Somnath Associates, Vadodara V. The Dy. Commissioner of Income Tax, Circle-1(2), Now Circle-1(1)(1), Vadodara

ITA 70/AHD/2023

AI Insights

The case involves Somnath Associates appealing against an order from the National Faceless Appeal Centre (NFAC), which upheld an addition made by the Assessing Officer (AO) under sections 143(3) and 145 of the Income Tax Act, 1961 for the Assessment Year 2015-16. The appellant argued that they did not receive proper notice of the hearing due to the use of non-operational email addresses, leading to an ex parte decision. The tribunal found merit in the appellant's argument, noting the absence of proper communication and the impact of the COVID-19 pandemic on the health of the appellant's Chartered Accountant, which contributed to the oversight.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124729 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 26-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 01-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER & Ms. MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ I. T. A. No . 70/Ahd/202 3 ( नधा रण वष / A ss es sment Year : 2015-16) So m n at h A s so ci at e s SF - 2 0 3 , G ol d Cr o f t , O p p . O n l y Pa r a th as , A b o v e I nd u s in d B a n k , J e ta lpu r R o a d, V ad od a r a - 3 9 0 00 7 बनाम/ Vs . De pu t y C om m i ss i on er o f I n c o m e T ax C ir c l e 1 ( 2 ) N o w C ir c le 1 ( 1 ) ( 1) , V a do da r a थायी लेखा सं./जीआइआर सं./P A N/ G I R N o . : A C E FS 4 6 0 4 C (अपीलाथ /Appellant) . . ( यथ / Respondent) अपीलाथ ओर से /Appellant by : Shri M. J. Shah with Shri Rushin Patel & Shri Jimi Patel, ARs यथ क ओर से/Respondent by : Ms. Saumya Pandey Jain, Sr. D.R. स ु नवाई क तार ख / D a t e o f H e a r i ng 27/07/2023 घोषणा क तार ख /D a t e o f P ro n o u nc e me n t 04/08/2023 O R D E R PER Ms. MADHUMITA ROY - JM: The instant appeal filed by the assessee is directed against the order dated 24.11.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi, arising out of the order dated 22.12.2017 passed by the DCIT, Circle- 1(2), Vadodara under section 143(3) r.w.s. 145 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2015-16. ITA No. 70/Ahd/2023 (Somnath Associates vs. DCIT) A.Y.– 2015-16 - 2 - 2. At the time of hearing of the instant appeal, the Ld. Counsel appearing for the assessee submitted that the order passed by the Ld. CIT(A) is practically an ex parte order. The notice issued on 14.11.2022 on the email id was non-operational and, therefore, the hearing of the matter fixed on 21.11.2022 remained unattended by the representative of the assessee. Hence, the order passed by the Ld. CIT(A) upholding the order of addition made by the Ld. AO. This fact of passing of orders came to the knowledge of the assessee only upon logging into the Income Tax Portal on 04.12.2022. In that view of the matter, the Ld. AR prayed for a further opportunity of hearing so as to enable him to represent the case of the appellant in its proper perspective. Such prayer made by the Ld. AR has not been controverted by the Ld. DR with all her fairness. 3. We have heard the rival contentions made by the respective parties and we have also perused the relevant materials available on record. We find that such inability of the appellant to represent the case before the Ld. CIT(A) has been duly explained by the appellant by filing a written submission, the relevant extract whereof is as follows: “1. The Chartered Accountant Mr. Sachin Mehta who was handling the matter before lower authorities was not keeping in good health and unfortunately, succumbed to the illness during the covid period and therefore, the matter remained unattended at the appellate stage before the Hon'ble CIT(A). 2. Primary Email id registered with the Income tax department is [e-mail] and secondary email id [e-mail] (Screenshot is attached) 3. No notice has been served on the above registered email ids for CIT(A). 4. The notice of hearing was sent on the following email ids which are not in o aerations and therefore no notice of hearing received on these email ids: (Screenshot attached) a. [e-mail] - This email id belongs to Dhaval Samalbechar - partner (recently he is residing in USA) who was handling day to day activities of the Somnath Associates. He was under impression that there is no pending matters left ITA No. 70/Ahd/2023 (Somnath Associates vs. DCIT) A.Y.– 2015-16 - 3 - in the Somnath Associates and therefore he was not looking into this email id. (This email id was mentioned in form 35 while filing Appeal) - (Mobile number: 9909016380 (mentioned in form 35) This number belongs to Dhaval Samalbechar. Not known to him regarding any notices issued by CIT(A) as he was in USA. b. [e-mail] - This email id is belongs to the one of the Partners of Somnath Associates, Mr. Ankur Patel. There is a dispute between Ankur Patel and other partners of the firm and he is not communicating with us. 5. The notice dt 14.11.22 was issued on the email non-operational email ids and hearing of the matter was fixed on 21.11.2022. 6. CIT(A) had passed the order upholding the addition made by the AO on 24.11.2022 7. We came to know regarding the same by login into the income tax portal only on 04.12.2022 and then filled an appeal before hon'ble ITAT. 8. In the above facts and circumstances, it is most humbly prayed that, the matter may kindly be set aside for fresh adjudication, in the interest of justice. ITA No. 70/Ahd/2023 (Somnath Associates vs. DCIT) A.Y.– 2015-16 - 4 - 4. As the explanation rendered by the appellant seems to be genuine, we find that a further opportunity to be given to the appellant to ventilate its grievance before the Ld. CIT(A) in order to prevent the miscarriage of justice. Thus, we dispose of this appeal by remitting the issue to the file of the Ld. CIT(A) to consider the same afresh and to give a reasoned order upon ITA No. 70/Ahd/2023 (Somnath Associates vs. DCIT) A.Y.– 2015-16 - 5 - considering the evidences adduced by the appellant or any other evidence which the appellant may choose to file at the time of appellate proceeding. Upon considering the entire aspect of the matter, the Ld. CIT(A) to dispose of the appeal in accordance with law. We also make it clear that in the event the appellant does not cooperate with the Ld. CIT(A), he will be at liberty to proceed with the matter and finalize the same strictly in accordance with law. 5. In the result, the appeal preferred by the assessee is allowed. This Order pronounced on 04/08/2023 Sd/- Sd/- (ANNAPURNA GUPTA) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 04/08/2023 True Copy S. K. SINHA आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं%धत आयकर आय ु 'त / Concerned CIT 4. आयकर आय ु 'त(अपील) / The CIT(A)- 5. *वभागीय -त-न%ध, आयकर अपील य अ%धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड3 फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील$य अ%धकरण, अहमदाबाद / ITAT, Ahmedabad