M/S GRYFFIN ADVISORY SERVICES PVT LTD,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2, THANE

ITA 5533/MUM/2024

AI Insights

The case involves M/s. Gryffin Advisory Services Pvt. Ltd., the appellant, contesting an order from the CIT(A) which had dismissed their appeal ex parte for non-appearance. The appellant argued that they had not received any notice from the CIT(A), which led to their inability to present their case. The Departmental Representative supported the CIT(A)'s decision, asserting that the appeal lacked merit. The Tribunal, after reviewing the circumstances and the provisions of Section 250(2)(a) of the Income Tax Act, 1961, concluded that the appellant was not given an effective hearing and thus set aside the CIT(A)'s order, remanding the case for a proper hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470241 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice
• Section: 250; 2(A)

Judgement Text

"Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA NO. 5533/MUM/2024 (A.Y: 2016-17) M/s. Gryffin Advisory Services Pvt. Ltd. E-805, Sonam Srivilas, Phase XV, New Golden Nest, Bhayander (E), Thane – 401105 PAN: AAFCM9591G Vs. DCIT Circle-2, R. No. 27, B-Wing, Ashar IT Park, 6th floor, Road No. 16Z, Wagle Industrial Estate, Thane (West) – 400 604 (Appellant) (Respondent) Assessee Represented by : Ms. Varsha Bansal, Ld. AR Department Represented by : Dr. Kishor Dhule, Ld. DR Date of conclusion of Hearing : 17.12.2024 Date of Pronouncement : 01.01.2025 O R D E R PER RAJ KUMAR CHAUHAN (J.M.): 1. This appeal is filed by the appellant/assessee against the order of Learned Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre, Delhi [hereinafter referred to as the “CIT(A)”], passed under section 250 of the Income Tax Act, 1961 [hereinafter referred to as ITA No. 5533/Mum/2024 M/s. Gryffin Advisory Services Pvt. Ltd. Page | 2 “the Act”] dated 02.09.2024 for the A.Y. 2016-17, wherein the Ld. CIT(A) has dismissed the appeal ex parte as despite services of notice, the assessee failed to present its case before the Ld. CIT(A). 2. It was argued on behalf of the appellant/assessee that the notice issued by the Ld. CIT(A) were never received or served upon the assessee and as such they could not present its case before the Ld. CIT(A) who proceeded ex parte and decided the appeal on merit without giving effective opportunity of hearing to the assessee and as such the assessee was prevented from present its case before the Ld. CIT(A). Therefore, the impugned order suffers from illegality and liable to be set aside. The Ld. DR on the other hand supporting the judgment of the Ld. CIT(A) stating that there is no merit in the appeal and same is liable to be dismissed. 3. We have considered the rival submissions. Section 250 sub section 2(a) of \"the Act\" provides as under: “Section 250 (2) The following shall have the right to be heard at the hearing of the appeal: - a. The appellant, either in person or by an authorised representative;” ITA No. 5533/Mum/2024 M/s. Gryffin Advisory Services Pvt. Ltd. Page | 3 4. It is evident from the provision that the hearing to be given is not a formality but an effective hearing is sine qua non for the purpose of upholding the principal of natural justice. We have examined the impugned order of the Ld. CIT(A) observed as under: - “The details of opportunities of being heard provided to the assessee are tabulated below for ready reference: Date of Notice Compliance Date Remarks 26th Feb 2020 12th March 2020 No details furnished nor any petition for adjournment was received. 14th Jan, 2021 22th Jan 2021 No details furnished nor any petition for adjournment was received. 5th May 2022 17th May 2022 No details furnished nor any petition for adjournment was received. 6th October 2023 23rd October 2023 No details furnished nor any petition for adjournment was received. 18th October 2023 25th October 2023 Appellant filed only adjournment letter 8th Nov 2023 15th Nov 2023 No details furnished nor any petition for adjournment was received. 6th Dec 2023 13th Dec 2023 No details furnished nor any petition for adjournment was received. ITA No. 5533/Mum/2024 M/s. Gryffin Advisory Services Pvt. Ltd. Page | 4 5. It is thus evident from the contents of the impugned order extracted above that no effective opportunity of hearing has been given and there is no proof that the notice sent on various dates were duly served or brought to the notice of the appellant/assessee. 6. For these reasons, we are of the considered opinion that matter needs to be restored to the file of the Ld. CIT (A) for giving effective hearing to the assessee who shall present its case before the Ld. CIT(A) within 60 days. The impugned order is accordingly set aside and appeal filed by the assessee is allowed in above terms. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 01.01.2025. Sd/- Sd/- (AMARJIT SINGH) (RAJ KUMAR CHAUHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Mumbai / Dated 01.01.2025 Dhananjay, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT ITA No. 5533/Mum/2024 M/s. Gryffin Advisory Services Pvt. Ltd. Page | 5 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// BY ORDER (Asstt. Registrar) ITAT, Mumbai "