SIDHBALI CORPORATION,KOTDWAR V. INCOME TAX OFFICER, KOTDWAR

ITA 97/DDN/2025

AI Insights

The case involves Sidhbali Corporation appealing against the order of the Commissioner of Income Tax (Appeals), which had dismissed their earlier appeal regarding an assessment order that significantly increased their assessed income for the year 2016-17. The Assessee argued that they were not properly served with the notices, leading to an ex-parte decision, and thus they could not file their appeal in a timely manner. The Department opposed the appeal on the grounds of inordinate delay. The Tribunal found merit in the Assessee's arguments about the lack of proper notice and the principles of natural justice, leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717440 (ITAT-DEHRADUN)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 26-05-2025
• Other Referred Cases: Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. S. RANA
• Assessee Lawyers: B. R. GARG
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 154

Judgement Text

" 1 ITA No. 97/DDN/2025 Sidhbali Corporation IN THE INCOME TAX APPELLATE TRIBUNAL DELHI [ DELHI BENCH : “SMC”/ DEHRADUN] BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER I.T.A. No. 97/DDN/2025 (A.Y 2016-17) Sidhbali Corporation Old Sidhbali Marg, Kotdwear, Pauri, Uttarakhand PAN: ACKFS7264E Vs. Income Tax Officer Income Tax Office,Nazibabad Road, Kotdwar, Pauri, Uttarakhand Appellant Respondent Assessee by Sh. B. R. Garg,Adv Revenue by Sh. A. S. Rana, Sr. DR Date of Hearing 08/08/2025 Date of Pronouncement 13/08/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)/ADDL/JCIT(A)- Gurugram dated 31/01/2024 (‘Ld. CIT(A) for short), pertaining to the Assessment Year 2016-17. 2. There is a delay of 421 days in filing the present Appeal. The Assessee filed an affidavit contending that the notices issued by the Department have not been served on the Assessee and the same have been served on the e-mail id which is not belongs to the Assessee. As the order impugned being ex-parte, the Assessee could not file the Appeal on time. Thereafter, the Assessee has also filed application u/s 154 of the Act and was pursuing the said application. Therefore, Printed from counselvise.com 2 ITA No. 97/DDN/2025 Sidhbali Corporation there was a delay in filing the present Appeal, accordingly, sought for condoning the delay. 3. Per contra, the Ld. Department's Representative submitted that, there is no sufficient cause to condone the inordinate delay, thus sought for dismissal of the present Appeal on delay in latches. 4. We have heard both the parties and perused the material available on record on the issue of delay in filing the present Appeal. The Assessee contended that the notices issued by the Department have not been served on the Assessee and the same have been served on the e-mail id which is not belongs to the Assessee. As the order impugned being ex-parte, the Assessee could not file the Appeal on time. Thereafter, the Assessee has also filed application u/s 154 of the Act and was pursuing the said application, therefore, there was a delay in filing the present Appeal. 5. The Hon'ble Supreme Court time and again clarified that the delay in filing the Appeal with sufficient cause should be looked into in a liberal way and shall condone the delay. In the landmark decision in Collector, Land & Acquisition vs. Mst. Katiji& Others (1987) 167 ITR 471 (SC), the Hon'ble Supreme Court settled the law that the delay when supported by justifiable reasons, must make way for the cause Printed from counselvise.com 3 ITA No. 97/DDN/2025 Sidhbali Corporation of substantial justice. Considering the above facts and circumstances, we condone the delay of 421 days in filing the present Appeal. 6. Brief facts of the case are that, an assessment order came to be passed on 30/12/2018 by computing the income of the Assessee at Rs. 14,65,180/-, as against the returned income of Rs. 2,47,120/- by making certain addition. Aggrieved by the assessment order dated 30/12/2018, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 31/01/2024, dismissed the Appeal filed by the Assessee. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal. 7. The Ld. Counsel for the Assessee vehemently submitted that the Ld. CIT(A) has provided no opportunity of being heard to the Assessee and in violation of principals of natural justice, dismissed the appeal of the Assessee. 8. Per contra, the Ld. Ld. Departmental Representative relying on the orders of the Ld. CIT(A) sought for dismissal of the Appeal. 9. We have heard both the parties and perused the material available on record. It can be seen from the order of the Ld. CIT(A),the Ld. CIT(A) while deciding the first Appealhas not decided all the grounds of Appeal of the Assessee on its merits. Considering the facts that the Assessee has not participated in the first Appellate Printed from counselvise.com 4 ITA No. 97/DDN/2025 Sidhbali Corporation proceedings, in the interest of natural justice, we remand the matter to the file of the Ld. CIT(A) with a direction to the Ld. CIT(A) to decide the Appeal afresh in accordance with law after providing opportunity of being heard to the Assessee. 10. In the result, the Appeal of the Assessee is partly allowed for statistical purpose. Order pronounced in the open court on 13th August, 2025 Sd/- Sd/- (MANISH AGARWAL) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 13.08.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTR ITAT, NEW DELHI Printed from counselvise.com "