BABA SRI CHAND MAJIK ENTERPRISES INDIA PRIVATE LIMITED,NEW DELHI vs. ITO WARD 4(1), NEW DELHI

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ITA 6109/DEL/2019Status: DisposedITAT Delhi16 June 2021AY 2015-164 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal restored the issue to the file of the CIT(A) to grant one final opportunity to the assessee to present its case. The assessee is directed to appear without seeking any adjournment.

What were the facts?

The assessee, a private limited company, had Rs. 20 lakhs added to its income by the AO as unexplained cash deposit. The CIT(A) dismissed the assessee's appeal ex-parte after the assessee failed to appear despite multiple opportunities.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex-parte without granting a final opportunity to the assessee to substantiate its case.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC-1” : DELHI

Before: SHRI R.K. PANDA

Hearing: 16.06.2021Pronounced: 16.06.2021

ORDER This appeal filed by the Assessee is directed against the ex-parte Order dated 31.05.2019 of the Ld. CIT(A)-2, New Delhi, relevant to the A.Y. 2015-2016.

2.

The assessee in the grounds of appeal has challenged the ex-parte order of the Ld. CIT(A) confirming the addition of Rs.20 lakhs made by the A.O. on account of unexplained cash deposit.

2 ITA.No.6109/Del./2019 M/s. Baba Sri Chand Majik Enterprises India Private Limited., New Delhi.

3.

The facts of the case are that the assessee is a Private Limited Company engaged in the business of running food restaurants with Home delivery and take-away facilities under the brand name “Diggin”. It filed its return of income on 30.09.2015 disclosing total income of Rs.5,09,900/-. The A.O. completed the assessment under section 143(3) determining the total income of the assessee at Rs.25,09,000/- wherein he made addition of Rs.20 lakhs as unexplained cash deposited in S.B. A/c. in the absence of any plausible explanation given by the assessee to explain the source. Since the assessee did not appear before the Ld. CIT(A), the Ld. CIT(A) in the ex-parte order passed by him dismissed the appeal filed by the assessee

4.

Aggrieved with the said Order of the Ld. CIT(A) the assessee preferred the present appeal before the Tribunal.

5.

Learned Counsel for the Assessee submitted that on the date of hearing the assessee moved an adjournment application, but the same was summarily rejected by the Ld. CIT(A) and he dismissed the appeal filed by the assessee ex-

1.

3 ITA.No.6109/Del./2019 M/s. Baba Sri Chand Majik Enterprises India Private Limited., New Delhi. parte. He submitted that in the interest of justice the assessee should be given an opportunity to substantiate its case.

6.

The Ld. D.R. heavily relied on the Order of the Ld. CIT(A) and submitted that sufficient opportunities were granted by the Ld. CIT(A). Therefore, this appeal should be dismissed.

7.

I have considered the rival arguments of both the parties and perused the material available on record. It is an admitted fact Ld. CIT(A) had granted 03 opportunities to the assessee and on all three occasions the assessee was seeking adjournments for which the Ld. CIT(A) dismissed the appeal filed by the assessee and passed the ex-parte order. Considering the totality of the facts and circumstances of the case and in the interest of justice, I deem it proper to restore the issue to the file of the Ld. CIT(A) with the direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and Law. The assessee is also hereby directed to appear before the Ld. CIT(A) to substantiate its case without

4 ITA.No.6109/Del./2019 M/s. Baba Sri Chand Majik Enterprises India Private Limited., New Delhi. seeking any adjournment under any pretext, failing which, the Ld. CIT(A) is at liberty to pass appropriate orders as per Law. The grounds raised by the assessee are accordingly allowed for statistical purposes.

8.

In the result, appeal of the Assessee allowed for statistical purposes.

Order pronounced in the open Court at the time of hearing itself i.e., on 16.06.2021.

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