VMS INDUSTRIES LTD.,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(2), AHMEDABAD

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ITA 108/AHD/2020Status: DisposedITAT Ahmedabad30 May 2022AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not given an opportunity of hearing by the CIT(A). Therefore, in the interest of justice, the case was restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee appealed against an order of the CIT(A) for AY 2014-15. The assessee claimed that no opportunity of hearing was provided by the CIT(A) as the notice was sent to a previous representative's email.

What were the issues?

Whether the CIT(A) erred by passing an ex-parte order without affording an opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Shri P.M. Jagtap & Shri Siddhartha Nautiyal

For Appellant: Shri Firoj G. Bodla, A.R
For Respondent: Shri Purushottam Kumar, Sr. D.R

आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:-

1.

This is an appeal filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-8, Ahmedabad in Appeal no. CIT(A)-8/11135/16-17 vide order dated 19/11/2019 passed for the assessment year 2014-15.

Page No. 2 VMS Industries Ltd. vs. DCIT

2.

The assessee has taken the following grounds of appeal:-

“The learned CIT (Appeal)-8 and Assessing Officer has erred on law and facts by invoking the provisions of Section 14A and computing the disallowance as per formula provided in Rule 8D of the Income Tax Rules, 1962. The appellant submits that additions amounting to Rs 785511/- on account of provisions of Section 14A of the IT Act, 1961 be deleted on account of nexus of sources of funds and application of funds in respect of investments and judicial pronouncement in this regard.

2. The appellant prays to condone the delay in filing of appeal, if any, since appellant has downloaded CIT Appeals order from income tax e- portal and had not received physical copy through post and said downloading date is 06th December, 2019.”

3.

Before us, the counsel for the assessee, at the outset has submitted that no opportunity of hearing was given in the appeal filed before Ld. Commissioner of Income Tax (Appeals). The counsel for the assessee submitted that no notice for hearing was received by the assessee and apparently the notice was sent to the email ID of the previous Authorised Representative. Therefore, in absence of notice of hearing being received by the assessee, the assessee could not cause appearance and Ld. CIT(Appeals) passed the appeal order ex-parte without affording opportunity of hearing to the assessee.

4.

In light of the above facts, in our considered view, in the interests of justice, the case may be restored to the file of the Ld. CIT(Appeals) so that case may be heard on merits after giving due opportunity of hearing to the Page No. 3 VMS Industries Ltd. vs. DCIT assessee. The Ld. DR has no objection to the matter being restored to the file of Ld. CIT(Appeals) for fresh adjudication.

5.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on 30-05-2022 Sd/- Sd/- (P.M. JAGTAP) (SIDDHARTHA NAUTIYAL) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 30/05/2022 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद

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