VISHAL RAJENDRA MADHAVANI,SURAT vs. ASSESSING OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

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ITA 557/SRT/2023Status: DisposedITAT Surat11 October 2023AY 2018-19Bench: SHRI PAWAN SINGH (Judicial Member), DR. A. L. SAINI (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) did not pass an order on merits and violated the principles of natural justice. Therefore, the matter was restored to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee's appeal before the CIT(A) was decided ex parte. The assessee contended that they were not given an adequate opportunity to represent their case and sought remittance back to the Assessing Officer.

What were the issues?

Whether the CIT(A) order was vitiated due to violation of natural justice and lack of opportunity for the assessee to be heard.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM

For Appellant: Shri Vinod Kumar, Sr. DR
Hearing: 11/10/2023Pronounced: 11/10/2023

आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short “the ld. CIT(A)”], National Faceless Appeal Centre (in short ‘the NFAC’), Delhi, dated 14.07.2023, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 24.09.2021.

2.

At the outset itself, Learned Counsel for the assessee assailed the impugned order by contending that 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. During the appellate proceedings, the assessee filed adjournment

1.

ITA.557/SRT/2023/AY.2018-19 Vishal Rajendra Madhavani application before the ld. CIT(A) to submit further documents and evidences, however the ld. CIT(A) has passed an ex parte order without giving opportunity to the assessee to represent his case. The Ld. Counsel further pointed out that during the assessment proceedings also, the assessee has not submitted entire documents and evidences, therefore matter may be remitted back to the file of the Assessing Officer for fresh adjudication. The Ld. Counsel for the assessee submitted that one more opportunity should be given to the assessee to plead his case before the Assessing Officer.

3.

On the other hand, Learned Departmental Representative (Ld. DR) for the Revenue stated that matter should not be remitted back to the file of the lower authorities as the assessee was negligent in his approach and did not file the relevant documents and evidences before the ld. CIT(A), hence the appeal of the assessee may be dismissed.

4.

We have heard both the parties. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(A). We also note that Ld. CIT(A) has not passed the order as per the mandate of provisions of section 250(6) of the Act. That is, ld. CIT(A) did not pass order on merit based on the material available on record. Hence, we are of the view that one more opportunity should be given to the assessee to plead his case before the Assessing Officer. We 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, we 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 ITA.557/SRT/2023/AY.2018-19 Vishal Rajendra Madhavani directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed.

7.

In the result, appeal filed by the assessee is allowed for statistical purposes.

Order is pronounced on 11/10/2023 in the open court.

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