSEE BY RELYING ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF B.N. BHATTACHARJEE AND ANR., 118 ITR 461 AND THE DECISION OF THE HON BLE BOMBAY HIGH COURT IN THE CASE OF CHEMIPOL VS. UNION OF INDIA IN EXCISE APPEAL NO.6 2 OF 2009 . 4. AGGRIEVED WITH SUCH ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES AND PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE FIND, DUE TO NON - APPEARANCE BY THE ASSE SSEE BEFORE THE AO, HE PASSED THE ORDER U/S 143(3) R.W. SECTION 144 OF THE ACT, DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS.1,93,42,963/ - AS AGAINST LOSS OF RS.1,20,92,632/ - WHEREIN HE MADE ADDITION OF RS.3,14,35,595/ - U/S 68 OF THE IT ACT. WE FIND , THE LD.CIT(A) DISMISSED THE APPEAL DUE TO NON - APPEARANCE BY THE ASSESSEE BEFORE HIM BY RELYING ON THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF B.N. BHATTACHARJEE AND ANR. (SUPRA) AND THE DECISION OF THE HON BLE BOMBAY HIGH COURT IN THE CASE O F CHEMIPOL VS. UNION OF INDIA (SUPRA). HOWEVER, HE HAS NOT DECIDED THE APPEAL ON MERIT WHICH HE IS REQUIRED TO DO. AS PER THE PROVISIONS OF THE INCOME - TAX ACT, THE LD.CIT(A) HAS TO DECIDE THE APPEAL ON MERIT AND CANNOT DISMISS THE APPEAL ON ACCOUNT OF NO N - PROSECUTION. CONSIDERING THE ITA NO. 7573 / D EL /201 8 3 TOTALITY OF THE FACTS OF THE CASE AND IN THE INTEREST OF JUSTICE, WE DEEM IT PROPER TO RESTORE THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO GRANT ONE FINAL OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE AND DECIDE THE ISSUE AS PER FACT AND LAW. THE ASSESSEE IS ALSO HEREBY DIRECTED TO APPEAR BEFORE THE LD. CIT(A) AND SUBSTANTIATE ITS CASE , FAILING WHICH THE LD.CIT(A) IS AT LIBERTY TO PASS APPROPRIATE ORDER AS PER LAW. WE HOLD AND DIRECT ACCORDINGLY. THE GRO UNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. DE CISION WAS PRONOUNCED ON CONCLUSION OF VIRTUAL HEARING ON 1 7 TH NOVEMBER, 2020 ITSELF . SD/ - SD/ - ( SUC HITRA KAMBLE ) ( R. K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 7 TH NOVEMBER, 2020. DK COPY FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI