SHAHPURIS P.LTD,DELHI vs. ITO, WARD-23(1), NEW DELHI

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ITA 4768/DEL/2018Status: DisposedITAT Delhi08 August 2019AY 2009-104 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the file of the CIT(A) to grant one final opportunity to the assessee to substantiate its case. The assessee was directed to appear before the CIT(A) and cooperate for early disposal of the appeal.

What were the facts?

The assessee company's income was initially assessed at Rs. 4,25,720. Subsequently, the case was reopened based on information regarding client code modification, leading to an ex-parte assessment by the AO at Rs. 19,25,367 due to non-compliance. The CIT(A) also passed an ex-parte order confirming the additions.

What were the issues?

Whether the ex-parte assessment order passed by the AO and confirmed by the CIT(A) should be set aside to allow the assessee to present its case and evidence.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC’ NEW DELHI

Before: SHRI R.K. PANDA

For Appellant: Shri Mohit Gupta, CA
For Respondent: Shri S.L. Anuragi, Sr. DR
Hearing: 08.08.2019Pronounced: 08.08.2019

ORDER This appeal filed by the assessee is directed against the ex- parte order dated 14.05.2018 passed by the Ld. CIT(Appeals)-30, New Delhi relating to AY 2009-10.

2.

The assessee in the various grounds of appeal has challenged the order of the CIT(A) in confirming the various additions made by the AO.

3.

Facts of the case, in brief, are that the assessee is a Private Limited Company and filed its return of income on 30.09.2009 declaring total income of Rs. 4,25,720/-. The assessment was completed u/s 143(3) on 31.10.2011 determining the total income at Rs. 7,51,254/-. Subsequently, on the basis of information received from the Investigation Wing, Ahmedabad that assessee company is a beneficiary of Rs. 11,74,113/- on account of Client Code Modification, the case of the assessee was reopened u/s 147 and notice u/s 148 was issued. There was no response to such notice issued us 148 of the Act. Even the notice issued u/s 142(1) also remained un-complied with. The AO, therefore, completed the assessment u/s 147/144 determining the total income of the assessee at Rs. 19,25,367/-. Since, none appeared on behalf of the assessee, the Ld. CIT(A) in the ex-parte order passed by him confirmed the addition made by the AO.

4.

Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal.

5.

I have heard the rival arguments made by both the sides and perused the record. It is an admitted that that there was non- compliance before the AO as well as CIT(A) by the assessee. It is the submission of the Ld. Counsel for the assessee that given an opportunity the assessee will substantiate its case before the CIT(A) by filing the necessary documents/evidences. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the CIT(A) and cooperate in early disposal of the appeal failing which the Ld. CIT(A) is at liberty to pass appropriate order as per law. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Order pronounced in the open Court on 08/08/2019

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