Lalitaben Rameshchandra Kamli, Daman V. Income Tax Officer, Daman Ward, Daman

ITA 208/SRT/2022

AI Insights

The case involves Lalitaben Rameshchandra Kamli, the appellant, contesting an ex parte order from the National Faceless Appeal Centre (NFAC), which arose from an assessment order by the Assessing Officer under section 143(3) of the Income Tax Act, 1961. The appellant argued that she was not given a proper opportunity to represent her case before the NFAC due to not receiving a notice of hearing, leading to a violation of the principles of natural justice. The Revenue contended that the appellant did not submit necessary details and documents in response to a notice under section 142(1) of the Act, which led to the non-examination of basic facts by the assessing officer. The Tribunal decided to remand the case back to the assessing officer for a fresh examination, ensuring that the appellant is given a fair opportunity to present her case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301811 (ITAT-SURAT)
• Duration Of Justice: 10 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-05-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 14-07-2022
• 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
• Section: 143(3); 142(1)

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.208/SRT/2022 (Ǔनधा[रणवष[ / Assessment Years: (2016-17) (Virtual Court Hearing) Lalitaben Rameshchandra Kamli Mukesh Bar & Restaurent, Patalia, Nani Daman, Daman- 396210 Vs. Income Tax Officer, Ward- Daman, Income Tax Office, Hotel Diwanji Building, Devkanand, Daman-396210 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AHUPK 1833 G (अपीलाथŎ /Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Assessee by : Shri Hardik V. Vora, Advocate राजˢ की ओर से/Revenue by : Shri Vinod Kumar, Sr- DR स ु नवाई कȧ तारȣख/ Date of Hearing : 15/05/2023 घोषणा कȧ तारȣख/Date of Pronouncement : 16/05/2023 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2016-17, is directed against the order passed by the National Faceless Appeal Centre, Delhi (in short, NFAC/Ld. CIT(A) dated 27.05.2022, which in turn arises out of an assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as the “Act”] dated 20.12.2018. 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 NFAC/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 before NFAC/Ld. CIT(A) assessee could not appear as she did not receive notice of hearing, and as a result the assessee could not Page | 2 ITA No.208/SRT/2022 A. Y. 2016-17 Lalitaben R Kamli plead her case before NFAC/Ld. CIT(A). Therefore, Ld. Counsel prays the Bench that an another opportunity to represent the case either before first appellate authority or before assessing officer may be granted to the assessee. 3. On the other hand, Learned Senior-Departmental Representative for the Revenue argued that assessing officer did not submit the details and documents before the assessing officer, in response to notice issued by assessing officer under section 142(1) of the Act, therefore, even basic facts have not been examined by the assessing officer. Hence matter may be remitted back to the file of the assessing officer for fresh adjudication. 4. We have heard both the parties and perused the materials available on record. Considering the above facts, we note that assessee could not plead her case successfully before the NFAC/ld. CIT(A). We also note that NFAC/Ld. CIT(A) has not passed the order as per the mandate of provisions of section 250(6) of the Act. That is, NFAC/ld. CIT(A) did not pass order on merit based on the material available on record. We note that before assessing officer, the assessee has not submitted entire details and documents therefore assessing officer could not get opportunity to verify the basic details and documents, hence we are of the view that one more opportunity should be given to the assessee to plead her case before the assessing officer. 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 assessing officer 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 her stand forthwith. Therefore, we deem it fit and proper to set aside the order of the NFAC/ld. CIT(A) and remit the matter back to the file of the assessing officer to adjudicate the issue afresh on merits in accordance with law. For statistical purposes, the appeal of the assessee is treated as allowed. Page | 3 ITA No.208/SRT/2022 A. Y. 2016-17 Lalitaben R Kamli 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 16/05/2023 by placing result on notice board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat / Ǒदनांक/ Date: 16/05/2023 Dkp Outsourcing Sr.P.S. Copy of the Order forwarded to: 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr.CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // True Copy // Sr. Private Secretary/Private Secretary/ Assistant Registrar, ITAT, Surat