Shri Sanjaybhai Nagjibhai Dabhi, Surat V. Income Tax Officer, Ward-2(3)(4), Surat

ITSSA 70/SRT/2022

AI Insights

The case involves Sanjaybhai Nagjibhai Dabhi, the assessee, appealing against an order from the Learned Commissioner of Income Tax (Appeals)-4, Surat, which was itself based on an assessment order passed by the Assessing Officer under sections 143(3) r.w.s. 153C of the Income Tax Act, 1961. The primary contention was that the assessee did not receive proper notice for the hearings, resulting in an ex parte order from the CIT(A). The assessee's counsel argued that the CIT(A) failed to consider the statement of facts and thus violated the provisions of section 250(6) of the Act. The Departmental Representative opposed granting another opportunity to the assessee. However, the Tribunal emphasized the importance of natural justice and fair play, leading to the decision to remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 301746 (ITAT-SURAT)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 27-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-12-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 11-08-2022
• 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); 153C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM & DR. A. L. SAINI, AM आयकर अपील सं./IT(SS)A No.70/SRT/2022 (Ǔनधा[रण वष[ / Assessment Year: (2009-10) (Virtual Court Hearing) Sanjaybhai Nagjibhai Dabhi, C-113, Pramukhchhaya Society Park, Puna Simada Road, Surat – 394211. Vs. The ITO, Ward-2(3)(4), Surat. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AMYPD2801Q (Assessee) (Respondent) Assessee by: Shri Nitin Gheewala, AR Revenue by: Ms Ashok B. Koli, CIT-DR स ु नवाई कȧ तारȣख/ Date of Hearing : 27/12/2022 घोषणा कȧ तारȣख/Date of Pronouncement : 28/12/2022 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: The captioned appeal filed by the assessee, pertaining to Assessment Year 2009-10, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals)-4, Surat [in short ‘ld. CIT(A)’], in Appeal No. CIT(A), Surat-4/10061/2017-18, dated 15.06.2022, which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) r.w.s. 153C of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), dated 29.12.2016. 2. At the outset itself, the ld. Counsel for the assessee begins by pointing out that during the appellate proceedings, notices for hearings were not received by the assessee, therefore ld. CIT(A) has passed ex parte order. The Ld. CIT(A) has not considered the statement of facts while adjudicating the assessee’s appeal, therefore ld. CIT(A) has erred in not passing the order on merit and therefore violated the provisions of section 250(6) of the Income Tax Act, 1961. Therefore, Ld. Counsel contended that an another opportunity to contest the appeal before the first appellate authority may be granted to the assessee. Page | 2 IT(SS)A No.70/SRT/2022 Assessment Year. 2008-09 Sanjaybhai Nagjibhai Dabhi 3. The Learned Departmental Representative (ld. DR) for the Revenue stated that further opportunity should not be given to the assessee and appeal should be dismissed at this stage. 4. We have heard both the parties. Considering the above facts, we note that assessee could not plead his case successfully before the ld. CIT(A). The Ld. CIT(A) did not pass the order on merit as per the mandate of the provisions of section 250(6) of the Act. Further, notices for hearing have not been served on the assessee, hence assessee could not plead his case before Ld. CIT(A) properly, therefore we are of the view that an another opportunity should be given to the assessee to plead his case before the Ld. CIT(A). 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 Ld. CIT(A) 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 ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced on 29/12/2022 by placing result on notice board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER lwjr /Surat / Ǒदनांक/ Date: 29/12/2022 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