VARSHA GIRISHKUMAR PIPALAVA,RAJKOT V. INCOME TAX OFFICER, RAJKOT

ITA 823/RJT/2024

AI Insights

The case involves an appeal by Varsha G Pipalava against the order passed by the Learned Commissioner of Income Tax (Appeal), which was based on an assessment order by the Assessing Officer. The appeal was initially not contested by the assessee, leading to suggestions from the Senior Departmental Representative for imposing costs due to wastage of resources. However, the Tribunal noted that the CIT(A) had not adequately addressed the grounds raised by the assessee as required under section 250(6) of the Income-tax Act, 1961. Consequently, the Tribunal decided to remit the case back to the Assessing Officer for a fresh assessment, emphasizing the need for adherence to the principles of natural justice and fair play.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313982 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Assessment record
• Section: 147

Judgement Text

"ITA No.823/Rjt/2024 (AY-17-18) Varsha G Pipalava 1 आयकर अपीलीय अिधकरण, राजकोट Ɋायपीठ, राजकोट। 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.823/RJT/2024 िनधाŊरणवषŊ / Assessment Year: (2017-18) Varsha Girishkumar Pipalava, Shivam Street No.3, Chitrakut Dham Akshar Marg, Rajkot-360 001 बनाम Vs. Income Tax Officer, Ward- 1(1)(5), Rajkot Öथायीलेखासं /. जीआइआरसं /. PAN/GIR No.CICPP 9452K (अपीलाथȸ/Appellant) .. (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : None राजèव कȧ ओर से/Revenue by : Shri Abhimanyu Singh Yadav, Sr-DR सुनवाई कȧ तारȣख /Date of Hearing : 07/05/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 07/05/2025 आदेश/Order PerDr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2017-18, is directed against the order passed by the Learned Commissioner of Income Tax (Appeal), Addl/JCIT(A)-3, Mumbai [in short ‘Ld.CIT(A)’], under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), dated 09.02.2024, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144(1)(b) of the Act, dated 27.06.2019. 2. Notice of hearing of this appeal was sent to the assessee at the address given by the assessee in Form No.36. The said notice has not been returned unserved. Today when the case was called for hearing none appeared on behalf of the assessee nor any request for adjournment was made. Three opportunities ITA No.823/Rjt/2024 (AY-17-18) Varsha G Pipalava 2 of hearings were given to the assessee. It means that assessee is not interested in prosecuting this appeal. The Ld. Sr-DR submitted that assessee had nowhere furnished documentary evidence during the proceeding before lower authorities. Therefore, heavy cost of Rs.5,000/- should be imposed on the assessee, if the matter is remitted back to the file of lower authorities, as the assessee is wasting time and resources of the lower authorities. 3. Having heard the Ld. Sr-DR for the Revenue and gone through materials available on record. We note that in the assessee’s case under consideration, the assessment was carried out u/s 147 r.w.s.144 of the Act and the impugned order passed by the ld. CIT(A), is an ex parte order and non-speaking order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee. We note that ld. CIT(A) has not decided the issue in respect of the ground raised by the assessee in Memo of Appeal as per the mandate of provisions of section 250(6) of the Act. The ld. CIT(A) has not examined assessment records and relevant documents and has not passed any speaking order. Considering the above facts, 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. On account of non- compliance attitude of the assessee a cost of Rs. 5000/- is imposed on the assessee. Accordingly, we hold that the interests of justice would be met, if the Assessing Officer re-adjudicates the entire issue afresh subject to payment of cost of Rs.5,000/- (Rupees five thousand only) by the assessee to the credit of the “Prime Minister Relief Fund” within 2 weeks from receipt of this order. If the assessee makes default in making the payment of cost then the consequential proceedings would be deemed, as vacation of our instant remand order. We set aside the order of CIT(A) and remit the matter back to the file of Assessing Officer with a direction to pass de novo assessment order in accordance with law after granting adequate opportunity of hearing to the assessee. The assessee ITA No.823/Rjt/2024 (AY-17-18) Varsha G Pipalava 3 is directed to be more vigilant and diligent and to furnish all the details and explanations as needed by the Assessing Officer by not seeking adjournment without valid reasons. With these directions, the grounds of appeal raised by the assessee are allowed for statistical purposes. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 07/05/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (DR.ARJUNLALSAINI) Æयाियक सदÖय/JUDICIAL MEMBER लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 07/05/2025 DKP Outsourcing Sr.P.S आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File // True Copy // By order/आदेश से , सहायक पंजीकार आयकरअ पीलीय अिधकरण ,राजकोट "