M/s M.D. Infra Developers, Surat V. The Income Tax Officer, Ward - 3(3)(3), Surat

ITA 114/SRT/2023

AI Insights

The case involves M/s. M. D. Infra Developers, who appealed against an ex parte order passed by the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The original assessment was made by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, for the Assessment Year 2016-17. The primary contention of the assessee was the violation of the principles of natural justice, as they were not allowed to represent their case adequately before the CIT(A). The Departmental Representative did not object to the matter being remitted back for fresh adjudication. Consequently, the Tribunal restored the matter to the CIT(A) for a new decision, ensuring the assessee is given a fair opportunity to be heard.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301770 (ITAT-SURAT)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-07-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 14-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AKSHAY M. MODI
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3)

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.114/SRT/2023 Assessment Year: (2016-17) (Physical Hearing) M/s. M. D. Infra Developers, Block No.128, Mamta Park Society, Near Shivani Show Room, Varachha Road, Kapodara, Surat – 39506. Vs. The ITO, Ward-3(3)(3), Surat èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AASFM7357A (Appellant) (Respondent) Appellant by Shri Akshay M. Modi, CA Respondent by Shri Vinod Kumar, Sr. DR Date of Hearing 12/07/2023 Date of Pronouncement 12/07/2023 आदेश / O R D E R PER DR. A. L. SAINI, AM: 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), [in short “the ld. CIT(A)”], National Faceless Appeal Centre (in short ‘the NFAC’), Delhi, dated 13.12.2022, which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 27.12.2018. 2. At the outset itself, Learned Counsel for the assessee assailed the impugned order by contending that assessee could not represent his case before Ld. CIT(A) and the order being an ex parte order, stood vitiated on account of violation of principle of natural justice. Page | 2 ITA.114/SRT/2023/AY.2016-17 M/s. M. D. Infra Developers Learned Counsel for the assessee submits that during the appellate proceedings, the assessee filed adjournment application before the Ld. CIT(A), however, Ld.CIT(A) ignored the same and passed an ex parte order. Therefore, ld. Counsel contended that another opportunity to plead his case before the ld. CIT(A), may be granted, to the assessee. 3. On the other hand, 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(A) for fresh adjudication. 4. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(A). We also note that Ld. CIT(A) has not passed the order as per the mandate of provisions of section 250(6) of the Act. That is, ld. CIT(A) did not consider assessee’s submission, which would be filed by assessee, provided the Ld. CIT(A) granted adjournment to the assessee. Hence, we are of the view that one more opportunity should be given to the assessee to plead his case before the ld. CIT(A). 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 Ld. CIT(A) 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(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. Page | 3 ITA.114/SRT/2023/AY.2016-17 M/s. M. D. Infra Developers 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 12/07/2023 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 12/07/2023 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