KRISHNA JEWELLERS,NEW DELHI V. ACIT CIRCLE 51(1), DELHI

ITA 3575/DEL/2023

AI Insights

The case involves Krishna Jewellers appealing against the order of the Ld. CIT(A)/National Faceless Appeal Centre, which dismissed their appeal against an assessment order that significantly increased their declared income for the Assessment Year 2011-12. The initial assessment was contested due to procedural non-compliance, specifically the non-adjudication of the Assessee's objections as per the Supreme Court's precedent in GKN Driveshafts (India) Ltd. vs. DCIT. The Tribunal found that the CIT(A) had not addressed these contentions and thus remanded the case for a comprehensive re-evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47039 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Other Referred Cases: GKN Driveshafts (India) Ltd. Vs. DCIT (2003) 259 ITR 19 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: MANISH UPNEJA; SANJU
• Keywords: Opportunity of being heard
• Section: 147

Judgement Text

"1 ITA No. 3575 /Del/2023 Krishna Jewellers Vs. ACIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI BENCH ‘C’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 3575/DEL/2023 (A.Y 2011-12) Krishna Jewellers Shop No. T-15, 2608 to 2613, Plot No. 252 & 253 Gurudwara Road, Karol Bagh, New Delhi PAN: AAKFK0671M Vs. ACIT Circle 51(1) New Delhi Appellant Respondent Assessee by Sh. Manish Upneja, CA & Ms.Sanju Kumari, Adv Revenue by Sh. Om Prakash, Sr. DR Date of Hearing 07/04/2025 Date of Pronouncement 09/04/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of the Ld. CIT (A)/ National Faceless Appeal Centre [‘NFAC’ for short] dated 02/11/2023 for Assessment Year 2011-12. 2. Brief facts of the case are that, an assessment order came to be passed on 25/12/2018 u/s 143(3)r.w. Section 147 of the Income Tax Act, 1961 (‘Act’ for short) by computing the income of the Assessee at Rs. 3,06,03,340/- as against declared income of Rs. 19,27,110/-. Aggrieved by the assessment order dated 25/12/2018, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 02/11/2023, dismissed the Appeal filed by the Assessee. As 2 ITA No. 3575 /Del/2023 Krishna Jewellers Vs. ACIT against the order of the Ld. CIT(A), the Assessee preferred the present Appeal. 3. The Ld. Counsel for the Assessee submitted that the Ld. CIT(A) has not adjudicated the specific contention of the Assessee that ‘the objection filed by the Assessee has not been disposed of in compliance with the ratio laid down by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. Vs. DCIT (2003) 259 ITR 19 (SC)’. Thus, sought for remanding the matter to the file of the Ld. CIT(A) for fresh adjudication. 4. Per contra, the Department's Representative relying on the orders of the Lower Authorities sought for dismissal of the Appeal. 5. We have heard both the parties and perused the material available on record. It is seen from the order of the Ld. CIT(A) that though the Assessee has raised specific contention that the ‘objection filed by the Assessee before the A.O. for not disposed off by the A.O. in compliance with the ratio laid down in the case of GKN Driveshafts (India) Ltd. (supra)’, however, the Ld. CIT(A) has not even commented on the said contention raised by the Assessee. Considering the above facts and circumstances, we remand the matter to the file of the Ld. CIT(A) with a direction to adjudicate all the issues including the issue of not disposing the objection of the Assessee in compliance with the 3 ITA No. 3575 /Del/2023 Krishna Jewellers Vs. ACIT ratio laid down in the case of GKN Driveshafts (India) Ltd. (supra) and decide the Appeal afresh in accordance with law after providing opportunity of being heard to the Assessee. 6. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 09th April, 2025 Sd/- Sd/- (NAVEEN CHANDRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 09.04.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "