DEPUTY COMMISSIONER OF INCOME TAX, SHIMLA vs. SURITI TYAGI, SOLAN, HIMACHAL PRADESH
1
IN THE INCOME TAX APPELLATE TRIBUNAL
“B” BENCH CHANDIGARH.
BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT
AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकरअपीलसं./ ITA No.611/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-2019) Suriti Tyagi Laxmi Niwas, VPO Kirpalpur Teh. Nalagarh, Solan (HP) – 174101 बनाम/ Vs. ACIT Circle Shimla. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ADSPT-4430-E (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) & आयकरअपीलसं./ ITA No.680/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-2019) ACIT Circle Shimla बनाम/ Vs. Suriti Tyagi Laxmi Niwas, VPO Kirpalpur Teh. Nalagarh, Solan (HP) – 174101 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ADSPT-4430-E (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent)
Assessee by :
Sh. Rajiv Sood (CA) - Ld. AR
Revenue by :
Smt. Kusum Bansal (CIT) & Dr. Ranjit
Kaur (Addl. CIT) – Ld. Sr. DRs
सुनवाईकीतारीख/Date of Hearing
:
08-04-2025
घोषणाकीतारीख /Date of Pronouncement
:
21-04-2025
आदेश / O R D E R
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid cross-appeals for Assessment Year (AY) 2018-19 arises out of an order of Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)], dated 16-02-2024 in the matter of an 2
assessment framed by Ld. Assessing Officer (AO) u/s 143(3) of the Act on 03-09-2021. Having heard rival submissions and upon perusal of case records, the appeals are adjudicated as under. The registry has noted delay of 91 days in assessee’s appeal which stand condoned.
2. The assessee declared income of Rs.31.76 Lacs. The assessee debited license fees of Rs.36.47 Crores against turnover of Rs.46.36
Crores which was almost 78% of turnover. The purchases were Rs.18.63 Crores. In AY 2017-18, the assessee claimed license fee of 0.49% of turnover. The assessee was required to justify the same. The assessee filed ledger extracts and copy of paid challans only. However, the working of license fees was not furnished. Accordingly, Ld. AO restricted the license fees to the extent of 0.49% of the turnover and disallowed the remaining payment of Rs.36.25 Crores u/s 37(1). The Ld. AO also estimated presumptive profit of 5% on turnover which came to Rs.2.31 Crores. The income of the assessee was thus determined at Rs.38.55 Crores. The Ld. CIT(A) substantially confirmed the assessment for want of any representation from the assessee. The Ld. CIT(A) deleted separate addition of estimation of business income since the same would amount to double addition. The said adjudication has led to cross-appeals before us. The Ld. AR filed affidavit of the assessee and pleaded for another opportunity of hearing before lower authorities which has been opposed by revenue.
3. Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we deem it fit to afford another opportunity of hearing to the assessee to 3
substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to plead and prove its case forthwith.
4. Both the appeals stand allowed for statistical purposes.
Order pronounced on 21-04-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL)
VICE PRESIDENT लेखासद˟ /ACCOUNTANT MEMBER
Dated: 21-04-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to :
1. अपीलाथŎ/Appellant
2. ŮȑथŎ/Respondent
3. आयकरआयुƅ/CIT
4. िवभागीयŮितिनिध/DR
5. गाडŊफाईल/GF