The Surat Colour Chemical Merchants Association, Surat V. Commissioner of Income Tax (Exemption), Ahmedabad

ITA 111/SRT/2023

AI Insights

The case involves the Surat Colour Chemical Merchants Association appealing against an ex parte order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad. The primary grievance was the lack of opportunity for the assessee to be heard, which was claimed to be a violation of the principles of natural justice. The Tribunal noted that the notices issued by the CIT(E) were not served on the assessee, which prevented them from contesting their case effectively. Consequently, the Tribunal decided to set aside the CIT(E)'s order and remit the matter back for fresh adjudication, emphasizing the need for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301768 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 30-07-2023
• Assessment Year: misc
• Appeal Filed On: 09-02-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM आयकर अपील सं./ITA No.111/SRT/2023 (Virtual Hearing) The Surat Colour Chemical Merchants Association, C/230, Udhana Udhyognagar Sangh, Commercial Complex, Central Road No.10, Udhana, Surat - 394210. Vs. The ITO, Ward-3(3)(3), Surat èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAATT8731F (Appellant) (Respondent) Appellant by None Respondent by Shri Ashok B. Koli. CIT (DR) Date of Hearing 31/07/2023 Date of Pronouncement 02/08/2023 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), [in short “the ld. CIT(E)”], Ahmedabad, dated 13.12.2022. 2. Notice of hearing of this appeal was sent to the assessee at the address given by the assessee in Form No.36. The said notice has not been returned unserved. Today when the case was called for hearing, none appeared on behalf of assessee, however we have received adjournment application. We note that ld CIT(E) has passed an ex parte order and solitary grievance of the assessee in the grounds of appeal raised before us that ld CIT(E ) has not given opportunity of hearing. This Tribunal has remitted similar cases to the file of the ld Page | 2 ITA No.111/SRT/2023 The Surat Colour Chemical Merchants Association CIT(E ), directing the ld CIT(E ) to provide sufficient opportunity to the assessee and pass order in accordance with law. In these circumstances, we have heard learned Departmental Representative (ld. DR) for the Revenue. The ld. DR for the Revenue pointed out that in the grounds of appeal raised by the assessee, it is stated that during the proceedings before the ld. CIT(E), the notices of hearing were not served on the assessee, therefore the ld. CIT(E) passed the ex parte order. The solitary grievance of the assessee in the grounds of appeal raised by him along with Form No.36 is that ld. CIT(E) has erred in not providing adequate opportunity of being heard and therefore overlooked the principle of natural justice. Therefore, ld DR stated that in these circumstances, the Tribunal cannot adjudicate the issue on merit, hence ld DR prays the Bench that matter may be remitted back to the file of ld CIT(E ) for fresh adjudication on merit. 3. We have gone through the order of ld. CIT(E) and noted that assessee did not appear before him, therefore the ld. CIT(E) has passed the ex parte order considering the material available on record. We note that Learned Departmental Representative (ld. DR) for the Revenue did not have any objection if the matter is remitted back to the file of the ld. CIT(E) for fresh adjudication. We note that notices issued by the ld. CIT(E) during the proceedings, have not been served on the assessee, therefore, we note that assessee could not plead his case successfully before the ld. CIT(E), hence we are of the view that one more opportunity should be given to the assessee to plead his case before the ld. CIT(E). 4. We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient Page | 3 ITA No.111/SRT/2023 The Surat Colour Chemical Merchants Association 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 ld. CIT(E) 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, we deem it fit and proper to set aside the order of the ld. CIT(E) and remit the matter back to the file of the ld. CIT(E) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 02/08/2023 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 02/08/2023 SAMANTA Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat