MANAN HI FASHIONS PRIVATE LIMITED,NEW DELHI vs. ITO WARD - 2(2), NOIDA

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ITA 359/DEL/2020Status: DisposedITAT Delhi28 April 2022AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have called for a remand report from the Assessing Officer on the jurisdictional grounds before disposing of the appeals ex-parte. The appeals are restored to the CIT(A) for de novo adjudication after providing an adequate opportunity of hearing to the assessee.

What were the facts?

The assessee's appeals were dismissed ex-parte by the CIT(A) due to non-cooperation. The assessee challenged the re-opening of assessment and the validity of the assessment order, arguing that notices under Section 148 and 143(2) were not properly issued. These jurisdictional grounds were not adjudicated by the CIT(A).

What were the issues?

Whether the CIT(A) erred in dismissing the appeals ex-parte without adjudicating jurisdictional grounds. Whether the re-opening of assessment and the assessment order are valid.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 143(2),Section 271(1)(c),Section 271(1)(b)

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Income Tax Appellate Tribunal, [ DELHI BENCH “S.M.C.” NEW DELHI ]

Before: SHRI CHALLA NAGENDRA PRASAD, S.M.C.

For Respondent: Shri Om Parkash, Sr. D. R.;
Hearing: 28/04/2022

आदेश /O R D E R

PER C. N. PRASAD, J. M. :

1.

These three appeals are filed by the assesse against different orders of the ld. Commissioner of Income Tax (Appeals)- 32, New Delhi [hereinafter referred to CIT (Appeals)] for the assessment year 2010-11 arising out of the assessment order passed under Section 143(3) read with Section 147 of the Act and penalty orders passed under Section 271(1)(c) and 271(1)(b) of the Income Tax Act, 1961 (the Act).

I.T.A. Nos. 357 to 359/Del/2020

2.

Notices issued by the Registry through Speed Post with acknowledgement due posting the case for hearing on 14.03.2022 have been returned un-served by the Postal Authorities with an endorsement “Addressee Left Without Instructions”. Therefore, these appeals are disposed of on hearing the ld. DR.

3.

On perusal of the grounds of appeal

it is noticed that in all these three appeals the assessee challenged the order of the ld. CIT (Appeals) in disposing of the appeal ex-parte without providing adequate opportunity of being heard. Assessee also raised several grounds on additions / disallowances made on merits. On perusal of the order of the ld. CIT (Appeals) it is noticed that several opportunities were given to the assessee. On one of the occasions the ld. AR sought time. The ld. CIT (Appeals) referred to the decision of Delhi Bench in the case of CIT Vs. Multiplan India Pvt. Ltd.

38. ITD 320 (Del.) and since the assessee was not co-operating with the proceedings before him he dismissed the appeals ex- parte. It is noticed from the grounds of appeal raised by the assessee that assessee has challenged the re-opening of assessment stating that notice issued under Section 148 of the Act is bad in law and consequently the re-assessment made under Section 144 read with Section 147 of the Act is void ab initio thus liable to be quashed. Assessee also challenged that the re-assessment order is bad in law stating that notice under Section 143(2) of the Act was never issued to the assessee. It is observed that these grounds were also raised before the ld. CIT (Appeals), but these grounds were not adjudicated. Since these grounds go to the very jurisdiction of the Assessing Officer in making the assessment and the very validity of assessment order, the ld. CIT (Appeals) should have called for a remand report from the Assessing Officer on these 2

I.T.A. Nos. 357 to 359/Del/2020 grounds before disposing of the appeals ex-parte. Therefore, taking the totality of facts into consideration, I am of the view that these appeals should go back to the ld. CIT (Appeals) for de novo adjudication after calling for remand report from the Assessing Officer, if necessary. Thus, these appeals are restored to the file of the ld. CIT (Appeals) for de novo adjudication in accordance with law, after providing sufficient opportunity of hearing to the assessee.

4.

In the result, all the appeals of the assessee are partly allowed, for statistical purpose.

Order pronounced in the open court on : 28/04/2022.

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