SHREE SARDAR PATEL VISHWAVIDHYA SANSTHAN,RAJKOT (PEDHLA, JETPUR) V. THE ITO (EXEMPTION) WARD-1, RAJKOT, RAJKOT

ITA 162/RJT/2025

AI Insights

The case involves Shree Sardar Patel Vishwavidhya Sansthan, an educational institution, appealing against an ex parte order passed by the Commissioner of Income Tax (Appeals). The original assessment was made under section 144 of the Income Tax Act, 1961, due to non-appearance of the assessee in the assessment proceedings, attributed to the assessee's remote location and illiteracy. The CIT(A) dismissed the appeal ex parte as the advocate did not appear. The Tribunal noted the violation of principles of natural justice and fair play, emphasizing the need for a fair hearing. Consequently, the Tribunal remitted the case back to the Assessing Officer for a fresh assessment, imposing a cost on the assessee for non-compliance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716670 (ITAT-RAJKOT)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 11-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: MAULIK KANSARA
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Assessment record
• Section: 144

Judgement Text

" आयकर अपीलीय अिधकरण, राजकोट Ɋायपीठ,राजकोट। IN THE INCOMETAXAPPELLATE TRIBUNAL, RAJKOT BENCH: RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER And SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No. 162/RJT/2025 (Ǔनधा[रणवष[/Assessment Year: (2017-18) Shree Sardar Patel Vishwavidhya Sansthan C/o CDHB & Company, Chartered Accounts, A-707, RK Iconic, 150 FT, Ring Road, Nr. Sheetal Park Bus Stand, Opp. The Spire Building, Rajkot – 360006 बनाम /Vs. Income Tax Officer (Exemption), Ward-1, Rajkot, Aayakar Bhawan, Race Course Ring Road, Rajkot-360 001 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAETS0669R (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरतीकȧओरसे/Appellant by :Shri Maulik Kansara, A.R. राजèवकȧओरसे/Respondent by : Shri Abhimanyu Singh Yadav, Sr. D.R. सुनवाईकȧतारȣख/Date of Hearing : 13/08/2025 घोषणाकȧतारȣख/Date of Pronouncement : 20/08/2025 आदेश / O R D E R PER DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2017-18, is directed against the order under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) passed by the National Faceless Appeal Centre (NFAC), Delhi/Learned Commissioner of Income Tax(Appeals) (in short “Ld.CIT(A)”,dated 06.03.2025, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144 of the Act dated 28.11.2019. Printed from counselvise.com Page | 2 ITA No. 162/RJT/2025 A.Y.17-18 Sh.Sardar Patel Vishwavidhya Sansthan 2. At the outset, on merit, Ld. Counsel for the assessee submitted that assessee resides in remote village and illiterate person, therefore notices were not served during assessment proceedings. Hence, assessee could not appear in assessment proceedings. On appeal, before Ld. CIT(A) by assessee, the Ld. CIT(A) dismissed appeal as ex parte without adjudicating on merit as the advocate appointed by assessee did not appear before Ld.CIT(A) and as a result, the Ld. CIT(A) has passed ex parte order. Therefore, Ld. Counsel contended that because of mistake of advocate of assessee, the assessee should not be penalized and therefore matter may be remitted back to the file of Assessing Officer for fresh adjudication. 3. The ld. DR of the Revenue has submitted that he did not have any objection if the matter is remitted back to the file of Assessing Officer, however, he contended that minimum cost of Rs.2,000/- should be imposed on assessee on account of non-compliance attitude of the assessee. 4. We have heard both the parties and gone through materials available on record. We note that in the assessee’s case under consideration, the assessment was carried out u/s 144 of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. We note that ld. CIT(A) has not decided the issue in respect of the ground raised by the assessee in Memo of Appeal as per the mandate of provisions of section 250(6) of the Act. The ld. CIT(A) has not examined assessment records and relevant documents and has not passed any speaking order. Considering the above facts, we note that it is settled law that principles of natural justice and fair play Printed from counselvise.com Page | 3 ITA No. 162/RJT/2025 A.Y.17-18 Sh.Sardar Patel Vishwavidhya Sansthan require that the affected party is granted sufficient opportunity of being heard to contest his case. On account of non-compliance attitude of the assessee a cost of Rs.2,000/- is imposed on the assessee. Accordingly, we hold that the interests of justice would be met, if the Assessing Officer re- adjudicates the entire issue afresh subject to payment of cost of Rs.2,000/- (Rupees two thousand only) by the assessee to the credit of the “Prime Minister Relief Fund” within 2 weeks from receipt of this order. If the assessee makes default in making the payment of cost then the consequential proceedings would be deemed, as vacation of our instant remand order. We set aside the order of CIT(A) and remit the matter back to the file of Assessing Officer with a direction to pass de novo assessment order in accordance with law after granting adequate opportunity of hearing to the assessee. The assessee is directed to be more vigilant and diligent and to furnish all the details and explanations as needed by the Assessing Officer by not seeking adjournment without valid reasons. With these directions, the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, appeal of the assessee is allowed, for statistical purposes. Order is pronounced on 20/08/2025 in the Open Court. Sd/- Sd/- (DINESH MOHAN SINHA) (DR. ARJUN LAL SAINI) ÛयाǓयकसदèय/Judicial Member लेखासदèय/ Accountant Member राजकोट/Rajkot Ǒदनांक/ Date: 20/08/2025 DKP Outsourcing Sr.P.S आदेशकìÿितिलिपअúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकरआयुĉ/ CIT Printed from counselvise.com Page | 4 ITA No. 162/RJT/2025 A.Y.17-18 Sh.Sardar Patel Vishwavidhya Sansthan  आयकरआयुĉ(अपील)/ The CIT(A)  िवभागीयÿितिनिध, आयकरअपीलीयआिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट Printed from counselvise.com "