CHANDAN THAKURDAS MANGTANI,ARVI. DIST. WARDHA V. ITO, WARD-1, WARDHA

ITA 158/NAG/2024

AI Insights

The case involves an appeal by Chandan Thakurdas Mangtani against the order of the Commissioner of Income Tax (Appeals), which was passed ex-parte. The primary contention was that the income of the assessee was assessed under section 144 of the Income Tax Act based solely on bank statements, despite the accounts being audited. The Tribunal noted that although the CIT(A) had provided opportunities to the assessee, the final order was still passed ex-parte. The Tribunal decided to set aside the CIT(A)'s order and remand the case back to the Assessing Officer for a fresh assessment, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474390 (ITAT-NAGPUR)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 17-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: NILESH TOSHNIWAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 201

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND S.M.C. MATTER ITA no.158/Nag./2024 (Assessment Year : 2017–18) Chandan Thakurdas Mangtani Khardi Ward, Arvi, Dist. Wardha 442 201 PAN – BKPPM9141N ……………. Appellant v/s Income Tax Officer Ward–1, Wardha ……………. Respondent Assessee by : Shri Nilesh Toshniwal Revenue by : Shri Abhay Y. Marathe Date of Hearing – 07/11/2024 Date of Order – 18/11/2024 O R D E R The assessee has filed this appeal challenging the impugned order dated 17/01/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2017–18. 2. The assessee has raised following grounds:– “1. The learned AO and CIT(A) erred in assessing the income of the Assessee u/s 144 based on bank statements whereas accounts of the assessee are audited. 2. The Appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of Appeal as may be considered necessary at the time of hearing of the appeal.” Chandan Thakurdas Mangtani Page | 2 2. When this appeal is taken up for hearing, the learned A.R. appearing for the assessee submitted that the learned CIT(A) passed an ex-parte order and prayed that one opportunity may be granted by restoring the matter to the file of the learned CIT(A) to enable the assessee to substantiate its case before the learned CIT(A). 3. On the other hand, the learned D.R. submitted that the learned CIT(A) has given sufficient opportunities inspite of that the assesse has not appeared before the learned CIT(A) and not filed relevant details. He strongly supported the orders passed by the learned CIT(A). 4. I have heard both the parties, perused the materials available on record and gone through orders of the authorities below. I find that though the learned CIT(A) gave opportunities to the assessee, ultimately, the order passed by him is an ex-parte order. Therefore, I am of the opinion that by following the principles of natural justice, one more opportunity should be given to the assesse to substantiate his case. In view of the above, the order passed by the learned CIT(A) is set aside and remit the matter to the file of the Assessing Officer and direct him to adjudicate the matter afresh on merit after providing reasonable opportunity of being heard to the assessee. It is also directed that the assessee should not seek adjournment without there being a justified reason. Accordingly, all the grounds raised by the assessee in this appeal are allowed for statistical purposes. Chandan Thakurdas Mangtani Page | 3 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 18/11/2024 NAGPUR, DATED: 18/11/2024 Sd/- V. DURGA RAO JUDICIAL MEMBER Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "