DEEPCHAND LODARIYA,MADHAPAR V. CIT (A), DELHI

ITA 261/RJT/2024

AI Insights

The case involves an appeal by Deepchand Lodariya against the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, which arose from an assessment order passed by the National Faceless Assessment Centre, Delhi. The primary contention was the non-receipt of notice by the assessee during the appellate proceedings, leading to an ex parte order. Additionally, the assessee was unable to attend the assessment proceedings due to his wife's severe illness, resulting in an addition of Rs.55,52,873 under Section 69A of the Income-tax Act, 1961. The Tribunal found that the principles of natural justice were not followed and thus remitted the matter back for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 34185 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 16-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 26-04-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: SAMIR BHUPTANI
• Keywords: Set aside; Opportunity of being heard
• Section: 147; 144; 250; 69A

Judgement Text

"ITA No.261/Rjt/2024 (AY-16-17) Deepchand Lodariya 1 आयकर अपीलȣय अͬधकरण,राजकोट Ûयायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.261/RJT/2024 Ǔनधा[रणवष[ / Assessment Year: (2016-17) Deepchand Lal Ji Lodariya Navavas, AT: Madhapar, Tal: Bhuj-370 020 बनाम Vs. National Faceless Assessment Centre, Delhi Öथायीलेखासं /. जीआइआरसं /. PAN/GIR No. AARPL9371 N (अपीलाथȸ/Appellant) .. (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Samir Bhuptani, AR राजèव कȧ ओर से/Revenue by : Shri Abhimanyu Singh Yadav, Sr-DR सुनवाई कȧ तारȣख /Date of Hearing : 16/10/2024 घोषणा कȧ तारȣख /Date of Pronouncement : 21/10/2024 आदेश/Order Per Dr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2016-17, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi[in short ‘Ld.CIT(A)/NFAC’], under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 12.03.2024, which in turn arises out of an assessment order passed by the National Faceless Assessment Centre, Delhi /Assessing Officer u/s 147 r.w.s. 144 r.w.s. 144B of the Act, dated 28.03.2022. ITA No.261/Rjt/2024 (AY-16-17) Deepchand Lodariya 2 2. At the outset, Ld. Counsel for the assessee, submitted that during appellate proceedings, assessee did not receive notice of hearing, therefore assessee could not attend the proceedings before Ld.CIT(A). In the appellate proceedings, the notices of hearing were sent on e-mail i.d. viz. [e-mail], which is not the one mentioned in the appeal memo in Form No.35, The correct email ID is, [e-mail],. Besides, during the assessment stage, the assessee did not attend before assessing officer, as wife of assessee was suffering severe illness and she had to undergo for operation and as a result, the assessing officer made addition of Rs.55,52,873/-, by invoking provisions of Section 69A of the Act, and framed assessment u/s 144 of the Act. The Ld. AR for the assessee contended that now assessee is ready with available documents, which can be submitted, before the assessing officer, if the Bench, remits the issue back to the file of the assessing officer. The Ld. AR of the assessee, further submits that the assessee has a good case on merit and is likely to succeeds, if the matter is considered on merit and if one more opportunity is allowed to hear the case on merits and the assessee be allowed to file necessary evidence in support of his claim before the assessing officer in de novo assessment proceedings. 3. On the other hand, Learned Senior Departmental Representative (Ld. Sr. DR) for the Revenue submits that assessee has been given three opportunities by Ld. CIT(A) to plead his case. He further submitted that if ITA No.261/Rjt/2024 (AY-16-17) Deepchand Lodariya 3 the matter is to be remitted back to the file of lower authorities, it would be waste of time and resources of lower authorities. The Ld. DR has again argued that if the matter is remitted back to the file of the assessing officer, then it should be ensured that assessee should make compliance before the assessing officer and should not seek unnecessary adjustments. 4. We have heard both the parties and we note that in the assessee’s case under consideration, the assessment was carried out u/s 144 of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. We note that ld. CIT(A) has not decided the issue in respect of the ground raised by the assessee in Memo of Appeal, as per the mandate of provisions of section 250(6) of the Act. 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, 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 after giving reasonable opportunity of hearing to assessee. Needless to direct that before passing the order afresh, the Assessing Officer shall allow opportunity of hearing to the assessee. The assessee is also directed to furnish all the evidence at the earliest possible of time ITA No.261/Rjt/2024 (AY-16-17) Deepchand Lodariya 4 before Assessing Officer as and when call for. In the result, ground raised by the assessee is allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 21/10/2024 Sd/- Sd/- (DINESH MOHAN SINHA) (DR.ARJUNLALSAINI) Æयाियक सदÖय/JUDICIAL MEMBER लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 21/10/2024 DKP Outsourcing Sr.P.S आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेशसे, // True Copy // सहायक पंजीकार आयकर अपीलीय अिधकरण ,राजकोट "