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Facts
The assessee appealed against the CIT(A)/NFAC's order for AY 2014-15, which confirmed an unexplained cash credit addition of Rs. 73.56 lacs under Section 68 of the Income Tax Act. The CIT(A) failed to frame points of determination or issue a speaking adjudication as required by Section 250(6) of the Act. The assessee also did not cooperate during the appellate proceedings.
Held
The Tribunal held that despite the assessee's non-cooperation, the lower appellate authority must adjudicate the appeal in compliance with Section 250(6). Consequently, the appeal was restored to the CIT(A)/NFAC for fresh adjudication, with the condition that the assessee must plead and prove all relevant facts within three effective opportunities. The appeal was thus allowed for statistical purposes.
Key Issues
Whether the CIT(A) erred in confirming an addition under Section 68 without a speaking order or framing points of determination as per Section 250(6), and if the assessee's non-cooperation absolves the appellate authority of this statutory duty.
Sections Cited
Section 144 of the Income Tax Act, 1961, Section 263 of the Income Tax Act, 1961, Section 68 of the Income Tax Act, 1961, Section 250(6) of the Income Tax Act, 1961
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
Asstt. Year : 2014-15 NSN Ploymers Pvt. Ltd., Vs Income Tax Officer, 1/5, Milestones, Khasra No. 600, Ward-3(1), Street no. 2, Opp. Sector-10A, Gurgaon, Gurgaon, Haryana-122001 Haryana-122001 (APPELLANT) (RESPONDENT) PAN No. AACCN0979N Assessee by : None Revenue by : Sh. Akhilesh Kumar Yadav, Sr. DR Date of Hearing: 05.12.2024 Date of Pronouncement: 10.12.2024 ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2014-15, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1057313464(1) dated 25.10.2023 in proceedings u/s 144 r.w.s. 263 of the Income Tax Act, 1961 (in short “The Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It emerges at the outset with the able assistance coming from the Revenue side that the learned CIT(A)/NFAC has affirmed the assessment findings making section 68 unexplained cash credit addition of Rs.73.56 lacs in assessment order dated 25.12.2019, without either framing points of determination or by a speaking adjudication thereof, as contemplated u/s 250(6) of the Act.
2 NSN Ploymers Pvt. Ltd. 4. Faced with this situation, Mr. Yadav vehemently argues that the learned CIT(A)/NFAC had afforded five effective opportunities to the assessee as per para 3.1 pages 2 & 3 herein and therefore, we ought to confirm the impugned addition.
We have given our thoughtful consideration to the assessee’ pleadings and Revenue’s foregoing rival submissions. We are of the considered view that although the fact remains that the assessee appears to have not cooperated in the assessment proceedings as well, there would be hardly any issue regarding the settled proposition that all this does not exempt the learned lower appellate authority from adjudicating lower appeal in due compliance to section 250(6) of the Act. We thus deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication subject to a rider that it shall be the taxpayer risk and responsibility to plead and prove with all relevant facts within three effective opportunities, in consequential proceedings. Ordered accordingly.
This assessee’s appeal is allowed for statistical purposes in above terms. Order Pronounced in the Open Court on 10/12/2024.