DEMAG CRANES AND COMPONENTS GMBH,PUNE vs. ACIT(IT)CIRCLE 1, PUNE, PUNE

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ITA 1115/PUN/2023Status: DisposedITAT Pune23 November 20234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) confirmed the addition without adjudicating the matter in terms of Section 250(6) of the Act, violating the principles of natural justice. Therefore, the matter was remanded back to the CIT(A).

What were the facts?

The assessee, Demag Cranes and Components GMBH, failed to file its return of income for AY 2011-12. The AO reopened the case and assessed the total income based on TDS received. The CIT(A) confirmed the assessment ex-parte due to non-compliance by the assessee.

What were the issues?

Whether the CIT(A) properly adjudicated the appeal in accordance with Section 250(6) of the Act, and if the ex-parte order violated the principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 143(3),Section 246A(1)(a),Section 251(1)(a),Section 250(6)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, PUNE ‘A’ BENCH, PUNE

Before: HON’BLE SHRI S. S. VISWANETHRA RAVI & SHRI G. D. PADMAHSHALI

For Appellant: Mr Ashish Daweshar [‘Ld. AR’]
Pronounced: 23/11/2023

द्वारा / Appearances Assessee by: Mr Ashish Daweshar [‘Ld. AR’] Revenue by: Mr Ramnath Murkunde [‘Ld. DR’] सुनवाई की तारीख / Date of conclusive Hearing : 23/11/2023 घोषणा की तारीख / Date of Pronouncement : 23/11/2023 आदेश/ ORDER PER G. D. PADMAHSHALI, AM; This assessee’s appeal is instituted against DIN & Order No. ITBA/APL/S/250/2023-24/1055366650(1), dt. 23/08/2023 passed u/s 250 of Income Tax Act, 1961 [in short ‘the Act’] by Commissioner of Income Tax- Appeals-13, Pune [in short ‘CIT(A)’].

ITAT-Pune Page 1 of 4

Demag Cranes And Components GMBH ITA No. 1115/PUN/2023

2.

Briefly stated facts of the case are that; 2.1 The appellant company is incorporated in Germany and is engaged in manufacturing of Industrial cranes and crane components, harbour cranes and terminal automation technology with supply solutions for all types of material flows, logistics and industrial drive application etc. The appellant had not filed its return of income for the year under consideration, and on verification of the ITS details on the ITD system, it was noticed by the AO that the appellant had received an amount of ₹3,53,65,257/- with a TDS thereon. In the evince thereof, the appellant was called upon file return for AY 2011-12. Consequently, the case of the appellant was reopened by service of notice u/s 148 of the Act and an assessment order u/s 147 r.w.s. 143(3) of the Act was passed by assessing the total income of the appellant of ₹3,53,65,260/-.

2.2 Aggrieved assessee filed an appeal against aforestated assessment before first appellate authority u/s 246A(1)(a) of the Act. While dealing with the assessee’s aforestated appeal, the Ld. CIT(A) provided as much as eight to nine opportunities commencing from March, 2020 to August, 2023, however the assessee did comply and attend none. In absence of any response forthcoming from the assessee or the written submission in support of grounds raised, the Ld. CIT(A) after reiterating the findings of Ld. AO, has culminated the appellate proceedings ex-parte for non-prosecution and confirm the assessment framed by the lower tax authority by pressing into service the Hon’ble Apex Court’s decision in ‘CIT Vs B. N. Bhattacharjee reported in ITAT-Pune Page 2 of 4

Demag Cranes And Components GMBH ITA No. 1115/PUN/2023 [1997] 118 ITR 461 and Hon’ble MP High Court decision laid in ‘Estate of Tukojirao Holkar Vs CWT’ reported in 223 ITR 480.

2.3 Aggrieved by the aforestated ex-parte adjudication of first appellate forum, the appellant assessee set-up this appeal alleging the violation of principle of natural justice in the former to the merits thereof.

3.

We have heard rival contentions, perused the material placed on record in light of rule 18 of ITAT-Rules 1963.

4.

Without going into the merits of the case, at the outset we note that, in absence of cogent evidential material, submission and non-compliance by the appellant, in the evince of restriction placed by 251(1)(a) of the Act, the Ld. CIT(A) but natural had to culminate the proceedings ex-parte for non- prosecution.

5.

However, we are heedful to quote the restriction placed by clause (a) of sub-section (1) of section 251 of the Act which obligates the Ld. CIT(A) to adjudicate the issue either by confirming or annulling the addition or reducing or enhancing the addition made by the assessing officer without the right to remand the matter back. However while exercising the jurisdiction u/s 251(1)(a) of the Act, the Ld. CIT(A) was required to state point of determination, its decision thereon and clear reasons therefore in terms of section 250(6) of the Act. Per contra in the instant case, we find that the Ld. CIT(A) confirmed the addition in line with the order of assessment without ITAT-Pune Page 3 of 4

Demag Cranes And Components GMBH ITA No. 1115/PUN/2023 adjudicating the matter in terms of sub-section (6) of section 250 of the Act, which in our considered view suffered from former compliance.

6.

This adjudication by the first appellate authority without touching the merits of the case, in our considered view is not in consonance with the provision of sub-section (6) of section 250 of the Act. For the reasons, without commenting on merits of the case, we deem it fit to remand the matter back to the file of Ld. CIT(A) with a direction to deal therewith de- nova after according not more than three opportunities and pass a speaking order in terms of section 250(6) of the Act.

7.

In result, the appeal is ALLOWED FOR STATISTICAL PURPOSE. u/r 34 of ITAT Rules, order pronounced in open court on this Thursday, 23rd day of November, 2023.

-S/d- -S/d- S. S. VISWANETHRA RAVI G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE; ददनाांक / Dated : Thursday, 23rd day of November, 2023. आदेश की प्रनिनलनपअग्रेनषि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The Pr. CIT, Pune 4. The CIT(A) Concerned 5. DR, ITAT, Bench ‘A’, Pune 6.गार्डफ़ाइल / Guard File. आदेशानुसार / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्यायादधकरण, पुणे / ITAT, Pune.

ITAT-Pune Page 4 of 4

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