MAVI EARTH MOVERS P. LTD.,GHAZIABAD V. DCIT CENTRAL CIRCLE, NOIDA

ITA 4537/DEL/2024

AI Insights

The case involves two appeals by Mavi Earth Movers P. Ltd. against the orders of the Commissioner of Income Tax (Appeals), Noida, which were passed ex-parte. The appeals challenge the assessment order and the penalty imposed under sections 144 and 271(1)(c) of the Income Tax Act, respectively, for the assessment year 2016-17. The primary legal issue revolves around the assumption of jurisdiction under section 153C of the Act, which was not supported by the necessary 'satisfaction note' in the assessment or appellate orders. The Tribunal noted the absence of independent findings from the CIT(A) and the reliance on the analysis of seized documents by the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37053 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BALJEET KAUR
• Keywords: Set aside; Document seized; Documents seized
• Section: 144; 271(1)(c); 153C

Judgement Text

"ITA Nos.4536 & 4537/Del/2024 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “E” BENCH: NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER ITA Nos.4536 & 4537/Del/2024 [Assessment Year : 2016-17] Mavi Earth Movers P.Ltd. Plot No.644, Sector-14A Vasundhara, Ghaziabad Uttar Pradesh-201001 PAN-AAGCM3136N vs DCIT Central Circle Noida APPELLANT RESPONDENT Appellant by None Respondent by Ms. Baljeet Kaur, CIT DR Date of Hearing 20.02.2025 Date of Pronouncement 20.02.2025 ORDER PER PRADIP KUMAR KEDIA, AM : The captioned appeals have been filed at the instance of the assessee seeking to assail the First Appellate orders both dated 06.08.2024 passed by Ld. Commissioner of Income Tax (A)-3, Noida [“CIT(A)”] under s. 250(6) of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 30.12.2017 passed under s. 144 of the Act pertaining to assessment year 2016-17. 2. When the matter was called for hearing, none appeared for the assessee. The matter was accordingly proceeded ex-parte. ITA No.4536/Del/2024 [Assessment Year : 2016-17] 3. The Ld.CIT DR for the Revenue pointed out that the assessee neither attended before the AO nor before the CIT(A) and both orders passed ex-parte. 4. It transpired in the course of hearing that ‘satisfaction’ purportedly recorded under s. 153C which is the foundation for assumption of jurisdiction under s. 153C of the Act is not available either in the assessment order or in ITA Nos.4536 & 4537/Del/2024 Page | 2 the first appellate order. The assessee as per the grounds of appeal has inter- alia challenged assumption of jurisdiction under s. 153C of the Act. In the absence of contents of the ‘Satisfaction Note’ made available, it is not possible to adjudicate the issue either way. It is further noted that CIT(A) has also relied upon the analysis of the seized documents by the AO and there are no independent findings of the CIT(A). 5. In the totality of the facts, we consider it expedient to set aside the ex-parte order of the CIT(A) and restore the matter back to the file of CIT(A) for fresh adjudication of the appeal in accordance with law after giving reasonable opportunity to the assessee. The CIT(A) shall pass a speaking order on the grievances raised by the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No.4537/Del/2024 [Assessment Year : 2016-17] 7. The captioned appeal concerns challenge to penalty imposed under s. 271(1)(c) of the Act. The penalty imposed under s. 271(1)(c) being consequential and dependent upon the outcome of the quantum proceedings in ITA No.4536/Del/2024 [Assessment Year : 2016-17], the present appeal is also restored to the file of CIT(A). The CIT(A) shall pass a speaking order in accordance with law after giving reasonable opportunity to the assessee. 8. In the result, the appeal of the assessee is allowed for statistical purposes. 9. In the combined result, captioned appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on 20th February, 2025. Sd/- Sd/- (YOGESH KUMAR US) JUDICIAL MEMBER *Amit Kumar, Sr.P.S* (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ITA Nos.4536 & 4537/Del/2024 Page | 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "