SHAFIQ AHMED ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 41(1)(1), MUMBAI

The learn Assessing Off considering adjournment 3. That appel receive the la the erastw written subm 2. The brief facts assessee had not f assessment year in q that the assessee h consideration of ₹28 stamp duty authority Assessing Officer (A chargeable to tax assessment. Accordin tax Act,1961( in sh invoking the pre-a Taxation and Other Provisions) Act, 2020 2.1 In light of the d India v. Ashish Agarw under Section 148A(b affording the assesse response was furnis under Section 148A(d ITA ned NFAC has erred in confirming the fficer making addition of Rs 14,84,700/ the adjournment sought by the app dated... llant's email inbox's memory get full and ast email from the income tax departmen while consultant failed to sub mission. giving rise to the controvers filed any regular return of i question. Upon receipt of inform had acquired an immovable 8,00,000, whereas the value a y for the said transaction was AO) recorded reason to believ to the extent of ₹6,63,500 ngly, a notice under Section 148 hort the ‘Act’) was issued o mendment provisions as ext Laws (Relaxation and Amendm 0 (TOLA). decision of Hon’ble Supreme Co wal [(2022) SCC OnLine SC 543 b) of the Act was issued on 25.0 ee an opportunity of being hear hed by the assessee. Consequ d) was passed, and a fresh notic Shafiq Ahmed 2 A No. 3008/MUM/2025 e order of /- without pellant on d failed to t. Further, mit the sy are that the income for the mation indicating property for a adopted by the ₹34,63,500, the ve that income 0 had escaped 8 of the Income- on 29.06.2021, tended by the ment of Certain ourt in Union of 3], a fresh notice 05.2022, thereby rd. However, no uently, an order ce under Section 148 was issued on 0 the competent author 2.2 During the re notices were issued also remained unre 16.05.2023 was likew the AO proceeded to additions aggregating 2.3 The assessee c CIT(A). However, th repeated opportunit recorded that notices 20.02.2025, granting Despite such indulg Consequently, the ap finding of the Ld. CIT “4. Observat 4.1 During issued not submission o and adjourn the interest notice dated date26.02.2 stated:"You the points (m frame mentio ITA

07.2022, after obtaining due rity. eassessment proceedings, mu between 08.07.2022 and 06.0 esponded. A final show-caus wise ignored. In the absence of a complete the reassessment ex g to ₹14,84,700. carried the matter in appeal here was no effective represe ties. The appellate authority, s were issued on 05.02.2025, g sufficient time for the asses gence, no substantive reply w ppeal was dismissed for non-p T(A) is reproduced as under: tions & Findings of Appellate Authority the appellate proceedings, the app tice on05.02.2025 and 13.02.20 of a response. In the response no reply nment sought by the appellant. Subse of natural justice, adjournment gran d 20.02.2025 issued to appellant with 025 to submit the reply. The notic are requested to furnish your detailed mentioned in the notice) within the sp oned in the notice. Non-compliance m Shafiq Ahmed 3 A No. 3008/MUM/2025 e approval from ultiple statutory 05.2023, which se notice dated any compliance, parte and made before the Ld. entation despite , in its order, 13.02.2025 and see to respond. was submitted. prosecution. The y: - pellant was 025requiring y submitted equently, in ted through compliance ce explicitly d replies on pecified time may result in the case bein was further response wo appellant's c again failed 4.2 In this c various judic "natural just situations, ra both ends authority. Th 'fairness'. In the authorit depend on t Natural jus anything unn as a set reference to merely is, in that man? If not unreaso there has b natural justi has not ava him." Despite prov following the not avail the appellant au ITA ng decided on merits or dismissed acc r highlighted that timely submiss ould ensure a fair and just examina case. Despite this opportunity, the app to comply with the notice. context, reference may be made to cial pronouncements where it has been tice are not codified nor are they unva ather they are flexible. It has to be ad i.e. from the assessee as well as hey may, however, be summarized in n other words, what they require is f ty concerned. Of course, what is the situation and the context. Lord Es Barrett (1885) 55 L.J. QB 39, observe e natural sense of what is right and , we may refer to observations of hna lyer J..... opportunity should be r ffective and not illusory and must be f sideration of the explanation offere vailable, culminating in an order whic the decision sufficient to show that t y has been applied relevantly and rat ance on facts not furnished to the affe stice, must warn, cannot be perv natural or unjust and cannot therefore of dogmatic prescriptions applicab o the circumstances of the case. Th all conscience have you been fair in d f you have not been arbitrary, not abse nable or not unspeaking, you canno een no 'natural justice' breached, ra ice has been followed but it is the p ailed any chances for the reasons bes viding ample opportunities of being e principle of natural justice, the asse e same by failing to comply with the no uthority. Shafiq Ahmed 4 A No. 3008/MUM/2025 cordingly."It sion of the ation of the pellant once the ratio of n held that: arying in all dhered from s from the n one word: fairness by fair would sher M.R. in ed: "Natural d wrong." In the Hon'ble real and not followed by ed and the ch discloses the mind of tionally and fected party. verted into e be treated ble without he question dealing with ent-minded, t deny that ather fullest person who st known to heard and essee chose otices of the 4.3 intereste show that t maxim 'vigila assists those their right, is The Hon'ble AY 2002-03 Ltd. after fol the case of B that the app effectively pu Considering that the Ass after thoroug or error is o Officer. Cons merit and is In the result, 3. Before us, the lea the non-compliance occasioned due to bo dated 05.02.2025, it failed to submit the dated 13.02.2025, it sought, though not a In respect of the thi that the same could mail) due to the acco 3.1 Having regard learned counsel for ITA ed non- The aforesaid mentioned circ he appellant is not in pursuing its a antibus dormientibusjurasubvenunť i e who are vigilant and not those who s applicable in this case. ITAT in ITA No. 1025-1027/CHD/2 3 in the case of M/s Chhabra Land llowing the decision of Hon'ble Suprem B.N. Bhattacharjee & other 118 ITR 46 eal does not mean merely filing of the ursuing the same. the above facts and material on recor sessing Officer has made the additio ghly analyzing the facts of the case. N observed in the order passed by the sequently, the appeal filed by the ass hereby dismissed. , the appeal of the assessee stands d arned counsel for the assessee before the Ld. CIT(A) was not ona fide reasons. In respect of was submitted that the assess requisite reply. As regards the was argued that an adjournm acknowledged in the impugned ird notice dated 20.02.2025, it not be retrieved from the regist ount having exceeded its storage to the facts on record, and the parties, we are of the con Shafiq Ahmed 5 A No. 3008/MUM/2025 rcumstances appeal. The i.e. the law o sleep over 2005 for the & Housing me Court in 61 [SC] held e appeal but rd, it is held n on merits No infirmity e Assessing sessee lacks dismissed.” submitted that t deliberate but f the first notice see’s consultant e second notice ment was indeed appellate order. was submitted tered e-mail ( g- e capacity. d upon hearing nsidered opinion that the ld First ap appeal on merits. Th Section 250(6) of the and reasoned order, assessee. The dismi compliance, without cannot be countenan 3.2 It is well settled mere technical forma fairness in quasi-ju expected to be vigil incumbent upon the accordance with law in ex parte reassessm 3.3 We also notice were within short int explanation for the circumstances, we ar met if one more opp the matter on merits 3.4 Accordingly, the set aside. The matte direction to decide th ITA ppellate authority ought to ha he powers of the ld. CIT(A), as d e Act, obligate the authority to p , even in the absence of parti ssal of the appeal solely on a dealing with the merits of the a nced in law. d that the principles of natural alities but are intended to ens udicial proceedings. While th lant in pursuing its remedies appellate authority to adjudica , particularly where additions h ment proceedings. that the three notices issued by tervals of time, and that there ex e assessee’s failure to resp re of the view that the ends of j portunity is afforded to the asse before the ld first appellate auth e impugned order passed by th er is remitted to the file of th he appeal afresh on merits, aft Shafiq Ahmed 6 A No. 3008/MUM/2025 ave decided the delineated under pass a speaking icipation by the account of non- additions made, l justice are not ure substantive he assessee is s, it is equally ate the matter in have been made y the Ld. CIT(A) xists a plausible pond. In such justice would be essee to contest hority. he Ld. CIT(A) is e CIT(A) with a ter affording the assessee a reasonabl the assessee shall proceedings and sha event of continued no at liberty to proceed i 3.5 The ground Nos ground No. 2 and 3 adjudicate upon grou 4. In the result, statistical purposes. Order pronoun (RAHUL CHA JUDICIAL M Mumbai; Dated: 24/07/2025 Rahul Sharma, Sr. P.S.