RKJ ALLOYS & CONDUCTORS PVT. LTD.,NEW DELHI V. ITO WARD 20(3), NEW DELHI

ITA 3948/DEL/2024

AI Insights

The case involves RKJ Alloys & Conductors Pvt. Ltd., the appellant, contesting an order from the National Faceless Appeal Centre (NFAC/CIT(A)), which confirmed an addition of Rs. 2,43,75,000 to the assessee's income for the Assessment Year 2012-13. This addition was initially made by the Income Tax Officer under sections 143(3) r.w.s. 147 of the Income Tax Act, 1961, treating the amount received from Reliance Infracon as unexplained. The appellant argued that the CIT(A) erred in confirming the Assessing Officer's decision without providing a proper opportunity of hearing. The Tribunal found that the CIT(A) had not adequately addressed the issue of notice service and the opportunity to be heard, leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298904 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Other Referred Cases: Green Bio Tech vs ITO (2024) 159 taxmann.com 1573
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, \u000eद\u0010ली पीठ ‘एफ’, \u0014यायपीठ, \u000eद\u0010ली \u0016ी िवकास अव\bथी, याियक सद\bय एवं एवं एवं एवं \u0016ी मीठा लाल मीना, लेखा सद य, क े सम IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES ‘F’ DELHI BEFORE, SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER आयकर अपील सं आयकर अपील सं आयकर अपील सं आयकर अपील सं. / . / . / . / ITA No.3948/DEL/2024 िनधा\"रण वष\" िनधा\"रण वष\" िनधा\"रण वष\" िनधा\"रण वष\" / / / /Assessment Year: 2012-13 RKJ Alloys & Conductors Pvt. Ltd. C-483, Yojna Vihar, Delhi-110092 Vs. Income Tax Officer, Ward-20(3), New Delhi (िनधा\"$रती / / / /Assessee) (राज व / / / /Revenue) P.A. NUMBER : AAECR3994B (िनधा\"$रती क' ओर से/Assessee by NONE राज व क' ओर से / Revenue by: Ms. Harpreet Kaur Hansra, Sr.DR सुनवाई क' तार+ख / / / / Date of Hearing : 07.01.2025 घोषणा क' तार+ख / Date of Pronouncement : 07.01.2025 ORDER PER Dr. MITHA LAL MEENA, AM, The captioned appeal is filed by the assessee against the order dated 24.07.2024 of the National Faceless Appeal Centre (hereinafter referred to as ‘the ld. NFAC/CIT(A)), Delhi which is arising out of assessment order dated 15.12.2019 passed by the Income Tax Officer, Ward-20(3), New Delhi (in short ‘the AO) under section 143(3) r.w.s. 147 2 ITA No.3948/Del/2024 of the Income Tax Act, 1961 (in short, ‘the Act’) pertains to Assessment Year-2012-13. 2. The assessee has raised following grounds of appeal:- “1. On the facts and in the circumstances of the case and in law the NFAC [CIT(A]). Delhi erred in confirming the following actions of the Assessing Officer - 1. dismissing appeal against order passed u/s 143(3) r.w.s. 147 of the I.T. Act, 1961 without providing due, proper or adequate opportunity of hearing; 2. confirming the addition in a sum of Rs. 2,43,75,000/- made to the returned income on account of amount received from Reliance Infracon treating the same as unexplained; The above actions being arbitrary, fallacious, unwarranted and illegal must be quashed with directions for appropriate relief.” 3. None appeared on behalf of the assessee. Taking into consideration the issue of providing adequate opportunity of hearing, we have decided to hear the Ld. DR and adjudicate the appeal. 4. After hearing the Ld. DR and perusal of record, we find that the ld. CIT(A) has mentioned the factum of issue of notices, but he did not mention the factum of service of the said notices so as to enable it to file the reply in support of issues raised in the grounds with supporting documents. Further, the ld. CIT(A) has summarily mentioned that the material available on record is seen by the Assessing Officer and there was no material before him to deviate from the order of the Assessing Officer while confirming the addition of income amounting to Rs.2,43,62,210/-. 3 ITA No.3948/Del/2024 4. We find and that the ld. CIT(A) has passed a non-speaking order without allowing proper opportunity of being heard to the appellant assessee in view of principle of natural justice and without appreciating merits of the case, we deem it appropriate that the matter is liable to be remanded back to the file of the Ld. NFAC/CIT(A). 5. In the case of Green Bio Tech vs ITO (2024) 159 taxmann.com 1573), the Hyderabad Bench ‘B’ of the Tribunal, observed that where due to nonappearance before the ld. CIT(A), the appeal of the assessee against the order of the Assessing Officer disallowing of sales promotion expenses was dismissed and the assessee submitted that given opportunity, it was in a position to substantiate its case by producing relevant details. In the interest of justice, the Tribunal has remanded back to the file of the Ld. CIT(A) with a direction to grant final opportunity to substantiate its claim by filing necessary documents and decide the issue as per law. 6. Considering the peculiar facts of the case and in the interest of justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(A) with a direction to grant proper opportunity to the assessee with service of notice to substantiate its case to file necessary documents in support of issues in grounds of appeal and adjudicate the appeal as per law. The assessee is also directed to participate in appeal proceedings before the Ld. CIT(A) without seeking adjournment under any pretext. Accordingly, the matter is remanded back to the file of the Ld. CIT(A) for fresh adjudication as per law. 4 ITA No.3948/Del/2024 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 7th January, 2025. Sd/- Sd/- [VIKAS AWASTHY] [Dr. MITHA LAL MEENA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 07.01.2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ आदेश क' /ितिल0प अ1े0षत आदेश क' /ितिल0प अ1े0षत आदेश क' /ितिल0प अ1े0षत आदेश क' /ितिल0प अ1े0षत/Copy of the Order forwarded to : 1. अपीलाथ3 / The Appellant 2. /4यथ3 / The Respondent. 3. आयकर आयु5(अपील) / The CIT(A)- 4. आयकर आयु5 / CIT 5. 0वभागीय /ितिनिध, आयकर अपीलीय अिधकरण, \u000eद\u0010ली / DR, ITAT, Delhi, 6. गाड\" फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, उप उप उप उप/ / / /सहायक पंजीकार सहायक पंजीकार सहायक पंजीकार सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, , , , \u000eद\u0010ली \u000eद\u0010ली \u000eद\u0010ली \u000eद\u0010ली / ITAT, DELHI "