Shri Madhusudan Rayons Private Limited , Surat V. Dy. Commissioner of Income Tax, Surat

ITA 321/SRT/2023

AI Insights

The case involves Shri Madhusudan Rayons Pvt. Ltd, the appellant, contesting an ex parte order passed by the National Faceless Appeal Centre (NFAC), which arose from an assessment order by the National e-Assessment Centre under sections 143(3), 143(3A), and 143(3B) of the Income Tax Act, 1961. The appellant argued that they did not receive any notice of hearing during the appellate proceedings, leading to the impugned ex parte order. The respondent, Deputy Commissioner of Income Tax, opposed the remission, stating that the matter was adjudicated on merit based on available facts and the assessment order. The Tribunal, acknowledging the failure in the notice procedure, decided to set aside the NFAC's order and remand the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301846 (ITAT-SURAT)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-09-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 07-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RASESH SHAH
• 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 आयकर अपील सं./ITA No.321/SRT/2023 Assessment Year: (2018-19) (Physical Court Hearing) Shri Madhusudan Rayons Pvt. Ltd 283, Laxminarayan Industrial Estate, N.H. 08, Palsana, Surat- 394317 Vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Aayakar Bhavan, Majura Gate, Surat-395001 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AADCM 4738 M (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Appellant by Shri Rasesh Shah, CA िनधाŊįरती की ओर से /Respondent by Shri Vinod Kumar, Sr. DR सुनवाई की तारीख /Date of Hearing 21/09/2023 घोषणा की तारीख /Date of Pronouncement 27/09/2023 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order passed by the National Faceless Appeal Centre, Delhi [in short “NFAC/Ld. CIT(A)”] dated 23.03.2023, which in turn arises out of an assessment order passed by National e-Assessment Centre, Delhi u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 19.03.2021. 2. Learned Counsel for the assessee, at the outset, contended before the Bench that during the appellate proceedings assessee could not receive any notice of hearing therefore assessee could not appear before NFAC/Ld. CIT(A) and as a result, NFAC/Ld. CIT(A) has passed impugned ex parte order. The Ld. Counsel 2 ITA No.321/SRT/2023/AY.2018-19 Sh. Madhusudan Rayons Pvt.Ltd further contended that one more opportunity should be given to the assessee to plead its case before Assessing Officer therefore matter may be remitted back to the file of Assessing Officer for de novo assessment. 3. On the other hand, Learned Senior-DR for the Revenue submitted that assessee did not appear during appellate proceeding thereafter NFAC/Ld. CIT(A) adjudicated the issue on merit also based on the statement of facts and the facts narrated in the assessment order. Therefore matter should not be remitted back to the file of lower authorities and the appeal of assessee should be dismissed. 4. We have heard both the parties. Considering the above facts, we note that the assessee could not receive any notice of hearing as notice of hearing served on wrong e-mail i.d. therefore assessee could not plead its case before NFAC/Ld. CIT(A). We also note that NFAC/Ld. CIT(A) has not passed the order after considering the submission of assessee. Hence, we are of the view that one more opportunity should be given to the assessee to plead his 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 its case. Accordingly, we set aside the order of NFAC/Ld. CIT(A) and restore the issue back to the file of the Assessing Officer for de novo assessment afresh after providing due opportunity of hearing to the assessee in accordance with law. Needless to mention, that the assessee shall cooperate in the proceedings before the lower 3 ITA No.321/SRT/2023/AY.2018-19 Sh. Madhusudan Rayons Pvt.Ltd authorities for disposal of its case. For statistical purposes, the appeal of the assessee is treated as allowed. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 27/09/2023 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 27/09/2023 DKP Outsourcing Sr.P.S 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