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Facts
The assessee challenged an assessment order for AY 2017-18, raising grounds against additions made under Section 68 for cash deposits, and disallowances under Section 14A and Section 36(1)(va) for EPF/ESI contributions. The appellant contended that the Ld. CIT(A) sustained the additions without providing a proper opportunity of being heard, violating natural justice.
Held
The Tribunal noted that the CIT(A)'s order was passed ex parte, relying solely on the assessment order findings. To ensure substantial justice and fair play, the Tribunal restored the entire appeal to the Ld. CIT(A) for de novo adjudication. The CIT(A) was directed to provide the assessee a reasonable opportunity of being heard and to consider any further evidence presented.
Key Issues
Whether the additions for cash deposits and disallowances under sections 14A and 36(1)(va) were justified, and if the Ld. CIT(A) violated natural justice by not providing adequate opportunity of being heard to the assessee.
Sections Cited
143(3), 68, 14A, 36(1)(va)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “B”: NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: The appeal in AY 2017-18, arises out of the 1. order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. ITBA/NFAC/S/250/2022- 23/1046016993(1) dated 27.09.2022 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 29.12.2019 by the Assessing Officer, DCIT, Circle-10(1), Delhi (hereinafter referred to as ‘ld. AO’).
The assessee has raised the following grounds of appeal:-
“1. That the order passed by Ld. CIT(A) sustaining the addition of Rs. 8,87,81,056/- is bad in law. 2. That on the facts and circumstances of the case, the Ld. AO has grossly erred on facts as well as in law in assessing the income at Rs. 12,71,86,346/- as against the returned income of Rs. 3,84,05,290/-.