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Facts
The assessee firm was identified as a beneficiary of alleged bogus transactions with M/s. Moral Alloys Pvt. Ltd., involving repayments through banking channels. Proceedings under section 147 of the Income Tax Act were initiated, leading to an assessment of Rs. 54,40,740/- due to non-compliance. Subsequently, the appeal filed before the CIT(A) was dismissed ex-parte.
Held
Upon considering an adjournment application from the assessee's counsel for paper book submission, the Tribunal restored the issues to the files of the CIT(A). The CIT(A) is directed to decide the matter afresh after providing the assessee a reasonable and sufficient opportunity of being heard.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without providing adequate opportunity of hearing. Whether the assessment made under sections 147/144 of the Income Tax Act was valid.
Sections Cited
147, 144, 144B, 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: DR. B.R.R. KUMAR & SH. SUDHIR KUMAR
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI BEFORE DR. B.R.R. KUMAR, ACCOUNTANT MEMBER AND SH. SUDHIR KUMAR, JUDICIAL MEMBER Assessment Year: 2013-14 Veer Industries Vs. ITO 421-F, Plot No.48, Gali No.8, 62(1), Civic Centre Friends Colony, GT Road, Shahdara, Delhi-110095 PAN No.AAIFV7231Q (APPELLANT) (RESPONDENT) Appellant by Adjournment application Respondent by Sh. Amit Katoch, Sr. DR Date of hearing: 24/07/2024 Date of Pronouncement: 24/07/2024 ORDER PER SUDHIR KUMAR, JM:
This appeal by the assessee is directed against the order of the CIT(Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “NFAC”] vide order dated 11.12.2023 pertaining to A.Y. 2013-14 and arises out of the assessment order dated 19.03.2022 under section 147 r.w.s. 144 read with section 144B of the Income-tax Act 1961 [hereinafter referred as ‘the Act’].
Brief facts of the case are that the assessee is a Firm and information was received from DDIT, New Delhi that M/s. Moral Alloys Pvt. Ltd. was issuing bogus invoices without transacting any goods and / or services to various buyers. The assessee firm is one of the beneficiary who enjoyed the transaction in the shape of repayment made to M/s. Moral Alloys Pvt. through banking channel during the year under consideration. Proceedings u/s. 147 of the Income Tax Act, 1961 was initiated. No compliance was made by the assessee. Therefore, notices u/s.142 (1) was issued on different dates. Few details were furnished by the assessee firm which was not sufficient. A show cause notice alongwith draft assessment order was issued. In response reply furnished by the assessee firm was note tenable. The Assessing Officer vide order dated 27.03.2015 assessed the total income of Rs.54,40,740/-.
Aggrieved by the order passed by AO, the assessee filed the appeal before CIT(A) but the Ld. CIT(A) dismissed the appeal ex- parte against which this appeal has been filed before us.
The Ld. DR fairly conceded to this.
We have heard the Ld. DR and perused the material available on record, an adjournment application has been filed by the Counsel for the assessee by stating that some time for submission of the paper book be given in the present case. Therefore, in the interest of justice and fair play we restore the issues to the files of the Ld. CIT(A) to be decided afresh after affording a reasonable and sufficient opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purpose.
The order pronounced in the open court on 24.07.2024 after the conclusion of the hearing.