VRS FOODS LTD,DELHI vs. JOINT CIT CENTRAL CIRCLE RANGE -4, NEW DELHI

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ITA 6866/DEL/2025Status: DisposedITAT Delhi12 August 2026AY 2018-193 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT found that the NFAC dismissed the appeal without providing a reasonable opportunity to be heard. Therefore, the matter was restored to the NFAC for a decision on merits after granting one final opportunity to the assessee.

What were the facts?

The assessee declared receipts exceeding the limit specified in Section 269ST in its audit report. A penalty was levied under Section 271DA, which was upheld by the NFAC. The assessee appealed to the ITAT, claiming a lack of opportunity to be heard.

What were the issues?

Whether the penalty under Section 271DA was rightly imposed and whether the assessee was denied a reasonable opportunity of being heard by the lower appellate authority.

Which sections of the Income-tax Act were involved?

Section 271DA,Section 274,Section 269ST

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “B”, DELHI

Before: SH. M. BALAGANESH & SH. SUDHIR KUMAR

For Appellant: Adv. Sh. Shailesh Gupta, CA
Hearing: 06/08/2026Pronounced: 12/08/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”, DELHI

BEFORE SH. M. BALAGANESH, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER

ITA No6866/DEL/2025 Assessment Year2018-19 VRS Foods Limited Vs. Joint Commissioner of M/s VRS FOODS Limited Income Tax Officer Central D-55 Ground Floor, East of Circle Range-4 New Delhi Kailash South Delhi-110048 PAN No.AACCV4731A (APPELLANT) (RESPONDENT)

Appellant by Sh. Salil Aggarwal Sr. Adv. Sh. Shailesh Gupta, CA Respondent by Sh. Om Prakash, CIT- DR

Date of hearing: 06/08/2026 Date of Pronouncement: 12/08/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:

This is appeal filed by the assessee against the order dated 31-08-2025 of the National Faceless Appeal Centre (NFAC)Delhi [hereinafter referred to as “Ld. NFAC”] relevant to penalty order dated 28-04-2023 passed under section 271DA of the Income Tax Act, 1961(in short “the Act”).

2.

The brief facts of the case are that the assessee filed its Audit Report on 31-11-2018. In the Audit report the assessee declared the particulars of receipts in an amount exceeding the limit specified in section 269ST of the Act. Considering the facts and circumstances of the case, notice under section 274 r.w.s.271D A of the Act was issued to the assessee. Again, notice dated 21-01-2023 was issued to the assessee. The Assessing Officer levied the penalty of Rs.5,51,58,405/- against the assessee. Aggrieved the order of the Assessing Officer the assessee filed the appeal before the Ld. NFAC, who dismissed the appeal of the assessee. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the tribunal. 3. We have heard both parties and gone through the material available on record. 4. In the ground no.1 of appeal, the assessee stated that appeal was dismissed without giving reasonable opportunity of being heard to the assessee. It is evident from the order of the Ld. CIT(A) that the assessee did not file any submissions, although two opportunities were provided to the assessee. We have heard the parties and perused the material available on record. 5. Since, the Ld. NFAC dismissed the appeal without giving the opportunity of being heard to the assessee, therefore, the totality of the facts and circumstances of the case and in the interest of justice, we deem fit it proper to restore the issue to the files of the Ld. NFAC with a direction to decide the appeal on

merit to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law and pass a speaking order on merit. The assessee is also directed to appear before the NFAC and substantiate its case without seeking any adjournment. The grounds raised by the assessee are accordingly allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 12.08.2026.

Sd/- Sd/- (M. BALAGANESH) (SUDHIR KUMAR) ACCOUNTANT MEMBER (JUDICIAL MEMBER) Date: 12.08.2026 S.R. BHATNAGGR Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) ` 5. DR: ITAT ASSISTANT REGISTRAR ITAT DELHI

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