Shri Mahadevbhai Madhavjibhai Gami, Morbi V. The ITO, Ward-3, Morbi, Morbi

ITA 133/RJT/2023

AI Insights

The case involves an appeal by Shri Mahadevbhai M. Gami against a penalty imposed by the Income Tax Officer, Ward-3, Morbi, under Section 271(1)(c) of the Income Tax Act, 1961, for the Assessment Year 2008-09. The penalty of Rs. 1,50,640 was imposed for furnishing inaccurate particulars of income and concealing income. The NFAC upheld the penalty, citing the appellant's lack of interest in prosecuting the appeal, as evidenced by the absence of any adjournment requests or submissions. However, the appellant contested this, stating that written submissions had been filed during a physical hearing. The Tribunal found that the NFAC had erred in not considering these submissions and remanded the case for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299803 (ITAT-RAJKOT)
• Duration Of Justice: 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-08-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 07-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR PANDEY
• Keywords: Opportunity of being heard; Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “RAJKOT” BENCH, RAJKOT [Conducted through E-Court at Ahmedabad] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ I. T. A. No. 133 /Rjt/202 3 ( नधा रण वष / A ss es sment Year : 2008-09) Sh r i M ah a d ev bh ai Ma dh av j i bh a i G a mi C / o. J a ye s h b h ai H ar ak hj ib h a i Sa ba p a ra , A ma r n at h Ap ar t me nt, B l oc k N o. 3 0 3 , A ma r n a t h So c ie t y, O p p. T a p o v an Sc hol , N e ar P r i ya B a ke r y, Mo r b i बनाम/ Vs . T h e I n co me T a x O f f ic er W ar d- 3, M or bi थायी लेखा सं./जीआइआर सं./P A N/ G I R N o . : A K WP G 0 6 7 7 P (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri Samir Bhuptani, A.R. यथ क ओर से / Respondent by : Shri Ashish Kumar Pandey, Sr.D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 22/08/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 29/08/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal at the instance of the assessee is directed against the order dated 10.03.2023 passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the penalty order dated 15.09.2016 passed by the ITO, ITA No. 133/Rjt/2023 (Shri Mahadevbhai M. Gami vs. ITO) A. Y. 2008-09 - 2- Ward-3, Morbi under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2008-09, whereby and whereunder the penalty imposed by the Ld. AO to the tune of Rs.1,50,640/- under Section 271(1)(c) of the Act on account of furnishing inaccurate particulars of income and concealing the income against the assessee has been upheld. 2. The Ld. CIT(A), NFAC uphold the penalty on the ground that in spite of several notices, the assessee did not furnish any petition neither sought for adjournment before him. The said order was passed not on merit but only on the count that the assessee is not interested in prosecuting the appeal. 3. At the time of hearing of the matter, Ld. Counsel appearing for the assessee drew our attention to various dates fixed for hearing of the appeal by the NFAC as tabulated in paragraph No.5.2 of the order impugned wherein further observation was made by the NFAC that no details were furnished by the appellant neither any adjournment petition was received. On the other hand, it is the categorical statement made by the Ld. AR that he duly filed written submissions in the form of paper book during physical hearing before the Jurisdictional CIT(A). Hence, the ex parte order, with the observation that the assessee was not interested in pursuing the appeal, is not correct and therefore, decision on that basis is liable to be quashed. Under these circumstances, the Ld. Counsel for the assessee prays for further opportunity of being heard to assessee to represent his case before the Ld. CIT(A). The prayer made by the Ld. AR has not been controverted by the Ld. DR with all his fairness. 4. Having heard the Ld. Counsel appearing for the parties and having regard to the facts and circumstances of the case and upon perusal of the relevant materials available before us, we do not find any reason to pass an ex parte order ITA No. 133/Rjt/2023 (Shri Mahadevbhai M. Gami vs. ITO) A. Y. 2008-09 - 3- by the Ld. CIT(A) in this manner particularly when the written notes of submission was duly filed by the assessee before the Jurisdictional CIT(A). The impugned order, thus, suffers from irregularities in not considering such written notes of submission filed by the assessee and to dispose of the appeal ex parte that too not on merit. We, therefore, in order to prevent miscarriage of justice, set aside the issue to the file of the Ld. CIT(A), NFAC, Delhi for re-consideration of the same taking into account the written notes of submission already filed by the appellant before the Jurisdictional CIT(A) or any other evidence which the appellant may choose to file during the appellate proceeding before the said Ld. CIT(A), NFAC, Delhi. We also make it clear that, in the event the appellant does not cooperate with the concerned CIT(A), the said authority would be at liberty to proceed with the matter and finalize the same strictly in accordance with the law. 5. In the result, assessee’s appeal is allowed for statistical purposes. This Order pronounced on 29/08/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 29/08/2023 S. K. SINHA True Copy आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A)- 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. By order/आदेश से, D e p u t y / A s s t t . R e g i s t r a r I T A T , R a j k o t