STELLAR CAPITAL SERVICS LTD,DELHI V. PCIT,-7, DELHI

ITA 2612/DEL/2025

AI Insights

The case involves Stellar Capital Services Limited, which appealed against an order from the Principal Commissioner of Income Tax-7, enhancing the taxable income by disallowing Rs.42,24,677 as excess remuneration for directors. The appeal was primarily based on the grounds of denial of opportunity, as the original order was passed ex parte after two missed opportunities for the assessee to present their case. The ITAT agreed to remand the case back to the PCIT for a fresh hearing, emphasizing the need for the assessee to be vigilant about future notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791765 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 21-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: POOJA SWAROOP
• Assessee Lawyers: PALLAVI; MAKING A DISALLOWANCE OF RS.
• Keywords: Set aside; Revision of order
• Section: 263

Judgement Text

"ITA No.2612/Del/2025 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”NEW DELHI BEFORE SHRIMAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.2612/Del/2025 िनधा रणवष /Assessment Year:2018-19 STELLAR CAPITAL SERVICES LIMITED, Plot No.A1 & A2, Road No.43, Mangolpuri Industrial Area, Phase-2, Community Centre, Pitampura, Delhi. PAN No.AAACS3356A बनाम Vs. Principal Commissioner of Income Tax-7, C.R. Building, ITO, I.P. Estate, New Delhi. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by Ms. Pallavi, CA Revenue by Ms. Pooja Swaroop, CIT DR सुनवाईक\bतारीख/ Date of hearing: 08.12.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 08.12.2025 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order u/s 263 of the Income Tax Act, 1961 (hereinafter “the Act”), passed by Ld. PCIT, Delhi-7, dated 01/03/2024 for AY 2018-19. Through this order the Ld. PCIT has directed the Ld. AO to enhance the taxable income of the assessee by making a disallowance of Rs.42,24,677/-, being the excess remuneration for directors. It is seen that this order has been passed in an ex parte manner considering Printed from counselvise.com ITA No.2612/Del/2025 2 that the two opportunities provided to the assessee could not be availed of. 1.1 Aggrieved with this action the assessee has approached the ITAT with the grounds of appeal which challenge this action of the Ld. PCIT. In fact, the first ground itself challenges the impugned action on the ground of denial of opportunity. 2. Before us the Ld. AR pointed out that the impugned order was passed in an ex parte manner and thus, only after two opportunities the Ld. PCIT is seen to have disposed of the matter under consideration. The Ld. AR prayed for another opportunity to present the facts before the Ld. PCIT. 2.1 The Ld. DR fairly agreed that since this order was passed in an ex parte manner there would be no objection in case this matter was to be remanded back to the file of the Ld. PCIT. 3. We have carefully considered the documents before us and have heard the Ld. AR/DR. It is clearly visible that the Ld. PCIT gave two opportunities and thereafter passed the impugned order. Considering the totality of facts and circumstances, we find merit in the submission of Ld. AR that another opportunity should be given to the assessee for making a presentation of facts before the Ld. PCIT. Printed from counselvise.com ITA No.2612/Del/2025 3 Accordingly, we deem it fit to set aside the impugned order and remand this matter back to the file of Ld. PCIT for fresh adjudication. The assessee would be expected to be alert to the notices issued from his office for hearing in the matter. 4. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 08.12.2025 Sd/- Sd/- (MAHAVIR SINGH) (SANJAY AWASTHI) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 08.12.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "