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Facts
The assessee, a UAE company, received Rs. 10,06,14,234/- from an Indian entity (TDS deducted) but failed to file a regular return. The AO initiated reassessment under section 147, issuing various notices, but the assessee did not comply, leading to an ex-parte assessment under section 144 read with 147 for the entire amount. The CIT(A) dismissed the assessee's appeal and application for condonation of delay in filing the appeal.
Held
The Tribunal noted the assessee's failure to comply with AO's notices and the CIT(A)'s dismissal of the appeal. Considering the assessee's prayer to restore the matter to the AO and in the interest of justice, the Tribunal found it expedient to restore the matter to the AO for a fresh decision in accordance with law.
Key Issues
1. Dismissal of appeal by CIT(A) due to condonation of delay and non-appearance. 2. Validity of ex-parte assessment under section 144 read with 147 against a non-resident assessee, considering DTAA implications and claims of incorrect assessment of total receipts.
Sections Cited
Section 147, Section 144, Section 195, Section 148, Section 142(1), Section 90(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘D’ NEW DELHI
(Assessment Year : 2012-13) GAC Marine LLC Vs. ITO, Ward – 1(3)(2), 1st Floor, AHIP Palms, International Taxation, Plot No.242 & 243, New Delhi – 110 002 Phase-IV, Gurgaon Haryana – 122 015 PAN : AAECG 2882 R (Appellant) (Respondent) Assessee by Shri Gaurav Singhal, Adv. and Ms. Mahima Jain, Adv. Respondent by Shri Vijay B. Vasanta, CIT-D.R. Date of Hearing 28/11/2024 Date of Pronouncement 18/12/2024 O R D E R PER VIMAL KUMAR, JM:
The appeal filed by assessee is against the order dated 15/05/2023 of Learned Commissioner of Income Tax (Appeals)-42, Delhi [hereinafter referred to as ‘Ld. CIT(A)’] arising out of assessment order dated 19.12.2019 of the Income Tax Officer, Ward - Int. Tax - 1(3)(2) (hereinafter referred as ‘Ld. AO’) u/s 147 read with sections 144 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] for the Assessment Year 2012-13.
Brief facts of case are that appellant/assessee is a company incorporated in United Arab Emirates (UAE). The learned AO noticed from assessee’s Form 26AS for Financial Year 2011-12 that it had received amount of Rs.10,06,14,234/- from an Indian entity on which TDS was deducted under section 195 of the Act. No regular return of income had been filed by the assessee. Learned AO issued letters dated 06.03.2018 and 20.03.2019 asking assessee to provide reasons for non-filing of return of income. No response was filed. Learned AO recorded reasons under section 147 of the Act and issued notice under section 148 of the Act. No compliance was made by the assessee. Learned AO issued notice under section 142(1) of the Act on 08.11.2019 & 14.11.2019 seeking information. However, no compliance was made. Final show-cause notice was issued on 25.11.2019. Again no compliance was made. Learned AO finalized the assessment under section 144 r.w.s 147of the Act at a total income of Rs.10,06,14,234/-.
Appellant/assessee preferred appeal before the learned CIT(A) along with application and sought condonation of delay in filing of appeal. The learned CIT(A) vide order dated 15.05.2023 dismissed prayer for condonation of delay in filing appeal.
Being aggrieved, appellant/assessee preferred appeal before the Tribunal.
GAC Marine LLC vs. ITO 5. The learned Authorised Representative for appellant/assessee submitted that learned CIT(A) erred in rejecting the application for condonation of delay in filing appeal and without affording any opportunity to the appellant. Learned CIT(A) erred in concluding without adjudicating examination of the relevant facts and legal precedents, that the appellant is a tax resident of UAE and the activities carried out by the appellant are not taxable in India as per the Double Taxation Avoidance Agreement (‘DTAA’) between India and UAE read with section 90(2) of the Act. The learned CIT(A) grossly erred by considering total receipts of appellant as Rs.10,06,14,234/- whereas, the actual receipts of the appellant were Rs.5,03,07,117/- which is duly apparent from Form 26AS. The appellant/assessee undertakes to appear before Departmental Authorities in case, the case is sent back to the learned AO.
Learned Authorised Representative for the department of Revenue submitted that appellant/assessee had failed to comply with several notices issued by learned AO. The appeal was filed after expiry for period of limitation.
From examination of record in light of aforesaid arrival contentions, it is crystal clear that appellant/assessee failed to comply with several notices issued by the learned AO. Learned AO had finalized assessment under section 144 read with section 147 of the Act in absence of assistance by the appellant/assessee. Learned CIT(A) dismissed the application for condonation of delay GAC Marine LLC vs. ITO and appeal in absence of appellant/assessee. Appellant/assessee has prayed that the matter be restored to the file of learned AO. In view of the above material facts, in interest of justice it is considered expedient to restore the matter to the file of the learned AO for fresh decision in accordance with law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this day 18th December, 2024