DEVJI RAMJIBHAI HIRANI,LONDON V. .INCOME TAX OFFICER - WARD 1, BHUJ

ITA 501/RJT/2024

AI Insights

The case involves Devji Ramjibhai Hirani, a Non-Resident Indian (NRI) and holder of a British passport, who appealed against the order passed by the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The original assessment was made under sections 144 and 147 of the Income Tax Act, 1961, due to non-compliance with notices by the assessee. Both the initial assessment and the subsequent appeal were conducted ex parte as the assessee failed to appear or provide necessary documents. The Tribunal noted the repeated non-compliance and the ex parte nature of the previous orders but emphasized the need to adhere to the principles of natural justice, thus remitting the case back for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470597 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: SAMIR BHUPTANI
• Keywords: Set aside; Opportunity of being heard
• Section: 147; 144

Judgement Text

"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. 501/RJT/2024 (Assessment Year: 2012-13) (Hybrid Hearing) Devji Ramjibhai Hirani Uplavas, Hirani Nagar, Baladia – Kera Roa, Baladia, Bhuj - 370427, Gujarat Vs. Income Tax Officer Ward-1, Bhuj èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AFBPH2201L (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरतीकȧओरसे/Assessee by : Shri Samir Bhuptani, AR राजèवकȧओरसे/Revenue by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR सुनवाईकȧतारȣख/ Date of Hearing : 21/10/2024 घोषणाकȧतारȣख/Date of Pronouncement : 19/12/2024 आदेश/ORDER PER DINESH MOHAN SINHA, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2012-13, 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 25.04.2024, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144 r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 27.11.2019. 2. At the outset, the Ld. Counsel for the assessee submitted that the order passed by the Assessing Officer is under section 144 of the Act (ex I.T.A No. 501/Rjt/2024 A.Y. 2012-13 Devji Ramjibhai Hirani vs. ITO 2 parte order). On appeal, before the ld. CIT(A), the assessee could not appears and could not submit the details and documents, therefore ld. CIT(A) has also passed the ex parte order. The Ld. Counsel for the assessee submitted that the assessee is a Non-Resident Indian (NRI). Unfortunately, before the AO & and also before the Ld. CIT(A) could not complied with the notices. The Ld. Counsel for the assessee, therefore, contended that now the assessee is ready to submit details and documents before the lower authorities, therefore, the matter may be remitted back to the file of Assessing Officer for fresh adjudication. 3. On the other hand, learned Senior Departmental Representative (ld. Sr. DR) for the Revenue argued that assessee is non-cooperative and not complied with the noticed issued by the Ld. CIT(A). He relied upon the order of the ld. CIT(A) and also not objected to the request of the Ld. AR. 4. We have heard both the parties. We note that the assessee a British Passport holder and NRI. Eight Notices issued by the Ld. CIT(A) and the same remained uncompiled with. The Ld. CIT(A) passed ex parte order and the claim of the appellant that source of cash/credits in the bank account of Rs.49,97,120- remained unexplained. We further note that before the ITO, the assessee could not responded because of the British citizen and non-receipt of notices. We, therefore, find 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 I.T.A No. 501/Rjt/2024 A.Y. 2012-13 Devji Ramjibhai Hirani vs. ITO 3 opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. We further direct to the appellant to appear before the Ld. AO as and when notice issued by the Ld. AO, however, we fix the case for hearing before Ld. AO on 26.12.2024. 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. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19 -12-2024 Sd/- Sd/- (A. L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot Dated: 19/12/2024 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Rajkot 6. Guard file. By order/आदेश से, Assistant Registrar / Sr. PS ITAT, Rajkot "