SHRI PARASNATH ALLOYS PVT. LTD.,NEW DELHI V. ACIT CIRCLE-2, MUZAFFARNAGAR

ITA 3673/DEL/2023

AI Insights

The case involves Shri Parasnath Alloys Pvt. Ltd., which appealed against the order of the Commissioner of Income-tax (Appeals) concerning the assessment year 2012-13. The appeal was directed against an ex parte order that rejected all grounds raised by the assessee, both legal and on merits. The primary issue arose from a reassessment by the Assessing Officer based on information from the D.G., Central Excise Intelligence, alleging evasion of union excise duty through clandestine sales. The Assessing Officer had initially assessed the income at Rs.2,00,000, which was later revised to Rs.77,13,005 after adding unaccounted sales and estimated profits. The CIT(A) upheld this assessment without a proper hearing, leading to the current appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26202 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARPREET KAUR HANSRA
• Assessee Lawyers: DIVYA
• Keywords: Reassessment proceedings; Validity of assessment
• Section: 147; 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES “F”, NEW DELHI BEFORE : SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No. 3673/Del/2023 Assessment Year: 2012-13 Shri Parasnath Alloys Pvt. Ltd., C/o SBG & Co. Chartered Accountants, 9, Atta-ur-rehman Lane, Civil Lines, Delhi-110054 Vs. DCIT, Circle-2, Muzaffarnagar. PAN : AAHCS3810L (Appellant) (Respondent) ORDER Per Annapurna Gupta, Accountant Member: The present appeal has been filed by the assessee against the order passed by the learned Commissioner of Income-tax (Appeals) [in short “CIT(A)”] u/s. 250(6) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). 2. As is evident from the bare perusal of the order of learned CIT(A), the same has been passed ex parte without the assessee being heard. The CIT(A)’s order notes that few of the notices were issued to the assessee for hearing, in which the assessee sought adjournment against one notice Assessee by Ms. Divya, Advocate Department by Ms. Harpreet Kaur Hansra, Sr. DR Date of hearing 24.03.2025 Date of pronouncement 28-03-2025 ITA No.3673/Del/2023 2 | P a g e while the remaining notices remained un-responded and after affording this opportunity of hearing to the assessee, learned CIT(A) went on to decide the appeal of the assessee ex parte rejecting all the grounds raised by the assessee, both legal and on merits of the case. 3. Facts of the case are that the assessee’s case was reopened by the Assessing Officer on receiving information from the D.G., Central Excise Intelligence that the assessee company had evaded union excise duty on account of clandestine sale of MS ingots, the assessee being noted to be in the business of MS Ingots. Originally, assessment u/s. 143(3) of the Act was completed on the assessee at income of Rs.2,00,000/- against the returned declared income by the assessee in its return of income being nil income. The Assessing Officer subsequently after giving due opportunity of hearing to the assessee in the reassessment proceedings passed assessment order assessing the total income of the assessee at Rs.77,13,005/- after making addition of Rs.39,62,767/- being the gross profit estimated on unaccounted sale of the assessee noted by the Assessing Officer to be to the tune of Rs.12,74,20,166/-. An addition of Rs.1,01,93,613/- was also made for the capital invested by the assessee in carrying out its clandestine operation of sale, which was estimated at 8% of the unaccounted sales based on identical estimation confirmed by the learned CIT(A) in the case of assessee itself for A.Y. 2014-15. ITA No.3673/Del/2023 3 | P a g e 4. Before learned CIT(A) the assessee had raised legal grounds challenging the validity of assessment framed u/s. 147 of the Act and also on merits of the case, all of which were dismissed by the ld. CIT(A) noting no submission or no contention made by the assessee to support the grounds raised before it and finding no infirmity in the order of the Assessing Officer. Noting the fact that the ld. CIT(A) has confirmed the order of the Assessing Officer, without hearing the assessee, in the interest of justice, we consider it fit to restore the matter back to the ld. CIT(A) to decide the appeal after hearing the assessee. Learned counsel for the assessee has undertaken not to seek any further adjournment and to cooperate in the proceedings before learned CIT(A). In view of the same, the appeal is restored back to the file of learned CIT(A) to decide it afresh dealing with all the grounds raised by the assessee after giving due opportunity of hearing to the assessee. 5. Appeal of the assessee is, therefore, allowed for statistical purposes. Order pronounced in the open court on 28-03-2025. Sd/- Sd/- (SATBEER SINGH GODARA) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 28-03-2025 *aks/- "