V AND S INTERNATIONAL PRIVATE LIMITED,GURUGRAM vs. ADDL. CIT, SPECIAL RANGE-9, NEW DELHI
Facts
The assessee appealed against the disallowance of Rs. 10,39,37,500/- made by the Assessing Officer on account of bad debts written off, which was summarily confirmed by the CIT(A). The assessee contended that the disallowance was made without proper appreciation of facts and without providing an adequate opportunity of being heard, thereby violating natural justice.
Held
The Tribunal observed that the CIT(A) failed to adjudicate the issue on merits and confirmed the disallowance due to the assessee's non-attendance. Finding no prejudice to the revenue in granting an opportunity, the Tribunal remanded the matter back to the CIT(A) for fresh adjudication on merits, with the department retaining the liberty to initiate proceedings for non-compliance if necessary.
Key Issues
1. Whether the CIT(A) erred in confirming the disallowance of bad debts without adjudicating the issue on merits. 2. Whether the assessee was denied a proper opportunity of being heard, violating the principles of natural justice.
Sections Cited
Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: Dr. B. R. R. KumarMs. Astha Chandra
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘H’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Ms. Astha Chandra, Judicial Member ITA No. 3242/Del/2023 : Asstt. Year : 2015-16 V & S International Pvt. Ltd., Vs Addl. CIT, 38, Milestone, Delhi-Jaipur-Highway, Special Range-9, Behrampur Road, Gurgaon-122001 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AAACV0030A Assessee by : Sh. Suraj Bhan Nain, Adv. & Sh. Muhfuzur Rahman, CA Revenue by : Ms. Sapna Bhatia, Sr. DR Date of Hearing: 14.02.2024 Date of Pronouncement: 27.02.2024 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 15.03.2023.
Following grounds have been raised by the assessee:
“1. That having regard to the facts and circumstances of the case and in law, the ld. CIT(A) has erred both in law and on facts in confirming the disallowance of Rs.10,39,37,500/- made by the ld. Assessing Officer on account of bad debts written off without properly appreciating the facts of the case. 2. That having regard to the facts and circumstances of the case and in law, the ld. CIT(A) has erred both in law and on facts in confirming the disallowance of Rs.10,39,37,500/- ignoring the fact the ld. Assessing Officer has made the said disallowance without giving proper and adequate opportunity of being heard and thus
ITA No. 3242/Del/2023 2 V & S International Pvt. Ltd. the disallowance was made against the principles of natural justice.” 3. On going through the record, we find that the ld. CIT(A) has summarily confirmed the order of the Assessing Officer and dismissed the appeal of the assessee without adjudicating the issue on merits owing to the failure of the assessee to attend the hearings. It was pleaded that given an opportunity, the assessee would comply to the notices issued by the revenue. We find that no prejudice would be caused to the revenue, if an opportunity is given to the assessee to file their submissions. Hence, the matter is being remanded to the file of the ld. CIT(A) to adjudicate the issue on merits. The department would be at liberty to initiate proceedings in accordance with the provisions of Income Tax Act for non-compliance to the notices, if any.
In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 27/02/2024. Sd/- Sd/- (Astha Chandra) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 27/02/2024 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR
