GURVIR MOTOR PRIVATE LIMITED,PATIALA vs. INCOME TAX OFFICER, WARD-4, PATIALA

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ITA 1250/CHANDI/2024Status: DisposedITAT Chandigarh03 July 2025AY 2013-14Bench: SHRI RAJPAL YADAV (Vice President), SHRI KRINWANT SAHAY (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have decided the appeal on merits based on available material, which was not done. To ensure natural justice, the Tribunal remanded the case back to the Assessing Officer for a fresh assessment, providing the assessee with adequate opportunity to present their case.

What were the facts?

The assessee filed an appeal against the order of the CIT(A) for AY 2013-14. The assessment order was passed ex-parte under Section 144 of the Income Tax Act, 1961, without providing the assessee an opportunity to file detailed submissions. The assessee contended that this lack of opportunity prejudiced their case.

What were the issues?

Whether the assessment order passed ex-parte without granting the assessee sufficient opportunity to be heard, and upheld by the CIT(A), warrants a remand to the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 144,Section 250,Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY

For Appellant: Ms. Shruti Khandelwal, Adv. (Virtual)
Hearing: 01.07.2025Pronounced: 03.07.2025

Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the Assessee against the order dt. 31.10.2024 passed by the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi for A.Y. 2013-14.

2.

Grounds of appeal are as under:

1.

1. 1. That on the facts, circumstances and legal position of the case, the Worthy CIT(A), NFAC in Appeal No. CIT(A), Patiala/10038/2019-20 has 1250-Chd-2024 Gurvir Motor Private Limited, Patiala 2 erred in passing order dt. 31.10.2024 in contravention of provisions of S. 250 of the Income Tax Act, 1961 2. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the actions of Ld. AO where he had framed the impugned assessment u/s 144 in violation of directions u/s 263 and hence the impugned assessment order deserves to be quashed.

3. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 49,02,786/-on account of increase in short term loans.

4. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 9,05,405/- by erroneously disallowing the employees benefit expenses debited in profit and loss account.

5. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 4,19,754/- by erroneously disallowing the expenses even when they were genuine.

6. That on facts, circumstances and legal position of the case, Worthy CIT(A) has erred in confirming the addition made by the Ld. AO of Rs. 30,00,000/-on account of fresh introduction of share capital.

7.

That on facts, circumstances and legal position of the case, the orders passed by Ld. AO and 1250-Chd-2024 Gurvir Motor Private Limited, Patiala

3 then by Worthy CIT(A) deserves to be quashed since the same have been passed without affording reasonable opportunity of being heard to the appellant. 8. That the appellant craves leave for any addition, deletion, or amendment in the grounds of appeal on or before the disposal of the same.

3. During proceedings before us, at the very outset, ld. Counsel for the Assessee submitted that the assessment order in this case was passed u/s 144 of the Income Tax Act, 1961 (in short 'the Act') and, thus, the Assessee had no opportunity to file its detailed submissions before the Assessing Officer. Even during appellate proceedings, there is no compliance made by the Assessee despite the fact that several notices were issued. The ld. Counsel of the Assessee requested the Bench that Assessee could not made submissions before the authorities below, therefore, the matter may be remanded back to the Assessing Officer.

4.

Per contra, the ld. DR relied on the orders of the authorities below.

5.

We have considered the findings of the Assessing Officer in the assessment order and the finding given in the appellate order by the ld. CIT(A). Although the Assessee did not comply

1250-Chd-2024 Gurvir Motor Private Limited, Patiala

4 with any notices before the Ld. CIT(A), however, the CIT(A) should have passed the appellate order on merits on the basis of material available on record. It has not been done so by the Ld. CIT(A). Therefore, we are of the considered view that the matter should be remanded back to the Assessing Officer to enable the Assessee to file its submissions and get the matter assessed and adjudicated on merit. Therefore, keeping in view the element of natural justice, we remand this case back to the file of the Assessing Officer for passing an order de novo, on merit in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the A.O. All pleas available under the law shall remain so available to the assessee. Ordered accordingly.

6.

In the result, the Assessee’s appeal is allowed for statistical purposes.

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