POTENT FOODS PRIVATE LIMITED,. V. ITO WARD 2(1), FBD, .

ITA 4156/DEL/2024

AI Insights

Potent Foods Pvt. Ltd. filed appeals against the orders of the learned Commissioner of Income Tax (Appeals) and the National Faceless Assessment Centre, which involved additions to their income and penalties for the Assessment Year 2018-19. The company reported minimal income and significant share capital receipts, which were scrutinized and resulted in substantial additions to their income. The appeals were initially dismissed ex parte by the CIT(A), leading to the current appeals before the ITAT. The ITAT decided to restore the matter to the AO, emphasizing the need for a fair hearing and consideration of the additional evidence provided by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23643 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APPELLANT ASSESSEE; HARPREET KAUR HANSRA
• Assessee Lawyers: SUMANGLA SAXENA
• Keywords: Additional evidence
• Section: 144; 142(1); 143(2)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’ NEW DELHI BEFORE SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA Nos. 4156 & 4157/Del/2024 (Assessment Year : 2018-19) Potent Foods Pvt. Ltd. H-35, 1st Floor, Jangpura, Extension, New Delhi-110 014 PAN : AAGCP 6222 N Vs. ITO Ward – 2(1), Faridabad (Appellant) (Respondent) Assessee by Ms. Sumangla Saxena, Adv. and Shri Shyam Sundar, Adv. Respondent by Ms. Harpreet Kaur Hansra, Sr. D.R. Date of Hearing 22.01.2025 Date of Pronouncement 29.01.2025 O R D E R PER VIMAL KUMAR, JM: 1. Appeal Nos. 4157 & 4156/Del/2024 for Assessment Year 2018-19 filed by assessee are against separate orders dated 07.08.2024 of Learned Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] arising out of assessment order dated 31.05.2021 and penalty order dated 09.01.2022 of the National Faceless Assessment Centre, Delhi -2- ITA Nos.4156 & 4157/Del/2024 Potent Foods Pvt. Ltd. vs. ITO A.Y. 2018-19 (hereinafter referred as ‘Ld. AO’) under section 144 r.w.s 144B and under section 271AAC(1) of the Income Tax Act, 1961 respectively. 2. Both the appeals involve similar facts and issues. For facility of convenience, both were heard together and are being disposed of by a common order. 3. Brief facts of the cases are that appellant/assessee filed return of income for A.Y. 2018-19 on 05.10.2018 on income of Rs.16,610/-. The case was selected for compulsory scrutiny. Notice under section 143(2) of the Act was issued on 28.09.2019. Notice under section 142(1) along with questionnaire was issued on 21.01.2021, 04.03.2021 and 30.03.2021. The profile of company revealed that assessee-company is not engaged in any business activity. The company had shown net income of Rs.16,607/- against receipts under head interest at Rs.4,13,311/-. The assessee company had shown expenditure on account of salaries/wages, fuel and other expenses etc. The assessee-company received Share Capital including securities premium amounting to Rs.1,47,93,750/- as per the return of income filed. On completion of assessment proceedings, additions of Rs.1,47,93,750/- and Rs.8,50,000/- were made by learned AO vide assessment order dated 31.05.2021. Learned AO passed penalty order dated 09.01.2022. -3- ITA Nos.4156 & 4157/Del/2024 Potent Foods Pvt. Ltd. vs. ITO A.Y. 2018-19 4. Appellant/assessee-company preferred separate appeals before the learned CIT(A) against the orders dated 31.05.2021 and 09.01.2022 by learned AO for A.Y. 2018-19, which were dismissed ex parte vide separate orders dated 07.08.2024. 5. Being aggrieved, appellant/assessee preferred present seperate appeals. 6. Learned Authorized Representative for appellant/assessee submitted that learned CIT(A) erred in deciding the appeals ex parte without providing reasonable and sufficient opportunity to the assessee. Learned CIT(A) failed to appreciate that due to COVID- 2019 and on account of death of Shri Kesari Chand Maloo details could not be filed during the appellate stage. Learned CIT(A) erred in upholding the addition of Rs.1,47,93,750/- and Rs.8,50,000/- as well as penalty order. Application for admission of additional evidence under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963 was preferred. The list of documents was placed in paper book from pages 1 to 351. The appeals may be restored to the file of learned AO. 7. Learned Departmental Representative for the Department of Revenue relied on the orders of Departmental Authorities. -4- ITA Nos.4156 & 4157/Del/2024 Potent Foods Pvt. Ltd. vs. ITO A.Y. 2018-19 8. From examination of record in light of aforesaid rival contentions, it is crystal clear that learned CIT(A) vide separate orders dated 07.08.2024 observed that despite ample opportunities, the appellant has not submitted any evidence/details to substantiate its grounds of appeal. In the appeals appellant/assessee has contended that due to COVID-2019 and prolonged illness and death of Shri Kesari Chand Maloo, the details could not be filed. The appellant/assessee have been submitted as additional evidences also. In view of the above material facts and well settled principle of law, in interest of justice, it is considered expedient to restore the matter to the file of the learned AO for fresh decision in accordance with law. 9. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on this day 29th January, 2025 Sd/- Sd/- (SHAMIM YAHYA) (VIMAL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.01.2025 Pr i ti Y adav, S r. PS * -5- ITA Nos.4156 & 4157/Del/2024 Potent Foods Pvt. Ltd. vs. ITO A.Y. 2018-19 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "