Late Rajkishorilal Chadha through Legal Heir Chayan Chadha, Pune V. The Deputy Commissioner of Income Tax, Circle-8, Pune

ITA 964/PUN/2023

AI Insights

The case involves an appeal by the legal heir of Late Raj Kishorilal Chadha against an ex-parte order passed by the National Faceless Appeal Centre (NFAC) for the assessment year 2015-16. The NFAC had passed the order due to non-compliance by the assessee with the hearing notices. The Tribunal noted that the rights and liabilities of both the Department and the assessee were not substantially determined as per facts and law, due to the ex-parte nature of the NFAC's decision. Emphasizing the principles of natural justice, the Tribunal decided to remand the case back to the NFAC for a fresh adjudication, providing the assessee a final opportunity to present his case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137968 (ITAT-PUNE)
• Duration Of Justice: 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 30-08-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE ‘A’ BENCHES :: PUNE BEFORE SHRI R.S. SYAL, HON. VICE-PRESIDENT & SHRI PARTHA SARATHI CHAUDHURY, HON. JUDICIAL MEMBER ITA No.964/PUN/2023 (A.Y. 2015-16) Late Raj Kishorilal Chadha through L/H Chayan Chadha, 206, Chadha Mansion, Mumbai Pune Road, Pimpri, Pune-411018. PAN: AAKPC 2528 F vs DCIT, Circle-8, Pune. Appellant Respondent Assessee by : None Revenue by : Shri Ramnath P. Murkunde, DR Date of hearing : 21/09/2023 Date of pronouncement : 22/09/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 27.06.2023 for A.Y.2015-16 as per the grounds of appeal on record. 2. At the outset, it is observed that NFAC had passed an ex-parte order and at para 4.1 of the NFAC’s order, it is evident that assessee has not complied with the hearing notices before the NFAC through his authorized representative. It is, but, natural that the NFAC while passing the ex-parte order has referred to the materials available on record i.e. the assessment order and Form 35 along with statements of facts and grounds of appeal. In this scenario, it can be rightly said ITA No. 964/PUN/2023 Late Rajkishorilal Chadha through LH Chayan Chadha 2 that the rights and liabilities of the Department as well as the assessee have not been determined substantially as per facts and law. It is correct that irrespective of opportunities being given to the assessee, there has not been any compliance before the NFAC, but in the realm of welfare legislation, wherein even the Income Tax Act, is also covered the principles of natural justice, would be served if the taxpayer/assessee is provided one final opportunity to represent his case before the NFAC. In view thereof, even without going into the merits of the case, we set aside the order of NFAC on the very issue of that it is an ex-parte order and remand the matter back to its file for denovo adjudication as per law complying with the principles of natural justice, and at the same time, the legal representative of the assessee is directed to represent the case on merits by complying with all the directions from the office of NFAC. This is the final opportunity in this case. The grounds of appeal stands allowed for statistical purposes. 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open Court on 22 nd September, 2023. Sd/- Sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE-PRESIDENT JUDICIAL MEMBER Dated : 22 nd September, 2023 vr/- ITA No. 964/PUN/2023 Late Rajkishorilal Chadha through LH Chayan Chadha 3 Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 4. The DR, ITAT, Pune ‘A’ Benches, Pune. 5. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.