SWETANK MADHUVIR PATEL,AHMEDABAD V. THE DY.CIT, CIRCLE-3(1)(1), AHMEDABAD

ITA 2155/AHD/2024

AI Insights

This case involves an appeal by Swetank Madhuvir Patel against the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi, for the Assessment Year 2013-14. The primary contention was the issuance of notices via email, which the appellant had explicitly denied, leading to an ex-parte decision by the CIT(A). The appellant challenged the ex-parte decision and the subsequent additions and penalties imposed under various sections of the Income-tax Act, 1961. The ITAT found procedural lapses in the notice issuance and remanded the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668647 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANKIT JAIN
• Assessee Lawyers: TUSHAR HEMANI; PARIMALSINH B. PARMAR
• Keywords: Reopening of assessment; Principle of natural justice; Initiation of penalty proceedings
• Section: 147; 271(1)(c); 56(2)(vii)(b)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE PRESIDENT SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER I.T.A. No.2155/Ahd/2024 (Assessment Year: 2013-14) Swetank Madhuvir Patel, Dharm Farm House, Nr. Shan Bungalows, Opp. Shilaj Lake, Shilaj, Daskroi, Ahmedabad-380059 [PAN No. ABEPP 0418 N] Vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Tushar Hemani, Sr. Advocate & Shri Parimalsinh B. Parmar, AR Respondent by: Shri Ankit Jain, Sr DR Date of Hearing 24.04.2025 & 02.06.2025 Date of Pronouncement 23.06.2025 O R D E R PER: DR. B.R.R. KUMAR, VICE PRESIDENT: Delay Condoned This appeal has been filed by the assessee against the order of the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as \"CIT(A)\" for short) dated 01.02.2024, passed u/s 250 of the Income-tax Act, 1961, (hereinafter referred to as \"the Act\" for short) for the Assessment Year (AY) 2013-14. 2. The assessee has raised following grounds of appeal :- ITA No. 2155/Ahd/2024 Swetank Madhuvir Patel Vs. DCIT Asst.Years : 2013-14 - 2– “1. The Ld. CIT(A) has erred in law and on facts of the case in issuing notices on email and disposing the appeal ex-parte when the appellant has specifically denied for service of notices through email in the appeal memo. 2. The Ld. CIT(A) has erred in law and on facts of the case in disposing the appeal ex-parte in violation of principles of natural justice. 3. The Ld. CIT(A) has erred in law and on facts of the case in disposing the appeal without adjudicating the merits of the case resulting in violation of S.250(6) of the Act. 4. The Ld. CIT(A) has erred in law and on facts of the case in upholding reopening of assessment u/s. 147 of the Act which is bad in law and without jurisdiction. 5. The Ld. CIT(A) has erred in law and on facts of the case in confirming addition of Rs. 2,56,27,833/- u/s. 56(2)(vii)(b) of the Act. 6. Both the lower authorities have passed the order without properly appreciating the facts and they further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. The action of the lower authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 7. The Ld. CIT(A) has erred in law and on facts of the case in confirming levy of interest u/s. 234 A/B/C/D of the Act. 8. The Ld. CIT(A) has erred in law and on facts of the case in confirming initiation of penalty proceedings u/s. 271(1)(c) of the Act. 3. On going through the record, we find that the assessee failed to respond to the notices issued via email by the Ld. CIT(A) on five occasions, resulting in the ex-parte order passed by the Ld. CIT(A). ITA No. 2155/Ahd/2024 Swetank Madhuvir Patel Vs. DCIT Asst.Years : 2013-14 - 3– 4. Before us, the Ld. AR submitted that the assessee did not receive any of the notices issued by the Ld. CIT(A) via email. The Ld. AR also submitted that the assessee had specifically denied service of such notices by electronic means before the Ld. CIT(A). Nevertheless, the appeal was adjudicated ex-parte by the Ld. CIT(A). The Ld. AR submitted that, given an opportunity, due compliance would be made by the assessee before the Ld. CIT(A); however, the Ld. DR objected it in principle. The Ld. DR argued that the notices have been duly issued to the e-mail address given in the Form 35, which is [e-mail]. Ld. AR argued that the next column of the e-mail address clearly mentioned “ whether notices/communication may be sent on e-mail” for which the assessee mentioned “No”. Hence, we hold that the notices issued through e-mail [e-mail] cannot be treated as valid service of notice. Nevertheless, keeping in view the facts on record, we find that no prejudice would be caused to the Revenue if an opportunity is given to the assessee to represent his case before the Ld. CIT(A). The ITA No. 2155/Ahd/2024 Swetank Madhuvir Patel Vs. DCIT Asst.Years : 2013-14 - 4– assessee shall comply to all the notices issued by the Ld. CIT(A) without seeking unnecessary adjournments. 5. In the result, the appeal of the assessee is allowed for statistical purposes. This Order pronounced in Open Court on 23.06.2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE PRESIDENT Ahmedabad; Dated 23.06.2025 आदेश क\u0007 \b त ल प अ\u0010े षत आदेश क\u0007 \b त ल प अ\u0010े षत आदेश क\u0007 \b त ल प अ\u0010े षत आदेश क\u0007 \b त ल प अ\u0010े षत/Copy of the Order forwarded to : 1. अपीलाथ\u0016 / The Appellant 2. \b\u0017यथ\u0016 / The Respondent. 3. संबं धत आयकर आयु त / Concerned CIT 4. आयकर आयु त(अपील) / The CIT(A)- 5. वभागीय \b त न ध, आयकर अपील(य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड- फाईल / Guard file. आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, TRUE COPY उप/सहायक पंजीकार उप/सहायक पंजीकार उप/सहायक पंजीकार उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील(य अ धकरण, अहमदाबाद आयकर अपील(य अ धकरण, अहमदाबाद आयकर अपील(य अ धकरण, अहमदाबाद आयकर अपील(य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation …13.05.2025………….. 2. Date on which the typed draft is placed before the Dictating Member ……13.05.2025………… 3. Other Member……20.06.2025…………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …20.06.2025……………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement 23.06.2025… 6. Date on which the fair order comes back to the Sr.P.S./P.S ……23.06.2025…………. 7. Date on which the file goes to the Bench Clerk ……23.06.2025………………….. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…… 10. Date of Dispatch of the Order…………………………………… "