MANISHBHAI NARANBHAI SHELADIYA,SURAT vs. ACIT, CIRCLE-3, SURAT

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ITA 1043/SRT/2025Status: DisposedITAT Surat02 June 2026AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that using documents against an assessee without providing them for rebuttal violates the principle of natural justice. Therefore, the matter was remitted back to the Assessing Officer.

What were the facts?

The assessee requested copies of incriminating material used against him during assessment proceedings. The Assessing Officer did not provide these documents, leading to a violation of natural justice principles. The assessee argued that documents should not be used behind his back without an opportunity to rebut them.

What were the issues?

Whether the Assessing Officer violated the principle of natural justice by not providing incriminating material to the assessee for rebuttal. Whether the assessment order is valid when evidence is used against the assessee without disclosure.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Appellant: Shri P M Jagasheth, CA
For Respondent: Shri Ajay Uke, Ld. Sr. DR
Hearing: 18/05/2026

In The Income Tax Appellate Tribunal, “SMC” Surat Bench, Surat

Before Dr. Arjun Lal Saini, Accountant Member

आयकरअपीलसं./ITA No. 1042 & 1043/SRT/2025 (�नधा�रणवष�/Assessment Year: (2016-17 & 2017-18) Manishbhai Naranbhai Sheladiya ACIT, Circle – 3, 203, Swastik Tower, Sarthana Vs. Aayakar Bhavan, Majura Gate, Jakatnaka, Varachha, Surat – 395001, Gujarat Surat – 395006, Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AZAPS1137R (अपीलाथ�/Appellant) (��यथ�/Respondent)

Appellant by : Shri P M Jagasheth, CA Respondent by : Shri Ajay Uke, Ld. Sr. DR Date of Hearing : 18/05/2026 : 02/06/2026 Date of Pronouncement

ORDER Per, Dr. Arjun Lal Saini, AM:

Captioned two appeals filed by the assessee, pertaining to Assessment Years 2016-17 & 2017-18, are directed against the separate orders under section 143(3) r.w.s. 153A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) passed by Assistant Commissioner of Income-tax (Appeals),(hereinafter referred to as “the Ld.CIT(A)”), dated 29.12.2018.

2.

At the outset itself, the ld. Counsel for the assessee argued that during the assessment proceedings, the assessee has demanded the copy of the incriminating material used against the assessee, however, the assessing officer did not produce

ITA No. 1042 & 1043/SRT/2025 Manishbhai N. Sheladiya the incriminating material used against the assessee, therefore, it is against the Principle of Natural Justice. The Ld. Counsel submitted that documents and the material should not be used behind the back of the assessee. If the assessing officer wants to use the documents against the assessee, the same should be produced to the assessee for his rebuttal, however, the assessing officer has failed to do so, therefore, matter should be restored back to the file of the assessing officer for fresh adjudication. Therefore, these two appeals may be remitted back to the file of the assessing officer with the direction of the assessing officer to provide, the documents and incriminating material which are to be used against the assessee, during the assessment proceedings.

3.

On the other hand, the ld. DR for the Revenue did not have any objection if the matter is restored back to the file of the assessing officer, with the direction to assessing officer to provide, documents and incriminating material to be used against the assessee for his rebuttal.

4.

I have heard both the parties and perused the material available on record. I note that during the assessment proceedings, the assessing officer has used certain documents and evidences/incriminating documents to make the addition in the hands of the assessee. During the assessment proceedings, the assessee demanded from assessing officer to furnish the incriminating documents for rebuttal, however, the assessing officer did not provide the documents/incriminating documents to the assessee, therefore, it is against the Principle of Natural Justice. The assessing officer cannot use any documents and evidences against the assessee behind the back to the assessee, as it is against the Principle of Natural Justice. I note that any document or evidence should not be used against the assessee, and if the assessing officer wants to make addition in the hands of assessee, then such documents and evidences should Page 2 of 3

ITA No. 1042 & 1043/SRT/2025 Manishbhai N. Sheladiya be provided to the assessee, so that assessee may reply to the assessing officer about his/her grievances. Therefore, I remit these two appeals back to the file of the assessing officer with the direction to the assessing officer to furnish documents/incriminating documents to be used against the assessee and sufficient opportunity of being heard should be given to the assessee. Therefore, I set aside the order of the Ld.CIT(A) and remit the matter back to the file of the assessing officer with the direction to the assessing officer to furnish the copy of incriminating material and evidences, which are to be used against the assessee and provide sufficient opportunity of being heard to the assessee, and assessee should also submit his reply to prove his claim before the assessing officer. For statistical purposes, both these appeals filed of the assessee are allowed.

5.

In the result, both the appeals of the assessee are allowed, for statistical purposes.

Order is pronounced in the open court on 02/06/2026.

Sd/-Sd/- (Dr. Arjun Lal Saini) लेखा सद�य/Accountant Member Surat Date: 02/06/2026 Copy of the order forwarded to :  The assessee  The Respondent  CIT  The CIT(A)  DR, ITAT, Surat  By order Guard File

Assistant Registrar/Sr. PS/P.S. ITAT, Surat

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