SANJAY MOHANBHAI MOLIA,RAJKOT V. THE INCOME TAX OFFICER, WARD-1(1)(1),RAJKOT, RAJKOT

ITA 595/RJT/2025

AI Insights

The case involves an appeal by the assessee, Sanjay Mohanbhai Molia, against an ex-parte order passed by the Commissioner of Income Tax (Appeals), which upheld a penalty imposed by the assessing officer under section 272A(1)(d) of the Income Tax Act, 1961. The assessee contended that he was not served notices and thus could not represent his case before the CIT(A), leading to a violation of the principles of natural justice. The CIT(A) had previously remitted the assessee's quantum appeal back to the assessing officer for fresh adjudication, which the Tribunal considered in deciding to allow the appeal for statistical purposes and set aside the penalty pending a new assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781233 (ITAT-RAJKOT)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 25-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADJOURNMENT APPLICATION
• Assessee Lawyers: BRIJESH PAREKH; LD
• Keywords: Set aside; Period of limitation; Principle of natural justice; Time period of passing order

Judgement Text

" आयकरअपीलीयअिधकरण,राजकोटɊायपीठ,राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकरअपीलसं./ITA No. 595/RJT/2025 (Ǔनधा[रणवष[/Assessment Year: (2017-18) Appellant by : Shri Brijesh Parekh, Ld. AR Respondent by : Adjournment Application Date of Hearing : 22/10/2025 Date of Pronouncement : 24/10/2025 ORDER Per.Dr. Arjun Lal Saini, Accountant Member: The present appeal has been filed by the Assessee, against the order passed by the Learned Commissioner of Income Tax (Appeal), Ahmedabad/ National Faceless Appeal, Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 22.09.2025 arising in the matter of assessment order passed u/s. 272A(1)(d) of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2017-18. Sanjay Mohanbhai Molia Ma Krupa, Plot No, 44, Shree Gayatri Drilling Co, Patel Colony opp. Parivar Park, Mavdi Plot – Rajkot (Gujrat)- 360004 Vs. The ITO Ward – 1(1)(1), Aayakar Bhawan, Race Course Ring Road, Rajkot - 360001 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AMHPM0130A (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Printed from counselvise.com 2 ITA No. 595/Rjt/2025 Sanjay Mohanbhai Molia 2. At the outset itself, the ld. Counsel for the assessee assailed the impugned order by contending that the assessee could not represent his case before Ld. CIT(A) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. The Ld. Counsel for the assessee submitted that assessee could not appear before the Ld. CIT(A) as the notices were not served on the assessee, however, there was compliance before the assessing officer. The Ld. Counsel submitted that assessee’s quantum appeal relating to this penalty appeal, has been remitted back by Ld. CIT(A) to the file of assessing officer for fresh adjudication, therefore, this penalty appeal may also be restored back to the file of assessing officer for fresh adjudication. 3. On the other hand, the ld. DR for the Revenue relied on the finding of the assessing officer. 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 penalty was imposed u/s. 272A(1)(d) 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. I note that in assessee’s case under consideration, the quantum appeal of the assessee, has been restored back to the file of assessing officer for fresh adjudication , vide order of CIT(A) dated 25.08.2025; wherein Ld. CIT(A) held as follows: “6.9 In the wake of the above discussion, the assessment order dated 28.06.2019 passed u/s 144(1)(b) of the Income-tax Act, 1961 is hereby set-aside to the file of the A.O. for fresh adjudication. The Assessing Officer is directed to make a fresh assessment after giving Printed from counselvise.com 3 ITA No. 595/Rjt/2025 Sanjay Mohanbhai Molia adequate opportunities to the appellant and complying with all the extent rules and provisions and following principles of natural justice. 6.10 Needless to say that the assessee shall fully co-operate with the A.O in the timely completion of the set aside proceedings. The appellant may note that all the necessary compliances should be made at the earliest and within the time limit prescribed in the Notices issued by Ld. AO. It should be the endeavor of the Appellant to promptly submit necessary evidences in support of her Income tax return, suo-moto or as required by the Assessing Officer without causing undue delays leading to submissions towards the fag end of the limitation period. The assessment order is thus, set aside in accordance with the Proviso to Section 251(1)(a) with a direction to the AO to make a fresh assessment in accordance with the Rules and the timelines prescribed u/s 153(3) of the Act. 7. For statistical purposes, the appeal is allowed.” 5. Since, the quantum appeal of the assessee has been restored back to the file of assessing officer, therefore, penalty imposed by the assessing officer does not have any leg to stand, however, the assessing officer may impose the penalty, if any, in de-novo proceedings, as per the provisions of the Act. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 24/10/2025 Sd/- (DR. A. L. SAINI) ACCOUNTANT MEMBER राजकोट/Rajkot िदनांक/ Date: 24/10/2025 Copy of the order forwarded to: The assessee The Respondent CIT The CIT(A) DR, ITAT, RAJKOT Guard File By order Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "