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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: MS. SUCHITRA KAMBLE & SHRI BHAGIRATH MAL BIYANI
This appeal is filed by the assessee against the order dated 27.10.2022 passed by the Ld. CIT(A), National Faceless Appeal Centre (in short “NFAC”), Delhi for A.Y. 2010-11.
The grounds of appeal
raised by the assessee read as under: “1. The Ld. CIT(A) NFAC has erred in dismissing the appeal and without providing the proper opportunity to the assessee and upholding the addition of Rs. 2,00,21,256/-.
2. The notices were served on the old email Id when the same was changed on 10/04/2018 and as such the assessee could not attend and submit the arguments. In the physical hearing before the transfer of case to NFAC, the assessee attended for thirteen times on various dates and had submitted complete details with submissions which should have been considered by NFAC. The addition made is bad in law and hence be deleted.
3. The additions have been made by the Ld. AO in the assessment u/s 144 arbitrarily without considering the papers filed.
4. The additions made by the Ld. AO may please be deleted.
5. The assessee craves to amend, alter or delete any of the ground of appeal.”
Brilliant Infrastructure Pvt. Ltd. vs. ACIT Asst.Year –2010-11 - 2 – 3. Assessee company is a major company of Zoom Group. There were allegations against few individuals who acted in consortium so as to give effect to the modus operandi of obtaining debt from banks and consequent fund transfer to abroad. There are two individuals and eight companies under assessment order under Section 144 for A.Y. 2010-11. The Assessing Officer issued notice under Section 143(2) dated 14.09.2011. The assessee filed Income Tax Return under Section 139 on 12.10.2010. In Para 2 of the assessment order the Assessing Officer has narrated the dates and events. The Assessing Officer made addition of Rs. 1,00,12,620/- as 1% of share application money shown in Income Tax Return and addition of Rs. 1,00,08,636/- as 1% of Long Term Investment shown in Income Tax Return and passed order under Section 144 of the Act.
Being aggrieved by the assessment order the assessee filed before the CIT(A). The CIT(A) dismiss the appeal of the assessee.
The Ld. A.R. submitted that the CIT(A) passed ex-parte order without giving hearing to the assessee. Therefore, the Ld. A.R. submitted that the matter may be remand back to the file of the CIT(A) for proper adjudication of the issues contested therein on merit.
The Ld. D.R. relied upon the assessment order and the order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the CIT(A) has Brilliant Infrastructure Pvt. Ltd. vs. ACIT Asst.Year –2010-11 - 3 – mentioned that notice for hearing was issued to the assessee but there was no mentioned related to notice received by the assessee. From the perusal of the records it appears that the CIT(A) has not given adequate opportunity to the assessee to contest the matter on merit. Therefore, it will be appropriate to remand back the issues contested by the assessee herein to the file of the CIT(A) for proper adjudication of the issues contested therein on merit as per law. Needless to say the assessee be given opportunity by following principles of natural justice.
In result, the appeal of the assessee is partly allowed for statistical purpose.
Order pronounced on 31/03/2023 by placing the result on the Notice Board as per Rule 34(4) of the Income Tax (Appellate Tribunal) Rule, 1963. This Order pronounced in Open Court on /03/2023 Sd/- Sd/- S Sd/- Sd/- (BHAGIRATH MAL BIYANI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 31/03/2023 TRUE COPY TANMAY, Sr. PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)- 5. �वभागीय ��त�न�ध, आयकर अपील!य अ�धकरण,इंदौर/ DR, ITAT, Indore 6. गाड' फाईल / Guard file. आदेशानुसार/ BY ORDER, (Sr. Private Secretary) ITAT, Indore 1. Date of dictation 23.03.2023 2. Date on which the typed draft is placed before the Dictating Member 23.03.2023
Brilliant Infrastructure Pvt. Ltd. vs. ACIT Asst.Year –2010-11 - 4 –