MAGGOT IMPEX PVT. LTD.,NEW DELHI vs. ITO, WARD- 16(1), NEW DELHI
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Income Tax Appellate Tribunal, [ DELHI BENCH : “E” NEW DELHI ]
Before: DR. B. R. R. KUMAR & SH. YOGESH KUMAR U.S.
PER YOGESH KUMAR U.S., JM
This appeal is filed by the assessee against the order dated 16/01/2017 of the ld. Commissioner of Income Tax (Appeals)–6, Delhi [hereinafter referred to CIT (Appeals)] for Assessment Year 2012-13.
The assessee has raised the following substantive grounds of appeal:- “1. The Ld. A.O. had erred on the facts and in law in holding that the share capital plus premium amounting to Rs.11,94,76,000/- received during the year from corporate entities in unexplained
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credit within the meaning of section 68 of the Income Tax Act,1961.
The Ld. A.O. erred in law as well as on the facts of the case in holding that the short term capital borrowing amounting to Rs.90,000/- received during the year as unexplained credit within the meaning of section 68 of The Act.
The Ld. A.O. erred in law as well as on the facts in treating an amount of Rs.87,00,989/- as unexplained credit in the bank account of the appellant.
The Ld. A.O. erred in law as well as on the facts in making an addition of Rs.2,61,943/- holding that the appellant has no business activity.
The Ld. A.O. erred in law as well as on the facts in invoking section 14A of the Act read with Rule 8D of the Income Tax Rules,1962 to make a disallowance of Rs.50,000/- without giving any opportunity of being heard to the appellant and without appreciating categorical ruling of higher judicial authorities on this issue.
The Ld. A.O. wrongly initiated penalty proceedings u/s 271(l)(c) of the Act.
The Ld. A.O. wrongly charged interest U/s 234B,234C and 234D of the Act.”
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None appeared for the assessee. The Chartered Accountant who is on record for the Assessee has filed the letters stating that ‘his service has been withdrawn’ by the Assessee. The assessee has neither made alternative arrangement to represent him before Tribunal nor attended personally for hearing. By considering the issue involved in the present appeal, we inclined to hear the Ld. DR and disposed the present appeal after verify the material on records.
The return declaring income of Rs. 19,880/- was filed by the assessee, an assessment order came to be passed u/s 143(3) of the Income Tax Act, 1961 (Act for short) by making addition of Rs. 11,94,76,000/- u/s 68 of the Act on account of share capital and share premium, an amount of Rs. 90,000/- u/s 68 on account of short term borrowing, an amount of Rs. 87,00,989/- was made on account of unexplained credits, an amount of Rs. 2,61,943/- made on account of business expenses and sum of Rs. 50,000/- has been disallowed u/s 14A of the Act. The income of the assessee has been computed at Rs. 12,85,98,812/- as against the declared income at Rs. 19,880/- and passed assessment order on 27/03/2015.
Aggrieved by the assessment order dated 27/03/2015, the assessee has preferred an appeal before the CIT(A). After filing the appeal before the CIT(A), neither the assessee nor any representative of the assessee have appeared before the CIT (A). The Ld.CIT(A) by applying the ratio laid down in the case of Multiplan Pvt. Ltd. 38 ITD 320 (ITAT Delhi) dismissed the appeal without deciding the issue on merit.
It is well settled law that the appeal before the CIT(A) cannot be dismissed without deciding the appeal on merit. In view of the same, we inclined to party allow the present appeal by restoring the issue involved in the present appeal to the file of Ld.CIT(A) for de-novo consideration. Needless
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to say, the Ld.CIT(A) shall provide opportunity of being heard to the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the Open Court on : 30.11.2022.
Sd/- Sd/- (B. R. R. KUMAR) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 30/11/2022
*R.N Sr. PS*
