RAV GLOBAL SOLUTIONS PRIVATE LIMITED,NEW DELHI vs. ACIT CENTRAL CIRCLE-7, NEW DELHI
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal found that the matter required re-examination by the AO, concluding that the entire issue should be restored to the AO's file. The AO was directed to decide the issue afresh after providing a reasonable opportunity of being heard to the assessee, who, in turn, must comply with queries and furnish necessary evidence.
What were the facts?
The assessee challenged the CIT(A)'s confirmation of an addition of Rs. 7,81,59,033/- made by the Assessing Officer (AO) in an ex-parte order under section 144 of the Income Tax Act. The grievance stemmed from the AO's reliance on the very books of account he had rejected, rather than framing a best judgment assessment based on the assessee's previous history.
What were the issues?
Whether the Assessing Officer erred in making an addition based on rejected books of account in an ex-parte assessment under section 144, and if the issue should be restored for fresh adjudication.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘F’: NEW DELHI
Before: SHRI N.K. BILLAIYA & MS ASTHA CHANDRA
This appeal by the assessee is preferred against the order of the CIT(A)-24, New Delhi, dated 04.05.2023 pertaining to A.Y. 2018-19.
ITA NO.- 1729/Del/2023 RAV Global Solutions Pvt. Ltd. 2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the addition made by the AO amounting to Rs. 7,81,59,033/- in an ex-parte order framed u/s 144 of the Act.
Entire quarrel revolves around the fact that after rejecting the books of account, the AO proceeded by relying upon certain facts and figures mentioned in the books of account itself. Since he has rejected the books of account, he should have framed the assessment to the best judgment based upon the previous history of the assessee.
Without going into much detail, we are of the considered view that this quarrel needs to be re-examined by the AO by giving fresh hearing to the assessee. We, therefore, restore the entire issue to the file of the AO. The AO is directed to decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee and the assessee is directed to comply with the queries of the AO and furnish necessary evidences in support of his contention.
In the result, appeal of the assessee is allowed for statistical purposes.
ITA NO.- 1729/Del/2023 RAV Global Solutions Pvt. Ltd. Order pronounced in the Open Court on 04.03.2024
Recent GST High Court judgments
Search GST case law →- M/S. Ut Corp vs. Union Of INDIARajasthan · 26 Oct 2026
- Sunrise Engineering vs. The State Of Andhra PradeshAndhra Pradesh · 26 Oct 2026
- M/S Kalra Traders vs. Union Of INDIAUttarakhand · 26 Oct 2026
- Ms Isoft vs. The Commissioner State TaxUttarakhand · 26 Oct 2026
- M/S Sita Enterprises vs. Office Of The CommissionerUttarakhand · 26 Oct 2026
