LOKSATYA MEDIA PRIVATE LIMITED,DELHI vs. INCOME TAX OFFICER, WARD 15(1), DELHI

(Assessment Year: 2015-16) Loksatya Media Private Limited, vs. ITO, Ward 15 (1), 3rd Cabin No.3, Loksatya House, Delhi. A-5, Main 100 Foot Road, Chajjupur, Shahdara, Delhi – 110 032. (PAN : AABCL9143R) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Ankit Garg, Advocate Shri Deepanshu Singla, Advocate REVENUE BY : Shri Ramesh Chand, Sr. DR Date of Hearing : 13.05.2025 Date of Order : 13.05.2025 O R D E R

PER S.RIFAUR RAHMAN, ACCOUNTANT MEMBER :

1. That under the facts and circumstances of the case, the impugned order dated 22.02.2024 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), generated vide DIN: ITBA/NFAC/S/250/2023-24/061302221(1), dismissing the grounds of Rs.4,46,29,593/- in place of returned income filed by the assessee, is bad in law on account of several grounds and assessee/appellant denies its liability to be assessed for any income other than the income already returned by the assessee and the consequential demand of Rs.1,90,40,630/-.

2. That under the facts and circumstances of the case, the Ld. CIT(A), has erred in law as much as in facts by passing an ex-parte order on account of non-furnishing of written submissions at the time of appellate proceedings, but it is imperative to note that such non- submissions was indeliberate and totally unintentional on the part of the assessee.

3. That under the facts and circumstances of the case, the Ld. AO, has erred in law as much as in fact while passing the assessment order dt. 29.12.2017 u/s 143(3) of the Act, as the Ld. AO has passed the impugned order without having territorial jurisdiction, in violation of principles of natural justice.

4. That under the facts and circumstances of the case, the Ld. AO, has erred in law as much as in fact while passing the assessment order , as the Ld. AO vide the impugned order has made an addition of Rs.4,39,80,666/- u/s 68 of the Act, on account of sundry creditors remaining unverified, without appreciating the confirmations and evidences as submitted by the assessee during the course of assessment proceedings.

5. That the Ld. AO have erred in initiating the penalty proceedings u/s 271(1)(c) of the Act and the same may be held as invalid.”

2. At the time of hearing, ld. AR of the assessee brought to our notice order of ld. CIT (A) dated 22.02.2024 wherein ld. CIT (A) dismissed the appeal of the assessee due to non-compliance for the reason that the assessee has not complied to various notices issued by the ld. CIT (A) and details of non- compliance was tabulated at page 3 & 4 of the appellate order. In this regard, ld. AR submitted that the ld. CIT(A) has erred in law as much as in facts by passing an ex-parte order on account of non-furnishing of written submissions at the time of appellate proceedings, but it is imperative to note that such non-submissions was not deliberate and totally unintentional on the part of the assessee. He further submitted that the AO has erred in law as much as in fact while passing the assessment order dt. 29.12.2017 u/s 143(3) of the Act, as the AO has passed the impugned order without having territorial jurisdiction, in violation of principles of natural justice. He submitted that AO vide the impugned order has made an addition of Rs.4,39,80,666/- u/s 68 of the Act, on account of sundry creditors remaining unverified, without appreciating the confirmations and evidences as submitted by the assessee during the course of assessment proceedings. Accordingly, he prayed that the matter may be restored back to the ld. CIT (A).

3. On the other hand, ld. DR of the Revenue objected to the submissions of the assessee and submitted that ld. CIT (E) has given sufficient opportunities to the assessee and since the assessee has failed to comply the notices, he supported the order of the ld. CIT (A).

4. Considered the rival submissions and material placed on record. We observe that the addition was sustained by the ld. CIT (A) by passing an ex-parte order on account of non-furnishing of written submissions at the time of appellate proceedings and in our considered view and for the sake of complete justice, we are inclined to remit this issue back to the file of ld. CIT(A) to consider the facts in this case and collect the relevant information from the assessee and decide as per law, after giving proper opportunity of being heard to the assessee. We also direct assessee to make proper submissions and appear before the ld.CIT (A) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.