PARAMOUNT GLOBAL,RAJKOT V. THE ITO WARD - 3 (1) (5), RAJKOT, RAJKOT

ITA 37/RJT/2026

AI Insights

The case involves Paramount Global, the appellant, contesting an order from the National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), which arose from a penalty order passed by the Assessing Officer under sections 144 and 143(3) of the Income Tax Act, 1961. The appeal was filed for the Assessment Year 2015-16. The primary contention was the ex parte and non-speaking nature of the orders passed by the lower authorities, as the assessee failed to appear or provide necessary documents during the proceedings. The Tribunal noted the violation of the principles of natural justice and fair play, which require that an affected party be granted a sufficient opportunity to be heard.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833401 (ITAT-RAJKOT)
• Duration Of Justice: 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 13-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR GUPTA; LD.
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 144; 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण,राजकोट Ɋायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.37/RJT/2026 Ǔनधा[रण वष[/Assessment Year :2015-16 Paramount Global C/O- Sumit Haribhai Gol, Vivekanand Society, Nr. Water Tank, Mota-Liliya, Dist. Amreli- 365535 (Gujarat) बनाम/ Vs ITO Ward- 3(1)(5), Rajkot Gujarat-360001 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAQFP3375B (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : None राजèव कȧ ओर से/Revenue by : Shri Dheeraj Kumar Gupta, Ld. Sr-DR सुनवाई कȧ तारȣख/Date of Hearing : 06/02/2026 घोषणा कȧ तारȣख/Date of Pronouncement : 06/02/2026 आदेश/ORDER Per Dr. Arjun Lal Saini, A.M.: Captioned appeal filed by assessee, pertaining to Assessment Year 2015- 16, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 26.12.2025, which in turn arises out of a penalty order passed by Assessing Officer u/s. 144 r.w.s. 143(3) of the Act on 27.12.2017. 2. None appeared on the date of hearing before the Bench, despite of issuance of notice of hearing to the assessee, on the address provided in Form No. 36. Printed from counselvise.com Page 2 of 3 ITA No. 37/Rjt/2026 Paramount Global 3. On the other hand, the ld. DR for the Revenue submitted that assessee was negligent during the assessment proceedings. The assessee did not submitted required details and documents, therefore, if the Bench wants to remit the matter back to the file of the assessing officer then a cost of Rs. 5,000/- may be imposed on the assessee as the assessee has wasted time and resources of the lower authorities. 4. I have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. I note that in the assessee’s case under consideration, the assessment was carried out u/s 144 r.w.s. 143(3) of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, I do not wish to make any comments on the merits of the grounds raised by the assessee. Both the lower authorities passed the ex- parte order, as assessee never appeared before the lower authorities and did not file details and documents. 5. 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. However, on account of non-compliance attitude of the assessee, I impose a cost of Rs. 5,000/- on the assessee which should be deposited in the Prime Minister National Relief Fund, within three months from the date of receipt of this order. 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 Printed from counselvise.com Page 3 of 3 ITA No. 37/Rjt/2026 Paramount Global 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 Ld. assessing officer to adjudicate the issue afresh on merits. For the reasons given above, I am of the view that the order of the CIT(A) on this issue requires to be set aside and the issue needs to be looked into afresh by the assessing officer in the light of the observations as set out above. I hold and direct accordingly. The assessing officer will afford opportunity of being heard to the Assessee before deciding the issue. The Assessee will also be at liberty to let in further evidence to substantiate its case. For statistical purpose, the appeal of the revenue is treated as allowed. 6. For statistical purposes, the appeal of the assessee is treated as allowed. Order pronounced in the open court on 06/02/2026. Sd/- (Dr. Arjun Lal Saini) लेखा सदèय/Accountant Member राजकोट/Rajkot //True Copy// िदनांक/ Date: 06/02/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, RAJKOT 6. Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "