M/S EFFIEL ENTERPRISES PVT. LTD.,CHANDIGARH vs. DCIT, CIRCLE-1(1), CHANDIGARH
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Income Tax Appellate Tribunal, CHANDIGARH
Before: SHRI A.D.JAIN & SHRI VIKRAM SINGH YADAV
PER A.D.JAIN, VICE PRESIDENT
Both these appeals are preferred by the assessee for assessment year 2015-16 against the order dated 13.06.2023 and 27.06.2023 respectively passed by the ld. CIT(A) NFAC, Delhi.
ITA 542&543/CHD/2023 A.Y. 2015-16 2
As the facts and circumstances in both the appeals are
identical, therefore, both the appeals were heard together and are
being disposed of by the common order.
The facts of the case in ITA 542/CHD/2023 are that the
assessee company is engaged in the business of construction. It
filed its return of income for assessment year 2015-16 on
31.03.2017 declaring a taxable income of Rs.21,00,167/-. The
return was processed u/s 143(1) and the case was selected for
limited scrutiny. Notice u/s 143(2) was issued on 19.09.2017
and was served on the assessee. Subsequently, a questionnaire
alongwith statutory notices u/s 142(1) and 143(2) were issued on
25.09.2017. In response, Shri Anil Verma, CA attended the
assessment proceedings and furnished the requisite details. The
Assessing Officer made addition of Rs.33,166/- by disallowing of
fine and penalty, Rs.3,60,281/- by applying provisions of Section
56(2)(viib) of the Income Tax Act, Rs.2,05,835/- u/s 40a(ia) for
non-deduction of TDS on interest paid to NBFC. The Assessing
Officer also made disallowance of Rs.17,754/- by invoking
provisions of 40a(ia) for non-deduction of TDS on payment made
to professional services and Rs.88,49,159/- u/s 40(a)(ia) in
respect of payment made to the contractor on which no tax was
deducted. Against the above deductions/disallowances, the
assessee went in appeal before the ld. CIT(A).
ITA 542&543/CHD/2023 A.Y. 2015-16 3
Before ld. CIT(A), the appeal of the assessee was fixed for
hearing and various notices were issued to the assessee i.e., on
05.02.2021, 13.01.2023, 26.04.2023 and 15.05.2023. The ld.
CIT(A) dismissed the appeal of the assessee ex-parte stating that
the assessee has been seeking adjournment for one reason or
other. The ld. CIT(A) confirmed the additions/disallowances
made by the Assessing Officer. Aggrieved, the assessee is in
appeal before this Tribunal.
Aggrieved, the assessee is in appeal before this Tribunal.
We have heard the rival submissions and perused the
material available on record. It is noticed that the assessee was
issued various notices and the assessee did not attend the
proceedings before the ld. CIT(A). The ld. Counsel for the
assessee stated that requests for adjournment were made but the
ld. CIT(A) did not entertain the same and dismissed the appeal
ex-parte. The ld. Counsel for the assessee further stated that the
assessee was not given opportunity to present its case. After
considering the facts and circumstances, we are of the opinion
that the assessee should be given opportunity to present its case.
Therefore, in the interest of justice, the file is restored to the file
of ld. CIT(A) to decide the matter afresh in accordance with law
after giving reasonable opportunity of being heard to the
ITA 542&543/CHD/2023 A.Y. 2015-16 4
assessee. The assessee, no doubt, shall cooperate in the fresh
proceedings before the CIT(A).
In the result, the appeal of the assessee is allowed for
statistical purposes.
As the facts and circumstances in ITA 543/CHD/2023 are
identical to that of ITA 542/CHD/2023, therefore, our decision
in ITA 542/CHD/2023 would apply mutatis-mutandis to ITA No.
543/CHD/2023 also.
In the result, both appeals of the assessee are allowed for
statistical purposes.
Order pronounced in the Open Court on 21.02.2024.
Sd/- Sd/-
(VIKRAM SINGH YADAV) (A.D.JAIN ) VICE PRESIDENT ACCOUNTANTMEMBER “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. .��यथ�/ The Respondent 3. आयकर आयु�/ CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar
