M/S EFFIEL ENTERPRISES PVT. LTD.,CHANDIGARH vs. DCIT, CIRCLE-1(1), CHANDIGARH

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.

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).

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.

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 also.

In the result, both appeals of the assessee are allowed for statistical purposes.