DILIP MODI,INDORE V. INCOME TAX OFFICER, WARD-5(1),INDORE, INDORE

ITA 539/IND/2025

AI Insights

The case involves Dilip Modi, the appellant, who appealed against the order of the Commissioner of Income-Tax (Appeals), which was itself based on an ex-parte assessment order passed by the Income Tax Officer under section 144 of the Income-tax Act, 1961 for the Assessment Year 2012-13. The appellant contested that he had indeed participated in the proceedings and submitted necessary documents, which were allegedly overlooked by the CIT(A). Additionally, the appellant argued that the AO had sent notices to an old address, leading to non-representation. The Tribunal found merit in the appellant's submissions and remanded the case back to the AO for a fresh assessment, highlighting the need for adherence to the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790621 (ITAT-INDORE)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 17-06-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEATFIRSTDREWUSTOTHEIMPUGNEDORDEROFFIRST; FORREVENUEAGREESWITHTHEABOVESUBMISSIONSANDPRAYEROF; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIHARSHITCHOUKSE
• Keywords: Set aside; Principle of natural justice
• Section: 144

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.539/Ind/2025 Assessment Year:2012-13 Dilip Modi M214, Khatiwala Tank, Indore बनाम/ Vs. ITO Ward 5(1) Indore (Assessee/Appellant) (Revenue/Respondent) PAN: AJEPM0855G Assessee by Shri Harshit Choukse, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 03.12.2025 Date of Pronouncement 04.12.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 11.04.2025 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 03.12.2019 passed by learned ITO-4(3), Indore [“AO”] u/s 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Printed from counselvise.com Dilip Modi ITA No. 539/Ind/2025 - AY 2012-13 Page 2 of 4 2. Ld. AR for assessee at first drew us to the impugned order of first- appeal passed by Ld. CIT(A) to demonstrate that the same has been passed ex-parte to assessee on the footing that the assessee did not participate in the proceedings of first-appeal whereas the correct fact is that the assessee filed 1st reply dated 20.01.2025 to CIT(A) wherein the details/documents required by CIT(A) were submitted and subsequently, the assessee also filed 2nd reply dated 18.03.2025 wherein the acknowledgement of 1st filing made on 20.01.2025 was submitted. The e-filing acknowledgements of 1st reply and 2nd reply filed by assessee, as downloaded from website of Income-tax Department alongwith the copies of documents filed therewith to CIT(A), are submitted as part of Written-Synopsis filed by Ld. AR. Thus, the Ld. AR made a straight forward submission that the assessee did participation in the proceedings of first-appeal and e-filed replies to CIT(A) but it might have happened that the CIT(A) missed assessee’s e-filings due to oversight and passed ex-parte order. 3. Ld. AR next submitted that the assessment-order was also passed by AO u/s 144 ex-parte to assessee and, therefore, in 1st reply dated 20.01.2025 filed to CIT(A) the assessee made a specific prayer to Ld. CIT(A) to set aside matter to AO for adjudication afresh. In so far as the reasoning of non-representation before AO is concerned, Ld. AR submitted that the notices were served by AO to assessee’s old address “M-214, Khatiwala Tank, Indore” whereas the assessee had already shifted to new address “23, Murai Mohalla, Grain House, Chhavani, Indore” as mentioned in Form No. 35. Ld. Printed from counselvise.com Dilip Modi ITA No. 539/Ind/2025 - AY 2012-13 Page 3 of 4 AR also pointed out one more fact that the AO has made addition of 100% of investment in a property in the hands of assessee and at the same time, also made 50% addition for the very same investment in the hands of assessee’s mother “Smt. Chandrakala Modi” who was a joint owner in the very same property. However, in first-appeal filed by assessee’s mother, the CIT(A) has already set aside matter to the file of AO for a fresh adjudication, copy of CIT(A)’s order dated 14.11.2024 in the case of assessee’s mother is filed before bench. Therefore, considering entire prospectus of the case, the present matter should also be remanded to the file of AO for a fresh adjudication. 4. Ld. DR for revenue agrees with the above submissions and prayer of Ld. AR but makes a request to direct assessee to represent his case before AO and do not seek unnecessary adjournments. 5. In view of above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of AO, we remand this matter back to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. Printed from counselvise.com Dilip Modi ITA No. 539/Ind/2025 - AY 2012-13 Page 4 of 4 6. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 04/12/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 04/12/2025 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 COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "