CHHAGANBHAI BHUPATBHAI KIKANI,JASDAN, DIST. RAJKOT V. THE ITO WARD-2 (1) (3), RAJKOT, RAJKOT

ITA 114/RJT/2026

AI Insights

The case involves Chhaganbhai Bhupatbhai Kikani, the appellant, who contested a penalty order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, for the assessment year 2017-18. The appeal was directed against the order of the National Faceless Appeal Centre (NFAC), which was an ex-parte and non-speaking order, leading to a violation of the principles of natural justice. The Tribunal, after hearing the arguments and reviewing the documents, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing, emphasizing the need for a fair opportunity to be heard.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834070 (ITAT-RAJKOT)
• Duration Of Justice: 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 28-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR GUPTA; LD.
• Assessee Lawyers: VIPUL DATTANI; LD
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण,राजकोट Æयायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं/.ITA No.114/RJT/2026 िनधाªरण वषª/Assessment Year :2017-18 Chhaganbhai Bhupatbhai Kikani Nr. Bekariya Wadi Bajrang nagar Jasdan-360062 Vs. ITO Ward 2(1)(3) Rajkot Rajkot-360001 Öथायीलेखासं./जीआइआरसं./PAN/GIR No.: APVPK5002Q (अपीलाथê/Appellant) (ÿÂयथê/Respondent) Appellant by : Shri Vipul Dattani, Ld. AR Respondent by : Shri Dheeraj Kumar Gupta, Ld. Sr. DR Date of Hearing : 06/02/2026 Date of Pronouncement : 06/02/2026 आदेश / ORDER Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by assessee, pertaining to Assessment Year 2017- 18, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 30.11.2025, which in turn arises out of a penalty order passed by Assessing Officer u/s. 143(3) of the Act on 15.12.2019. 2. At the outset itself, the ld. Counsel for the assessee assailed the impugned order by contending that the 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 Printed from counselvise.com Page 2 of 3 ITA No. 114/Rjt/2026 Chhaganbhai B. Kikani principle of natural justice. The ld. Counsel for the assessee contended that in the interest of justice, another opportunity to contest the appeal before the Ld. first appellate authority may be granted to the assessee. 3. The ld. DR for the Revenue debarred from objecting the stand of the ld. Counsel. 4. I have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. I note that in the assessee’s case under consideration, the assessment was carried out u/s 143(3) the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, I do not wish to make any comments on the merits of the grounds raised by the assessee. 5. Considering the above facts, I note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(A). I note that the ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. I 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, I restore the matter back to the file of Ld. CIT(A)for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, I 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 Ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. Printed from counselvise.com Page 3 of 3 ITA No. 114/Rjt/2026 Chhaganbhai B. Kikani 6. For statistical purposes, the appeal of the assessee is treated as allowed. Order is pronounced in the open court on 06/02/2026. Sd/- (Dr. Arjun Lal Saini) लेखा सदÖय/Accountant Member राजकोट/Rajkot //True Copy// िदनांक/ Date: 06/02/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, RAJKOT 6. Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "