SURYA ELECTROMECH PRIVET LIMITED,GANDHIDHAM V. INCOME TAX OFFICER, WARD 2, GANDHIDHAM, GANDHIDHAM

ITA 262/RJT/2024

AI Insights

The case involves Surya Electromech Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2014-15. The appeal was initially dismissed ex-parte as the assessee did not appear, due to alleged non-receipt of notices. The assessee later filed a belated appeal citing ignorance of the CIT(A)'s order, which was condoned by the Tribunal. The Tribunal found that the assessee was not given a proper opportunity to be heard and thus set aside the CIT(A)'s order, remanding the case back to the assessing officer for a fresh assessment, while imposing a cost of Rs. 10,000 on the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 125985 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGALIA; LD
• Assessee Lawyers: SHRICHETANAGARWAL; LD
• Keywords: Condonation of delay; Set aside; Opportunity of being heard
• Section: 144; 250

Judgement Text

"ITA No. 262/RJT/2024 Surya El ec tromec h Privet Li mit ed, 1 आयकर अपील य अ धकरण,राजकोट \u0012यायपीठ, राजकोट। IN THE INCOMETAXAPPELLATE TRIBUNAL,RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI,ACCOUNTANT MEMBER And SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA No.262/RJT/2024 (\u000eनधा\u0012रण वष\u0012/Assessment Year: (2014-15) \u000eनधा\u0012\u0016रती क\u0018 ओर से/Appellant by : ShriChetan Agarwal, Ld. AR यथ ओर से/Respondent by : Shri Sanjay Pungalia, Ld.CIT (DR) सुनवाईक\u0018तार#ख/ Date of Hearing : 23/04/2025 घोषणाक\u0018तार#ख/Date of Pronouncement : 23/04/2025 आदेश / O R D E R PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2014-15, is directed against the order passed by the Learned Commissioner of Income Tax (Appeal) [in short ‘Ld. CIT(A)’], dated SuryaElectromech Private Limited, Plot No.33, GIDC, Sector No.8, Gandhidham 370201 Vs. Income Tax Officer, Ward 2, Gandhidham Gujrat 370201 थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAQCS7290B (अपीलाथ /Appellant) ( यथ /Respondent) ITA No. 262/RJT/2024 Surya El ec tromec h Privet Li mit ed, 19/12/2023, which in turn arises out of an assessment order passed by the assessing officer under section 144 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), dated 28/10/2016. 2. When the matter was called for hearing, the learned AR for the assessee at the outset submitted that the appeal has been filed by the assessee belatedly. The learned AR adverted our attention to the affidavit filed in this regard citing reasons for condonation of delay and urged for a benign view and sought condonation of delay of 68 days in filing the appeal before the Tribunal. The Ld. AR submitted thatassessee was not aware of passing of order by Ld. CIT(A), which was served online. When assessee checked the portal for other work then assesseecame to know about dismissal of appeal by Ld CIT(A), therefore, such a small delay in filing occurred, which may kindly be condoned. On the other hand, learned DR for the Revenue submitted that assessee has failed to prove the sufficient cause therefore delay should not be condoned. 3.We have heard both the parties on this preliminary issue. A perusal of the affidavit gives us an impression of existence of mitigating circumstances to enable us to exercise our discretion in favour of the assessee. Accordingly, the delay is condoned. 4. On merit, we note that a perusal of CIT(A)’s order shows that he has decided the appeal ex-parte. The Order of CIT(A) mentions that notice u/s 250 of the Act was served and none appeared on behalf of the assessee. In page-8 of the CIT(A)’s order it has been mentioned that notices dated 10.12.2021, 23-12- 2021, 17.01.2022 and 13.04.2022 etc, were issued. The Ld. AR for the assessee ITA No. 262/RJT/2024 Surya El ec tromec h Privet Li mit ed, submitted that none of these notices were served on the assessee, therefore, the assessee could not appear before the learned CIT(A). 5. We are of the view that the assessee did not have proper opportunity of being heard before CIT(A) and therefore, ex-parte order of Ld.CIT(A) dismissing the appeal of the assessee has to be set aside. The ld. AR for the assessee also pointed out that order of CIT(A) may be set aside and the issues raised before CIT(A) be remanded to the assessing officer for fresh consideration. It has been submitted that at the assessment stage the assessee could not produce any proper evidences. It has also been submitted that now the assessee is willing to appear before assessing officer and therefore it would be in the interest of justice that the matter should be remanded to the assessing officer. The ld. DR did not object to the prayer made by the ld. AR for the assessee, however, he stated that it is just wasting of time and resources of the lower authorities, if the matter is remitted back to the file of the lower authorities, therefore cost of Rs. 10,000/- should be imposed on the assessee. Hence, we impose cost of Rs. 10,000/-, on the assessee, on account of his non- compliance attitude, which is to be deposited in the Prime Minister relief fund. 6. We accept the prayer of the ld AR for the assessee and therefore, we set - aside the order of CIT(A) and remand the various issues raised by the assessee in the grounds of appeal before CIT(A) for fresh consideration by the assessing officer, with a liberty to the assessee to prove his case by producing sufficient evidence/material to the satisfaction of the assessing officer. For statistical purposes the appeal of the assessee is allowed. 7. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No. 262/RJT/2024 Surya El ec tromec h Privet Li mit ed, Order is pronounced on 23/04/2025 in the open court. Sd/- Sd/- (DINESH MOHAN SINHA) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Rajkot (True Copy) *दनांक/ Date: 23 /04/2025 Copy of the Order forwarded to: 1. The Assessee 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 "