AMINBHAI JIVABHAI LALANI,TIMBI vs. ITO WD 3(1)(4), RAJKOT-AMRELI/, AMRELI

Since, both the appeals related to the same assessee and identical facts are involved; therefore both these appeals have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity.

First, I shall take assessee’s quantum appeal for assessment year 2017-18, in ITA No.67/Rjt/2026, wherein Ld. Counsel contended that in quantum proceedings 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 for the assessee submitted that during the appellate proceedings, notices of hearings were not served on the assessee, therefore, assessee could not appear before the Ld. CIT(A) and as a result, the Ld. CIT(A) passed ex parte order. The Ld. Counsel for the assessee stated that assessee wants to file additional evidence before the assessing officer, therefore, matter may be restored back to the file of the Assessing Officer. The Ld. Counsel for the assessee contended that in the interest of justice, another opportunity to contest the appeal before the assessing officer may be granted to the assessee.

On the other hand, the Ld. DR for the Revenue did not have objection if the matter is restored back to the file of assessing officer.

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 in the assessee’s case under consideration, the assessment order was passed u/s 147 of the Act and the impugned order passed by the Ld. CIT(A), is an ex parte order and non- speaking order, therefore, I do not wish to make any comments on the merits of the grounds raised by the assessee. Considering the above facts, I note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the Ld. CIT(A). I note that the Ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of 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. It is needless to say that the assessee will be at liberty to adduce any evidences as deemed relevant before the assessing officer at the time of proceedings in consequence to this order and the assessing officer shall, allow the assessee adequate opportunity of being, heard and to make relevant submissions, and then pass a speaking order which is fair and judicious.

In the result, appeal of the assessee in ITA No.67/Rjt/2026 is allowed for statistical purposes.

Now coming to assessee’s penalty appeal in ITA No.73/Rjt/2026, I note that additions made in the quantum assessment has been restored back to the file of Assessing Officer, therefore at this stage, the penalty levied by Assessing Officer u/s 271AAC(1) of the Act vide order dated 29.09.2022 will not survive, as it does not have leg to stand. However, the Assessing Officer shall be at liberty to initiate fresh penalty proceedings in de novo assessment proceedings, if so require.

In the combined result, both appeals filed by the assessee in ITA No. 67/Rjt/2026 in ITA No.77/Rjt/2026 are allowed, for statistical purpose