Shri Parshottambhai Chaturbhai Patel (HUF), Anand V. The ITO, Ward-4, Anand

ITA 1868/AHD/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7602 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 31-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Keywords: Principle of natural justice; Set aside; Capital Gains
• Section: 143(3)

Judgement Text

, C IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SMT. MADHUMITA ROY, JUDICIAL MEMBER ./ I.T.A. NO. 1868/AHD/2018 ( ASSESSMENT YEAR : 2009-10) SHRI PARSHOTTAMBHAI CHATURBHAI PATEL (HUF) 107, SWAMINARAYAN SOCIETY, B/H. SARDAR GUNJ, ANAND - 388001 / VS. THE INCOME TAX OFFICER WARD - 4, ANAND ./ ./ PAN/GIR NO. : AAJHP1375C ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : SHRI L. P. JAIN, SR. D.R. DATE OF HEARING 28/01/2020 # / DATE OF PRONOUNCEMENT 29/01/2020 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-4, VADODARA (CIT(A) IN SHORT), DATED 29.01.2018 ARIS ING IN THE ASSESSMENT ORDER DATED 01.03.2016 PASSED BY THE ASSESSING OFFI CER (AO) UNDER S. 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961 (THE ACT) CONCERNING AY 2009-10. 2. THE ASSESSEE IN THE CAPTIONED APPEAL HAS RAIS ED SEVERAL GROUNDS ASSAILING THE ORDER OF THE CIT(A) FOR DISMISSAL OF THE APPEAL OF THE ITA NO. 1868/AHD/18 [SHRI PARSHOTTAMBHAI CHATURBHAI PATEL (HUF) VS. ITO] A.Y. 2009-10 - 2 - ASSESSEE. HOWEVER, IT IS NOTICED THAT ONE OF THE S UBSTANTIVE GROUNDS RAISED BY THE ASSESSEE WHEREBY THE ASSESSEE SEEKS T O IMPUGN THE ORDER OF THE CIT(A) TOWARDS ALLEGED VIOLATION OF PRINCIPLES OF NATURAL JUSTICE AND DISPOSAL OF FIRST APPELLATE ORDER EX PARTE . 3. WE HAVE PERUSED THE ORDERS OF THE AO & THE CIT(A ). WE NOTICE THAT THE APPELLATE ORDER PASSED BY THE CIT(A) IS AN EX PARTE ORDER WHEREBY THE CIT(A) HAS SUMMARILY DISMISSED THE APPE AL OF THE ASSESSEE IN LIMINE FOR WANT OF PROSECUTION. WE ALSO NOTICE THAT THE CIT(A) HAS NOT RENDERED ANY DECISION ON MERITS AS OBLIGATED UN DER S.250(6) OF THE ACT. SOME OPPORTUNITIES HAVE BEEN GIVEN TO THE ASS ESSEE BUT THE ASSESSEE APPEARS TO HAVE NOT ATTENDED BEFORE THE CI T(A). THE NEGLIGENCE OF THE ASSESSEE HAS PROPELLED THE CIT(A) TO HOLD TH AT THE ASSESSEE IS NOT INTERESTED IN PURSUING THE APPEAL. THE CIT(A) HAS THUS ENDORSED THE ACTION OF THE AO WHEREBY JANTRI VALUE OF THE PROPER TY SOLD WAS REPLACED AGAINST THE ACTUAL SALE CONSIDERATION FOR THE PURPO SES OF DETERMINATION OF CAPITAL GAINS. 4. IN THE CONTEXT, WE REFER TO SECTION 250(6) OF TH E ACT WHICH ENJOINS THAT THE CIT(A) SHALL STATE THE POINTS FOR DETERMIN ATION BEFORE IT AND THE DECISION SHALL BE RENDERED ON SUCH POINTS ALONGWITH REASONS FOR THE DECISION. IT WAS THUS INCUMBENT UPON THE CIT(A) TO DEAL WITH THE GROUNDS ON MERITS EVEN IN AN EX PARTE ORDER. A BARE GLANCE OF THE ORDER OF THE CIT(A) SHOWS THAT CIT(A) HAS NOT ADDRESSED I TSELF ON THE VARIOUS POINTS PLACED FOR ITS DETERMINATION AT ALL AND DISM ISSED THE APPEAL OF ASSESSEE FOR DEFAULT IN APPEARANCE. NEEDLESS TO SA Y, THE CIT(A) PLAYS ROLE OF BOTH ADJUDICATING AUTHORITY AS WELL AS APPE LLATE AUTHORITY. THUS, THE CIT(A) COULD NOT HAVE SHUNNED THE APPEAL FOR NO N-COMPLIANCE WITHOUT ADDRESSING THE ISSUE ON MERITS. 5. IN THE TOTALITY OF CIRCUMSTANCES, WE CONSIDER IT JUST AND EXPEDIENT TO RESTORE THE MATTER BACK TO THE CIT(A) IN THE LAR GER INTEREST OF JUSTICE WITH A VIEW TO ENABLE THE ASSESSEE TO AVAIL PROPER OPPORTUNITY FOR DISPOSAL OF APPEAL BY THE CIT(A) ON VARIOUS POINTS. NEEDLESS TO SAY, THE ITA NO. 1868/AHD/18 [SHRI PARSHOTTAMBHAI CHATURBHAI PATEL (HUF) VS. ITO] A.Y. 2009-10 - 3 - ASSESSEE SHALL EXTEND FULL CO-OPERATION TO THE CIT( A) WITHOUT ANY DEMUR, FAILING WHICH, THE CIT(A) SHALL AT LIBERTY TO CONCL UDE THE APPELLATE PROCEEDINGS IN ACCORDANCE WITH LAW. HENCE, THE ORD ER OF THE CIT(A) APPEALED AGAINST, IS SET ASIDE AND ALL THE ISSUES R AISED IN THE IMPUGNED APPEAL ARE RESTORED BACK TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPO RTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (MADHUMITA ROY) (PRADIP KUMAR K EDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD: DATED 29/01/2020 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ , / CONCERNED CIT 4. ,- / CIT (A) /. 012 33*+4 *+#4 56) / DR, ITAT, AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED IN OPEN COURT ON 29/01/202 0