CORDIAL HOSPITALITIES PVT. LTD.,NEW DELHI vs. ITO, WARD- 6(3), NEW DELHI

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ITA 329/DEL/2019Status: DisposedITAT Delhi02 December 2021AY 2009-1073 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT set aside the impugned appellate order of the CIT(A) and directed the CIT(A) to pass a fresh de novo order. This was to be done after providing the assessee a reasonable opportunity of being heard, as agreed by both parties.

What were the facts?

The assessee's appeal against an ex-parte order by the CIT(A) was heard by the ITAT. The CIT(A) had confirmed an addition of Rs. 85,00,000 made by the AO. The assessee contended that they were not given a reasonable opportunity to be heard.

What were the issues?

Whether the CIT(A) passed an ex-parte order without providing a reasonable opportunity of being heard to the assessee. Whether the addition made under Section 68 was justified without considering the assessee's explanation.

Which sections of the Income-tax Act were involved?

Section 147,Section 68

AI-generated summary — verify with the full judgment below

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

Hearing: 30.11.2021Pronounced: 02.12.2021

ORDER PER ANADEE NATH MISSHRA, AM: (A) This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-2, New Delhi, [Ld.

CIT(A)”, for short], dated 24.08.2018 for Assessment Year 2009-10.

Grounds taken in this appeal of Assessee are as under:

Cordial Hospitalities Pvt. Ltd. vs. ITO “1. Action of Commissioner of Income Tax (A) in passing ex- parte order without considering the circumstances of the case and without considering the information available with him i.e. notice under section 147 of Income Tax Act, 1961 never served on the appellant is unjust, illegal, arbitrary and against the facts and circumstances of the case.

2.

Action of Commissioner of Income Tax (A) in confirming the addition under section 68 of Rs.85,00,000/-, as made by the Income Tax Officer, without considering the explanation and information available on record is unjust, illegal, arbitrary and against the facts and circumstances of the case.

3.

The Appellant craves to add, amend, alter, submit and withdraw any ground before the appeal is heard.” (B) The Assessment order dated 27.12. 2016 was passed by the Assessing Officer determining the assessed income at Rs.85,00,000/-, as against returned income of Rs.NIL. The assessee filed appeal before the Learned Commissioner of Income Tax (Appeals)-2, New Delhi [“Ld. CIT(A)”, for short]. Vide impugned appellate order dated 24.08.2018, the Ld. CIT(A) dismissed the assessee’s appeal and confirmed the aforesaid additions of Rs.85,00,000/-. As per remark on the first page of the aforesaid impugned appellate order dated 24.08.2018 of the Ld. CIT(A), none was present for the appellant before him. The relevant portions of Cordial Hospitalities Pvt. Ltd. vs. ITO the orders of the Assessing Officer and the Ld. CIT(A) are reproduced as under:

(B.1) Assessment Order dated 27.12.2016:

Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO (B.2) Impugned appellate order dated 24.08.2018 of the Ld. CIT:

Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO (C) At the time of hearing before us, the Learned Authorized Representative [“Ld. AR”, for short] of the assessee submitted that the Ld. CIT(A) passed the aforesaid impugned appellate order dated 24.08.2018 ex-parte without giving reasonable opportunity to the appellant (the assessee). He drew our attention to the affidavit filed in this connection. The affidavit filed by the assessee is reproduced as under:

Cordial Hospitalities Pvt. Ltd. vs. ITO Cordial Hospitalities Pvt. Ltd. vs. ITO (C.1) Before us, at the time of hearing on 30.11.2021 representatives of both sides (the Ld. AR for the assessee and the Ld. Sr. Departmental Representative for Revenue) were in agreement that the issue in dispute should be set aside to the file of the Ld. CIT(A) for de novo order after providing the assessee a reasonable opportunity of being heard. In view of the foregoing, and as both sides are in agreement to this, we set aside the impugned Cordial Hospitalities Pvt. Ltd. vs. ITO appellate order dated 24.08.2018 of the Ld. CIT(A) and direct the Ld. CIT(A) to pass a fresh de novo order after providing the assessee reasonable opportunity of being heard. This appeal is disposed off in accordance with aforesaid directions.

(C.2) The appeal is partly allowed for statistical purposes.

(C.2.1) This order was already pronounced orally in open Court on 30.11.2021 after conclusion of the hearing in the presence of representatives of both sides, now this written order is signed today on 02.12.2021.

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