DEVDHAR TRADING & CONSULTANTS PVT LTD,GURGAON vs. ACIT CIRCLE-01, GURGAON

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ITA 3352/DEL/2019Status: DisposedITAT Delhi25 November 2020AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found that the CIT(Appeals) did not provide sufficient opportunity of hearing to the assessee and failed to give a categorical finding on merits. Therefore, the case was remanded back to the CIT(Appeals) for a decision on merits.

What were the facts?

The assessee, engaged in trading and consultancy, filed a return declaring a loss. The Assessing Officer assessed the loss at a much lower figure. The CIT(Appeals) dismissed the assessee's appeal.

What were the issues?

Whether the CIT(Appeals) erred in confirming the disallowance under Section 14A without proper opportunity of hearing and without deciding on merits.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

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

Before: SHRI R. K. PANDAMS. SUCHITRA KAMBLE

For Appellant: Shri Guru Dev Chawla, C.A
For Respondent: Shri Umesh Takyar, Sr. DR
Hearing: 19.11.2020Pronounced: 25.11.2020

O R D E R PER SUCHITRA KAMBLE, JM :

This appeal is filed by the assessee against the order dated 28.06.2018 passed by CIT (Appeals)-1, Gurgaon, for Assessment Year 2015-16.

2.

The grounds of appeal

are as under:- “

1. The Ld. Commissioner of Income Tax Appeals has erred in confirming disallowance of Rs.5,29,08,882/- u/s 14A of the Income Tax Act 1961, without there being any exempt income, with total disregard to the facts and circumstances of the case;

2. The entire disallowance made, is illegal and with total disregard to the facts and circumstances of the case. “

3.

The assessee was engaged in the business of trading and consultancy.

The assessee filed return of income on 30.09.2015 declaring a loss of Rs.5,30,96,629/-. The Assessing Officer passed assessment order dated 28.12.2017 thereby assessing the loss at Rs.1,87,747/-.

4.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT (Appeals). The CIT (A) dismissed the appeal of the assessee.

5.

The Ld. Authorized Representative submitted that the CIT (Appeals) has not given an appropriate opportunity of hearing to the assessee to represent his case.

6.

The Ld. Departmental Representative relied upon the assessment order and the order of the CIT (Appeals).

7.

We have heard both the parties and perused all the material available on record. It is pertinent to note that the CIT (Appeals) has not given any categorical finding on merits of the case and also did not give sufficient opportunity of hearing to the assessee. Therefore, the CIT (Appeals) was not right in dismissing the appeal of the assessee without giving proper opportunity of hearing. Hence, we are remanding back the entire issue to the file of the CIT (Appeals) to be decided on merits. Needless to say, the assessee be given an opportunity of hearing by following the principles of natural justice. The appeal of the assessee is partly allowed, for statistical purpose.

8.

In result, appeal of the assessee is partly allowed, for statistical purpose. Order pronounced in the Open Court on this 25th Day of November, 2020

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