Shri Kailash Singh , Bhopal V. The DCIT/ACIT 1 (1), Bhopal

ITA 412/Ind/2022

AI Insights

Kailash Singh filed an appeal against the order of the Commissioner of Income-Tax (Appeals), which arose from an assessment order passed by the Deputy Commissioner of Income-Tax, Bhopal, for the Assessment Year 2015-16. The primary grievances included the violation of natural justice due to the absence of a hearing opportunity and erroneous additions made under sections 37(1) and 40(a)(ia) of the Income-tax Act, 1961. The Tribunal noted that the assessee did not receive the notices for the hearing as they were sent to an inactive email address, leading to an ex-parte order. Consequently, the Tribunal decided to remand the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130749 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-03-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 04-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 40(a)(ia); 37(1)

Judgement Text

Page 1 of 4 आयकर अपीलीय अिधकरण, इंदौर ायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER (Conducted through Virtual Court) ITA No.412/Ind/2022 Assessment Year: 2015-16 Kailash Singh F.No.513, Bhagwan Parisar, Hoshangabad Road, Misrod, Bhopal बनाम/ Vs. DCIT/ACIT 1(1) Bhopal (Appellant / Assessee) (Respondent / Revenue) PAN: AHIPS 0796 G Assessee by Shri Ashish Goyal, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 30.03.2023 Date of Pronouncement 18.04.2023 आदेश / O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by appeal-order dated 17.11.2022 passed by learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC) Delhi [“Ld. CIT(A)”], which in turn arises out of assessment-order dated 13.12.2017 passed by learned DCIT-1(1) Bhopal, [“Ld. AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2015-16, the assessee has filed this appeal on following grounds: “1. That on the facts and in the circumstances of the case and in law, the findings of learned Commissioner of Income Tax (A), NFAC, Delhi are bad and opposed to facts, equity and law and are, therefore, unsustainable in law. KailashSingh ITA No.412/Ind/2022 Assessment year 2015-16 Page 2 of 4 2. For that in the facts and circumstances of the case, the Commissioner of Income Tax (A), NFAC, Delhi erred in violating the principles of natural justice by not providing opportunity of hearing to the assessee, the action of the Commissioner of Income Tax (A), NFAC, Delhi was wholly unreasonable, uncalled for and bad in law. 3. That on the facts and in the circumstances of the case and in law, the learned A.O. as well as Commissioner of Income Tax (A), NFAC, Delhi erred in making addition of Rs. 21,261/- as per the provision of section 37(1) of the act, without appropriate reasons and justification, hence the same should be deleted. 4. That on the facts and in the circumstances of the case and in law, the learned A.O. as well as Commissioner of Income Tax (A), NFAC, Delhi erred in making addition of Rs. 1,39,717/- as per the provision of section 40(a)(ia) of the act, without appropriate reasons and justification, hence the same should be deleted. 5. Because the Commissioner of Income Tax (A), NFAC, Delhi has passed ex pate order without appropriate opportunity of hearing. 6. The appellant craves leave to add/alter any of the grounds of appeal before or at the time of hearing.” 2. Heard the learned Representatives of both sides at length and case- records perused. 3. Ld. AR carried us to Page No. 4 of the order of Ld. CIT(A) and submitted that all notices of hearing of first-appeal were issued to the mail [e-mail] of assessee. But those notices could not come to the knowledge of assessee since the assessee is not accessing the impugned mail id. Ld. AR carried us to Form No. 36 (Appeal Memo) to demonstrate that the assessee has given a different mail id even in the said Form No. 36 for the very same reason. Ld. AR submits that since the notices of hearing of first appeal were not received, the assessee could not attend the hearing, which has led to the passing of ex-parte order by Ld. CIT(A). Ld. AR prays that the matter may be remanded to the file of Ld. CIT(A) for a proper adjudication on merit after giving due opportunity of hearing to the assessee. Ld. DR does not have any objection but prays to direct the assessee to represent his case before Ld. CIT(A) and do not seek unnecessary adjournments. In view of such pleadings by parties and also KailashSingh ITA No.412/Ind/2022 Assessment year 2015-16 Page 3 of 4 having regard to the principle of natural justice and fair play, we deem it fit and appropriate to remand this matter back to the file of Ld. CIT(A) for a proper adjudication after giving opportunity of hearing to the assessee, uninfluenced by his earlier decision. We order accordingly. The assessee is also directed to ensure participation in the hearings fixed by Ld. CIT(A) and do not seek unnecessary adjournments. 4. Resultantly, this appeal of assessee is allowed for statistical purpose. Order pronounced as per Rule 34 of I.T.A.T. Rules, 1963 on ....../....../2023. Order pronounced in the open court on 18/04/2023. Sd/- Sd/- (SUCHITRA KAMBLE) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 18.04.2023 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore KailashSingh ITA No.412/Ind/2022 Assessment year 2015-16 Page 4 of 4 1. Date of taking dictation 2. Date of typing & draft order placed before the Dictating Member 3. Date on which the approved draft comes to the Sr. P.S./P.S. 4. Date on which the approved draft is placed before other Member 5. Date on which the fair order is placed before the Dictating Member for pronouncement 6. Date on which the file goes to the Bench Clerk 7. Date on which the file goes to the Head Clerk 8. Date on which the file goes to the Assistant Registrar for signature on the order 9. Date of dispatch of the Order