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Facts
The assessee challenged an addition of Rs. 1.40 crore as undisclosed income under Section 68, related to a transfer to/from M/s Concise Exim Pvt Ltd. The assessee also disputed the validity of reassessment proceedings under Section 148. The CIT(A) dismissed the appeal as defective, citing missing submissions and non-compliance, without adjudicating the substantive issues.
Held
The Tribunal found that the CIT(A) dismissed the appeal without proper consideration of the assessee's submissions and the defective nature of the appeal. Therefore, the Tribunal remanded the matter back to the file of the CIT(A) with directions to adjudicate all issues afresh, including the legality of the reassessment proceedings under Section 148.
Key Issues
Validity of reassessment proceedings under Section 148; Addition of Rs. 1.40 crore as undisclosed income under Section 68; Proper adjudication of appeal by CIT(A) when deemed defective.
Sections Cited
250, 148, 68, 156
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Shri Challa Nagendra Prasad & Dr. B. R. R. Kumar
ORDER Per Dr. B. R. R. Kumar:- The present appeal has been filed by the assessee against the order of ld. CIT(A)/NFAC dated 21.06.2023. 2. The assessee has raised the following grounds of appeal:-
1. That the order dated 21.06.2023 passed u/s 250 of the Income - tax Act, 1961 by the National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified in neither considering nor discussing and adjudicating on the ground relating to the resort to the reassessment proceedings and issue of notice issued under section 148 of the Act as being bad in law.
2. That the order dated 21.06.2023 passed u/s 250 of the Income- tax Act, 1961 by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Ld. Assistant Commissioner of Income Tax, OSD, Ward - 24(2), New Delhi in adding back a sum of Rs. 1,40,00,000/- transferred by M/s Concise Exim Pvt Ltd to the Appellant Company which amount was subsequently transferred back by the Appellant Company to M/s Concise Exim Pvt Ltd by treating the said amount as an alleged undisclosed income of the Appellant Company under the provisions of Section 68 of the Act.
3. That the order dated 21.06.2023 passed u/s 250 of the Income- tax Act, 1961 by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the and has been passed by ignoring the basic principles of natural justice in as much as it unjustifiedly - (i) ignores the written submissions dated 08.11.2019 filed during the course of the appellate proceedings; (ii) holds that there was non-compliance of notices before the Assessing Officer also by ignoring the fact that notices issued/information required were duly attended to from time to time and requisite details furnished; (iii) observes that there was no response on behalf of the Appellant Company on various dates of hearing whereas the fact of the matter is that request for adjournments were duly filed on various occasions.
The ld. CIT(A) has dismissed the appeal of the assessee, holding that no separate submission is uploaded despite many opportunities were given to the assessee.
Before us, the assessee submitted by the notice issued by the ld. CIT(A)/NFAC u/s. 250 of the Income Tax Act 1961, the following documents have been called for:
1. 1. Form 35.
2. Assessment Order/intimation/154 order 3. Grounds of Appeal
4. Statement of the Facts.
5. Demand Notice u/s. 156.
5. From the above, we find that while the Assessment Order is also missing. The ld. CIT(A) choose to dismiss the appeal of the assessee without bringing to the notice of the assessee the defective nature of the appeal filed. The appeal should have been dismissed being defective in nature. We also find that notice has been issued on 14.06.2023 for furnishing of the written submission by 19.06.2023 and the order has been passed on 21.06.2023 at 17.56 hrs. The assessee submitted response on 14.06.2023 and the same has been ignored by the ld. CIT(A).
6. Hence, keeping in view the facts on record, we feel it is a fit case to remand the matter to the file of the ld. CIT(A) with directions to adjudicate all the issues including the issue of reopening u/s. 148 as taken ground no. 1 of the appeal of the assesee.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 01/02/2024.