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Facts
The assessee, Balaji Mobitech Pvt. Ltd., appealed against an ex-parte order from the CIT(A)/NFAC for AY 2017-18, which upheld the Assessing Officer's addition of Rs. 30,00,000/- as unexplained money u/s 69A following proceedings initiated u/s 147/148. The CIT(A) order was found to lack points of determination and detailed adjudication as per Section 250(6). The assessee did not appear before the Tribunal, leading to ex-parte proceedings there as well.
Held
The Tribunal observed that the CIT(A) had failed to address the merits of the assessee's grounds despite the assessee's non-cooperation in lower appellate proceedings. Consequently, the appeal was restored to the CIT(A)/NFAC for fresh adjudication, providing the assessee with three opportunities to present its case.
Key Issues
Whether the CIT(A) erred in confirming an addition u/s 69A in an ex-parte order without framing points of determination or adjudicating the assessee's grounds on merits. Whether the matter should be remanded for fresh adjudication.
Sections Cited
Section 147, Section 144, Section 148, Section 69A, Section 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh
Asstt. Year : 2017-18 Balaji Mobitech Pvt. Ltd. Vs ACIT Property No. 5530, Gali No. 74, Circle-4(2), Block B, Basti Raigarpura, Karol New Delhi Bagh, Anand Barat S.O., New Delhi-110005 (APPELLANT) (RESPONDENT) PAN No. AADCB1304L Assessee by : None Revenue by : An application for adjournment by Sr. DR Date of Hearing: 11.11.2024 Date of Pronouncement: 13.11.2024 ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2017-18, arises against the order of CIT(A)/NFAC, Delhi dated 06.12.2023 in case No. ITBA/NFAC/S/250/2023- 24/1058511838(1) in proceedings u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (in short “The Act”).
Case called twice. None appear 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 CIT(A)/NFAC’s impugned ex-parte lower appellate discussion, affirming the Assessing Officer actions initiating u/s 148/147 of the Act proceeding thereby making Section 69A unexplained money 2 Balaji Mobitech Pvt. Ltd. addition of Rs.30,00,000/-, has neither framed any points of determination nor any detailed adjudication thereupon, as contemplated u/s 250(6) of the Act.
The Revenue vehemently submits that the assessee had not cooperated in the lower appellate proceedings which made the CIT(A)/NFAC to affirm the impugned addition on both the foregoing counts. We find no merit in the Revenue’s instant technical objection once the assessee’s corresponding grounds have not even been dealt with on merits.
We thus, deem it appropriate in these peculiar facts and circumstances to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication as per law, within three effective opportunities at the taxpayer's risk and responsibility only, to plead and prove it’s case in consequential proceedings. Order accordingly.
This assessee’s appeal is allowed for statistical purpose in above terms. Order Pronounced in the Open Court on 13/11/2024.