SEJAL GLASS CRAFT PVT. LTD,MUMBAI V. INCOME TAX OFFICER- 13(2)(2), MUMBAI, MUMBAI

ITA 2494/MUM/2023

AI Insights

The case involves Sejal Glass Craft Pvt Ltd appealing against an ex-parte order by the CIT(A), which confirmed a penalty for the assessment year 2007-08. The assessee did not challenge the quantum of the penalty but contested the ex-parte nature of the order, as they were unable to appear or submit written submissions. The Income Tax Appellate Tribunal (ITAT) decided to restore the case to the CIT(A) to ensure a fair hearing, emphasizing that the rights of the revenue would not be prejudiced but the rights of the assessee could be if not given a proper opportunity.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33323 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 12-11-2024
• Assessment Year: 2007-2008
• Appeal Filed On: 14-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAGNATH BHIMARAO PASALE
• Assessee Lawyers: PRATEEK JHA VIRTUALLY
• Section: 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER ITA No. 2494/Mum/2023 (Assessment Year: 2007-08) Sejal Glass Craft Pvt Ltd 173/174 Sejal Encasa, S.V Road, Kandiwali W Mumbai. Vs. ITO – 13(2)(2) Aayakar Bhavan, MK Road, Mumbai PAN/GIR No. AAACS7801A (Applicant) (Respondent) Assessee by Shri Prateek Jha (Virtually) Revenue by Shri Nagnath Bhimarao Pasale, Sr. AR सुनवाई क\u0002 तारीख/Date of Hearing 12.11.2024 घोषणा क\u0002 तारीख/Date of Pronouncement 13.11.2024 आदेश / ORDER PER SANDEEP GOSAIN, JM: The present appeal has been filed by the assessee challenging the impugned order 18.05.2023, passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (‘Ld. CIT(A)’), for the assessment year 2007-08. 2. At the very outset, on the perusal of the case file, we noticed that the CIT(A) has passed ex-parte order confirmed the penalty. The proxy of Ld. AR submitted that quantum 2 ITA No. 2494/Mum/2023 Sejal Glass Craft Pvt Ltd, Mumbai has not been challenged as the same has been accepted by the assessee in order to buy peace but the fact remains that impugned order passed by the Ld.CIT(A) was ex-parte as the assessee could not appear or file their written submissions before the Ld.CIT(A). 3. In our view the interest of justice would be met in case the lis between the parties be decided on merits after providing fair opportunity of hearing to the assessee. Therefore, considering the above factual and legal position the Bench feels that the ends of justice would be met only if the matter is restored back to the file of the Ld. CIT(A) to decide the matter afresh and the rights of the revenue would not be prejudice. However in case proper and sufficient opportunity is not given to the asessee then in that eventuality the rights of the assessee shall be prejudice. However, for the lethargic and negligent action on the part of the assessee, a cost of Rs. 2000 is imposed on the assessee and the same shall be deposited in the Prime Minister’s Relief Fund and copy of the same shall be submitted to the CIT(A) for proof and thus the appeal of the assessee is restored to the file of CIT(A) to decide it afresh by providing one more opportunity of hearing to the assessee. The assessee shall not seek any adjournment on frivolous grounds and remain cooperative during the course of proceedings and the appeal of the assessee is thus allowed for statistical purposes. 3 ITA No. 2494/Mum/2023 Sejal Glass Craft Pvt Ltd, Mumbai 4. Before parting, we make it clear that our decision to restore the matter back to the file of the CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the CIT(A) independently in accordance with law. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 13.11.2024. Sd/- Sd/- (PADMAVATHY S) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated /11/2024 KRK, PS आदेश की \bितिलिप अ\u000eेिषत/Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant 2. \r\u000eथ\f / The Respondent. 3. संबंिधत आयकर आयु\u0019 / The CIT(A) 4. आयकर आयु\u0019(अपील) / Concerned CIT 5. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, मु\u0003बई / DR, ITAT, Mumbai 6. गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, स\u000eािपत \rित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु\u0003बई मु\u0003बई मु\u0003बई मु\u0003बई / ITAT, Mumbai "