Sai Devlopers, Surat V. Dy.CIT CENTRAL CERCLE-4, SURAT

ITA 122/SRT/2018

AI Insights

The case involves Sai Developers appealing against a penalty order under section 271AAB of the Income Tax Act, 1961, passed by the Assessing Officer and upheld by the CIT(A). The primary contention was the violation of the principles of natural justice, as the assessee was unable to represent his case before the CIT(A) due to legal disputes among the partners, resulting in an ex parte decision. The Tribunal, acknowledging the procedural oversight, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing, ensuring the assessee is given a fair opportunity to present his case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301958 (ITAT-SURAT)
• Duration Of Justice: 5 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 25-02-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; 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 आयकरअपीलसं./ITA No.122/SRT/2018 (Ǔनधा[रणवष[ / Assessment Years: (2014-15) (Virtual Court Hearing) Sai Developers, Plot No.96, R.S. No.163/2, Block No.214, T. P. Scheme, 37, Althan Road, Althan, Surat. Vs. The DCIT, Central Circle*-4, Surat. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: ABJFS4342M (Assessee) (Respondent) Assessee by: Shri Brijesh Ariwala, AR Revenue by: Shri Vinod Kumar, Sr. DR स ु नवाईकȧतारȣख/ Date of Hearing : 28/02/2023 घोषणाकȧतारȣख/Date of Pronouncement : 28/02/2023 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: The captioned appeal filed by the assessee, pertaining to Assessment Year 2014-15, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)-4, Surat [in short ‘ld. CIT(A)’], in Appeal No. CAS/4/156/2016-17, dated 22.12.2017, which in turn arises out of a penalty order passed by Assessing Officer u/s 271AAB of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) dated 29.09.2016. 2. At the outset itself, the ld. 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. The Ld. Counsel for the assessee submitted that because of legal dispute amongst the partners, the assessee could not appear before the Ld. CIT(A) and therefore, Ld. CIT(A) has passed an ex parte order without adjudicating the issue on merits. Therefore, Ld. Counsel contended that Page | 2 ITA No.122/SRT/2018 Assessment Year. 2014-15 Sai Developers an another opportunity to contest the appeal before the First Appellate Authority may be granted to the assessee. 3. Learned Departmental Representative (Ld. DR) for the Revenue did not have any objection if the matter is remitted back to the file of Ld. CIT(A). 4. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(A) and Ld. CIT(A) did not adjudicate the issue on merits. 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. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced on 28/02/2023 by placing result on notice board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat / Ǒदनांक/ Date: 28/02/2023 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 // Senior Private Secretary/Private Secretary ITAT, Surat