PRITHVI LANDCRAFT PRIVATE LIMITED,NOIDA vs. ACIT CIRCLE 2(2)(1), GHAZIABAD

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ITA 1959/DEL/2023Status: DisposedITAT Delhi23 July 2024AY 2017-18Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI VIMAL KUMAR (Judicial Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal considered the assessee's ground that the ex-parte assessment and appeal orders were passed due to non-compliance and were contrary to facts and law. In the interest of justice, the Tribunal remitted the issue back to the file of the Assessing Officer to pass a fresh order as per law. The AO is directed to provide the assessee with a proper opportunity of being heard before making a decision on merits.

What were the facts?

The Assessing Officer made an ex-parte addition of Rs. 4,92,65,000/- under section 68 of the Income-tax Act, 1961, treating it as unexplained cash credit. This ex-parte order was subsequently confirmed by the CIT (A) also through an ex-parte order. The assessee then appealed to the ITAT, contending that the lower orders were passed due to non-compliance and were contrary to facts and law, seeking restoration of the matter to the lower authorities for a decision on merits.

What were the issues?

Whether the ex-parte assessment and appeal orders should be set aside and the matter restored to the lower authorities for re-assessment on merits after providing the assessee a proper opportunity of being heard.

Which sections of the Income-tax Act were involved?

Section 144,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’ : NEW DELHI

For Respondent: Shri P.N. Barnwal, CIT DR
Hearing: 23.07.2024

Order

: 23.07.2024 ORDER

PER SHAMIM YAHYA, ACCOUNTANT MEMBER

1.

This appeal by the assessee is directed against the order of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 19.12.2022 for the assessment year 2017-18.

2.

Grounds of appeal taken by the assessee read as under :- “Dismissal of the grounds of appeal by the Hon’ble Commissioner of Income Tax (Appeals) against the order passed u/s 144 of the Income Tax Act, 1961 of the Assessing Officer due to non- compliance on the part of the appellant is contrary to facts and law and therefore, the appeal is liable to be restored to the Assessing Officer or to the Hon’ble Commissioner of Income Tax (Appeals) for re-assessment or decision on merits of the issues on which additions have been made.”

3.

Brief facts of the case are that in this case, Assessing Officer in an ex-parte order made an addition Rs.4,92,65,000/- under section68 of the Income-tax Act, 1961 as unexplained cash credit.

4.

Upon assessee’s appeal, ld. CIT (A) also confirmed the order of the AO by passing an ex-parte order. 5. Against this order, assessee is in appeal before the ITAT. None appeared on behalf of the assessee. We have heard ld. DR for the Revenue and perused the records. 6. Ld. DR for the Revenue relied upon the orders of the authorities below. 7. Upon careful consideration, we find that the assessee has taken a plea in the ground of appeal

that the order passed by the AO due to non-compliance on the part of the assessee is contrary to facts and law and, therefore, it is prayed that the matter be restored to the Assessing Officer to canvass its case. Accordingly, in the interest of justice, we remit the issue to the file of AO. AO is directed to pass an order as per law after giving the assessee proper opportunity of being heard.

8. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on this 23rd day of July, 2024 after the conclusion of the hearing.

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