TRISHALA DEVELOPERS,MUMBAI V. INCOME TAX OFFICER 1(4), KALYAN

ITA 5299/MUM/2024

AI Insights

The case involves Trishla Developers appealing against an ex-parte order passed by the ld. CIT(A) which confirmed the additions made by the Assessing Officer (AO) for the Assessment Year 2017-18. The primary contention was the lack of proper notice to the assessee during the proceedings before the ld. CIT(A). The assessee's representative argued that no physical notice was served, and they were unaware of the proceedings until informed via email, which did not clarify the status of the hearings. The Departmental Representative (D/R) contended that notices were duly served but did not object to the matter being restored back to the ld. CIT(A), provided a cost was imposed.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28538 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 19-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 09-10-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ SINGH MEEL; DR
• Assessee Lawyers: LAVANYA RAJPUROHIT; AR
• Keywords: Opportunity of being heard

Judgement Text

" | | | | आयकरअपीलीयअिधकरण\fायपीठ,मुंबई| | | | IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, HON’BLE JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, HON’BLE ACCOUNTANT MEMBER I.T.A. No.5299/Mum/2024 Assessment Year: 2017-18 Trishla Developers 1397, Gr. Floor Meru Shikhar Bldg Railway Station Road Kamatghar Bhiwandi - 421302 [PAN: AAFFT2773C] Vs Income Tax Officer, Ward-1(4), Kalyan अपीलाथ\u0015/ (Appellant) \u0016त् यथ\u0015/ (Respondent) Assessee by : Shri Lavanya Rajpurohit, A/R Revenue by : Shri Raj Singh Meel, Sr. D/R सुनवाईकीतारीख/Date of Hearing : 19/11/2024 घोषणाकीतारीख/Date of Pronouncement :19/11/2024 आदेश/O R D E R PER SANDEEP GOSAIN, JM: The present appeal by theassessee is preferred against the orderdated 20/02/2024, passed by the NFAC, Delhi, [hereinafter ‘the ld. CIT(A)’] pertaining to AY 2017-18. 2. At the very outset, we notice on the perusal of case file that the ld. CIT(A) has passed an ex-parteorder thereby confirming the additions made by the AO. 3. The ld. A/R appearing on behalf of the assessee submitted that no notice in the physical form was ever served upon the assessee during the course of proceedings pending before the ld. CIT(A). It was also submitted that the assessee could not know from the e-mail that the proceedings before the ld. CIT(A) were pending and what was the fate of those hearings going on before the ld. CIT(A). Therefore, the ld. A/R submitted that since proper opportunity could not be granted to the assessee, therefore, the matter be restored back to the file of the ld. CIT(A) for deciding the issues raised by the assessee o 3.1. On the contrary, the ld. D/R submitted that due notices were served upon the assessee but he has no objection in case the matter is restored back to the file of ld. CIT(A), subject to payment of cost. 4. We have heard the ld. Counsels of bot carefully perused the material placed on record as well as the orders passed by the revenue authorities. 5. In our view, the interest lisbetween the parties is decided on merits after affording fa opportunity of being heard to the assessee. Therefore, considering the above factual and legal position, the Bench feels that ends of justice would be met only if the matter is restored back to the file of the ld. CIT(A) for deciding the matter afresh a of the revenue would not be prejudiced. Further in case proper and sufficient opportunity is not granted to the assessee, then in that eventuality, the rights of the assessee would be prejudiced. However, for the lethargic and negligent action on part of the assessee, a cost of Rs.2000/- is imposed and the same shall be deposited by the assessee in the Prime Minister Relief Fund and copy of the same shall be submitted to the ld. CIT(A) for proof and thus the appeal of the to the file of the ld. CIT(A) to decide it afresh by providing one more opportunity of hearing I.T.A. No. 5299/Mum/2024 2 before the ld. CIT(A) were pending and what was the fate of those rings going on before the ld. CIT(A). Therefore, the ld. A/R submitted that since proper opportunity could not be granted to the assessee, therefore, the matter be restored back to the file of the ld. CIT(A) for deciding the issues raised by the assessee on merits. On the contrary, the ld. D/R submitted that due notices were served upon the assessee but he has no objection in case the matter is restored back to the file of ld. CIT(A), subject to payment of cost. We have heard the ld. Counsels of both the parties and have carefully perused the material placed on record as well as the orders passed by the revenue authorities. In our view, the interests of justice would be met in case the between the parties is decided on merits after affording fa opportunity of being heard to the assessee. Therefore, considering the above factual and legal position, the Bench feels that ends of justice would be met only if the matter is restored back to the file of the ld. CIT(A) for deciding the matter afresh and in that eventuality, the rights of the revenue would not be prejudiced. Further in case proper and sufficient opportunity is not granted to the assessee, then in that eventuality, the rights of the assessee would be prejudiced. However, for c and negligent action on part of the assessee, a cost of is imposed and the same shall be deposited by the assessee in Prime Minister Relief Fund and copy of the same shall be submitted CIT(A) for proof and thus the appeal of the assessee is restored to the file of the ld. CIT(A) to decide it afresh by providing one more opportunity of hearing to the assessee. I.T.A. No. 5299/Mum/2024 before the ld. CIT(A) were pending and what was the fate of those rings going on before the ld. CIT(A). Therefore, the ld. A/R submitted that since proper opportunity could not be granted to the assessee, therefore, the matter be restored back to the file of the ld. n merits. On the contrary, the ld. D/R submitted that due notices were served upon the assessee but he has no objection in case the matter is restored back to the file of ld. CIT(A), subject to payment of cost. h the parties and have carefully perused the material placed on record as well as the orders of justice would be met in case the between the parties is decided on merits after affording fair opportunity of being heard to the assessee. Therefore, considering the above factual and legal position, the Bench feels that ends of justice would be met only if the matter is restored back to the file of the ld. nd in that eventuality, the rights of the revenue would not be prejudiced. Further in case proper and sufficient opportunity is not granted to the assessee, then in that eventuality, the rights of the assessee would be prejudiced. However, for c and negligent action on part of the assessee, a cost of is imposed and the same shall be deposited by the assessee in Prime Minister Relief Fund and copy of the same shall be submitted assessee is restored to the file of the ld. CIT(A) to decide it afresh by providing one more 5.1. At the same time, we make it clear that the assessee, shall any adjournment on frivolous ground and remain c the course of proceedings. Thus statistical purposes. 6. Before parting, matter back to the file of the ld. CIT(A) shall in no way be construed a having any reflection or expression on the merits of the dispute, which shall be adjudicated by ld. CIT(A) independently in accordance with law. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court Sd/ (PRABHASH SHANKAR ACCOUNTANT Mumbai, Dated 19/11/2024 * * * *SC SrPs SC SrPs SC SrPs SC SrPs आदेशकी\u0014ितिलिपअ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b/ The Appellant 2. \u0014\u001cथ\u001b/ The Respondent 3. संबंिधतआयकरआयु!/ Concerned Pr. CIT 4. आयकरआयु! ) अपील ( / The CIT(A) 5. िवभागीय\u0014ितिनिध ,आयकरअपीलीयअिधकरण 6. गाड%फाई/Guard file. I.T.A. No. 5299/Mum/2024 3 At the same time, we make it clear that the assessee, shall any adjournment on frivolous ground and remain cooperative during the course of proceedings. Thus, the appeal of the assessee is allowed for Before parting, we make it clear that our decision to restore the matter back to the file of the ld. CIT(A) shall in no way be construed a having any reflection or expression on the merits of the dispute, which shall be adjudicated by ld. CIT(A) independently in accordance with law. In the result, appeal of the assessee is allowed for statistical Order pronounced in the Court on 19thNovember, 2024 at Mumbai. Sd/- Sd/- PRABHASH SHANKAR) (SANDEEP GOSAIN ACCOUNTANTMEMBER JUDICIAL MEMBER 4 Copy of the Order forwarded to : / The Appellant / Concerned Pr. CIT / The CIT(A)- आयकरअपीलीयअिधकरण,मुंबई/DR,ITAT, Mumbai, आदेशानुसार आयकरअपीलीयअिधकरण I.T.A. No. 5299/Mum/2024 At the same time, we make it clear that the assessee, shall not seek ooperative during the appeal of the assessee is allowed for decision to restore the matter back to the file of the ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by ld. CIT(A) independently in accordance with law. In the result, appeal of the assessee is allowed for statistical , 2024 at Mumbai. SANDEEP GOSAIN) MEMBER आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकरअपीलीयअिधकरण ITAT, Mumbai "