M/S. WEALTH CREATORS,AHMEDABAD vs. ITO, WARD-5(2)(4), AHMEDABAD

ITA 2155/AHD/2018Status: DisposedITAT Ahmedabad06 January 2021AY 2015-163 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have granted another hearing date instead of dismissing the appeal ex-parte, as it violated the principles of natural justice. The impugned order was quashed and the matter was restored to the AO.

What were the facts?

The assessee's appeal was dismissed ex-parte by the CIT(A) despite the assessee appearing with an application for filing additional evidence. The assessee sought restoration of the issue to the AO for fresh hearing with consideration of additional evidence.

What were the issues?

Whether the ex-parte dismissal of appeal by CIT(A) without considering the assessee's attempt to file additional evidence violates principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED&

For Appellant: Shri Tushar Hemani, Sr. ADV. & Shri

For Respondent: Shri S. S. Shukla, Sr. DR

Hearing: 04.01.2021Pronounced: 06.01.2021

PER Ms. MADHUMITA ROY - JM:

The instant appeal filed by the assessee is directed against the ex- parte order dated 13.08.2018 passed by the Commissioner of Income Tax (Appeals) –5, Ahmedabad arising out of the order dated 08.12.2017 passed by the ITO, Ward-5(2)(4), Ahmedabad under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2015-16. 2. During the course of appellate proceeding notices were issued to the assessee when adjournment was sought for on 13.06.2018 and again M/s. Wealth Creators vs. ITO Asst.Year –2015-16 on 04.07.2018. On 02.08.2018 when the representative of the assessee went to the office of the Ld. CIT(A) for participating in the hearing he was informed by the staff of the said offices that no hearing takes place post lunch, neither any document was allowed to be filed and ultimately on 13.08.2018 the appeal was dismissed upholding the order passed by the Ld. AO. It is relevant to mention that on 02.08.2018 the assessee appeared before the Ld. CIT(A)’s office with an application under Section 46A of the Act for filing additional evidences. However, since the appeal has been dismissed ex-parte the assessee is before us with a prayer for restoring the issue to the file of the Ld. AO for hearing the case of the assessee afresh upon considering the additional evidences. When the above submission was made by the Ld. AR the Ld. DR objected the same and submitted that the notice issued upon the assessee fixing the date of hearing on 02.08.2018 specifically mentioned the time of hearing at about 11 a.m. and hence there was no fault on the part of the Ld. CIT(A) to dismiss of the appeal ex-parte.

We, however, do not appreciate such stand taken by the Ld. CIT(A) when the additional evidences were sought to be submitted by the assessee before the Ld. CIT(A) for proper adjudication of the matter on the same day the Ld. CIT(A) ought to have given another date fixing the appeal for hearing instead of dismissing the appeal ex-parte. The principal of natural justice does not indulge such procedures as maintained by the Ld. CIT(A). We, therefore, quash the impugned order and restore the matter to the file of the Ld. AO with a direction upon him to give an opportunity of being heard to the assessee and to take into M/s. Wealth Creators vs. ITO Asst.Year –2015-16 consideration the evidence on record and any other evidence which the assessee may choose to file at the time of hearing the matter. We also make it clear that the assessee would also cooperate with Revenue authorities when the matter is taken up without asking for any unnecessary adjournment.

In the result, assessee’s appeal is allowed for statistical purposes. This Order pronounced in Open Court on 06/01/2021 (WASEEM AHMED) (Ms. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 06/01/2021TANMAY, Sr. PS आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant

""यथ" / The Respondent. 3. संबं"धत आयकर आयु"त / Concerned CIT 4. आयकर आयु"त(अपील) / The CIT(A)-

"वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड" फाईल / Guard file.

आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt.

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