Aishwarya Africawala, Mumbai V. Income Tax Officer, Ward2(2)(1), Surat

ITA 338/SRT/2022

AI Insights

This case involves an appeal by Aishwarya Africawala against the order of the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals), which was passed ex parte. The primary contention was the lack of fair and reasonable opportunities of hearing provided to the assessee. The Assessing Officer had made additions totaling Rs. 20.65 lakhs under section 115BBE of the Income Tax Act, which the assessee contested. The Tribunal found that the lower authorities had not adequately considered the additional evidence provided by the assessee, which substantiated various bank deposits relevant to the additions made. Consequently, the Tribunal restored the matter to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301581 (ITAT-SURAT)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 20-11-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH (SMC), SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 338/Srt/2022 (Assessment Year: 2017-18) (Virtual hearing) Aishwarya Africawala, B-305, G N Tower, Near Reliance Degital, S.V. Road, Andheri (W), Mumbai- 400058 Ph. 9769127825 Email:[e-mail] PAN No. BOPQA 1425 J Vs. I.T.O.,Ward 2(2)1, Room No. 629, Aayakar Bhawan, Near Majura Gate, opposite New Civil Hospital Surat Appellant/ assessee Respondent/ revenue Appellant represented by Shri Suchek Anchalia, CA Respondent represented by Shri Vinod Kumar, Sr. DR Date of hearing 05/01/2023 Date of pronouncement 05/01/2023 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 National Faceless Appeal Centre, Delhi (in short, the NFAC)/learned Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A) dated 29/09/2022 for the Assessment years (AY) 2017-18. 2. At the outset of hearing, Ld. Authorized Representative (Ld.AR) for the assessee submits that Ld. CIT(A) passed the impugned ex parte order without giving fair and reasonable opportunities of hearing to the assessee. The Ld. CIT(A) in para-4 of impugned order has recorded that despite giving final opportunity no compliance was made on the part of assessee. The Ld. CIT(A) finally dismissed the appeal of assessee by Aishwarya Africawala AY -2017-18 ITA No. 338/Srt/2022 2 taking view that he do not see any reason to differ with the assessing officer. The ld AR for the assessee submits that no notice was served on the assessee through email provided in Form-35 (Appeal form before ld CIT-A). The Ld. AR for the assessee further submits that even the Assessing Officer made addition of Rs. 20.65 lakhs and brought the entire addition under the taxability of section 115BBE. The ld AR for the assessee submits that he has filed additional evidence to substantiate various bank deposits. Such evidences have direct bearing on the additions made by the assessing officer and same may be admitted. Both the lower authorities have not given fair and reasonable opportunities of hearing to the assessee. The Ld. AR for the assessee further submits that matter either may be adjudicate on the basis of evidences furnished by the assessee or in alternative may be restored back to the file of Ld. Assessing officer for adjudicating all the issue afresh in accordance with law. 3. On the other hand, the ld. Sr. DR for the revenue supported the order of ld. CIT(A) and would submits 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 absence of written submission of any evidence the Aishwarya Africawala AY -2017-18 ITA No. 338/Srt/2022 3 ld CIT(A) has no option except to decide the appeal on the basis of material available on record. 4. I have heard the submissions of learned Authorised Representative (ld. AR) of the assessee and the learned Senior Departmental Representative (ld. Sr. DR) for the revenue and have gone through the orders of lower authorities carefully. I find that the Assessing Officer while passing the assessment order under section 144 on 26.09.209 and made various addition of aggregating of Rs. 20.65 lakhs by taking view that the assessee filed to provide complete details. The ld CIT(A)/ NFAC dismissed the appeal of assessee by holding that the notice to the assessee was served on the assessee but no response was received. No satisfaction if such notice was served or the manner of service of such notice was recorded by ld CIT(A), The ld CIT(A) dismissed the appeal of the assessee without making any independent findings. I find that substantial right of the assessee is involved in the present appeal. Therefore, considering the facts of the present case and keeping in view the principal of natural justice that the assessee could not represent his case before lower authorities, the grounds of appeal raised by the assessee are restored back to the file of assessing officer to adjudicate all the issues afresh, after giving fair and reasonable opportunity of being heard. The assessee is also directed to file all the required documents as desired by the assessing officer. The assessee is also directed to not to take Aishwarya Africawala AY -2017-18 ITA No. 338/Srt/2022 4 adjournment without any valid reason. In the result, the grounds of appeal raised by assessee are allowed for statistical purpose. 5. In the result, the appeal of assessee is allowed for statistical purposes only. Order pronounced in the open court on 5 th January, 2023 at the time of hearing of appeal. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Surat, Dated: 05 /01/2023 Self Copy to: 1. Assessee 2. Revenue 3. CIT(A) 4. CIT 5. DR 6. Guard File By order // True Copy // Sr.Private Secretary, ITAT, Surat