What did the Tribunal hold?

The Tribunal held that the ex-parte order passed by the CIT(A) violated the principle of natural justice. Therefore, the order was set aside and the matter was remitted back to the CIT(A) for fresh adjudication.

The assessee's appeal before the CIT(A) was decided ex-parte. The assessee had requested a short adjournment to file a reply to a remand report, but this request was ignored by the CIT(A).

What were the issues?

Whether an ex-parte order passed by the CIT(A) without considering the assessee's request for adjournment violates the principle of natural justice.

M/S. C. Girdharilal Gheewala vs ITO | ITAT Surat 2021

Income Tax Appellate Tribunal, SURAT BENCH

Before: SHRI PAWAN SINGH, JM & DR. A.L.SAINI, AM

For Appellant: Shri Niranjan Desai, CA

For Respondent: Ms Anupama Singla, Sr. DR

Hearing: 03/09/2021Pronounced: 03/09/2021

Appellant by : Shri Niranjan Desai, CA Revenue by : Ms Anupama Singla, Sr. DR Date of Hearing : 03/09/2021 Date of Pronouncement :03/09/2021 आदेश / O R D E R Per Dr. A. L. Saini, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year 2013-14, is directed against the order passed by ld. Commissioner of Income Tax (Appeals)-3, Surat, in Appeal No. CAS/211/2016-17, dated 12.02.2018, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’).

At the outset itself, ld. Counsel for the assessee assailed the impugned order by contending that the assessee could not represent his case before Ld. CIT(A) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. The ld Counsel stated that during the appellate proceedings, the assessee has requested for short adjournment to file the reply of remand report, (vide assessee`s latter in paper book page No.13), however, ld CIT(A) has ignored the request of the assessee and passed an ex- parte order. Therefore, ld. Counsel for the assessee contended that in the interest of justice, another opportunity to contest the appeal before the Ld. first appellate authority may be granted to the assessee.

Assessment Year.2013-14 C. Girdharlal Gheewala 3. On the other hand, Ld. DR did not have any objection if the matter is remitted before the Ld. CIT(A).

We have heard both the parties. We note that no doubt order passed by the ld.CIT(A) is an ex parte order and ld. CIT(A) has adjudicated the issue on merits also. However, we note that during the appellate proceedings assessee has prayed by way of a written letter that reply of the Remand Report (which was to be furnished on 30.01.2018) would be furnished on 31.01.2018, but the ld CIT(A), without waiting for reply of the Remand Report from the assessee, has passed ex-parte order, which is against the principle of natural justice. It is evident from assessee`s paper book page no.13, wherein the request was made by the assessee during the appellate proceedings, which is reproduced below:

“To, The Commissioner of Income Tax (Appeal) - III CIT (A), Surat-3, Room No. 534, Aaykar Bhavan, Majura Gate, Surat Dear Sir, Ref: Appeal No. CAS/3/211/16-17 for AY 2013-14 in the case of M/s. C. Girdharlal Gheewala In the above case reply to remand report is to be furnished 0n 30.01.2018. In this connection, I would like to inform that I am out of Surat and will be returning on31.01.2018. I request you honor to kindly grant short adjournment and oblige. Thanking you, Yours faithfully. (Niranjan Desai) Authorised representative Date: 24/01/2018” Thus, it is abundantly clear that assessee wanted to furnish the reply of the remand report, but ld CIT(A) did not wait for reply and passed an ex-parte order. Considering the contents of the request made by the assessee during the appellate proceedings, we note that ld. CIT(A) ought to have given opportunity

Assessment Year.2013-14 C. Girdharlal Gheewala to the assessee to furnish reply of the remand report, which he has failed to do so, therefore it is against the principle of natural justice. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order is pronounced at the time of hearing of appeal on 03/09/2021 in the Virtual Court of hearing.

M/S. C. GIRDHARILAL GHEEWALA,SURAT vs. THE INCOME TAX OFFICER, WARD-3(1)(5), SURAT

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