SAGITARIUS SECURITIES & FINANCE LIMITED,INDORE V. INCOME TAX OFFICER -5(1), INDORE

ITA 929/IND/2024

AI Insights

The case involves Sagitarius Securities & Finance Limited, the appellant, who contested an order from the Commissioner of Income-Tax (Appeals) - NFAC, Delhi, which was itself based on an assessment order from the Income Tax Officer-5(1), Indore. The primary contention was the mode of communication for hearing notices, where the CIT(A) issued notices via email despite the assessee's explicit request for physical communication. This led to the assessee's absence during the hearings and resulted in an ex-parte order by the CIT(A). Both parties agreed that the matter should be remanded for a proper hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711530 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEDREWUSTOFOLLOWINGPARASOFTHEIMPUGNEDORDER; FORREVENUEAGREESWITHTHEPRAYEROFLD.ARBUTMAKESA; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIVENUSRAWKA
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

"Page 1 of 3 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.929/Ind/2024 Assessment Year: 2011-12 Sagitarius Securities & Finance Limited, 54 R.N.T. Marg, 4th Floor, Dawa Bazar, Indore बनाम/ Vs. Income Tax Officer-5(1), Indore (Assessee/Appellant) (Revenue/Respondent) PAN: AAFCS9291R Assessee by Shri Venus Rawka, AR Revenue by Shri Ashish Porwal, Sr.DR Date of Hearing 21.07.2025 Date of Pronouncement 22.07.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first-appeal dated 23.10.2024 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 26.12.2018 passed by learned ITO-5(1), Indore [“AO”] u/s 143(3) r.w.s. 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2011-12, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). Printed from counselvise.com Sagitarius Securities & Finance Limited ITA No. 929/Ind/2024 - AY 2011-12 Page 2 of 3 2. Ld. AR for assessee drew us to following paras of the impugned order of first-appeal passed by CIT(A): “4. Aggrieved by the assessment order passed by the A.O. u/s 147 r.w.s. 143(3) of the Act, the appellant carried the matter in appeal before the CIT(A). Coming to the present proceedings, the hearings were fixed on various dates. The notices of hearing were sent through online system/email and duly served upon the assessee.” 3. Referring to same, Ld. AR submitted that the CIT(A), while conducting first-appeal, has served notices of hearing on e-mail of assessee although the assessee has specifically mentioned “No” in the column provided in Form No. 35 asking “Whether notices/communication may be sent on email?”. Therefore, the assessee demanded physical hearing from CIT(A) but against the demand of assessee, the CIT(A) issued all notices through e-mail as mentioned by CIT(A) himself in Para 4 of his order re-produced above. Hence, in absence of service through physical mode as per demand of assessee in Form No. 35, the assessee could not attend hearings fixed by CIT(A), which has led to the passing of ex-parte order by CIT(A). Ld. AR acknowledges that the assessee is ready and willing to make a proper representation before CIT(A) if an opportunity is given and prays that the present matter should be remanded to the file of CIT(A) for a proper adjudication of the grounds/issues raised by assessee in first-appeal. 4. Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent his case before CIT(A) and do not seek unnecessary adjournments. Printed from counselvise.com Sagitarius Securities & Finance Limited ITA No. 929/Ind/2024 - AY 2011-12 Page 3 of 3 5. Considering above submissions of parties and having regard to the principle of natural justice, we remand this matter back to the file of CIT(A) for adjudication afresh. The CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by CIT(A) and do not seek unnecessary adjournments failing which the CIT(A) shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly. 6. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 22/07/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 22/07/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "