CHANCHAL NALWAYA,INDORE V. ITO 3(3), INDORE

ITA 296/IND/2023

AI Insights

The case involves Smt. Chanchal Nalwaya, who appealed against the order of the Commissioner of Income-Tax (Appeals) - NFAC, Delhi, which was itself a result of a revision-order passed by the Principal Commissioner of Income-Tax, Indore. The initial assessment for the Assessment Year 2013-14 was contested due to additions made on account of long-term capital gain and interest income. After a revision, the total income was reassessed significantly higher, leading to the appeal. The CIT(A) had decided the first appeal ex-parte as the assessee did not submit any representation, which was attributed to the disruptions caused by the COVID-19 pandemic. The Tribunal found merit in the assessee's request for a fresh hearing on the grounds of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312296 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORREVENUEEXPRESSEDNOOBJECTIONAGAINSTREMANDINGTHIS; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIGAGANTIWARI; PRIYALJAIN; ARS
• Keywords: Principle of natural justice; Revision of order
• Section: 143(3)

Judgement Text

"Page 1 of 4 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.296/Ind/2023 Assessment Year:2013-14 Smt. Chanchal Nalwaya (Wife of Shri Anand Nalwaya) 8, LIG Duplex, Patnipura, Behind Anoop Talkies Indore बनाम/ Vs. ITO ward 3(3) Indore (Assessee/Appellant) (Revenue/Respondent) PAN: ATPPC5834Q Assessee by Shri Gagan Tiwari & Ms. Priyal Jain, ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 08.04.2025 Date of Pronouncement 28.04.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 05.06.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 12.12.2018 passed by learned ITO-3(3), Indore [“AO”] u/s 143(3) r.w.s. 263 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2013-14, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Chanchal Nalwaya ITA No. 296/Ind/2023 - AY 2013-14 Page 2 of 4 2. The background facts leading to present appeal are such that the assessee-individual filed her return of income of AY 2013-14 on 31.03.2014 declaring a total income of Rs. 2,87,590/-. The case was subjected to scrutiny assessment and the AO passed assessment-order u/s 143(3) on 17.03.2016 assessing total income at Rs. 12,67,527/- after making additions on account of long-term capital gain and interest income. Subsequently, the PCIT-I, Indore passed revision-order u/s 263 on 16.03.2018 directing the AO to make fresh assessment after taking stamps duty value of Rs. 1,86,30,000/- in computing capital gain. Pursuant to such revision-order, the AO passed fresh assessment-order dated 12.12.2018 re- determining total income at Rs. 83,97,530/-. Aggrieved by order of fresh assessment, the assessee carried matter in first-appeal before CIT(A) but did not get any relief. Now, the assessee has come in next appeal before us assailing the order of CIT(A). 3. On hearing learned Representatives of both sides, it emerges that the CIT(A) has decided first-appeal ex-parte qua assessee for the reason that the assessee did not make any submission before him despite opportunities given. It is further observed that the CIT(A) fixed initial hearings during the years 2019 / 2020 and thereafter fixed final opportunity on 15.05.2023 after a gap of about 3 years and after passing of Covid-2019 pandemic. Ld. AR for Chanchal Nalwaya ITA No. 296/Ind/2023 - AY 2013-14 Page 3 of 4 assessee submits that the assessee was not able to make representation qua the notice dated 15.05.2023 which has led to passing of impugned order ex- parte. Ld. AR further submits that the CIT(A) has simply confirmed the order passed by AO and thereby upheld the additions but the grounds/issues raised by assessee in first-appeal requires an apt adjudication by CIT(A) on merit in accordance with provisions of 250(6) of the Act which provides “The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”. Accordingly, in this situation, Ld. AR prays that the present matter should be remanded to CIT(A) for an apt adjudication on merit. He asserted in open court that the assessee is ready and willing to make representation before CIT(A) if an opportunity is given. 4. Ld. DR for revenue expressed no objection against remanding this matter to CIT(A) but makes a request to direct the assessee to represent her case before CIT(A) and do not seek unnecessary adjournments. 5. Considering above submissions of parties and also having regard to the principle of natural justice and fair play, we deem it fit to remand this matter back to the file of CIT(A) for adjudication afresh. The CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to ensure Chanchal Nalwaya ITA No. 296/Ind/2023 - AY 2013-14 Page 4 of 4 participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. 6. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 28/04/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 28/04/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "