KICHHA SUGAR COMPANY LTD.,UGHAM SINGH NAGAR vs. DCIT, CIRCLE 2(1)(1) HALDWANI, HALDWANI

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ITA 111/DDN/2024Status: DisposedITAT Dehradun19 March 2025AY 2021-22Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT noted that the CIT(A) had proceeded ex-parte and there was a lack of substantive adjudication. In the interest of justice, the appeal was restored to the CIT(A)/NFAC for fresh adjudication.

What were the facts?

The assessee's appeal for AY 2021-22 was decided ex-parte by the CIT(A)/NFAC without a detailed adjudication. The assessee did not appear before the ITAT, and the revenue argued that the appeal should be dismissed due to lack of explanation from the assessee.

What were the issues?

Whether the CIT(A) properly adjudicated the appeal when proceeding ex-parte, and if the assessee was given adequate opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh

Hearing: 19.03.2025Pronounced: 19.03.2025

Asstt. Year : 2021-22 Kichha Sugar Company Ltd., Vs ACIT, Kichha SO Kishanpur, Circle-2(1)(1), Udham Singh Nagar, Haldwani, U.K.-263139 Uttrakhand-263148 (APPELLANT) (RESPONDENT) PAN No. AABCK6699R Assessee by: None Revenue by: Sh. Amarpal Singh, Sr. DR Date of Hearing: 19.03.2025 Date of Pronouncement: 19.03.2025 ORDER Per Satbeer Singh Godara, Judicial Member:

This assessee’s appeal for Assessment Year 2021-22, arises against the order of CIT(A)/NFAC, Delhi’s DIN & orderNo. ITBA/NFAC/S/250/2024-25/1065464290(1) dated 07.06.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

3.

It emerges at the outset during the course of hearing that the learned CIT(A)/NFAC’s detailed discussion has proceeded ex-parte against the assessee thereby affirming the Assessing Officer’s action making the corresponding Kichha Sugar Company Ltd. disallowances/additions herein. Nor do we find any substantive lower appellate adjudication as contemplated u/s 250(6) of the Act requiring the CIT(A)/NFAC to first frame points of determination followed by a detailed discussion thereupon.

4.

Mr. A. S. Rana vehemently argues during the course of hearing in support of CIT(A)’s finding that the assessee had not filed any explanation or evidence supporting it’s case and therefore, his instant appeal deserves to be dismissed.

5.

We have given our thoughtful consideration to the foregoing rival stand and are of the considered view that since the CIT(A) has proceeded ex-parte against the assessee, possibility of some communication gaps between the taxpayer and the arguing counsel involving the newly introduced system of faceless hearings, could not be altogether ruled out.

6.

Faced with this situation, in the larger interest of justice, we deem it appropriate to restore the assessee’s instant appeal back to the CIT(A)/NFAC for it’s afresh appropriate adjudication, within three effective opportunities subject to a rider that the taxpayer shall plead and prove the case at his own risk and responsibility, in consequential proceedings. Ordered accordingly.

Order Pronounced in the Open Court on 19/03/2025.

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