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Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI RAHUL CHAUDHARY
PER OM PRAKASH KANT, AM
1. This appeal has been preferred by the assessee against the order dated 24.06.2022 passed by the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter shall be referred as ‘First Appellate Authority or FAA’) for assessment year 2013-14, raising following grounds :
M/s Gas Jeans Pvt. Ltd. 2 ITA No. 1975/M/2022
The The The order order order dated dated dated 24/06/2022 24/06/2022 24/06/2022 bearing bearing bearing No. No. No. ITBA/NFAC/S/250/2022 A/NFAC/S/250/2022-23/1043565004[1] 23/1043565004[1] by by the the CIT[A], CIT[A], NATIONAL FACELESS APPEAL CENTRE, DELHI is arbitrary, NATIONAL FACELESS APPEAL CENTRE, DELHI is arbitrary, NATIONAL FACELESS APPEAL CENTRE, DELHI is arbitrary, against natural justice, unlawful, against the provisions of Income against natural justice, unlawful, against the provisions of Income against natural justice, unlawful, against the provisions of Income Tax Act, 1961, invalid and therefore liable to be quashed. Tax Act, 1961, invalid and therefore liable to be quashed. Tax Act, 1961, invalid and therefore liable to be quashed. 2.
On facts and circumstan 2. On facts and circumstances of the case and in law, the Hon'ble ces of the case and in law, the Hon'ble C.I.T.(A) has erred in confirming the transfer pricing adjustment of C.I.T.(A) has erred in confirming the transfer pricing adjustment of C.I.T.(A) has erred in confirming the transfer pricing adjustment of Rs.61,13,689/ Rs.61,13,689/- on account of Advertising, Marketing and on account of Advertising, Marketing and Promotion Expenses incurred by the Appellant using profit spilt Promotion Expenses incurred by the Appellant using profit spilt Promotion Expenses incurred by the Appellant using profit spilt method by considering AMP E method by considering AMP Expenses incurred by the Appellant. xpenses incurred by the Appellant. 2. At the outset, the Ld. Counsel of the assessee submitted that At the outset, the Ld. Counsel of the assessee submitted that At the outset, the Ld. Counsel of the assessee submitted that this appeal has been decided by the Ld. First Appellate Authority this appeal has been decided by the Ld. First Appellate Authority this appeal has been decided by the Ld. First Appellate Authority without taking into consideration any reply of the assessee and without taking into consideration any reply of the assessee and without taking into consideration any reply of the assessee and without adjudication on merit. The Ld. Counsel of the assessee without adjudication on merit. The Ld. Counsel of the assessee without adjudication on merit. The Ld. Counsel of the assessee submitted that the appeal was filed by the assessee physically. ubmitted that the appeal was filed by the assessee physically. ubmitted that the appeal was filed by the assessee physically. However, appeal has been decided in faceless manner where notices However, appeal has been decided in faceless manner where notices However, appeal has been decided in faceless manner where notices were issued to the assessee through E were issued to the assessee through E-mail. The faceless mail. The faceless environment being new to the assessee, the assessee was not in being new to the assessee, the assessee was not in being new to the assessee, the assessee was not in habit of regularly looking into its E f regularly looking into its E-mail and therefore, could not mail and therefore, could not responsed to the various notices issued by the Ld. FAA. Before us, to the various notices issued by the Ld. FAA. Before us, to the various notices issued by the Ld. FAA. Before us,
M/s Gas Jeans Pvt. Ltd. 3 ITA No. 1975/M/2022 the Ld. Counsel of the assessee submitted that a fresh opportunity the Ld. Counsel of the assessee submitted that a fresh opportunity the Ld. Counsel of the assessee submitted that a fresh opportunity be provided as the assessee is the assessee is willing to co-operate and file operate and file replies in support of its contention on the various issues on which addition in support of its contention on the various issues on which addition in support of its contention on the various issues on which addition have been sustained. The Ld. Counsel of the assessee given an have been sustained. The Ld. Counsel of the assessee given an have been sustained. The Ld. Counsel of the assessee given an undertaking that notices issued by the Ld. FAA undertaking that notices issued by the Ld. FAA, shall be responded shall be responded by him on behalf of the assessee and therefore, h by him on behalf of the assessee and therefore, h by him on behalf of the assessee and therefore, he prayed that matter may be restored back to the Ld. FAA for deciding afresh. matter may be restored back to the Ld. FAA for deciding afresh. matter may be restored back to the Ld. FAA for deciding afresh.
On the other hand, the Ld. Departmental Representative (DR) On the other hand, the Ld. Departmental Representative (DR) On the other hand, the Ld. Departmental Representative (DR) objected for restoring the matter to the Ld. FAA as already sufficient objected for restoring the matter to the Ld. FAA as already sufficient objected for restoring the matter to the Ld. FAA as already sufficient opportunity were provided to the assessee b opportunity were provided to the assessee by the Ld. FAA. y the Ld. FAA.
We have heard rival submission of the parties on the issue-in- We have heard rival submission of the parties on the issue We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. This is dispute and perused the relevant material on record. This is dispute and perused the relevant material on record. This is undisputed that this appeal has been adjudicated by the Ld. FAA in undisputed that this appeal has been adjudicated by the Ld. FAA in undisputed that this appeal has been adjudicated by the Ld. FAA in faceless manner wherein notices are issued in e faceless manner wherein notices are issued in electronic manner lectronic manner and assessee was also required to reply the notices through E also required to reply the notices through E also required to reply the notices through E-mail
M/s Gas Jeans Pvt. Ltd. 4 ITA No. 1975/M/2022 only. This being the phase of newly inserted scheme of faceless only. This being the phase of newly inserted scheme of faceless only. This being the phase of newly inserted scheme of faceless appeal, difficulty in replying by the assessee through E difficulty in replying by the assessee through E difficulty in replying by the assessee through E-mail could be a reasonable cause for non a reasonable cause for non-complying the notices issued by the FAA. the notices issued by the FAA. In view of an undertaking given by the Ld. Counsel In view of an undertaking given by the Ld. Counsel for for the assessee, we feel it appropriate appropriate to restore the issue back to the Ld. FAA for restore the issue back to the Ld. FAA for deciding afresh. The Ld. Counsel has provided current address and deciding afresh. The Ld. Counsel has provided current address and deciding afresh. The Ld. Counsel has provided current address and the current E-mail of mail of the assessee in form No.
He has also in form No.
36. He has also provide his E-mal ID: mal ID: mail@naginparekh.in alternatively. The alternatively. The Ld. FAA may issue notices on FAA may issue notices on the current physical or E- -mail address as provided alongwith a copy to the Ld. Couns alongwith a copy to the Ld. Counsel, who has given el, who has given undertaking for complying notices. undertaking for complying notices. The Ld. FAA is directed to pass a The Ld. FAA is directed to pass a reasoned order on merit after considering the submission of the reasoned order on merit after considering the submission of the reasoned order on merit after considering the submission of the assessee. If no submissions are provided then even the Ld. CIT(A) assessee. If no submissions are provided then even the Ld. CIT(A) assessee. If no submissions are provided then even the Ld. CIT(A) should pass an order deciding the issue should pass an order deciding the issue on merit. The grounds of the on merit. The grounds of the assessee are allowed for statistical purposes. assessee are allowed for statistical purposes.
M/s Gas Jeans Pvt. Ltd. 5 ITA No. 1975/M/2022
In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for statistical purposes.