MADHYA PRADESH ROAD DEVELOPMENT CORPORATION LIMITED,BHOPAL V. DCIT ACIT 2(1), BHOPAL, BHOPAL

ITA 346/IND/2024

AI Insights

The case involves the Madhya Pradesh Road Development Corporation Limited, which appealed against the order of the Commissioner of Income-Tax (Appeals)-NFAC, Delhi. The appeal arose from an assessment order passed by the DCIT/ACIT-2(1), Bhopal under section 143(3) of the Income-tax Act, 1961 for the Assessment Year 2017-18. The primary issue in the appeal was the allowability of deduction under section 80-IA(4) of the Act, which was substantial and required proper adjudication. The CIT(A) had decided the first appeal ex-parte as the assessee did not make any submission, leading to the confirmation of the AO's order. The Tribunal, considering the principles of natural justice and fair play, remanded the matter back to the CIT(A) for a fresh decision, emphasizing the need for the assessee to participate actively in the hearings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34568 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEESUBMITSTHATTHEASSESSEEISA; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIRAM KUMAR YADAV
• Assessee Lawyers: SHRIMANOJMUNSHI; SHRIVIKASGURU; ARS
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

"Page 1 of 3 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.346/Ind/2014 Assessment Year:2017-18 Madhya Pradesh Road Development Corporation Limited 45-A, Arera Hills 46-Bhopal बनाम/ Vs. DCIT/ACIT-2(1) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAGCM5306C Assessee by Shri Manoj Munshi & Shri Vikas Guru, ARs Revenue by Shri Ram Kumar Yadav, CIT-DR Date of Hearing 25.03.2025 Date of Pronouncement 25.03.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 13.02.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 11.12.2019 passed by learned DCIT/ACIT-2(1), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Madhya Pradesh Road Development Corporation Ltd. ITA No. 346/Ind/2024 - AY 2017-18 Page 2 of 3 2. On hearing learned Representatives of both sides, it emerges that the CIT(A) has decided first-appeal ex-parte qua assessee for the reason that the assessee did not make any submission before him despite opportunities given. It is further observed that the CIT(A) has simply confirmed the order passed by AO but the issue in present appeal relates to the allowability of deduction u/s 80-IA(4) which is substantial and requires an apt adjudication by CIT(A). Ld. AR for assessee submits that the assessee is a Govt. undertaking engaged in infrastructure development, strengthening and development of state highways of Madhya Pradesh. He further submits that the assessee is ready and willing to make representation before CIT(A) if an opportunity is given and hence prays that the present matter should be remanded to CIT(A) for an apt adjudication. 3. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent its case before CIT(A) and do not seek unnecessary adjournments. 4. Considering above submissions and also having regard to the principle of natural justice and fair play, we deem it fit to remand this matter back to the file of CIT(A) for adjudication afresh. The CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order in any manner. The assessee is also directed to ensure participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be Madhya Pradesh Road Development Corporation Ltd. ITA No. 346/Ind/2024 - AY 2017-18 Page 3 of 3 at liberty to pass appropriate order in accordance with law. Ordered accordingly. 5. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court immediately after conclusion of hearing and subsequently reduced in writing on the very same day. Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 25/03/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "