A N TRADERS P.LTD,NEW DELHI vs. DCIT, CIRCLE-1(1), NEW DELHI

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ITA 4803/DEL/2019Status: DisposedITAT Delhi12 September 2022AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted the assessee's failure to appear before the CIT(A) but acknowledged the right to appeal. It directed the assessee to pay Rs. 10,000 to the Prime Minister's National Relief Fund and approach the CIT(A) for a fresh hearing.

What were the facts?

The assessee filed a return declaring Nil income, later revised to a loss. The assessment was completed with additions under sections 43B and 68. The assessee failed to appear before the CIT(A) on multiple occasions, leading to the dismissal of their appeal.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex-parte due to the assessee's non-appearance, and whether the assessee's right to be heard was violated.

Which sections of the Income-tax Act were involved?

Section 43B,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

Before: Sh. C. N. PrasadDr. B. R. R. Kumar

Hearing: 08.09.2022Pronounced: 12.09.2022

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of the ld. CIT(A)-11, New Delhi dated 29.03.2019.

2.

The assessee field return of income on 31.10.2015 declaring an income of Rs. Nil which has been revised to total loss of Rs.18,63,53,504/-. The assessment has been completed determining the total income at (-) Rs.10,12,00,961/- on account of disallowance u/s 43B and addition u/s 68 of the Income Tax Act, 1961. Aggrieved the assessee filed appeal before the ld. CIT(A).

2 A. N. Traders Pvt. Ltd. 3. The proceedings before the ld. CIT(A) were as under:

S. Date of Notice Date of Status No Hearing fixed 1. 27.06.2018 21.08.2018 A fresh notice was issued and served by hand. AR of the appellant requested for adjournment and accordingly the case was adjourned to 24.09.2018. 2. 24.09.2018 None appeared. 3. 15.01.2019 28.01.2019 A fresh notice was issued through ITBA Portal and also sent through email. AR of the appellant requested for adjournment and accordingly the case was adjourned to 07.02.2019. 4. 30.01.2019 07.02.2019 A fresh notice was issued through ITBA Portal and also sent email but none appeared. 5. 11.02.2019 19.02.2019 A fresh notice was issued through ITBA Portal and also sent through email. AR of the appellant Mr. Sushil Chadha appeared and as he was to file POA, case was adjourned to 27.03.2019 on his request. 6. 27.03.2019 None appeared.

4.

Owing to the continued non-appearance of the assessee, the ld. CIT(A) summarily dismissed the appeal of the assessee.

5.

Aggrieved with the order of the ld. CIT(A) dismissing the appeal thus confirming the order of the Assessing Officer, the assessee filed appeal before the Tribunal on 27.05.2019. The notice of hearing was issued on 02.06.2022 fixing the date of hearing on 08.09.2022 at the address given in From 36. No one attended on the date of hearing nor any adjournment letter was filed. We observe that there is no effect on payment of tax by the assessee as the assessed returned income culminated in loss of Rs.10.12 Crores. This only leads to conclusion that the assessee is aggrieved with the additions on a basis of principle

3 A. N. Traders Pvt. Ltd. and future effect of carry forward of losses. The assessee has failed to appear on 6 occasions before the ld. CIT(A) and has taken up the grounds before the Tribunal pertaining to legal principles of “audi alteram partem” and sustenance of order of the AO by the ld. CIT(A) on “ex-parte” basis. We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. The assessee having miserably failed to attend before the ld. CIT(A) has taken the grounds of “audi alteram partem” before us. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence, we hereby direct the assessee to pay an amount of Rs.10,000/- to the “Prime Minister’s National Relief Fund” and approach the ld. CIT(A) for a fresh hearing denovo which shall be considered. The ld. CIT(A) is hereby directed to afford an opportunity of being heard to the assessee before conclusion of the proceedings.

6.

In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 12/09/2022.

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