Surat Glass India Limited, Surat V. The Deputy Commissioner of Income Tax, Circle-2(1)(2), Surat

ITA 483/SRT/2023

AI Insights

The case involves Surat Glass India Limited, which appealed against an ex parte order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal pertained to the Assessment Year 2016-17 and was directed against an assessment order under section 143(3) of the Income Tax Act, 1961. The primary issue arose because the assessee company had ceased operations, leading to unattended notices and an ex parte decision by the CIT(A). The Tribunal considered the circumstances and the principles of natural justice, deciding to remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301876 (ITAT-SURAT)
• Duration Of Justice: 2 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-09-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 13-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• 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.483/SRT/2023 Assessment Year: (2016-17) (Physical Hearing) Surat Glass India Limited, 215 Sahyog Chambers, Opp. Kohinoor Society Varachha Road, Surat - 395006 Vs. The DCIT, Circle -2(1)(2), Surat èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AALCS9419F (Appellant) (Respondent) Appellant by Shri Preetesh Shah, CA Respondent by Shri Vinod Kumar, Sr. DR Date of Hearing 13/09/2023 Date of Pronouncement 14/09/2023 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2016-17, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short “the ld. CIT(A)”], National Faceless Appeal Centre (in short ‘the NFAC’), Delhi, dated 15.05.2023, which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 13.12.2018. 2. At the outset itself, Learned Counsel for the assessee submitted that assessee company has closed its operation, therefore notices sent by the ld. CIT(A) on the address of the company remain unattended. Therefore the ld. CIT(A) has passed the ex parte order. The ld. counsel for the assessee submitted that one more opportunity should Page | 2 ITA.483/SRT/2023/AY.2016-17 Surat Glass India Ltd. be given to the assessee company to plead his case either before the ld. CIT(A) or before the Assessing Officer. 3. On the other hand, Learned Departmental Representative (Ld. DR) for the Revenue for the Revenue submitted that assessee company did not appear during the appellate proceeding, hence assessee is gross negligent, therefore appeal of the assessee may be dismissed. 4. Without prejudice to the above, ld. DR for the Revenue also submitted that the matter may be remitted back to the file of the Assessing Officer for de novo adjudication. 5. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that assessment order is framed under section 143(3) of the Act and during the assessment proceedings, the assessee company appeared before the Assessing Officer and submitted the details. However, before the ld. CIT(A) during the appellate proceedings, the assessee could not appear as the assessee company has closed its business activities, therefore the notices sent by the ld. CIT(A), on the company’s address remains unattended and consequently the ld. CIT(A) has passed an ex parte order. Therefore in this circumstances, we are of the view that one more opportunity should be given to the assessee to plead his case before the Assessing Officer. 6. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(A). We also note that Page | 3 ITA.483/SRT/2023/AY.2016-17 Surat Glass India Ltd. Ld. CIT(A) has not passed the order as per the mandate of provisions of section 250(6) of the Act. That is, ld. CIT(A) did not pass order on merit based on the material available on record. 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 his case. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Assessing Officer for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 14/09/2023 in the open court. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat Ǒदनांक/ Date: 14/09/2023 SAMANTA 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