NIRAV MAHENDRABHAI MASHARU,RAJKOT V. INCOMETAX WARD,1 , JUNAGADH

ITA 379/RJT/2024

AI Insights

The case involves Nirav Mahendrabhai Masharu, the appellant, who contested the orders of the Income Tax Officer and the Commissioner of Income Tax (Appeals) regarding the assessment year 2021-22. The primary contention was the dismissal of his appeal by the CIT(A) on grounds of non-prosecution and the confirmation of disallowance of purchases amounting to Rs. 2,78,35,250, which were deemed bogus. The Tribunal found that the assessee was not adequately notified or given a reasonable opportunity to contest the assessments and appeals, leading to the decision to remand the case for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26405 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV; LD.
• Assessee Lawyers: CHETAN AGARWAL; LD
• Keywords: Opportunity of being heard; Bogus
• Section: 144; 143(3); 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, AM. & DIESH MOHAN SINHA, JM आयकर अपील सं./ITA No. 379/RJT/2024 (Ǔनधा[रण वष[ / Assessment Year: (2021-22) (Hybrid Hearing) Nirav Mahendrabhai Masharu D – 101, Golden Portiko Apartment, Near, Madhapra Circlerajk Road S.O. OT, Rajkot - 360007 Vs. Income Tax Office, Ward – 1, Junagadh – 362001 Gujarat èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AIAPM5159J (Appellant) (Respondent) Appellant by : Shri Chetan Agarwal, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR सुनवाई कȧ तारȣख/ Date of Hearing : 31/12/2024 घोषणा कȧ तारȣख/Date of Pronouncement :31/12 /2024 आदेश / O R D E R PER DINESH MOHAN SINHA, JM: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2021-22, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short “the ld. CIT(A)”], National Faceless Appeal Centre (in short ‘the NFAC’), Delhi, dated 22.05.2024, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144 dated 16.12.2022 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Page | 2 ITA No.379/RJT/2024 Assessment Year.2021-22 Nirav Mahendrabhai Masharu v. ITO 2. grounds of appeal raised by the assessee as follows: 1) Ld. CIT(A) erred in law as well as on fact in dismissing appeal ex-party. 2) Ld. CIT(A) erred in law as well as on fact in confirming disallowance of entire purchases made from Vijaysinh Nathubha Dabhi amounting to Rs. 2,78,35,250/- as bogus ignoring evidences submitted in course of hearing. 3) Ld. CIT(A) erred in law as well as on fact by confirming order passed by AO without issuing final show cause notice before disallowing entire purchases made from Mr. Vijaysinh Natubha Dabhi. 4) Ld. CIT(A) erred in law as well as on fact in confirming order u/s. 143(3) r.w.s. 144B of the Act. 3. Brief facts of the case: 1) The assessee is a resident individual and has filed return of income on 14.03.2022 at a total income of Rs. 4,09,670/-. The return was processed on 25.03.2022 computing the income u/s. 143(1) of the Income tax Act, 1961. The return of income has been selected for scrutiny assessment in accordance with the provisions of the income tax Act, 1961 for seeking clarification on certain issues. Income assessed at Rs. 2,82,44,970/- with an addition of Rs. 2,78,35,250/- in the returned Income of Rs. 4,05,670/- 2) that the assessee filed an appeal against the order of the AO on dated 15.12.20220 before the CIT(A), the CIT(A) dismissed the appeal on non- prosecution of the assessee and on the basis of record. 4. The assessee is in appeal before us against the order dated 22.05.2024. Page | 3 ITA No.379/RJT/2024 Assessment Year.2021-22 Nirav Mahendrabhai Masharu v. ITO 5. The Ld. CIT(A) has dismissed the appeal on 22.05.2024 with undermentioned revenue. “ Keeping in view the above facts of appellant’s non-prosecution of this pending appeal and also placing reliance on above citations, appellant’s appeal is to be treated as not maintainable. The assessee appellant failed to discharge his onus during the appellate proceedings. The approach of the assessee amply shows that the is not interested in prosecuting the appeal. Therefore, having considered the entire facts of the case and evidence available on record, the appeal so filed is dismissed. ” 6. During the course of hearing, Ld. AR. submitted that no proper and reasonable opportunity was given to assessee for hearing by ld. CIT(A). The Ld. CIT(A) did not pass order on merits. The order of the ld. CIT(A) is talked about that notice issued and do not talk about due service of notice upon the assessee. The Ld. AR. further submitted that it was unfortunate that the order of assessment was also passed by ex-parte and the assessee, due to this reason the assessee could not appear before the authority and it was further requested for an opportunity may kindly be provided to comply with the requirement. 7. On the other hand, ld. DR has submitted that a number of notices were issued and due opportunity was provided to the assessee but the assessee did not comply with the notices. However, the ld. DR. has not objected, if the matter is remanded back to the ld. AO for fresh adjudication. 8. We have heard both the parties and perused the documents available on record. It is noted that the notices issued by the ld. CIT(A) for hearing of the Page | 4 ITA No.379/RJT/2024 Assessment Year.2021-22 Nirav Mahendrabhai Masharu v. ITO case but the order is silent on service of notice upon the assessee. We further note that the Ld. AO has not given due to an opportunity to the assessee. Therefore, we are of the view that one more opportunity should be given to the assessee to present his case before lower authority and remand the matter back to the file of the Ld. AO for fresh adjudication on merits after giving an opportunity to be heard and the assessee is further directed to file submit all the required documents in support of the income earned during the year. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced on 31/12/2024 in the open court Order pronounced in the open court on 31 – 12 - 2024 Sd/- Sd/- (A. L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot Ǒदनांक/ Date: 31 / 12 /2024 Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "