KANTI COMMERCIALS PVT LTD vs. COMMISSIONER OF INCOME TAX

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ITA - 603 / 2023HC Delhi03 November 20233 pages
For Petitioner: VIREN BANSAL
AI SummaryRemanded

What did the High Court hold?

The High Court set aside the Tribunal's order because the assessee was not represented and thus had no opportunity to address the relied-upon judgment. The matter was remanded for a fresh hearing.

What were the facts?

The assessee's appeal concerns an addition of Rs. 1,90,00,000/- made under Section 68 for unexplained credit entry. The Tribunal decided in favour of the revenue based on a previous judgment, but the assessee was not represented at that hearing.

What were the issues?

Whether the Tribunal's order is valid when passed without the assessee being represented and having no opportunity to deal with the evidence relied upon. The validity of an ex-parte decision by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

ITA 603/2023

Page 1 of 3

$~22 * IN THE HIGH COURT OF DELHI AT NEW DELHI %

Decision delivered on: 03.11.2023 + ITA 603/2023

KANTI COMMERCIALS PVT. LTD.

..... Appellant

Through: Mr Rishi Raju and Mr Viven Bansal,

Advs.

versus

COMMISSIONER OF INCOME TAX

..... Respondent Through: Mr Gaurav Gupta, Sr. Standing Counsel with Mr Puneett Singhal, Mr Shivendra, Ms Deepika and Ms Mahima, Standing Counsels.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MR. JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)]

RAJIV SHAKDHER, J. (ORAL): CM No.56886/2023

Allowed, subject to just exceptions. CM No.56885/2023 [Application filed on behalf of the appellant seeking condonation of delay of 47 days in re-filing the appeal] 1. This is an application moved on behalf of the appellant/assessee, seeking condonation of delay in re-filing the appeal. 1.1 According to the appellant/asseessee, there is a delay of 47 days in re- filing the appeal. 2. Mr Gaurav Gupta, learned senior standing counsel, who appears on behalf of the respondent/revenue, says that having regard to the period Digitally Signed By:VAISHALI CHAUHAN Signing Date:17.11.2023 13:03:10 Signature Not Verified

ITA 603/2023

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involved, he does not oppose the prayer made in the application. 3. Accordingly, the delay in re-filing is condoned. 4. The application is disposed of, in the aforesaid terms. ITA 603/2023 & CM APPL. 56884/2023 [Application filed on behalf of the appellant seeking interim relief] 5. This appeal concerns Assessment Year (AY) 2010-11. 6. Via the instant appeal, the appellant/assessee seeks to assail the order dated 18.01.2023 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”]. 7. Before the Tribunal, an appeal was preferred by the respondent/revenue against the order dated 29.03.2018 passed by the Commissioner of Income Tax (Appeals) [in short, “CIT(A)”]. 8. The CIT(A) via the said order deleted an addition of Rs. 1,90,00,000/- made under Section 68 of the Income Tax Act, 1961 [in short, “Act”]. 9. This addition was made on account of purported unexplained credit entry concerning share capital/share premium. 10. A perusal of the impugned order shows that the Tribunal concluded in favour of the respondent/revenue, inter alia, based on the judgment dated 28.06.2017 rendered by its Kolkata Bench in ITA No. 271/Kol/2014, titled ITO vs Blessings Commercial Pvt. Ltd. This decision concerned AY 2010- 11. 11. To be noted, according to the AO, Blessings Commercial Pvt. Ltd. was one of the investors in the share capital/share premium received by the appellant/assessee. 12. Mr Gupta has placed before us a soft copy of the order dated Digitally Signed By:VAISHALI CHAUHAN Signing Date:17.11.2023 13:03:10 Signature Not Verified

ITA 603/2023

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13.12.2022 passed by the Tribunal, wherein the aforementioned fact, i.e., decision rendered in Blessings Commercial Pvt. Ltd., has been noticed. 13. Mr Gupta fairly states that the appellant/assessee was not represented before the Tribunal. Clearly, in view of this circumstance, the appellant/assessee had no opportunity to deal with the decision on which the Tribunal has relied while passing the impugned order dated 18.01.2023. 14. Concededly, no hearing was held between 13.12.2022 and the date on which impugned order was passed. 15. In these circumstances, the impugned order is set aside and the matter is remanded to the Tribunal for a fresh hearing. 16. Needless to add that, we have not examined the merits of the matter. The Tribunal will, thus, be free to arrive at its own conclusion while deciding the matter on merits. 17. To hasten the proceedings, we direct that the matter will be placed before the concerned bench of the Tribunal, albeit, for directions, on 01.12.2023. The Tribunal will thereafter progress the matter further. 18. The appeal and the pending applications are disposed of, in the aforesaid terms. 19. Parties will act based on the digitally signed copy of the order.

RAJIV SHAKDHER JUDGE

GIRISH KATHPALIA JUDGE NOVEMBER 03, 2023/RY

Click here to check corrigendum, if any Digitally Signed By:VAISHALI CHAUHAN Signing Date:17.11.2023 13:03:10 Signature Not Verified

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