LAXMI ENGINEERING INDUSTRIES PRIVATE LIMITED,BHOPAL vs. DCIT 2(1), BHOPAL

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ITA 427/IND/2023Status: DisposedITAT Indore24 April 2024AY 2016-17Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) did not adequately comply with Section 250(6) and that the assessee deserves another opportunity for proper adjudication. The matters were remanded back to the CIT(A) for fresh adjudication.

What were the facts?

The assessee's appeals before the CIT(A) were dismissed due to non-prosecution, despite significant additions made by the AO. The assessee's inability to prosecute was due to internal disputes among directors.

What were the issues?

Whether the CIT(A)'s dismissal of appeals for non-prosecution, without adequate compliance with Section 250(6), warrants a remand for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri N.D. Patwa, AR
For Respondent: Ms. Ila Parmar, CIT DR
Hearing: 23.04.2024Pronounced: 24.04.2024

आदेश / O R D E R

Per B.M. Biyani, A.M.:

1.

Feeling aggrieved by appeal-orders dated 21.07.2023 & 29.08.2023 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arise out of respective assessment-orders dated 29.12.2017 & 24.12.2018 passed by learned ITO-2(4), Bhopal and DCIT/ACIT, 2(1), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the

Laxmi Engg. Industries Pvt.Ltd., Bhopal & 427/Ind/2023 AYs 2015-16 & 2016-17 Act”] for Assessment-Years [“AY”] 2015-16 & 2016-17, the assessee has filed these two appeals.

2.

Section 250(6) of the Income-tax Act, 1961 provides “The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”. In the present case, Ld. CIT(A) has dismissed assessee’s first- appeals while upholding additions made by AO, although due to non- prosecution by assessee on the dates of hearing but still without complying with the mandate of section 250(6) adequately. Ld. AR for assessee also submits that the assessee-company’s appeals before CIT(A) could not be prosecuted due to gross dispute amongst directors but the additions made by AO are huge and deserve to be adjudicated aptly in accordance with the law. Therefore, Ld. AR prays to remand these matters to CIT(A) for an apt adjudication.

3.

Ld. DR does not have any objection to the prayer of Ld. AR but makes a request to direct the assessee to represent its cases before CIT(A) and do not seek unnecessary adjournments.

4.

Considering aforesaid submissions of parties and also having regard to the principle of natural justice and fair play, we deem it fit to give one more opportunity to assessee so that the assessee can represent its cases before CIT(A) for a proper adjudication. Accordingly, we remand these matters back to the file of CIT(A) for a fresh adjudication after giving opportunity of hearing to assessee. The assessee is also directed to ensure

Laxmi Engg. Industries Pvt.Ltd., Bhopal & 427/Ind/2023 AYs 2015-16 & 2016-17 participation in the hearings fixed by CIT(A) and do not seek unnecessary adjournments.

5.

Resultantly, these appeals of assessee are allowed for statistical purpose.

Order pronounced in open court on 24.04.2024

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