TANIKA FINANCE & LEASING PRIVATE LTD,NEW DELHI V. INCOME TAX OFFICER WARD 25(1), DELHI

ITA 5430/DEL/2024

AI Insights

The case involves Tanika Finance & Leasing Pvt. Ltd., which appealed against the order of the National Faceless Appeal Center (NFAC), Delhi, and the subsequent assessment order by the ITO, Ward 25(1), New Delhi. The dispute centered on an exparte order that added Rs. 25,00,000 as cash credit to the assessee's income for the Assessment Year 2009-10. The First Appellate Authority dismissed the appeal due to a significant delay of 927 days without addressing the merits of the case. The Tribunal noted procedural irregularities, including improper service of notice and lack of substantive examination of the appeal by the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34433 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: JASPAL SINGH
• Section: 147

Judgement Text

"P a g e | 1 ITA No.5430/Del/2024 Tanika Finance & Leasing Pvt. Ltd. (ASSESSMENT YEAR: 2009-10) IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, DELHI BEFORE MS.MADHUMITA ROY, JUDICIAL MEMBER ITA No.5430/Del/2024 (Assessment Year: 2009-10) Tanika Finance & Leasing Private Limited E-24, Jawahar Park, Laxmi Nagar Delhi-110092 Vs. Income Tax Officer, Ward 25(1) Delhi - 110001 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AAACT4684J Appellant .. Respondent Appellant by : Sh. Jaspal Singh, Adv. Respondent by : Sh. Sanjay Kumar, Sr. DR Date of Hearing 27.02.2025 Date of Pronouncement 27.02.2025 O R D E R PER MADHUMITA ROY, JM: The instant appeal filed by the assessee is directed against the order passed by the National Faceless Appeal Center (NFAC) Delhi, dated 17.10.2024 arising out of the Assessment Order dated 30.11.2016 passed by the ITO, Ward 25(1) New Delhi under Section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2009-10. P a g e | 2 ITA No.5430/Del/2024 Tanika Finance & Leasing Pvt. Ltd. (ASSESSMENT YEAR: 2009-10) 2. It is the case of the assessee that the AO passed an exparte order upon making addition of Rs.25,00,000/- on account of cash credit which was further confirmed by the First Appellate Authority. However, the First Appellate Authority has not gone into the merit of the matter rather on account of delay for 927 days the appeal preferred by the assessee stood dismissed. 3. It is the case of the assessee that when non appeared on behalf of the assessee before the Ld. AO the notice was served upon the assessee through affixture on 30.12.2016 as appearing from the remand report filed by the ITO, Ward 25(1) New Delhi, before the CIT(A) on 22.01.2020 reproduced in the order impugned and hence the issue was made exparte under Section 144 r.w.s 147 of the Act. Even before the Ld. CIT(A) the assessee has not been able to justify the delay in referring the said appeal as also the case made out by the Revenue. It is the case of the assessee that from the data of the company in support of the same relevant documents have also been placed before us. 4. Under this facts and circumstances of the matter, such submission made by the Ld. AR has not been able to be controverted by the Ld. DR. Thus, considering the entire aspect of the matter we don’t find any reason as to why firstly delay of this particular count has not been addressed by the CIT(A) neither the reference to the remand report dated 22.01.2020 has been made by the Ld. CIT(A) dealing with this particular fact of we find a notice by affixture on 30.12.2016the assessee was not in existence. P a g e | 3 ITA No.5430/Del/2024 Tanika Finance & Leasing Pvt. Ltd. (ASSESSMENT YEAR: 2009-10) 5. Thus, having heard the ld. Counsels appearing for the parries and having regard to the facts and circumstances of the matter, we find that the order passed by the Ld. AO in making addition in the hands of the assessee further confirmed by the Ld. CIT(A) is not sustainable in the eyes of law and therefore quashed. 6. The appeal of the assessee is allowed. Order pronounced in the open court on 27.02.2025 Sd/- (Madhumita Roy ) JUDICIAL MEMBER Dated 27.02.2025 PS: Rohit Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "