SOLAR AGROTECH PVT. LTD.,RAJKOT V. THE DCIT, CIRCLE-2(1), RAJKOT

ITA 498/RJT/2024

AI Insights

Solar Agrotech Pvt. Ltd. appealed against the order of the Learned Commissioner of Income Tax (Appeals), which confirmed the addition of Rs. 63,45,900 as unexplained investment by the Assessing Officer under sections 147 and 144B of the Income Tax Act, 1961. The appellant argued that the lower authorities had passed ex parte orders without a fair hearing. The tribunal, acknowledging the procedural lapses, decided to restore the matter to the Assessing Officer for a fresh examination, ensuring that the appellant is given a proper opportunity to be heard.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473471 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 26-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: SHITAL ANADKAT
• Keywords: Opportunity of being heard; Unexplained investment; Principle of natural justice
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No. 498/RJT/2024 Assessment Year: (2018-19) (Hybrid Hearing) Solar Agrotech Pvt. Ltd., Doctor Seeds, Bhaichand Mehta Industrial Estate, B/H- Hotel Krishna, Vavdi, Gondal Road, Rajkot-360004 (Gujrat) Vs. The A.O., Assessment Unit, ITD/The D.C.I.T., Circle 2(1), Rajkot. èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AADCS 0270 L (Appellant) (Respondent) Appellant by Ms. Shital Anadkat, A.R. Respondent by Shri Abhimanyu Singh Yadav, Sr. DR Date of Hearing 17/10/2024 Date of Pronouncement 18/10/2024 आदेश / O R D E R PER: DINESH MOHAN SINHA, JM: This is an appeal filed by the appellant arises against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short “the Ld. CIT(A)/NFAC”] dated 31/05/2024 for the Assessment Year (AY) 2018-19, which in turn arises out of an assessment order passed by Assessing Officer (in short ‘the AO”) u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 26/03/2023. 2. At the outset of hearing, the learned Authorised Representative (ld. AR) of the appellant submitted that both the lower authorities have passed ex parte order without giving fair and reasonable opportunity of hearing to the appellant. The ld. AR of the appellant submitted that the ITA 498/Rjt/2024 Solar Agrotech Pvt. Ltd. Vs DCIT Page | 2 Assessing Officer has passed assessment order by making addition of Rs. 63,45,900/- on account of unexplained investment. The ld. CIT(A), on appeal before him, confirmed the action taken by the Assessing Officer. The ld. Counsel for the appellant submits that the appellant has good case on merit and is likely to succeed if one more opportunity is provided to the appellant and prayed that the matter may be restored back to the file of Assessing Officer for deciding the issue afresh. The ld. Counsel for the appellant submits that he undertakes on behalf of appellant to be more vigilant in future in complying the notices issued by the lower authorities. However, the application for adjournment of hearing of the appeal was rejected. 3. On the other hand, the ld. Sr.DR for the revenue has supported the orders of the lower authorities. The ld. Sr. DR has not objected to the prayer of the appellant. 4. We have considered the submissions of both the parties and have gone through the orders of the lower authorities. We find that the Assessing Officer made addition on account unexplained investment of Rs. 63,45,900/-. That an opportunity was given through video conferencing to cross examination but the assessee not availed due one reason or other. The ld. CIT(A) has confirmed the addition made by the Assessing Officer. We find that both the lower authorities have passed their orders in ex- parte proceedings, therefore, one more opportunity should be granted to the appellant to plead his case before the Assessing Officer. We note that it is settled law that principles of natural justice and fair play require that the affected party is granted sufficient opportunity of being heard to contest his case. Therefore, in the interests of justice, we restore the matter back to the file of Assessing Officer for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the appellant, who in turn, is also directed ITA 498/Rjt/2024 Solar Agrotech Pvt. Ltd. Vs DCIT Page | 3 to contest his stand forthwith. Therefore, we deem it fit and proper to set aside the order of the Ld. CIT(A) and remit the matter back to the file of the Assessing Officer to adjudicate the issue afresh on merits. The appellant is also directed to be more vigilant in future and not to take any adjournment without any valid reason. The appellant is also directed to submit all the documents, evidences and replies as soon as possible without any further delay. In the result, grounds of appeal raised by the appellant are allowed for statistical purposes only. 5. In the result, this appeal of the appellant is allowed for statistical purposes. Order is pronounced on 18/10/2024 in the open court. Sd/- Sd/- (Dr. A. L. SAINI) (DINESH MOHAN SINHA) ACCOUNTANT MEMBER JUDICIAL MEMBER Rajkot *Ranjan Ǒदनांक/ Date: 18/10/2024 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Rajkot 6. Guard File By Order Assistant Registrar/Sr. PS/PS ITAT, Rajkot "