KIRTI SHANTILAL SOLANKI,UNA-DIST. GIR SOMNATH V. INCOME TAX OFFICER WARD-4, JND-VERAVAL

ITA 100/RJT/2025

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The case involves Kirti Shantilal Solanki, the proprietor of M/s Navinchanda & Co., who appealed against an ex-parte order passed by the Commissioner of Income-tax (Appeals) under section 250 of the Income Tax Act, 1961. The appeal was related to the assessment year 2017-18 and stemmed from an initial order under section 144 of the Act by the Assessing Officer. The primary contention was the violation of the principles of natural justice, as the assessee claimed that he did not receive adequate notice to represent his case during the appellate proceedings. The Tribunal found merit in the assessee's argument and decided to remand the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315758 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR GUPTA
• Assessee Lawyers: R.D. LALCHANDANI
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

"ITA NO. 100/Rjt/2025 A.Y 17-18 Kirti S Solanki Page | 1 आयकर अपीलीय अिधकरण, राजकोट Ɋायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.100/RJT/2025 Ǔनधा[रण वष[/Assessment Year : 2017-18 Kirti Shantilal Solanki Prop. of M/s Navinchanda & Co. Main Bazar, Library Chowk, Una Dist. Gir Somnath-362 560 बनाम/ Vs Income Tax Officer, Ward-4, JND, Veraval, Yogeshwar Bhavan, Opp. S.T. Bus Stand, Veraval-362 265 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: BSCPS 8298 F (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri R.D. Lalchandani, AR राजèव कȧ ओर से/Revenue by : Shri Dheeraj Kumar Gupta, Sr-DR सुनवाई कȧ तारȣख /Date of Hearing : 14/05/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 15/05/2025 आदेश/Order Per Dr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, pertaining to Assessment Year 2017-18, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 17.12.2024, which in turn arises out of an order passed by the Assessing Officer u/s 144 of the Act, on 19.12.2019. 2. At the outset itself, Shri R.D. Lalchandani, the ld. Counsel for the assessee assailed the impugned order by contending that the assessee could not represent his case before Ld. CIT(A) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. Shri R.D. ITA NO. 100/Rjt/2025 A.Y 17-18 Kirti S Solanki Page | 2 Lalchandani, submitted, on behalf of assessee that there was no service of notices on the appellant, during the appellate proceedings. The Ld. CIT(A) issued the notices on the e-mail- id of the tax consultant but same was remained unserved. During the appellate proceedings, the assessee had sought adjournment to file the details and documents before the ld. CIT(A). However, further notices issued by the ld. CIT(A) were not served on the assessee. Therefore, the assessee could not file the required documents and details before the ld. CIT (A). The assessing officer has framed the assessment order, u/s 144 of the Act, despite the fact that entire documents and details were submitted during the assessment proceedings, before the assessing officer, therefore, Ld. Counel requested the Bench that one more opportunity may be given to the assessee to plead his case before the ld CIT(A) to prove his claim. 3. The ld. DR of the Revenue has submitted that ld. CIT(A) has given ample opportunities to the assessee but there was no response by the appellant, hence the ld. CIT(A) had no alternative but to pass an ex-parte order, based on the materials available on record. However, the Ld.Sr-DR has not objected to the prayer of the appellant, if the matter is remitted back to the file of the ld. CIT(A), for fresh adjudication. 4. I have heard both the parties and perused the materials available on record. It is seen that during the appellate proceedings, the assessee sought adjournment till 01.01.2025, however, Ld.CIT(A) without giving further opportunity of being heard to the assessee, passed ex -parte order on 17.12.2024. I note that assessee could not plead his case successfully before the Ld. CIT(A), as the notices for hearing were not served on the appellant. I also note that 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 the order on merit ITA NO. 100/Rjt/2025 A.Y 17-18 Kirti S Solanki Page | 3 based on the material available on record. Hence, I am of the view that one more opportunity should be given to the assessee to plead his case before Ld.CIT(A). I 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, in the interest of justice, I restore the matter back to the file of Ld.CIT(A) to pass a fresh and speaking order after affording sufficient opportunity of being heard to the assessee. The assessee is also directed to contest his stand forthwith and file the required documents and details before the ld CIT(A), as and when call for. I deem it fit and proper to set aside the order of the Ld. CIT(A) and remit the matter back to the file of 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, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 15/05/2025. Sd/- (Dr. A.L. SAINI) लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot Ǒदनांक/ Date: 15/05/2025 DKP Outsourcing Sr.P.S आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File // True Copy // By order/आदेश से, सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट "