SREE HARA VIVIDODDESHA SAHAKARA SANGHA NIYAMITA,DAVANGERE V. INCOME TAX OFFICER, WARD-2(1), DAVANAGERE

ITA 560/BANG/2025

AI Insights

The case involves an appeal by Sree Hara Vividoddesha Sahakara Sangha Niyamita against an ex-parte order under section 144 of the Income-tax Act, 1961, concerning the assessment year 2017-18. The appeal was initially delayed due to a change in management and lack of awareness about the proceedings, which was later condoned by the Tribunal. The Tribunal found that the assessee did not receive adequate notice of the earlier proceedings due to the transition in office bearers and the use of email for communication. Consequently, the Tribunal set aside the ex-parte order and restored the case to the Assessing Officer for a fresh assessment, emphasizing the principles of natural justice and the right to a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669538 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GANESH R GHALE
• Assessee Lawyers: R CHANDRASHEKAR
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’, BENCH, BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 560/Bang/2025 Assessment Year: 2017-18 Sree Hara Vividoddesha Sahakara Sangha Niyamita, D Nagaraj Building, II Floor, Shimoga Road, Davangere – 577 601. PAN – AAIAS 8694 R Vs. The Income Tax Officer, Ward – 2(1), Davangere. . APPELLANT RESPONDENT Assessee by : Shri R Chandrashekar, Advocate Revenue by : Shri Ganesh R Ghale, Advocate Date of hearing : 17.06.2025 Date of Pronouncement : 25.06.2025 O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER: This is an appeal filed by the assessee challenging the ex-parte order passed under section 144 of the Income-tax Act, 1961 by the Assessing Officer and further affirmed by the ld. Commissioner of Income Tax (Appeals). 2. The assessee has filed a condonation application supported by an affidavit explaining the reasons for delay in filing the appeal before ITAT for 43 days. It was submitted that the assessee was not aware of the ITA No.560/Bang/2025 Page 2 of 3 . pendency of the appeal and came to know about the appellate order only after obtaining a copy of the same upon making inquiries. As such it was submitted that the delay is attributable to change in management, lack of knowledge about the earlier proceedings, and bona fide reasons. 3. In addition to the above, it is also noticed that the assessee has specifically prayed for physical service of notices, whereas the hearing notices from the ld. CIT(A) were issued through email communication, which appears not to have reached the appropriate hands due to the transition in office bearers. 4. Considering the facts and circumstances of the case as discussed above, no objection from the ld. DR and in the interest of substantial justice, we condone the delay in filing the appeal before this Tribunal and admit the same for adjudication. 4.1 Furthermore, having regard to the principles of natural justice and the fact that the assessee did not get a fair opportunity of hearing before the lower authorities, the ex-parte order passed by the ld. CIT(A) is hereby set aside. 4.2 In light of the above, and given that the AO’s order was also passed under section 144 without adequate participation from the assessee, we deem it appropriate to restore the matter back to the file of the Assessing Officer for fresh adjudication. 4.3 The Assessing Officer is directed to provide a reasonable opportunity of being heard to the assessee and pass a speaking order ITA No.560/Bang/2025 Page 3 of 3 . after considering all submissions and documentary evidence to be provided by the assessee. The assessee is also directed to cooperate in the proceedings and avoid any unwarranted adjournments. Hence, the grounds of appeal of the assessee are hereby partly allowed for statistical purposes. 5. In result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in court on 25th day of June, 2025 Sd/- Sd/- (KESHAV DUBEY) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, 25th June, 2025 / vms / Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore "