The Income Tax Appellate Tribunal Delhi sent back the Foreign Company’s case to the CIT(A) for Re-Adjudication following Non-Compliance issue.
Facts
The assessee is a foreign company incorporated in India. Its principal business is to provide technical consultancy services to its associate enterprises as well as unrelated third party. For AY 2016-17, it filed its return on 30.11.2016 declaring income of Rs. 1,66,37,026/-. The case was selected for scrutiny under CASS. Statutory notices were served online upon the assessee which were responded to. The assessee offered its income in India on a net basis.
Submissions
AR submitted that non-compliance of notice(s) issued by the CIT(A) happened due to the fact that the employee handling the matter had left the company.
DR vehemently opposed and submitted a bunch of notices issued by the office of the CIT(A) and pointed out that the notices have been served electronically to the e-filing account of the assessee.
Decision
The two member bench of M. Balaganesh, Accountant Member And Ms. Astha Chandra, Judicial Member observed that it is obvious that the CIT(A) has not passed an ex-parte order on merits of the case. An affidavit sworn by the authorised signatory of the company has been brought on record by the assessee deposing therein that notice(s) sent to the email of the employee who left the company did not reach the concerned officials of the assessee and that non-compliance was not deliberate.
The Tribunal viewed that in the interest of justice and fair play, it would be expedient to restore the matter back to the file of the CIT(A) for denovo adjudication on merits after allowing reasonable opportunity of hearing to both the parties.
Case title: Egis International S.A. v/s ACIT
Citation: ITA No. 1663/Del/2021
