What did the Tribunal hold?

The Tribunal found it irregular to dismiss an appeal for non-prosecution and then also decide on merits without examining them. The end of justice requires giving the assessee an opportunity to contest the appeal on merits before the CIT(A).

The assessee's appeal was dismissed by the CIT(A) for non-appearance, and additions were sustained on merits. The assessee contended that their counsel was out of station on the hearing date and sought to set aside the ex-parte order.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal for non-appearance and then sustaining additions on merits without considering the grounds of appeal.

Super King Investments Pvt. Ltd… vs ITO | ITAT Delhi 2023

Income Tax Appellate Tribunal, DELHI BENCH ‘G’ : NEW DELHI

Before: SH. N.K.BILLAIYA & SH. ANUBHAV SHARMA

For Respondent: Ms. Sangeeta Yadav, Sr. DR

Hearing: 18.01.2023Pronounced: 18.01.2023

Heard and perused the record.

Assessee has preferred this appeal against the impugned order of Ld. CIT(A) dated 15.01.2020 whereby the appeal of assessee was dismissed for non-appearance and prosecution and also sustained additions on merits. .Del.2020 M/s. Super King Investments P. Ltd. 2 The assessee has challenged the same before this Tribunal raising following grounds :-

“1. That Ld. CIT(A) has wrongly and illegally passed ex- party order in spite of the facts that the appeal was regularly attended before his predecessor and on the appointed date i.e. on 14.01.2020, our counsel was out of station for some urgent work, the appellant prays to set aside the appeal order.

2. That the CIT(A) has wrongly and illegally confirmed the order of Ld. AO in respect of addition of Rs. 5,11,55,584/-, the amount of interest claimed during the year on the basis of accrual of interest, his action is unjust, arbitrary and against the facts and circumstances of the case.

3. That the appellant craves leave to add, alter or delete any ground of appeal with the leave of the Hon’ble Bench.”

As the case was called for hearing today, non-appeared for the assessee and the record shows that of earlier opportunities also non-appeared, though notices have been issued repeatedly. It appears that the assessee is not interested to prosecute the appeal. On hearing Ld. DR she supported the findings of Ld. Authorities below and submitted that assessee is habitual of not giving assistance.

Giving thoughtful consideration to the matter on record and the submissions it can be observed that Ld. CIT(A) in the impugned order mentions that on three occasions Sh. S.K.Chaturvedi, CA appeared for the assessee. Thereafter notices were affixed at the address provided. As non-appeared, in para no. 4, the Ld. CIT(A) dismissed the appeal for non-appearance. However, in para 5 also sustained the addition on merits observing that in appellate proceedings neither Ld. AR has attended nor any further details have been filed by appellant company. .Del.2020 M/s. Super King Investments P. Ltd. 3

The bench is of considered opinion that the irregularity lies in the facts of dismissing the appeal for non-prosecution then also on merits for mere non- prosecution without examining the merits of the grounds. The end of justice require giving assessee opportunity to contest before ld. CIT(A) on merits. Accordingly, ground no. 1 is allowed and the appeal is allowed for statistical purposes. Ld. CIT(A) shall given opportunity of hearing and decide the appeal argued on merits. Order pronounced in the open court on 18th January, 2023.

SUPER KING INVESTMENTS PVT. LTD.,NEW DELHI vs. ITO, WARD-24(4), NEW DELHI

What did the Tribunal hold?

What were the facts?

What were the issues?

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