SWETA SAMIR SHAH, MUMBAI V. INCOME TAX OFFICER-19(3)(4), MUMBAI

ITA 2944/MUM/2022

AI Insights

The case involves appeals by Sweta Samir Shah against the orders of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, for the assessment years 2015-16 and 2016-17. The appeals were initially dismissed by the CIT(A) without providing any reasons, merely upholding the findings of the Assessing Officer. The Tribunal highlighted the importance of reasoned decisions in quasi-judicial matters, citing precedents that emphasize the necessity of providing reasons to ensure justice and uphold the principles of natural justice. The Tribunal found the CIT(A)'s orders lacking in this fundamental requirement and thus set aside the orders, remanding the matter back to the CIT(A) for a reasoned decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299331 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 15-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 17-11-2022
• Other Referred Cases: Mangalore Ganesh Beedi Works vs. CIT, Siemens Engineering Vs. UOI
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI OM PRAKASH KANT, AM आयकर अपील सं/ I.T.A. No. 2944/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2015-16) & आयकर अपील सं/ I.T.A. No. 2943/Mum/2022 (निर्धारण वर्ा / Assessment Year: 2016-17) Sweta Samir Shah 94, Om Dariya Mahal, 80, Nepean Sea Road, Mumbai- 400006. बिधम/ Vs. ITO-19(3)(4) Matru Mandir 1 st & 2 Floor, Tardeo, Nana Chowk, Grant Road, Mumbai-400007. स्थधयी लेखध सं./जीआइआर सं./PAN/GIR No. : AGVPS5843C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) सुनवाई की तारीख / Date of Hearing: 16/01/2023 घोषणा की तारीख /Date of Pronouncement: 31/01/2023 आदेश / O R D E R PER ABY T. VARKEY, JM: These are appeal emanating from the order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 22.09.2022 for AY. 2015-16 (ITA. No. 2944/Mum/2022) and for AY. 2016-17 (ITA. No.2943/Mum/2022). 2. At the outset, the Ld. AR brought to our noticed that the Ld. CIT(A) has passed an ex-parte order qua assessee for the aforesaid appeals in two (2) assessment years without assigning any reasons by simply observing “Nothing has been brought on records by the assessee, which will allow me to defer with the findings by the AO. Therefore, I do not find any reason to interfere with the order passed by the assessing officer. In sum, appeal is dismissed.” Assessee by: Shri Ishwer Prakash Rathi Revenue by: Shri Aditya M. Rai (Sr. AR) ITA No.2943 to 2944/Mum/2022 A.Y. 2015-16 & 2016-17 Sweta Samir Shah 2 3. It has to be borne in mind that “Reasons substitute subjectivity with objectivity. Failure to give reasons amount to denial of justice’ as held by the Hon’ble Supreme Court in Mangalore Ganesh Beedi Works vs. CIT AIR 2005 SC 1308. Every quasi judicial order must be supported by reasons. This is basic principle of natural justice and must be observed in proper spirit. Mere pretence of compliance with it would not satisfy the requirement of law[ refer Siemens Engineering Vs. UOI AIR 1976 SC 1785]. Since the Ld. CIT(A) has not given any reasons for sustaining the additions made by the AO even though the assessee has filed the grounds as well as evidence to substantiate its claim before him, cannot be countenanced. It should be kept in mind that reasons are the soul of the order. Therefore, we set aside the impugned orders of the Ld. CIT(A) and direct him to decide as per sub-section (6) of Section 250 of the Income Tax Act, 1961 (hereinafter “the Act”) which reads as under: - “The order of the Commissioner (appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision”. 4. Therefore, we direct that the Ld. CIT(A) to spell out the points for determination and give the reasons for his decision as per Section 250(6) of the Act, and in accordance to law. ITA No.2943 to 2944/Mum/2022 A.Y. 2015-16 & 2016-17 Sweta Samir Shah 3 5. In the result, the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open court on this 31/01/2023. Sd/- Sd/- (OM PRAKASH KANT) (ABY T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER मुंबई Mumbai; दिनांक Dated : 31/01/2023. Vijay Pal Singh, (Sr. PS) आदेश की प्रनिनलनि अग्रेनर्ि/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, मुंबई / DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. आदेशधिुसधर/ BY ORDER, सत्यादपत प्रदत //True Copy// उि/सहधयक िंजीकधर /(Dy./Asstt. Registrar) आयकर अिीलीय अनर्करण, मुंबई / ITAT, Mumbai