MAHESH KUMAR NATVARBHAI PATEL, SURAT V. DCIT, SURAT

ITA 237/SRT/2022

AI Insights

The case involves an appeal by Mahesh Kumar Natvarbhai Patel against the order of the CIT(A)-4, Surat, which dismissed his appeal in an ex parte manner for the Assessment Year 2015-16. The primary contention was that the CIT(A) dismissed the appeal without considering the merits and without adjudicating on the various grounds of appeal as mandated by Section 250(6) of the Income Tax Act, 1961. The assessee argued that he had a strong case on merit which was likely to succeed if heard. The CIT(A) had previously dismissed the appeal citing non-attendance of the assessee at the hearing, despite multiple opportunities given. The Tribunal found that the CIT(A) had not properly considered the facts and grounds of appeal presented by the assessee, leading to the decision to set aside the CIT(A)'s order and remand the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302246 (ITAT-SURAT)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 10-08-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT, SMC BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 237/Srt/2022 (Assessment Year: 2015-16) (Physical Hearing) Mahesh Kumar Natvarbhai Patel, Chhapania Mohollo, Adajan Gam, Adajan, Surat. PAN No. ABEPP 8002 E Vs. D.C.I.T., Surat. Appellant/ assessee Respondent/ revenue Appellant represented by Ms. Chaitali Shah, CA Respondent represented by Shri Vinod Kumar, (Sr.DR) Date of hearing 22/03/2023 Date of pronouncement 22/03/2023 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of learned Commissioner of Income Tax (Appeals)-4, Surat (in short, the ld. CIT(A) dated 15/06/2022 for the Assessment year (AY) 2015-16. 2. At the outset of hearing, learned Authorized Representative (Ld.AR) for the assessee submits that Ld. CIT(A) dismissed the appeal of assessee in an ex parte order without considering the merit of the case. The Ld. CIT(A) dismissed the appeal of assessee without adjudicating the various grounds of appeal as per mandate of Section 250(6) of the Income Tax Act, 1961 (in short, the Act). The ld. AR of the assessee submits that the assessee has a good case on merit and likely to succeed if the assessee is to be heard and the ITA No. 237/Srt/2022 Mahesh Kr Natvarbhai Patel Vs DCIT 2 appeal is to be decided on merit. The ld AR for the assessee submits that in the statement of facts the assessee has explained all the facts, the ld CIT(A) just referred such facts available on record, without giving his finding on such facts. The ld AR for the assessee submits that assessing officer invoked the provision of Explanation 5A of section 271(1)(c), which is applicable to searched person. The ld AR for the assessee prayed that matter may be restored back to the file of Ld. CIT(A) for adjudicating the issue afresh in accordance with law and he undertakes on behalf of the assessee to be more vigilant in attending the hearing before ld CIT(A)/NFAC. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr DR) for the revenue supported the order of ld. CIT(A) and submitted that the Assessing Officer as well as ld CIT(A) granted sufficient opportunity to the assessee. The assessee failed to availed such opportunity and now taking plea that sufficient opportunity was not given to him. The assessee has no regards to the public authorities in attending the hearing before them and now claiming that no fair or reasonable opportunity was not given to the assessee. The assesse does not deserve any leniency, the ld CIT(A) passed the order after considering all the facts available before him. 4. I have heard the submissions of both the parties and have gone through the orders of lower authorities carefully. I find that the ITA No. 237/Srt/2022 Mahesh Kr Natvarbhai Patel Vs DCIT 3 Assessing Officer while passing the assessment order under section 143(3) r.w.s. 153C of the Act on 30/12/2017 in accepted the return income filed in response to notice under section 153C. The assessing officer levied penalty under section 271(1)(c) of Rs. 10,74,843/-. The assessing officer invoked Explanation 5A attached with section 271(1)(c). On further appeal before, ld the ld. CIT(A), the appeal of assessee was dismissed by holding that in spite of several opportunities, no one attended the hearing proceedings. I find that the ld CIT(A) has not given his finding on the basic facts available on record in the form of statement of facts file with Form -35. I further find that the ld. CIT(A) has not adjudicated the grounds of appeal raised by assessee as per mandate of Section 250(6) of the Act. Section 250(6) mandates that order of ld. CIT(A) must contain facts of the case, points of determination and decision thereon and reasons of such decision. The ld CIT(A) in a single sentence concluded his finding that the assessee is not interested in prosecuting the appeal. Considering the fact that ld. CIT(A) passed the ex parte order, therefore, the order of ld. CIT(A) is set aside and all the grounds of appeal raised by the assessee are restored back to the file of ld. CIT(A)/NFAC to decide all the grounds of appeal afresh and in accordance with law. Needless to direct that before passing the order, the ld. CIT(A) shall grant reasonable ITA No. 237/Srt/2022 Mahesh Kr Natvarbhai Patel Vs DCIT 4 opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to furnish all the details as soon as possible, if so desired without any further delay, before the ld. CIT(A). In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal of assessee is allowed for statistical purposes only. Order pronounced in the open court on 22 nd March, 2023. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Surat, Dated: 22/03/2023 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT(A) 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat