ROHIT PREM CHHABRA,MUMBAI V. INCOME TAX DEPT., MUMBAI

ITA 5847/MUM/2024

AI Insights

The case involves Rohit Prem Chhabra, the appellant, who appealed against the order of the CIT(A) which dismissed his appeal ex-parte for the Assessment Year 2018-19. The original assessment was made by the assessing officer under sections 147, 144, and 144B of the Income Tax Act, 1961, assessing the total income at Rs. 1,78,40,490, which included income from the sale of immovable property and interest income. The CIT(A) dismissed the appeal due to non-response from the appellant to the notices for hearing. The Income Tax Appellate Tribunal (ITAT) found that the CIT(A) did not discuss the merits of the case in the ex-parte order and thus restored the matter back to the CIT(A) for a detailed examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 26540 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.R MAKWANA
• Assessee Lawyers: AISHWARYA
• Keywords: Set aside; Principle of natural justice
• Section: 147; 250

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH MUMBAI BEFORE: SHRI BR BASKARAN, ACCOUNTANT MEMBER & SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 5847/MUM/2024 (Assessment Year : 2018–19) Rohit Prem Chhabra A-415 Vashi Plaza, Sector-17, Vashi, Navi Mumbai- 400703. Vs. Assessment Unit, NFAC ward 28(2)(1), Mumbai. PAN/GIR No. ADLPC7338R (Appellant) .. (Respondent) Assessee by Ms. Aishwarya Revenue by Shri. R.R Makwana, Addl. CIT Date of Hearing 02/01/2025 Date of Pronouncement 06/01/2025 आदेश / O R D E R PER SUNIL KUMAR SINGH (J.M): 1. This appeal has been preferred against the impugned order dated 20.09.2024 passed in Appeal no. NFAC/2017- 18/10297102 by the Ld. Commissioner of Income– tax(Appeals)/ National Faceless Appeal Centre (NFAC) [hereinafter referred to as the “CIT(A)”] u/s. 250 of the Income- Tax Act, 1961 [hereinafter referred to as \"Act\"] for the Assessment year [A.Y.] 2018-19, wherein learned CIT(A) has dismissed assessee’s appeal ex-parte. ITA no. 5847/MUM/2024 Rohit Prem Chhabra 2 2. Briefly stating, assessee did not file any return of income for A.Y. 2018-19. However, on the basis of the information available in the system, learned assessing officer passed assessment order u/s. 147 r.w.s. 144 r.w.s. 144B of the Act and assessed total income at Rs. 1,78,40,490/- (consideration of Rs. 1,78,20,000/- on sale of immovable property and Rs. 20,490/- as interest income). Aggrieved, assessee preferred an appeal before learned CIT(A), who dismissed assessee’s appeal ex-parte. 3. Appellant assessee has filed this appeal on the ground that learned CIT(A) has erred in confirming the aforesaid additions ex-parte in violation of the principles of natural justice. 4. The adjournment application moved on behalf of the assessee was rejected. We have perused the records and heard learned representatives for the parties. 5. Learned AR has submitted that the impugned order has been passed ex-parte by learned CIT(A) in violation of the principles of natural justice without affording an opportunity of hearing to the assessee. prayed to set aside the impugned order. 6. Learned DR has supported the impugned order. 7. We notice that learned CIT(A) issued notices to the appellant assessee for the hearing on three different occasions, however, the appellant assessee did not respond thereof. Learned CIT(A) was thus compelled to pass ex-parte impugned order in such circumstances. However, it is further noticed that learned CIT(A) has passed ex-parte impugned order without any substantial discussion on the merits of the case, whereas ITA no. 5847/MUM/2024 Rohit Prem Chhabra 3 learned CIT(A) was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford opportunity to the assessee and restore the matter back to the file of learned CIT(A) for adjudication on merits. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(A) for the expeditious and effective disposal. Assessee should refrain from seeking any adjournment but for compelling and unavoidable circumstances. Needless to say that learned CIT(A) shall ensure the observance of the principles of natural justice. It is made clear that we have not made any observation in respect of the merits of the case. The appeal is liable to be allowed accordingly. 8. In the result, the appeal is allowed in above terms for statistical purpose. Impugned order dated 20.09.2024 is set aside. Order pronounced on 06.01.2025. Sd/- (BR BASKARAN) Sd/- (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 06/01/2025 Anandi Nambi, Steno Copy of the Order forwarded to: 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai ITA no. 5847/MUM/2024 Rohit Prem Chhabra 4 BY ORDER, (Asstt. Registrar) ITAT, Mumbai 5. Guard file. //True Copy// "