SHAILESHBHAI MAGANBHAI DHORAJIA,AHMEDABAD V. THE ITO, WARD- 3(3)(5), AHMEDABAD

ITA 2079/AHD/2024

AI Insights

The case involves an appeal by Shaileshbhai Maganbhai Dhorajia against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), which upheld an ex-parte assessment under section 144 of the Income Tax Act and confirmed a disallowance of Rs. 44,70,242 in respect of interest expenses for the Assessment Year 2015-16. The appellant contended that the order was illegal, unlawful, and against the principles of natural justice, primarily due to insufficient opportunity to make submissions and furnish evidence. The tribunal noted that the CIT(A) had provided multiple opportunities for the assessee to present evidence, which were not utilized satisfactorily, leading to the ex-parte order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473961 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVAN LIMBASIYA
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR.BRR KUMAR, VICE PRESIDENT & Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No.2079/Ahd/2024 (Assessment Year: 2015-16) Shaileshbhai Maganbhai Dhorajia, 22/530, Satyagrah Chhavani Society, Opp. ISRO, Jodhpur Tekra, Satellite, Ahmedabad-380015. Vs. The Income Tax Officer, Ward-3(3)(5) Ahmedabad. [PAN No.AASPD7471Q] Appellant by : Shri SN Divatia with Shri Samir Vora, A.Rs Respondent by: Shri Kavan Limbasiya, Sr. DR Date of Hearing 13.03.2025 Date of Pronouncement 18.03.2025 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT: The captioned appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi Ahmedabad, vide order dated 18.10.2024 for Assessment Year 2015-16. (अपीलाथᱮ /Appellant ( ᮧ᭜यथᱮ /Respondent) ITA No.2079/Ahd/2024 Asst.Year –2015-16 - 2– 2. The Assessee has taken the following grounds of appeal:- 1.1 The order passed U/s.250 on 18-10-2024 by NFAC[CIT(A)], Delhi. (for short CIT(A)\" upholding the ex-parte assessment u/s 144 and confirming the disallowance of Rs. 44,70,242/- in respect of interest expenses is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(A), has grievously erred in law and or on facts in not allowing sufficient opportunity to make submissions and furnish evidence in respect of the issues raised in the appeal. Though the appellant had sought adjournment on 10.10.2024, the fresh notice was issued immediately fixing the hearing on 17.10.2024 though it was a period of Navratri Festival and only three working days were available. 2.2 That in the facts and circumstances of the Id. CIT(A), ought not to have appreciated that there was a sufficient cause for failure to respond to final the notice of hearing issued on 11.10.2024. 3.1 The Id. CIT(A) has grievously erred in law and or on facts in upholding the ex-parte assessment u/s 144 and confirming the disallowance of Rs. 44,70,242/ in respect of interest expenses. 3.2 That the in the facts and circumstances of the ld.CIT(A), ought not to have upheld the ex-parte assessment u/s.144 and confirmed the disallowance of Rs.44,70,242/- in respect of interest expenses. 3. On going through the record, we find that Ld. CIT(A) has awarded four opportunities of hearing to the assessee to furnish the supportive documentary evidence. In pursuance to the same, the assessee failed to submit any substantial documents/replies and repeatedly sought adjournments. Hence, the Ld.CIT(A) passed ex-parte order and confirmed the disallowance made by the Assessing Officer. We also find that assessee has not complied even before the Assessing Officer. ITA No.2079/Ahd/2024 Asst.Year –2015-16 - 3– Before us the Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. Having gone through the fact, we hold that no prejudice will be caused to the revenue if the Assessing Officer is allowed to examine the details/explanation submitted by the assessee. Hence, the matter is remanded to the Assessing Officer for conducting assessment de-novo. The assessee shall comply with the notices issued by the authorities without seeking any unnecessary adjournments. 4. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 18.03.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) (True Copy) Ahmedabad; Dated 18.03.2025 Manish, Sr. PS TRUE COPY ITA No.2079/Ahd/2024 Asst.Year –2015-16 - 4– आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent. 3. संबंिधत आयकर आयुᲦ / Concerned CIT 4. आयकर आयुᲦ(अपील) / The CIT(A)- 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडᭅ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad "