THE INSTITUTE OF INTERNAL AUDITORS DELHI CHAPTER,NEW DELHI vs. ITO(EXEMPTION), WARD-2(3), NEW DELHI

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ITA 3464/DEL/2018Status: DisposedITAT Delhi01 November 2018AY 2013-144 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT found merit in the assessee's contention that the CIT(A) passed an ex-parte order without discussing the additions on merits. Therefore, the matter was set aside to the CIT(A) for a fresh decision after providing an adequate opportunity of being heard.

What were the facts?

The assessee, a non-profit organization, appealed against an ex-parte order passed by the CIT(A) which confirmed additions made by the ITO. The assessee contended that no notices were served and the CIT(A) failed to discuss the additions on merits.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without proper notice and failing to adjudicate the additions on merits. The principle of natural justice was also a key consideration.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

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

Before: SHRI H.S. SIDHU

This appeal has been filed by the Assessee against the Order dated 09.3.2018 of the Ld. Commissioner of Income Tax (Appeals)-40, New Delhi relevant to assessment year 2013-14. 2. The grounds raised in the appeal read as under:-

1.

That the order dated 8.3.2018 passed by the CIT(A) and the order dated 31.3.2013 passed by the ITO, u/s. 143(3) are both bad in law and against the facts of the case.

2.

That the Ld. CIT(A) has greatly erred in law and on the facts of the case in :- a) Passing an exparte order against the assessee which is a non-profit organization stating that none appeared on 23.11.2017, 14.12.2017, 12.1.2018 and finally on 18.3.2018, when no notice whatsoever were ever mentioned in Appellate Order as per documentary evidence of speed post department obtained by the appellant. b) in not discussing the additions made by the ITO on merits at all and dismissing of the appeals without even discussing the facts and merits of the case. c) in wrongly dismissing the appeals and confirming the additions made by the ITO quoting wrong facts and wrong observations in the appellant order. d) in not discussing anything relating to the two additions of Rs. 11,32,646/- made by the ITO in an illegal manner and dismissing the appeal in utter disregard of all norms of natural justice.

3. That the additions made by the and sustained by the CIT(A) are unjust, arbitrary and outside the scope of natural justice and in utter disregard and have been made just for the sake of making some additions in the case.

Prayer:-

That the additions made by the AO and sustained by the CIT(A) amounting to Rs. 1132,646/- be deleted since they are not sustainable in accordance with the law and against the facts of the case and have been wrongly made.

3.

Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of brevity.

4.

During the hearing, Ld. A.R. of the assessee, has stated that ld. CIT(A) has passed an exparte order against the assessee, when no notice whatsoever were ever mentioned in Appellate Order as per documentary evidence of speed post department obtained by the assessee. He further submitted that Ld. CIT(A) also not discussed the additions made by the ITO on merits at all and dismissed appeal without even discussing the facts and merits of the case. Therefore, he requested that the matter may be set aside to the file of the Ld. CIT(A) to decide the same afresh, under the law, after giving adequate opportunity of being heard to the assessee in order to substantiate the claim of the assessee.

5.

Ld. DR did not raise any objection to the request of the ld. counsel for the assessee.

6.

I have heard both the parties and perused the records. I have also gone through the order passed by the revenue authorities as well as the contention raised by the assessee in the grounds of appeal. I find force in the contention of the Ld. Counsel for the assessee that Ld. CIT(A) passed an exparte order against the assessee and did not discuss the additions made by the AO on merits, which is not sustainable in the eyes of law. Therefore, in the interest of justice, the issues in dispute are set aside to the file of the Ld. CIT(A) with the directions to decide the same afresh, under the law, after giving adequate opportunity of being heard to the assessee. The assessee is also directed to file all the necessary documents/evidences, if any, to substantiate his case and fully cooperate with the ld. CIT(A) in the proceedings and did not take any unnecessary adjournment.

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