Sandha And Associates P Ltd. Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by Sandha And Associates P Ltd. against an ex-parte order issued by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre, Delhi, dated June 24, 2024, for the assessment year 2017-18. The representative for the assessee, Shri Samyak Jain, argued that the CIT(A) had dismissed the assesses appeal without providing any notice, thus conducting an ex-parte proceeding. He requested that the appeal be restored to the CIT(A) for a proper hearing. Conversely, Ms. Jaya Chaudhary, representing the revenue, supported the contested order and argued for the dismissal of the assesses appeal.
After hearing both sides and examining the orders of the lower authorities, the ITAT Delhi observed that the Assessing Officer (AO) had rejected the assesses books of account and determined the net profit at 8% of the total turnover, assessing the income at Rs. 55,69,219/-. The CIT(A) had upheld this addition in an ex-parte proceeding. A review of the CIT(A)’s order revealed no mention of any notice being issued to the assessee, nor any indication that notice was served. Considering these facts, the ITAT deemed it appropriate to restore the appeal to the CIT(A) for a fresh adjudication. The ITAT directed the CIT(A) to issue a notice to the assessee, grant a reasonable opportunity to present their submissions, and subsequently pass an order in accordance with the law, after considering the submissions and documents on record. The assessee was instructed to make their submissions before the CIT(A) without fail upon receiving the notice. Consequently, the ITAT set aside the impugned ex-parte order and allowed the assesses appeal for statistical purposes, effectively sending the case back for a proper hearing.
FULL TEXT OF THE ORDER OF ITAT DELHI
