M/S. NESTOR PHARMACEUTICALS LTD.,NEW DELHI vs. ACIT, NEW DELHI

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ITA 6527/DEL/2014Status: DisposedITAT Delhi08 July 2016AY 2009-103 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal set aside the CIT(A)'s ex-parte order and restored the matter to the CIT(A)'s file. The CIT(A) was directed to decide the appeal on merits after providing the assessee with a reasonable opportunity of being heard.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for non-prosecution. The assessee contended that notices from the CIT(A) were not properly served, violating principles of natural justice.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without proper service of notice and without deciding the appeal on merits, thereby violating principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC-2” NEW DELHI

Before: SHRI S.V. MEHROTRA :

For Respondent: Shri A. Srinivasa Rao Sr. DR
Hearing: 05/07/2016

This is assessee’s appeal against the order dated 29.08.2014, passed by the ld. CIT(A)-XVI, Delhi, relating to A.Y. 2009-10.

2.

Ground of appeal, raised by the assessee in its appeal, are as under:

“1. On the facts and circumstances of case and in law, the Ld. CIT (A) erred in passing ex- parte order. 2. On the facts and circumstances of case and in law, the Ld. CIT (A) erred in dismissing the appeal without deciding the appeal on merit and without adjudicating the various grounds of appeal raised by the appellant.

3. On the facts and circumstances of case and in law, the order passed by Ld. CIT(A) is against the principles of natural justice as the order has been passed by CIT(A) without providing proper opportunity to the appellant.

4. On the facts and circumstances of case and in law, the disallowance / addition of RS.1143652/- made by A.O. on account of liquidated damages is erroneous and CIT(A) should have deleted the same.”

3.

Brief facts of the case are that the assessee filed its return of income declaring loss of Rs. 40,81,507/-. The assessment was completed at a total loss of Rs. 28,77,830/-, after making disallowance u/s 14A and liquidated damages. The assessee preferred appeal before ld. CIT(A) who dismissed the assessee’s appeal for non-prosecution.

4.

Ld. counsel pointed out that two notices noted in ld. CIT(A)’s order were not served on assessee. He, therefore, requested that the matter may be restored back to the file of ld. CIT(A) for deciding the appeal on merits.

5.

Having heard both the parties, in order to impart substantial justice to the assessee, I set aside the order of ld. CIT(A) and restore the matter to the file of ld. CIT(A) for deciding the appeal on merits, after affording reasonable opportunity of being heard to the assessee.

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