NEHASACH IMPEX PVT. LTD.,DELHI vs. ITO, WARD- 18(1), DELHI

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ITA 3707/DEL/2024Status: DisposedITAT Delhi13 December 2024AY 2021-22Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh (Accountant Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A)'s ex-parte order lacked the framing of points of determination and detailed adjudication as mandated by section 250(6) of the Act. In the interest of justice, the Tribunal restored the appeal to the CIT(A)/NFAC for fresh adjudication, granting the assessee three opportunities to present all relevant facts at its own risk and responsibility.

What were the facts?

The assessee appealed against the CIT(A)/NFAC's ex-parte order for AY 2021-22, which had affirmed an addition of Rs. 20,92,16,097/- under section 37(1) for alleged bogus purchases. The assessee was noted to have been non-cooperative during the original scrutiny and appellate proceedings, leading to an ex-parte order by the CIT(A).

What were the issues?

Whether the CIT(A)'s ex-parte order affirming a bogus purchase addition without detailed adjudication as per section 250(6) is valid, warranting a fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 37(1),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh

For Respondent: Ms. Baljeet Kaur, CIT-DR
Hearing: 04.12.2024Pronounced: 13.12.2024

Asstt. Year : 2021-22 Nehasach Impex Pvt. Ltd., Vs Income Tax Officer, Plot No. 245-246, 1st Floor, Jarodha Ward-18(1), Dairy, Sant Nagar, Village Burari, New Delhi-110002 New Delhi-110084 (APPELLANT) (RESPONDENT) PAN No. AAHCN1557F Assessee by : Sh. Vijay Singhla, CA Revenue by : Ms. Baljeet Kaur, CIT-DR Date of Hearing: 04.12.2024 Date of Pronouncement: 13.12.2024 ORDER

Per Satbeer Singh Godara, Judicial Member:

1.

This assessee’s appeal for Assessment Year 2021-22, arises against the CIT(A)/NFAC, Delhi’s order dated 27.01.2024 in DIN & order No. ITBA/NFAC/S/250/2023-24/1060166113(1) in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “The Act”).

2.

Heard both the parties at length. Case file perused.

3.

It is noticed at the outset that the learned CIT(A)/NFAC herein has affirmed the Assessing Officer’s action making the alleged bogus purchases addition u/s 37(1) of the Act amounting to Rs.20,92,16,097/- in assessment order dated 28.12.2022, vide its ex-parte lower appellate discussion.

2 Nehasach Impex Pvt. Ltd.

4.

Learned CIT-DR invited our attention to para 4 pages 2 & 3 in the lower appellate discussion that the assessee had indeed been afforded various opportunities of hearing which stood non-complied with. She could hardly rebut the clinching fact that the impugned appellate discussion; be it ex-parte or otherwise, has nowhere framed any points of determination nor do, we find any detailed adjudication thereof, as contemplated u/s 250(6) of the Act. This is indeed coupled with the fact that the assessee also appears to have been prima facie non- cooperative all along during scrutiny as well. Faced with this situation, we deem it appropriate in the larger interest of justice to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication with a rider that it shall plead and prove all the relevant fact, at it’s own risk and responsibility within three effective opportunities, in consequential proceedings. Ordered accordingly.

4.1 All other pleadings on merits are not dealt with at this stage.

5.

This assessee’s appeal is allowed for statistical purposes in above terms. Order Pronounced in the Open Court on 13/12/2024.

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