S K CONTRACTS PRIVATE LIMITED,DELHI V. ITO,WARD-22(1), DELHI

ITA 4504/DEL/2024

AI Insights

The case involves S K Contracts Pvt. Ltd., which filed appeals against the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment years 2012-13, 2015-16, 2016-17, and 2017-18. The appeals were initially dismissed ex-parte by the CIT(A) due to the assessee's failure to produce supporting documents or comply with notices. The Income Tax Appellate Tribunal (ITAT) in Delhi, after hearing both parties, decided to restore the appeals to the A.O. for a fresh assessment, imposing a nominal cost on the assessee as a condition for the re-assessment. The Tribunal's decision highlights the balance between procedural compliance and the substantive right to a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 42132 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: DEEPAK UPADHAYAY
• Keywords: Opportunity of being heard
• Section: 147; 144

Judgement Text

" 1 ITA Nos. 4503, 4504, 4505 & 4506/Del/2024 S. K. Contracts Pvt. Ltd. Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘G’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 4503/Del/2024 (A.Y. 2012-13) ITA No. 4504/Del/2024 (A.Y. 2015-16) ITA No. 4505/Del/2024 (A.Y. 2016-17) ITA No. 4506/Del/2024 (A.Y. 2017-18) S K Contracts Private Limited B-12, Greater Kailsah Enclave-1, New Delhi PAN: AAACS9614F Vs. ITO Ward-22(1) New Delhi Appellant Respondent Assessee by Sh. Deepak Upadhayay, CA Revenue by Sh. Sahil Kumar Bansal, Sr. DR Date of Hearing 24/02/2025 Date of Pronouncement 27/02/2025 ORDER PER YOGESH KUMAR, U.S. JM: All the above four appeals are filed by the Assessee for Assessment Years 2012-13, 2015-16, 2016-17 and 2017-18 by challenging the orders of the CIT(A) dated 31/07/2024. 2. At the outset the Ld. Assessee's Representative submitted that both the assessment orders and the orders of the Ld. CIT(A) have been passed 2 ITA Nos. 4503, 4504, 4505 & 4506/Del/2024 S. K. Contracts Pvt. Ltd. Vs. ITO ex-parte without providing an opportunity of being heard to the Assessee.Further contented that even the Ld. CIT(A) has failed to adjudicate the issuesinvolved in the Appeals on its merits. Therefore, submitted that the issues involved in the captionedappeals may be restored to the file of the A.O. 3. Per contra, the Ld. Departmental Representative vehemently objected for the argumentadvanced by the Ld. Assessee's Representative and submittedthat even after issuing several notices, the Assessee failed to appear before the authorities, therefore, the Assessee deserves no lenience by the Tribunal, thus, sought for dismissing the Appeal. 4. We have heard both the parties and perused the material available on record. As could be verified from the assessment orders, all the assessment orders have been passed ex-parte u/s 147 r.w. Section 144 of the Act. Even before the Ld. CIT(A), the Assessee has not complied with the notices issued by the Ld. CIT(A), which ultimately resulted in dismissal of the Appeals filed by the Assessee.However, the Ld. CIT(A) has dismissed the Appeals ex-parte on the ground that the Assessee failed to produce any supporting documents in support of itsgrounds of Appeal. Considering the above facts and circumstances, and also 3 ITA Nos. 4503, 4504, 4505 & 4506/Del/2024 S. K. Contracts Pvt. Ltd. Vs. ITO showing displeasure on the conduct of the Assessee, with an intention to render substantial justice, we deem it fit to provide an opportunity of heard to the Assessee, to produce the documents before the A.O. and to participate in the assessment proceedings by imposing the nominal cost. Accordingly, the issues involved in the presetAppealsare restore to the file of the A.O. in all the above Appeals subject to the Assessee depositing a total sum of Rs. 4,000/- (Rs. 1000/- in each Appeal) to Prime Minister National Relief Fund. Accordingly, the Appeals of the Assessee are partly allowed with a direction to the A.O. to frame de-novo assessment in accordance with law after providing opportunity of being heard to the Assessee. 5. In the result, Appeal of the Assessee is allowed. Order pronounced in the open court on 27th February, 2025 Sd/- Sd/- (BRAJESH KUMAR SINGH) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 27.02.2025 R.N, Sr.P.S* 4 ITA Nos. 4503, 4504, 4505 & 4506/Del/2024 S. K. Contracts Pvt. Ltd. Vs. ITO Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "