GRAND CONSULTING SERVICES PRIVATE LIMITED,INDORE V. INCOME TAX OFFICER -2 (1), INDORE, INDORE

ITA 481/IND/2024

AI Insights

The case involves Grand Consulting Services Pvt. Ltd., which appealed against an ex-parte assessment order passed by the Income Tax Officer (ITO) under sections 144 and 147 of the Income-tax Act, 1961. The initial appeal was dismissed due to improper verification of the appeal form. After re-filing within the granted liberty, the tribunal considered the merits of the case. The assessee argued that the ITO had sent notices to an outdated address, leading to non-service of notices, and contested an addition of Rs. 25,00,000 based on unrelated search operations. The tribunal decided to remand the case for a fresh assessment, emphasizing the principles of natural justice and fair play.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34600 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• 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: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEDREWUSTOPARAANDOFASSESSMENTORDERAND; FORREVENUEDOESNOTHAVEANYOBJECTIONIFTHECASEIS; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIMANISHDAFARIA
• Keywords: Principle of natural justice
• Section: 147; 144; 142(1)

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 DINESH MOHAN SINHA, JUDICIAL MEMBER ITA No.481/Ind/2024 Assessment Year:2012-13 Grand Consulting Services Pvt. Ltd. 403 C IVth Floor, Gravity Mall, 27 Mechanic Nagar, Scheme 54, Bhamori Indore बनाम/ Vs. ITO-2(1) Indore (Assessee/Appellant) (Revenue/Respondent) PAN: AADCG4729N Assessee by Shri Manish Dafaria, CA & AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 02.01.2025 Date of Pronouncement 27.01.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 11.10.2023 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 06.12.2017 passed by learned ITO-2(1), Indore [“AO”] u/s 144 r.w.s. 147 of Income-tax Act, 1961 [“the Act”] Grand Consulting Services Pvt. Ltd. ITA No. 481/Ind/2024 - AY 2012-13 Page 2 of 4 for Assessment-Year [“AY”] 2012-13, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). 2. Originally, the assessee filed ITA No. 514/Ind/2023 against impugned order without proper verification in Appeal Memo (Form No. 36). Therefore, the ITAT, Indore bench dismissed assessee’s appeal vide order dated 09.05.2024 as under: “4.2 Thus, it is clear that the Form number 36 has not been verified by the person who is prescribed as per section 140 r.w. Rule 47(1) and Rule 45(3) of the Income-tax Rules, 1962 and consequently the present appeal of the assessee is not valid appeal. Accordingly, the appeal of the assessee is dismissed in limine being not a valid appeal. The assessee is at liberty to file a fresh valid appeal within a period of 30 days from this order.” 3. Subsequently, the assessee has filed the present appeal registered as ITA No. 481/Ind/2024 on 03.06.2024 which is within 30 days from 09.05.2024 as per liberty granted by ITAT. Therefore, the present appeal before us is considered well within time and proceeded for hearing. 4. Ld. AR for assessee drew us to Para 4 and 5 of assessment-order and submitted that the AO has passed assessment-order ex-parte to assessee Grand Consulting Services Pvt. Ltd. ITA No. 481/Ind/2024 - AY 2012-13 Page 3 of 4 u/s 144 after observing that the notices u/s 142(1) sent by him were returned back. Ld. AR submitted that the AO sent notices to old address which was given by assessee at some point of time in past but thereafter the address of assessee has changed. Therefore, the notices sent by AO were not served upon assessee. Ld. AR next submitted that the AO has made an addition of Rs. 25,00,000/- in the hands of assessee based on search conducted in case of one Mr. Vipul Bhatt and his related entities. However, the assessee completely denies any allegation levelled by AO and wants to make an adequate representation before AO. Therefore, the present matter should be restored at the level of AO for adjudication afresh after hearing assessee. 5. Ld. DR for revenue does not have any objection if the case is remanded to AO but makes twin-requests, namely (i) the case should be remanded to Jurisdictional AO [“JAO”] and (ii) the assessee should be directed to represent his case before JAO without seeking unnecessary adjournments. 6. Considering above submissions and also having regard to the principle of natural justice and fair play, we deem it fit to remand this Grand Consulting Services Pvt. Ltd. ITA No. 481/Ind/2024 - AY 2012-13 Page 4 of 4 matter back to the file of JAO for a fresh adjudication, at the risk and responsibility of assessee. The JAO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to ensure participation in the hearings as may be fixed by JAO and do not seek unnecessary adjournments failing which the JAO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. 7. Resultantly, this appeal is allowed for statistical purpose. Order pronounced by putting on notice board as per Rule 34 of ITAT Rules, 1963 on 27/01/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 27/02/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order .Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "