GAJENDRA SINGH,VIDISHA vs. COMMISSIONER OF INCOME-TAX (APPEALS), NFAC, DELHI
What did the Tribunal hold?
The Tribunal, considering the submissions of both parties and bearing in mind the principles of natural justice, decided to remand the matter back to the file of the Assessing Officer (AO) for adjudication afresh. The Tribunal noted that no prejudice would be caused to the revenue by restoring the case at the AO's level. The remand is subject to the assessee paying Rs. 5,000/- to the Prime Minister National Relief Fund, the receipt of which must be submitted to the AO. The AO is directed to provide the assessee with a necessary opportunity of hearing and pass an appropriate order after considering the assessee's submissions, without being influenced by the previous order. The assessee is also directed to remain vigilant and ensure participation in hearings without seeking unnecessary adjournments, failing which the AO is at liberty to pass an order in accordance with law. The appeal is allowed for statistical purposes.
What were the facts?
The assessee, Gajendra Singh, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Indore Bench, against an order dated 12.03.2025 passed by the Commissioner of Income-Tax (Appeals)-NFAC, Delhi. This order arose from an assessment order dated 20.02.2024 passed by the Assessment Unit of the Income-tax Department under Section 147 read with Section 144B of the Income-tax Act, 1961, for the Assessment Year 2018-19. The assessee contended that the CIT(A) issued notices only through e-mail, and due to the assessee's limited technological proficiency and remote location, these notices were not received, leading to an ex-parte order. Similarly, the assessment order was also passed ex-parte under Section 144 due to lack of full representation, despite a partial reply being filed with the AO. The additions made by the AO were Rs. 54,32,360/- under Section 69A for cash transactions and Rs. 3,00,000/- by disallowing agricultural income. The assessee expressed readiness to provide all required details and documents to the AO.
What were the issues?
1. Whether the ex-parte orders passed by the CIT(A) and the AO, without proper service of notice and opportunity of hearing to the assessee, are sustainable in law, particularly considering the assessee's submission of not being technology-friendly and operating from a remote location? (Mixed question of law and fact, turning on principles of natural justice and procedural fairness). Assessee's Contentions: - The CIT(A) issued all notices via e-mail, which the assessee, running a small Union Bank kiosk in a remote area and not being technology-friendly, could not effectively receive or act upon, leading to an ex-parte order. - The assessment order was also passed ex-parte under Section 144 due to lack of representation, despite a partial reply being filed with the AO. - The assessee has collected all necessary details and documents and is ready to make a proper representation before the AO. - The matter should be remanded to the AO for proper adjudication in the interest of justice. Revenue's Contentions: - The Revenue did not object to a remand to the AO but prayed for strict directions to the assessee for cooperation and representation without seeking unnecessary adjournments.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI SIDDHARTHA NAUTIYAL
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal bearing DIN: ITBA/NFAC/S/250/2024-25/1074419662(1) dated 12.03.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 20.02.2024 passed by learned Assessment Unit of Income-tax Department [“AO”] u/s 147 r.w.s. 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Ld. AR for assessee drew us to Para 7.1 of impugned order and demonstrated that the CIT(A) has issued all notices of hearing through e- mail and there was no service of notice through physical mode. He submitted that the assessee runs a small kiosk of Union Bank of India in a remote place and not technology friendly, therefore the assessee could not take note of the notices e-mailed by CIT(A) which has resulted in non- representation before CIT(A) and thereby leading the CIT(A) to pass ex-parte order. Thereafter, Ld. AR carried us to the assessment-order and demonstrated that the same is also passed ex-parte u/s 144 for lack of full representation by assessee although the assessee filed a part-reply to AO on 12.08.2023 as acknowledged by AO in Para 2 of assessment-order. He submitted that the AO has made addition of Rs. 54,32,360/- u/s 69A in respect of cash transactions in bank a/c and a further addition of Rs. 3,00,000/- by disallowing claim of agricultural income having been earned by assessee. He submitted that the assessee has collected all required details/document to satisfy the AO and therefore ready and willing to make a proper representation before AO if an opportunity is given and prays that the present matter should be remanded to the file of AO for a proper adjudication. Therefore, in the interest of justice, this matter must be remanded to AO for a fresh adjudication.
Ld. DR for revenue submitted that he does not have any objection against remand to AO but, however, he prays that the bench must give a Page 2 of 4
In view of above facts and considering the submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of AO, we remand this matter back to the file of AO for adjudication afresh, at the risk and responsibility of assessee, subject to payment of Rs. 5,000/- by assessee to Prime Minister National Relief Fund. The assessee shall submit receipt of such payment to AO during proceedings. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order after considering submissions of assessee, without being influenced by his previous order in any manner. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced by putting up on notice board in terms of Rule 34 of ITAT Rules, 1963 on 24/12/2025
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