SEEMAX TECHNOLOGIES PRIVATE LIMITED V. INCOME TAX APPEALLATE TRIBUNAL DELHI -G- BENCH & ORS.

ITA/525/2023

AI Insights

The case involves Seemax Technologies Private Limited, the appellant, who challenged the order of the Income Tax Appellate Tribunal (ITAT) based on the procedures adopted under Section 144 of the Income Tax Act, 1961. The AO had proceeded ex parte due to the appellant's non-compliance with various notices, leading to a best judgment assessment. However, the court noted that the appellant had indeed responded to some notices and had filed returns for previous years, contradicting the AO's claim of non-filing. The court found that the matter required a fresh assessment by the AO, considering the appellant's submissions and compliance with the notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 674502 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 05-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNIL AGARWAL; SHIVANSH PANDYA; UTKARSH TIWARI
• Assessee Lawyers: RACHNA AGRAWAL
• Keywords: Assessment Year 2012-13; Best Judgment Assessment; Ex-parte; Non-filer
• Section: 144; 142(1); 143(2); 68; 271(1)(b)

Judgement Text

"$~17 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 525/2023 SEEMAX TECHNOLOGIES PRIVATE LIMITED ..... Appellant Through: Ms. Rachna Agrawal, Adv. versus INCOME TAX APPELLATE TRIBUNAL & ORS ..... Respondents Through: Mr. Sunil Agarwal, SSC with Mr. Shivansh Pandya, JSC and Mr. Utkarsh Tiwari, Adv. CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV % 05.03.2024 O R D E R 1. The assessee impugns the order dated 10 May 2023 passed by the Income Tax Appellate Tribunal [“ITAT”] and has sought to assail the procedure as adopted by the respondents principally based on the provisions comprised in Section 144 of the Income Tax Act, 1961 [“Act”]. 2. The Assessing Officer [“AO”] had taken the position that since the assessee-appellant had failed to comply with various notices that had been issued, it was thus left with no other option but to proceed ex parte and frame a best judgment assessment in accordance with Section 144 of the Act. The record would reflect that in the Remand Report which had been submitted for the consideration of the Commissioner of Income Tax (Appeals) [“CIT(A)”], the AO had clearly accepted the filing of returns for previous years and thus this was not a case where the assessee was a “non-filer”. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/03/2024 at 11:20:13 3. We note that insofar as the various notices are concerned, in the comments which were provided to the CIT(A), the AO had provided the following details:- S.no. Details of notice issued and response of the assessee Date of issue ofnotice/receivi ng the response Case fixed for (date) Status compliance 1 Notice u/s 143(2) and 142(1) 15-09-2014 22-09-2014 None attended 2 Notice u/s 143(2) issued to the company through directors 23-09-2014 29-09-2014 None attended 3 Mail received from assessee - 26-09-2014 Mail was received from assessee for adjournment 4 142(1) along with questionnaire 27-10-2014 10-11-2014 None attended 5 Assessee has filed submissions 11-11-2014 6 Notice u/s 142(1) issued 15-12-2014 19-12-2014 None attended 7 Assessee attended the proceedings and asked to file ceratin details, the case adjourn for 05-01- 2015 02-01-2015 05-01-2015 None attended 6 Assessee attended the proceedings and filed details partly, case adjourn for 09- 01-2015 for filing of balance details. 06-01-2015 7 09-01-2015 None attended 8 Submissions 15-01-2015 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/03/2024 at 11:20:13 received from assessee 8 Notice u/s 142(1) 12-02-2015 20-02-2015 None attended 9 Show cause notice for levy of penalty u/s 271(1)(b) 26-02-2015 03-03-2015 None attended 10 Penalty for Rs. 10000/- imposed u/s 271(1)(b) 10-03-2015 9 Show cause notice u/s 142(1) issued for making additions. 13-03-2015 Fixed for 17-03- 2015 at 10.30 AM. None attended 10 Assessee has filed submissions 17-03-2015 At 5.00 PM 4. As would be evident from the aforesaid disclosures, the appellant-assessee thus appears to have submitted its responses to the notices issued under Section 143 as also to the show cause notice under Section 142(1), in terms of which various additions were sought to be made. 5. In view of the aforesaid, we are of the considered opinion that the ends of justice would warrant the matter being remitted to the file of the AO for framing an order of assessment afresh and in accordance with law in respect of additions of INR 45,00,000/- made by invoking Sections 68 and 144 of the Act. 6. We accordingly set aside the order of the ITAT dated 10 May 2023 and remit the matter to the AO for taking further steps for concluding the assessment for the year in question, i.e., Assessment Year [“AY”] 2012-13 in respect of the aforesaid addition of INR This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/03/2024 at 11:20:13 45,00,000. We also direct the appellant to provide all requisite postal as well as email particulars to the AO, so as to enable him to place the assessee on due notice. The aforesaid particulars be provided to the AO within a period of two weeks from today, whereafter the assessment may be commenced afresh. 7. The appeal shall consequently stand disposed of on the aforesaid terms. YASHWANT VARMA, J. PURUSHAINDRA KUMAR KAURAV, J. MARCH 5, 2024/neha This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/03/2024 at 11:20:13 "