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Facts
For Assessment Year 2009-10, this is the second round of litigation for the assessee, M/s. Shivalik Constructions Pvt. Ltd. The Assessing Officer had made a disallowance of Rs. 36,97,243/- under Section 40(a)(ia) of the Income Tax Act. The assessee's subsequent appeal to the CIT(A) was dismissed ex-parte without considering their submissions, which the assessee claimed was due to insufficient opportunity.
Held
The Tribunal observed that the CIT(A)'s order was ex-parte and, without commenting on the merits of the disallowance, set aside the impugned order. The case is restored to the file of the CIT(A) for a de novo adjudication, ensuring the assessee is provided a reasonable opportunity to make submissions in accordance with law.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order dismissing the appeal regarding disallowance under Section 40(a)(ia) without providing sufficient opportunity to the assessee to present their case.
Sections Cited
Section 40(a)(ia) of the Income Tax Act, 1961, Section 254 of the Income Tax Act, 1961, Section 143(3) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2009-10) M/s. Shivalik Constructions Pvt. Ltd., D-245, Nehru Colony, Haridwar Road, Dehradun, Uttrakhand-248001 ...... अपीलाथ�/Appellant PAN: AAJCS-3277-M बनाम Vs. Income Tax Officer, Ward-23(2), C.R Building_ITO, ..... �ितवादी/Respondent I.P Estate, New delhi 110002 अपीलाथ� �ारा/ Appellant by : Shri Ankit Gupta, Advocate �ितवादी�ारा/Respondent by : Ms. Shivani Bansal, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 12/09/2024 घोषणा क� ितिथ/ Date of pronouncement : 12/09/2024 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against an ex-parte order of the Commissioner of Income Tax (Appeals)-8, New Delhi (hereinafter referred as to 'the CIT(A)') dated 23/07/2019, for assessment year 2009-10.
Shri Ankit Gupta, appearing on behalf of the assessee submits, that this is second round of litigation for AY 2009-10 before the Tribunal. In the first round, the Tribunal in allowed appeal of the assessee for statistical purpose vide order 02.01.2018 and restored the issues relating to disallowance u/s. 40(a)(ia) of the Income Tax Act, 1961 (hereinafter referred as to 'the Act') and disallowance of current liability back to the Assessing Officer (AO) for fresh adjudication. The AO vide order dated 19.12.2018 passed u/s. 254 r.w.s 143(3) of the Act. Again made the disallowance u/s. 40(a)(ia) of the Act. The assessee carried the issue in appeal before the CIT(A). The assessee furnished submissions on 12.07.2019, but the CIT(A), without considering the submissions of the assessee, dismissed appeal of the assessee. The assessee was not provided sufficient opportunity to make submissions by the First Appellate Authority. The assessee has good case on merits. The ld. Counsel for the assessee prayed for restoring appeal back to the file of CIT(A).
Per contra, Ms. Shivani Bansal, representing the department, vehemently defended the impugned order and prayed for dismissing appeal of the assessee.
Both sides heard. The solitary issue in appeal is with regard to disallowance of Rs. 36,97,243/- u/s. 40(a)(ia) of the Act. A perusal of impugned order shows that it is an ex-parte order. Though the CIT(A) had issued notice to the assessee on three occasions, i.e. 09.05.2019, 04.06.2019 & 03.07.2019, the assessee failed to respond to any of the notices. The ld. Counsel for the assessee pointed that in response to notice dated 03.07.2019. The assessee furnished detailed submissions before the CIT(A). However, he is not having copy of acknowledgment as a proof of submitting written submissions before the First Appellate Authority. Without commenting on merits of the issue raised before the Tribunal, this appeal is restored back to the file of CIT(A) for denovo adjudication, after affording reasonable opportunity of making submissions to the assessee, in accordance with law.
The assessee upon service of notice by the CIT(A) shall respond to the same, without fail. 6. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Thursday the 12th day of September, 2024.