DEMELLO TELEPOWER PRIVATE LIMITED,GOA vs. DEPUTY DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTRE, INCOME TAX DEPARTMENT, GOA
Facts
The assessee, Demello Telepower Pvt Ltd, engaged in passive telecom infrastructure services, filed its return for AY 2023-24 claiming TDS credit based on Form 26AS. The return was processed under Section 143(1), restricting TDS credit due to a mismatch between declared receipts and Form 26AS. The CIT(A) dismissed the assessee's subsequent appeal ex parte due to non-compliance with hearing notices.
Held
The Tribunal found that the CIT(A)'s ex parte order was based on perceived non-compliance. Upholding principles of natural justice and acknowledging potential reasons for non-appearance, the Tribunal set aside the CIT(A)'s order and remitted the matter back to the CIT(A) for fresh adjudication. The assessee is to be provided another opportunity to be heard and submit evidence.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex parte due to the assessee's non-appearance, or if the assessee should be granted another opportunity to present its case.
Sections Cited
Section 143(1), Section 250, Section 199, Rule 37B of the IT Rules
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.211/PAN/2024 (A.Y.2023-24 ) Demello Telepower Pvt Ltd, Vs ACIT-Circle 1(1), H.no.240,Cotulvaddo, Aaykar Bhavan, . Saligao-403511, EDC complex, Goa Patto Plaza, Panjim-403001, Goa. PAN .No.AADCD6928L (अपीलाथ�/Appellant) (��यथ�/Respondent)
Assessee by Ms.Tanamayee Rajkumar.AR Revenue by Mr.Vimalrajperiyagounden.Sr.DR
सुनवाई क� तार�ख/Date of Hearing 27.03.2025 घोषणा क� तार�ख/Date of Pronouncement 01.04.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of Addl/JCIT(A) passed u/sec143(1) and U/sec 250 of the Act.The assesse has raised the grounds of appeal challenging the ex parte order of the Addl/JCIT(A).
The brief facts of the case are that, the assessee company is engaged in the business of providing passive telecom infrastructure services. The assessee has filed the
2 ITA. No. 211/PAN/2025 Demello Telepower Pvt Ltd. return of income for the A.Y 2023-24 on 26.10.2023 disclosing a total income of Rs.12,82,01,372/- and claimed TDS credit as per Form no 26AS aggregating to Rs.1,90,03,134/-. Whereas the return of income was processed under section 143(1) of the Act restricting the TDS credit to the extent of Rs.85,57,839/- under section 199 of the Act r.w.r 37B of the IT Rules with the workingss that the receipts offered to tax in the return of income filed is lower than the gross receipts as per form.no.26AS and the order was passed on 9.01.2024.
Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer/CPC overlooking the facts of the case. The assesse has not received notices of hearing on the Email.ID provided in Form.no.35 and hence there is non compliance. Further the assessee has a good case on
3 ITA. No. 211/PAN/2025 Demello Telepower Pvt Ltd. merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities and the Ld.AR has substantiated the submissions with factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A).
We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the JCIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and passed the ex parte order. The CIT(A) has issued the notices of hearing on various dates referred at Page 4 Para 6&6.1 of the order and there was no response and thus the Ld.JCIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the action of the A,O/CPC and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the disputed issue to the file of the CIT(A) to adjudicate afresh and the assesse should be
4 ITA. No. 211/PAN/2025 Demello Telepower Pvt Ltd. provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose.
In the result, the appeal filed by the assessee is allowed for statistical purpose.
Order pronounced in the open court on 01.04.2025.
Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 01/04/2025
Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji
5 ITA. No. 211/PAN/2025 Demello Telepower Pvt Ltd. Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed
