Mr. Arun Kumar, Mandi Gobindgarh V. ITO, W-1, Mandi Gobindgarh

ITA 851/CHANDI/2018

AI Insights

The case involves an appeal by Sh. Arun Kumar against the order of the CIT(A), Patiala, which upheld the validity of an assessment order framed under Section 143(3) of the Income Tax Act for the Assessment Year 2010-11. The appellant contested that the CIT(A) passed an ex-parte order before the scheduled date of hearing and upheld an addition of Rs. 8,545,322 without hearing the appellant's arguments, which was claimed to be against natural justice. The Tribunal found that the CIT(A) had indeed passed the order without a proper hearing and remanded the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128407 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-07-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 04-06-2018
• Other Referred Cases: S. Velu Palandar Vs. DCIT
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 851/CHD/2018 Ǔनधा[रण वष[ / Assessment Year : 2010-11 Sh. Arun Kumar, Arun Trading Co Partap Mill Road, Near Mata Rani Mandir Mata Rani Mhalli Mandi Gobindgarh Vs. बनाम The ITO, Ward 1, Mandi Gobindgarh èथायी लेखा सं./PAN No: ACIPK2408E अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : None राजèव कȧ ओर से/ Revenue by : Smt. Amanpreet Kaur, Sr.DR स ु नवाई कȧ तारȣख/Date of Hearing : 12.07.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 16. 08.2023 आदेश/Order Per A.D. Jain, Vice President: This is assessee’s appeal against the order of the ld. CIT(A), Patiala dated 19.03.2018, for the Assessment Year 2010-11 taking the following ground of appeal: l. That having regard to facts & circumstances of case, Ld. CIT(A) has erred in law upholding the validity of the impugned assessment order framed U/s 143(3). 851-Chd-2018 – Shri Arun Kumar, Mandi Gobindgarh 2 2. That having regard to facts & circumstances of case, Ld. CIT(A) has erred in law by passing cx- parte order before the date of hearing .Date of hearing was fixed for 26.04..2018 whereas order was passed on 19.03.2018 3. That the Ld. ClT(A) had uphold the addition of Rs.8545322.00 without hearing out arguments. This is bad in law and against the natural justice. 4. That order of CIT(A) be recalled and he be directed to listen to us before passing order 4. That the assessee craves its leave to add , alter or amend the grounds of appeal at any stage and all the grounds are without prejudice to each other. 2. From the records, it is noticed that the ex-parte Order dated 30.11.2018, passed by the Chandigarh Bench of the Tribunal in the Assessee’s case, was recalled by the Tribunal vide M.A. No.143/Chd/2019 and the appeal was fixed for hearing afresh. 3. None appeared on behalf of the Assessee. Finding that the matter can be proceeded with in the absence of the Assessee, we have heard the ld. DR and we are proceeding to pass the order. From the grounds of the appeal, it is observed that the main grievance of the Assessee is that the ld. CIT(A) has erred in law by holding the validity of the impugned assessment order framed u/s 143(3) and concluded the proceedings by passing an ex-parte order, even before the date of hearing. It has been submitted that the case was fixed for 26.4.2018 whereas, the order in this case was passed by the ld. CIT(A) on 19.3.2018, i.e., about more than one month in advance, by upholding 851-Chd-2018 – Shri Arun Kumar, Mandi Gobindgarh 3 the addition made by the AO, without hearing the arguments which is bad in law and against the natural justice. The Assessee has prayed that that order of the CIT(A) be recalled and the CIT(A) be directed to hear the arguments before passing any order (ground No.4). 4. The ld. DR, on the other hand, relied on the orders of the lower authorities but could not controvert the fact that the order was passed by the ld. CIT(A) even before the date of hearing and without hearing the arguments of the Assessee. 5. Heard. We have gone through the order of the ld. CIT (A) and find that the ld. CIT(A) in this case has dismissed the appeal of the Assessee ex-parte by merely upholding the order of the AO without considering the material available on record and also without going into the merits of the case besides passing the impugned order on 19.3.2018 whereas, as per Assessee, the date of hearing in this case was fixed on 26.4.2018 and, thus, no opportunity of hearing was provided to the Assessee. As such, an opportunity of hearing requires to be given to the Assessee to represent his case fully before the ld. CIT(A). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. The ld. D.R., though, has placed reliance on the orders of the authorities below, but has no objection if the matter is remanded to the AO for adjudication afresh. 851-Chd-2018 – Shri Arun Kumar, Mandi Gobindgarh 4 5. In view of the above, in the interest of justice, the matter is remitted to the file of the CIT(A), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, for statistical purposes, the appeal is treated as allowed. Order pronounced on 16.08.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 16.08.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar