HARYANA POWER GENERATION CORPORATION LTD.,URJA BHAWAN, PANCHKULA vs. DEPUTY COMMISSIONER OF INCOME TAX, PANCHKULA CIRCLE, AAYKAR BHAWAN

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ITA 283/CHANDI/2024Status: DisposedITAT Chandigarh22 April 2025AY 2016-17Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

AI SummaryRemanded

Facts

The assessee appealed against a CIT(A) order for AY 2016-17, challenging various disallowances including under Section 40(a)(ia) (freight charges), prior period expenses, dry fly ash sales, guarantee charges, and non-grant of set-off of brought forward losses. As a Government undertaking, the assessee failed to file comprehensive submissions before the CIT(A) due to circumstances arising from the Covid-19 pandemic.

Held

The Tribunal, noting that crucial aspects remained unexamined due to the assessee's non-representation despite opportunities, set aside the CIT(A)'s order. The matter was remanded to the Assessing Officer for fresh adjudication, directing the AO to afford reasonable opportunity, consider all evidence, and judicial precedents, while also directing the assessee to fully cooperate.

Key Issues

Whether various disallowances and additions made by the CIT(A) were justified, and whether the assessee should be granted a fresh opportunity to present its case before the lower authorities given its prior failure to appear effectively.

Sections Cited

40(a)(ia)

AI-generated summary — verify with the full judgment below

िनधा"रती की ओर से/Assessee by : Shri Harish Nayyar, C.A राज" की ओर से/ Revenue by : Shri Rohit Sharma, CIT, DR सुनवाई की तारीख/Date of Hearing : 21/04/2025 उदघोषणा की तारीख/Date of Pronouncement : 22/04/2025 आदेश/Order PER LALIET KUMAR, J.M: The assessee has filed the present appeal against the order dated 27.01.2024 passed by the Ld. CIT(A)/ National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2016-17. The Ld. CIT(A) has partly allowed the appeal of the assessee.

The grounds raised by the assessee, inter alia, relate to additions made on account of (i) disallowance under Section 40(a)(ia) in respect of freight charges,

(ii) disallowance of prior period expenses, (iii) addition on account of sale of dry fly ash, and (iv) disallowance of guarantee charges, besides non-grant of set-off of brought forward losses. 3. During the course of appellate proceedings before the Ld. CIT(A), despite several opportunities being granted, the assessee failed to file comprehensive submissions and supporting evidences on merits. The appeal was disposed of primarily on the basis of the material available on record, without effective representation from the assessee's side.

The Ld. AR submitted that the assessee is a Government undertaking, and due to the unprecedented circumstances arising from the Covid-19 pandemic, there was no proper representation before the Ld. CIT(A). It was further submitted that most of the issues agitated before us are covered by the orders of the Tribunal as well as by the Hon'ble High Courts in earlier years. The Ld. AR thus pleaded that one more opportunity be granted to the assessee to present its case properly before the lower authorities.

Per contra, the Ld. DR opposed the submissions of the assessee and contended that despite having notice of the hearing dates, the assessee failed to appear and prosecute the appeal before the Ld. CIT(A).

We have heard the rival submissions and perused the material available on record. It is observed that sufficient opportunity was granted to the assessee by the Ld. CIT(A), but the same could not be effectively availed. As a result, several crucial aspects of the matter have remained unexamined. In the interest of substantial justice, we deem it appropriate to set aside the impugned order passed by the Ld. CIT(A) and restore the matter back to the file of the Assessing Officer for fresh adjudication. The Assessing Officer shall afford reasonable opportunity of being heard to the assessee and decide the issues afresh, strictly in accordance with law and on merits, after considering all submissions, documents, and judicial precedents relied upon by the assessee, more particularly the decision of the Tribunal in the case of the assessee and also the decision of the Hon'ble High Court. The assessee is also directed to extend full cooperation during the remand proceedings and promptly furnish all required details.