ASHOKKUMAR ISHWARLAL KANABAR,JUNAGADH vs. DCIT CENTRAL CIRCLE-2 , RAJKOT

PDF · subscribers
ITA 908/RJT/2025Status: DisposedITAT Rajkot09 April 2026AY 2010-113 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the matter to the Assessing Officer for de novo adjudication. This was done because the assessee was not given a proper opportunity of being heard by both the AO and CIT(A), violating principles of natural justice.

What were the facts?

The assessee's appeal pertains to AY 2010-11, challenging the CIT(A)'s order which upheld a rectification order passed by the AO. The core dispute involves the levy of interest under sections 234A and 234B.

What were the issues?

Whether the rectification order levying interest was passed on a debatable issue without proper opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 154,Section 250,Section 143(1),Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: DR. ARJUN LAL SAINI

For Appellant: Shri Samir Jani, Ld. AR
For Respondent: Shri Abhimanyu Singh Yadav, Ld. Sr. DR
Hearing: 12/01/2026

आयकरअपीलीयअिधकरण,राजकोट�ायपीठ,राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकरअपीलसं./ITA No. 908/RJT/2025 (�नधा�रणवष�/Assessment Year: (2010-11) Ashokkumar Ishwarlal Kanabar The DCIT, circle-2, Krushna Nagar, Nr. Lodhawadi, Vs. Aayakar Bhavan, Race Course Ring Junagadh-362001 Road, Rajkot – 360001 �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AMBPK3474D (अपीलाथ�/Appellant) (��यथ�/Respondent)

Appellant by : Shri Samir Jani, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing : 12/01/2026 : 09/04/2026 Date of Pronouncement

ORDER Per, Dr. Arjun Lal Saini, AM:

Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2010-11, is directed against the order passed under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Commissioner of Income-tax (Appeals) [in short ‘Ld.CIT(A)’], dated 26.11.2025, which in turn arises out of an order passed by the Assessing Officer u/s 154 of the Act.

2.

Ground of appeal raised by the assessee, are as follows:

“1. The Order of the CIT (A) is without offering proper opportunity of being heard. The appeal order u/s. 250 is prayed for deletion.

ITA No. 908/Rjt/2025 Ashokkumar I. Kanabar

2.

The Order passed by the Ld. CIT (Appeals)-11, Ahmedabad is bad & illegal to the extent that the rectification order is passed on a debatable issue and further after the order of Ld. A.O. u/s. 143 (1) dated 25.04.2011 levying interest u/s. 234A no further interest could be levied through an order u/s 154 by invoking Explanation 3 of Sub-Section 1 to the extent of Rs.1,12,985/-. The appellant denies its liability for interest. The same is prayed for deletion. 3. The Ld. CIT (A) has erred in confirming the quantum of 234B (3) & (4) interest to the extent of Rs.92,802/-. Inspite of the fact an assessment u/s 143 (1) is framed in the case vide order dated 25.04.2011. The levy is prayed for deletion. 4. The appellant reserves its right to add, amend, alter or modify any of the grounds at or before the time of final hearing.”

3.

Learned Counsel for the assessee, at the outset, submitted that Ld.CIT(A) as well as assessing officer had not given proper opportunity to being heard, and did not consider the documents and evidences, and the explanations submitted by the assessee. Therefore, learned Counsel for the assessee submitted that matter may be restored back to the file of the assessing officer with the direction to rectify the mistake in accordance with Law.

4.On the other hand, the Learned DR for the Revenue did not have any objection, if the matter is restored back to the file of assessing officer to rectify the mistake after giving sufficient opportunity and after taking into account the relevant documents and evidences filed the assessee, on the issue under consideration.

5.

I have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. I note that the rectification order was passed by the assessing officer on a debatable issue and further after the order of assessing officer, u/s. 143 (1) of the Act, dated 25.04.2011, levying interest u/s. 234A of the Act, is bad in law. As per assessee, no further interest could be levied through an

Page 2 of 3

ITA No. 908/Rjt/2025 Ashokkumar I. Kanabar

order u/s 154 of the Act, by invoking Explanation 3 of Sub-Section 1 to the extent of Rs.1,12,985/-. The assessee denies its liability for interest. Further, as per the assessee, the quantum of interest under section 234B (3) & (4), that is, interest to the extent of Rs.92,802/- should be deleted. I note that neither the assessing officer, nor the learned CIT(A), have given fair opportunity of hearing to the assessee, which is against the principle of natural justice. I note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, I restore the matter back to the file of assessing officer for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. I also direct the assessee to file relevant documents and evidences and explanations to prove his claim before the assessing officer. For statistical purpose, the appeal of the assessee is allowed.

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

Order pronounced in the open court on 09/04/2026.

Sd/- (Dr. Arjun Lal Saini) लेखा सद�य/Accountant Member राजकोट /Rajkot िदनांक/ Date: 09/04/2026 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order //True Copy// Assistant Registrar/Sr. PS/PS ITAT, Rajkot Page 3 of 3

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →