FORTUNE FASTENERS PVT LTD,NEW DELHI vs. ITO WARD - 9(3), NEW DELHI

PDF · subscribers
ITA 1120/DEL/2020Status: DisposedITAT Delhi26 July 2022AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the order of the CIT(A) and remanded the case back to the CIT(A) for a fresh decision. This was done to provide the assessee with a reasonable opportunity of hearing.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte without proper opportunity for hearing. The assessee also challenged the validity of the notice issued under Section 148 and the addition of unsecured loans.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without providing a proper opportunity of hearing to the assessee. The validity of the Section 148 notice and the addition of unsecured loans were also raised.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

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

ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Assessee is filed against the order of Learned

1.

Commissioner of Income Tax (Appeals)-13, New Delhi [“Ld. CIT(A)”, for short], dated 20/01/2020 for Assessment Year 2011-12.

Grounds taken in this appeal are as under:

“1. That the order of the Ld. CIT(A) is against law and facts. 2. That the Ld. AO erred in not giving a proper opportunity of hearing to the appellant and in proceeding ex-parte against the appellant and dismissed the appeal.

Fortune Fasteners Pvt. Ltd. vs. ITO

3.

That the Ld. CIT(A) erred in confirming the action of the Ld. AO in issuing notice u/s 148 of the act, although the notice issued is invalid and without jurisdiction.

4.

That the Ld. CIT(A) erred in confirming the assessment order passed by the appellant, although Ld. AO didn’t serve a copy of reasons recorded u/s 148 to the appellant. 5. That the Ld. CIT(A) erred in confirming the addition of Rs.5180000/- made by the Ld. AO on account of unsecured loans received during the year, by treating them as from undisclosed income. 6. That the appellant craves leave to add, alter or withdraw any of the ground of appeal at the time of hearing.”

(B) At the time of hearing before us, Ld. Counsel for the assessee drew our attention to ground No.2 of appeal and submitted that the Ld. CIT(A) dismissed the assessee’s appeal ex- parte without giving proper opportunity of hearing to the appellant assessee. He submitted that the issue in dispute in the present appeal should be set aside to the file of the Ld. CIT(A) with the direction to pass a fresh order in accordance with law after providing reasonable opportunity to the assessee. The Ld. Sr. DR for Revenue was in agreement with the submission of the Ld. Counsel for the assessee. The Ld. Sr. DR for Revenue specifically submitted that the issue in dispute in the present appeal may be set aside to the file of the Ld. CIT(A) with the direction to pass a fresh order in accordance with law after providing reasonable

Fortune Fasteners Pvt. Ltd. vs. ITO opportunity to the assessee. In view of the foregoing; we set aside the impugned appellate order dated 20/01/2020 issues in dispute in the present appeal before us to the file of the Ld. CIT(A) with the direction to pass a fresh order in accordance with law after providing reasonable opportunity to the assessee. By way of abundant caution we clarify that we have expressed no opinion on merits of these disputed issues; and all legal remedies/recourse are available to both sides in the course of proceedings before the AO in pursuance of the our aforesaid direction.

(C) In the result, this appeal is partly allowed for statistical purposes.

This order was already pronounced orally on 25th July, 2022

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →