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Facts
The Revenue appealed against an order of the NFAC that arose from an Assessment Order passed under Section 144 of the Income Tax Act, 1961. The assessee did not appear despite notices, and the AO's order was ex-parte. The CIT(A) deleted the addition made by the AO based on additional evidence without calling for a remand report.
Held
The Tribunal found that the Revenue should be given a further opportunity to inquire into the issues by examining the documents. The appeal was remitted to the CIT(A) for fresh adjudication, with directions to call for a remand report from the AO and pass orders within 8 months.
Key Issues
Whether the CIT(A) erred in deleting the addition made by the AO without calling for a remand report from the AO, and whether the Revenue should be granted a further opportunity to examine the documents.
Sections Cited
144
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Income Tax Appellate Tribunal, “B” BENCH, DELHI
Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA
The instant appeal filed by the Revenue is directed against the order passed by the Ld. NFAC, Delhi dated 17.05.2024 arising out of the Assessment Order dated 04.12.2019 passed by the ACIT, Circle 5(2), Delhi under Section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2017-18.
None appeared at the time of call, neither any adjournment has been sough for. It was noticed that in previous occasions whenever the matter was taken up the assessee was never represented in spite of notices having been served upon the assessee. However, it appears that the order passed by the Ld. AO is admittedly an exparte one. The Ld. CIT(A) considered the entire evidences on record and also the additional evidences furnished by the assessee. However, no remand report was called for and on the basis of the additional evidences furnished by the assessee, the addition made by the Ld. AO was deleted.
3. The details of documents in the nature of resolution passed by the assessee to allot shares to Angel Investor, M/s Time Internet Ltd., the valuation of shares made by the Chartered Accountant dated 16.08.2016, the agreement of the investment drawn up between the assessee and M/s Time Internet Ltd. dated 23.08.2016, the bank statement in support of such receipt of capital, copy of share certificate issued to the investor, the return of allotment of shares in Form No. PAS- 3 submitted before the Registrar of Companies, Delhi, were duly placed before the Ld. CIT(A). However, the Ld. CIT(A) had not called for any remand report from the Ld. AO on those documents. Therefore, no deliberation could be made by the Ld. AO on those documents to decide the issue.
Having regard to this particular aspect of the matter, we find that the revenue be given a further opportunity particularly the Ld. AO to enquire into the issues involved in the matter by examining the documents. Thus, the appeal is disposed of by remitting the issue to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is directed to call for a remand report from the Ld. AO on the evidences to be considered and to pass orders strictly in accordance with law. The entire process is directed to be completed within a period of 8 months from the date of issuance of this order.
The appeal filed by the Revenue is allowed for statistical purposes.
Order pronounced in the open court on 09.09.2025