MEGHJIBHAI RANMALBHAI RATHOD,RAJKOT V. THE ITO, WARD 2(1)(3), RAJKOT., RAJKOT

ITA 395/RJT/2024

AI Insights

The case involves an appeal by Meghji Ranmalbhai Rathod against the order of the Income Tax Officer, Ward-2(1)(3), Rajkot, which added Rs. 44,62,970 to the appellant's income as unexplained money under section 69A of the Income-tax Act, 1961, during the demonetization period. The appellant's initial appeal to the CIT(A) was dismissed due to non-appearance and non-submission of any arguments or documents, as the notices were allegedly not served correctly. The ITAT found that the CIT(A) did not comply with the procedural requirements of section 250(6) of the Act, leading to the decision to remand the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472687 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 30-05-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: D.M. RINDANI
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(2); 250

Judgement Text

" आयकर अपील\tय अ धकरण,राजकोट \u0011यायपीठ, राजकोट। IN THE INCOMETAXAPPELLATE TRIBUNAL, RAJKOT BENCH: RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER And SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.395/RJT/2024 (\rनधा\u0011रण वष\u0011/Assessment Year: (2017-18) Meghji Ranmalbhai Rathod Payal Apartment, Kuvadva Road, Ranchodnagar Street No.9, Rajkot-360 003 Vs. Income Tax Officer, Ward-2(1)(3), Rajkot, New Aayakar Bhawan, Race Course, Ring Road, Rajkot-360 001 \u0015थायी लेखा सं./जीआइआरसं./PAN/GIR No.: ANKPR 4806 J (अपीलाथ\u001b/Appellant) (\u001c\u001dयथ\u001b/Respondent) \rनधा\u0011\u001eरती क ओर से/Appellant by : Shri D.M. Rindani, A.R. राज\u0015व क ओर से/Respondent by : Shri Abhimanyu Singh Yadav, Sr. D.R. सुनवाई क तार$ख/ Date of Hearing : 10/10/2024 घोषणा क तार$ख/Date of Pronouncement : 18/10/2024 आदेश / O R D E R PER SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER: This appeal filed by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) by the Learned Commissioner of Income Tax(Appeals) / National Faceless Appeal Centre, Delhi (in short “CIT(A)”, dated 24.04.2024 for assessment year 2017-18, which in turn arises out assessment order passed by the Assessing Officer u/s 144 of the Act on 15.12.2019. 2. The assessee has raised the following grounds of appeal:- “1. The learned Commissioner (Appeals), NFAC, Delhi erred I confirming action of ITO, Ward-2(1)(3), Rajkot in making addition of Rs.44,62,970/- by way of unexplained money u/s 69A of the Act, being cash deposited in bank account of appellant during demonetization period. 2. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime upto the hearing of this appeal.” Page | 2 ITA No. 395/RJT/2024 A Y: 2017-18 3. Facts in brief are that assessee filed his return of income n 31,03.29018 income of Rs.2,42,210/-. The case was selected for scrutiny after issuing notice u/s 143(2) on 09.08.2018. Thereafter five notices of hearing issued upon assessee, but no single reply has not uploaded in ITBA portal. The AO passed ex parte order on perusal of materials available on record by adding Rs.44,62,970/- to the income of assessee. Against the order of the assessment, the assessee feeling aggrieved filed an appeal in the office of ld. CIT(A) on April, 11th, 2024. The ld. CIT(A) has dismissed the appeal on 24.04.2024 with an observation that six notices have been issued but the appellant has not presented any argument or submission in support of its claim. 4. Feeling aggrieved by the order of this CIT(A) on 24.04.2024, the assessee filed an appeal before the ITAT, Rajkot. 5. The Ld.AR submitted on behalf of appellant that there was no serve of notices on the appellant and Ld. CIT(A) served the notices on the e- mail i.d but same was not served. He requested that one more opportunity may be given so that appellant would plead his case on merit. 6. 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 assessee, hence the ld. CIT(A) no alternative but to pass an ex-parte order on the materials available on record. 7. We have heard both the parties and perused the materials available on record. It is noted that during the appellate proceedings, the assessee did not submit details and documents before the Ld. CIT(A) because notice issued on e-mail i.d., through ITBA portal. No notice sent on e- Page | 3 ITA No. 395/RJT/2024 A Y: 2017-18 mail i.d. given in Form-35 i.e., on [e-mail], as no notices were served on the assessee therefore, the Ld. CIT(A) passed an ex parte order. We note that assessee could not plead his case successfully before the Ld. CIT(A) as notices for hearing were not served on the assessee. We 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 order on merit based on the material available on record. Hence, we are of the view that one more opportunity should be given to the assessee to plead his case before the Assessing Officer. 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. In the interest of justice, we 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, 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 Assessing Officer to adjudicate the de novo assessment afresh on merits. For statistical purposes, the appeal of the assessee is treated as allowed. 8. In the result, appeal of the assessee is allowed for statistical purposes Order is pronounced on 18/10/2024 in the Open Court. Sd/- Sd/- (DR. ARJUN LAL SAINI) (DINESH MOHAN SINHA) लेखा सद\u0007य/ Accountant Member \tयाियक सद\u0007य/ Judicial Member राजकोट /Rajkot )दनांक/ Date: 18/10/2024 DKP Outsourcing Sr.P.S Page | 4 ITA No. 395/RJT/2024 A Y: 2017-18 आदेश क\u000e \u000fितिलिप अ\u0013ेिषत/ Copy of the order forwarded to : • अपीलाथ\u0017/ The Appellant • \u000f\u0018यथ\u0017/ The Respondent • आयकर आयु\u001b/ CIT • आयकर आयु\u001b(अपील)/ The CIT(A) • िवभागीय \u000fितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT • गाड&फाईल/ Guard File By order/आदेश से, // True Copy // सहायक पंजीकार आयकर अपील$य अ+धकरण, राजकोट "