MANSUKHBHAI KURJIBHAI TALPADA,MOVAIYA, RAJKOT V. ITO, WARD 2(1)(4), RAJKOT

ITA 1/RJT/2025

AI Insights

The case involves Mansukhbhai Kurjibhai Talpada, the appellant, contesting an ex-parte order from the Learned Commissioner of Income Tax (Appeals), which arose from an assessment order under section 144 of the Income Tax Act, 1961. The appellant argued that he was not given a fair opportunity to represent his case, as notices of hearing were not served, leading to a violation of the principles of natural justice. The respondent, Income Tax Officer, opposed the remittance back to the assessing officer, citing non-compliance by the assessee. The Tribunal, acknowledging the lack of a fair hearing, decided to remit the case back for a fresh assessment while imposing a cost on the assessee for non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126907 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: SUMIT SHINGALA; LD
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

"ITA NO. 01/RJT/2025 MANSUKHBHAI KURJIBHAI TALAPDA IN THE INCOMETAX APPELLATE TRIBUNAL, RAJKOTBENCH (SMC), RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकरअपीलसं./ITA No.01/RJT/2025 Assessment Year: (2017-18) (Hybrid Hearing) MansukhbhaiKurjibhaiTalpada, C/O. Kishan Polymers, At. Movaiya, Tal: Paddhari, Rajkot 360110( Gujarat ) Vs. Income Tax Officer, Ward 2(1)(4), Rajkot थायीलेखासं./जीआइआरसं./PAN/GIR No.: AGIPT5314Q (Appellant) (Respondent) Appellant by Shri Sumit Shingala, Ld. A.R. Respondent by Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing 10/03/2025 Date of Pronouncement 24/04/2025 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18,is directed against the order passed by the Learned Commissioner of Income Tax(Appeals), National Faceless Appeal Centre, Delhi [in short “the Ld. CIT(A)/NFAC”], dated 26/03/2024,which in turn arises out of an assessment order passed by Assessing Officer (in short ‘the AO”), u/s 144of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 27/06/2019. 2. When the matter was called for hearing, the learned Counsel for the assessee at the outset submitted that the appeal has been filed by the assessee belatedly. The learned Counsel adverted my attention to the affidavit filed in this regard ITA NO. 01/RJT/2025 MANSUKHBHAI KURJIBHAI TALAPDA citing reasons for condonation of delay and urged for a benign view and sought condonation of delay of 225 days in filing the appeal before the Tribunal. A perusal of the affidavit gives me an impression of existence of mitigating circumstances to enable me to exercise my discretion in favour of the assessee. Accordingly, the delay is condoned 3. At the outset itself, the ld. Counsel for the assesseeassailed 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. During the appellate proceedings, the noticesof hearing were not served on the assessee. The ld. Counsel for the assessee, therefore, contended that in the interest of justice, another opportunity to contest the appeal before the assessing officer may be granted to the assessee, as the assessee needs to file some fresh documents and evidences to prove his claim. 4. On the other hand, the learned DR for the revenue, argued that there is a non- compliance on the part of the assessee, before the assessing officer as well as before the ld. CIT(A), during the appellate proceedings, therefore, it is just wasting the time and resources of the lower authorities, if the matter is remitted back to the file of the lower authorities. Therefore, ld. DR contended that a cost of Rs.5000/- may be imposed on the assessee, and then this matter may be restored back to the file of the assessing officer, for fresh adjudication. 5. I have heard both the parties. I note that in the assessee’s case under consideration, the assessment was carried out u/s 144 of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking ITA NO. 01/RJT/2025 MANSUKHBHAI KURJIBHAI TALAPDA order, therefore, I do not wish to make any comments on the merits of the grounds raised by the assessee.However, on account of non-compliance attitude of the assessee, a cost of Rs.5000/- is imposed on the assessee, which is to be deposited in the prime minister relief fund. 6. Considering the above facts, I note that assessee has not given sufficient opportunity of being heard and could not plead his case successfully before the ld. CIT(A). I note that the ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. 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, without delving much deeper into the merits of the case, in the interest of justice, I restore the matter back to the file of assessing officer 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, 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 the assessing officer to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 24 / 04 /2025. Sd/- (Dr. A.L. SAINI) ACCOUNTANT MEMBER Rajkot \u0001दनांक/ Date: 24/04/2025 Copy of the Order forwarded to: ITA NO. 01/RJT/2025 MANSUKHBHAI KURJIBHAI TALAPDA 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/Counsel, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "