The Mahila Vikas Co Op Thrift and Credit Society Ltd, Surat V. Income Tax Officer NFAC , Delhi

ITA 171/SRT/2022

AI Insights

The case involves The Mahila Vikas Co-operative Thrift and Credit Society Ltd., the appellant, contesting an ex parte order from the Learned Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre. The appeal pertains to the Assessment Year 2018-19 and challenges an assessment order under sections 143(3), 143(3A), and 143(3B) of the Income Tax Act, 1961. The primary contention was the violation of the principles of natural justice, as the assessee claimed not to have received notices during the appellate proceedings, preventing them from attending the hearings. Both parties agreed that the matter should be remitted back to the CIT(A) for a fair hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301960 (ITAT-SURAT)
• Duration Of Justice: 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 30-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAPNESH SHETH
• 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 आयकरअपीलसं./ITA No.171/SRT/2022 (Ǔनधा[रणवष[ / Assessment Years: (2018-19) (Physical Court Hearing) The Mahila Vikas Co-operative Thrift and Credit Society Ltd., 101-102, 1 st floor Saurabh Complex Hans Soc. Baroda Prestage, Varachha Road, Surat, Gujarat – 395006. Vs. The ITO, NFAC, Delhi. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAAAT3370P (Assessee) (Respondent) Assessee by: Shri Sapnesh Sheth, CA Revenue by: Shri Vinod Kumar, Sr. DR स ु नवाईकȧतारȣख/ Date of Hearing : 01/03/2023 घोषणाकȧतारȣख/Date of Pronouncement : 03/03/2023 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: The captioned appeal filed by the assessee, pertaining to Assessment Year 2018-19, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short ‘ld. CIT(A)’], National Faceless Appeal Centre (in short ‘ NFAC’), in Appeal No. ITBA/NFAC/S/250/2022-23/1042629542(1), dated 07.04.2022, which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) r.w.s 143(3A) and 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) dated 18.02.2021. 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 notices were not served on the assessee during appellate proceedings, therefore, assessee could not attend proceedings before the Ld. CIT(A), therefore, an another Page | 2 ITA No.171/SRT/2022 Assessment Year. 2018-19 Mahila Vikas Co.op Thrift Credit Soc. Ltd. opportunity to contest the appeal before the First Appellate Authority 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 Ld. CIT(A). 4. We have heard both the parties. 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. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced on 03/03/2023 by placing result on notice board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat / Ǒदनांक/ Date: 03/03/2023 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