M/S. D G NAKRANI,BHAVNAGAR V. THE ACIT, CIRCLE-1, BHAVNAGAR

ITA 1860/AHD/2024

AI Insights

This case involves an appeal by M/s. D.G. Nakrani against an ex-parte appellate order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, related to the Assessment Year 2017-18. The appeal was necessitated due to the assessee's inability to respond to notices during the assessment proceedings, attributed to an outdated email ID of their former Chartered Accountant. The assessee sought to introduce additional evidences during the appellate proceedings, which were initially not considered by the lower authorities, leading to an ex-parte order. The Senior Departmental Representative did not object to the remand of the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712134 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND KUMBHARE
• Assessee Lawyers: HI RE N J. TR IV E DI
• Keywords: Set aside; Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE SMT.ANNAPURNA GUPTA,ACCOUNTANT MEMBER & SHRI T.R.SENTHIL KUMAR, JUDICIAL MEMBER ITA No.1860/Ahd/2024 (Assessment Year:2017-18) M/s. D.G. Nakrani M-101/D Akshar Deep Complex Shastri Nagar Near Jain Derasar Bhavnagar – 364 001 Vs. The Asst.CIT Circle-I Bhavnagar PAN No. : AAQFM 2630 J (Appellant) .. (Respondent) Assessee by : Shri Hiren J. Trivedi, AR Revenue by : Shri Arvind Kumbhare, Sr.DR Date of Hearing 16/07/2025 Date of Pronouncement 22/07/2025 आदेश / O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER: This appeal is filed by the assessee as against the ex-parte appellate order dated 04/09/2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] arising out of the assessment order passed under section143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) relating to the Assessment Year (AY) 2017-18. 2. Ld.Counsel appearing for the assessee filed application under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963 stating that during the assessment proceedings, the email-id which was Printed from counselvise.com ITA No.1860/Ahd/2024 M/s.D.G. Narkani vs. ACIT sst.Year - 2017-18 - 2 - registered with Income Tax Portal with that of the former Chartered Accountant email-id [e-mail]. Since the same was unnoticed, assessee could not reply to the notices which resulted in passing ex-parte order by the Ld.A.O. 3. During appellate proceedings, the case was fixed for hearing on five occasions from 20/01/2021 to 19/07/2024. More particularly, the case was fixed for hearing on 18/07/2024, assessee sought for 30 days adjournment. However, the hearing was re-fixed on 09/08/2024 and passed Ld.CIT(A) ex-parte appellate order. Thus, the assessee filed application under Rule 29 of ITAT Rules, seeking permission to file the following additional evidences, namely, financial statements for the AY 2017-18, copy of the ITR, copy of the six bank account statements, cash book & cash-flow details of cash withdrawal and month-wise cash expenditure and other details which is running to 564 pages. Since the assessment order also an ex-parte order, the assessee requested to set aside the matter back to the file of Jurisdictional Assessing Officer to verify the additional documents and pass order on merits. 4. Ld. Sr.DR appearing for the Revenue has no serious objection in setting aside the matter back to the file of JAO for verification of additional documents filed for the first time before this Tribunal. 5. Recording the statements of rival parties, the ex-parte orders passed by the lower authorities are hereby set aside with a direction to the assessee to file the additional documents, evidences before the JAO and explain its case. The Ld.JAO is directed to give reasonable Printed from counselvise.com ITA No.1860/Ahd/2024 M/s.D.G. Narkani vs. ACIT sst.Year - 2017-18 - 3 - opportunity of hearing to the assessee and then pass fresh assessment order in accordance with the provisions of law. 6. in the result, the appeal filed by the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 22/07/2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 22/07/2025 T.C. NAIR, Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The Concerned CIT 4. The CIT(A)-(NFAC) 5. The DR, ITAT, Ahmedabad 6. Guard file. BY ORDER, स\u0006ािपत ित //True Copy/ //True Copy// (Dy./Asstt.Registrar) ITAT, Ahmedabad 1. Date of dictation 16.7.25 (dictation-pad attached with the file) 2. Date on which the typed draft is placed before the Dictating Member 17.7.25 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S … 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S…….22.7.25 7. Date on which the file goes to the Bench Clerk………………… 22.7.25 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order…………… Printed from counselvise.com "