K.S. SOFTNET SOLUTIONS PRIVATE LIMITED,DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-14(1), , NEW DELHI

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ITA 475/DEL/2024Status: DisposedITAT Delhi15 May 2024AY 2009-10Bench: us that the Learned CIT(A) though fixed the matter for four occasions, the assessee could not appear hence, the matter was ultimately, finalized ex parte confirming the order of addition made by the AO. However, the Learned CIT(A) has not passed the order on merit. The assessee, therefore, has not been able to represent its case before the Learned CIT(A) in its proper prospective. In that view of the matter, he prays for setting aside the issue to the file of the Learned AO for deciding the3 pages

AI SummaryAllowed

Facts

The assessee, K.S. Softnet Solutions Pvt. Ltd., appealed against an order of the CIT(A) for A.Y. 2009-10. The CIT(A) had confirmed an addition made by the AO ex parte, as the assessee failed to appear for four scheduled hearings, resulting in an order without considering the merits of the case.

Held

The Tribunal set aside the issue to the file of the Assessing Officer (AO) for a fresh decision, directing that the assessee be given a fresh opportunity of being heard and to present evidence. It was clarified that if the assessee fails to cooperate, the AO is at liberty to finalize the matter strictly in accordance with law.

Key Issues

Whether an ex-parte order passed by the CIT(A) without deciding the merits, due to the assessee's non-appearance, warrants setting aside the matter for fresh adjudication and providing a new opportunity of hearing.

Sections Cited

Section 250, Section 143(3), Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI

Before: MS. MADHUMITA ROY & SH. NAVEEN CHANDRA

For Appellant: Shri Abhinav Jain, Adv, Shri Kartikeya Tiwari, Adv

For Respondent: Shri Sandeep Kr. Mishra, Sr

Pronounced: 15.05.2024

Appellant by : Shri Abhinav Jain, Adv. Shri Kartikeya Tiwari, Adv. Respondent by : Shri Sandeep Kr. Mishra, Sr. D.R. 08.05.2024 Date of Hearing Date of Pronouncement 15.05.2024 O R D E R

PER MS. MADHUMITA ROY – JUDICIAL MEMBER :

The instant appeal filed by the assessee is directed against the order dated 10.01.2024 passed by the Commissioner of Income Tax (Appeals) - New Delhi under section 250 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) arising out of the assessment order passed under Section 143(3) r.w.s 147 of the Act for the Assessment Year (A.Y.) 2009-10.

K. S. Softnet Solutions Pvt. Ltd. vs. ACIT Asst.Year –2009-10 - 2 - 2. At the time of hearing of the instant appeal, Learned Counsel appearing for the assessee submitted before us that the Learned CIT(A) though fixed the matter for four occasions, the assessee could not appear hence, the matter was ultimately, finalized ex parte confirming the order of addition made by the AO. However, the Learned CIT(A) has not passed the order on merit. The assessee, therefore, has not been able to represent its case before the Learned CIT(A) in its proper prospective. In that view of the matter, he prays for setting aside the issue to the file of the Learned AO for deciding the issue afresh. Such prayer has not been objected by the Learned DR with all his fairness.

Having heard the Learned Counsel appearing for the parties, having regard to the facts and circumstances of the case, we are of the considered opinion that in order to prevent the miscarriage of justice, the assessee be given a further opportunity of being heard by the authorities below. Thus, we set aside the issue to the file of the Learned AO for deciding the same afresh upon granting an opportunity of being heard to the assessee and upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. We also make it clear that in the event, the assessee does not cooperate with the Learned AO, the said authority would be at liberty to proceed and finalize the matter strictly in accordance with law.