InITA 428/2023 -DEL HC- ITAT failed to provide reasons for disagreeing with CIT(A), Delhi High Court remands matter for fresh hearing
Justice Rajiv Shakdher& Justice Girish Kathpalia [04-08-2023]
New Delhi, September 18, 2023: The Delhi High Court has granted relief to M/s Om Shiva Traders Pvt. Ltd. (appellant/assessee), by remanding their case to the Income Tax Appellate Tribunal (ITAT) for a de novo hearing. The Court observed that the ITAT had not provided any reasons for disagreeing with the order passed by the Commissioner of Income Tax (Appeals) [CIT (A)].
The brief issue involved in the case was that the appellant/assessee had received Rs. 3 crores as investment in share capital and share premium. The Assessing Officer (AO) had added this amount to the appellant/assessee’s income under Section 68 of the Income Tax Act. However, the CIT (A) had found that the appellant/assessee had satisfied the triple test, i.e., established the identity, genuineness, and creditworthiness of the investors. But, the ITAT reversed this conclusion and directed the AO to make a fresh enquiry.
The division bench of Justice Rajiv Shakdher and Justice Girish Kathpalia noted that the CIT(A) had rendered a reasoned decision and the ITAThad not provided any reasons whatsoever for disagreeing with the conclusion arrived at by the CIT(A).
The bench stated that the ITAT had simply quoted in extenso, the assertions made by the appellant/assessee and extracted a portion of the CIT(A)'s order, without discussing as to what part of the order was unsustainable.
Furthermore, the bench noted that a direction of remand had been issued, without indicating to the AO what exactly he was required to examine afresh.
With the above observations, the court remanded the matter to the ITAT.
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