WHALE BLUE HI TECH PRIVATE LIMITED (FORMERLY KNOWN AS CZAR CONSTRUCTIONS PVT LTD),PATNA V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2, PATNA., PATNA

ITA 372/PAT/2023

AI Insights

The case involves Whale Blue Hi Tech Private Limited, formerly known as Czar Constructions Pvt. Ltd., which appealed against the orders of the Assistant Commissioner of Income Tax and the Commissioner of Income-tax (Appeals). The primary contention was the ex-parte orders passed due to the non-compliance of the assessee to hearing notices, which the assessee argued were insufficient and did not adhere to the principles of natural justice. The ITAT found merit in the assessee's request for a fair hearing and remanded the case back to the CIT(A) for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 33448 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 144; 143(3); 250; 263

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA BENCH” PATNA (VIRTUAL HEARING AT KOLKATA) SHRI DUVVURU RL REDDY, VICE PRESIDENT SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 372/Pat/2023 Assessment Year: 2014-15 Whale Blue Hi Tech Private Limited, (Formerly known as Czar Constructions Pvt. Ltd.), Patna, 173, 8th Floor, Grand Apartment, Fraser Road, Patna - 800001 [PAN: AACCC7432R] .....................…...…………….... Appellant vs. Assistant Commissioner of Income Tax, Circle-2, Patna 4th Floor, Lok Nayak Jai Prakash Bhawan, Fraser Road, Patna - 800001 ...........…..…..................... Respondent Appearances by: Assessee represented by : Shri Rakesh Joshi, AR Department represented by : Ashwani Kr. Singal, JCIT Date of concluding the hearing : 31.12.2024 Date of pronouncing the order : 06.01.2025 ORDER PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. The present appeal arises from order under Section 250 of the Income Tax Act, 1961 (hereafter ‘the Act’) dated 30.10.2023, passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the “Ld. CIT(A)”] for A.Y. 2014-15. I.T.A. No. 372/Pat/2023 Whale Blue Hi Tech Private Limited (Formerly known as Czar Constructions Pvt. Ltd.), Patna 2 1.1 In this case, the assessee is a company engaged in the business of civil construction. The income was assessed under Section 143(3) read with section 144 of the Act at a total income of Rs. 3,15,00,409/-. The Ld. AO is seen to have passed an exparte order on the ground that no compliance was made to notices fixing the case for hearing. The assessee met with similar fate before the Ld. CIT(A) also as there to the Ld. CIT(A) was constrained to pass an exparte order since the assessee did not respond to notices fixing the case for hearing. 2. Aggrieved with the action of the Ld. CIT(A), the assessee has approached the ITAT with the following grounds of appeal: “1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in passing the ex-parte order, without granting sufficient opportunity of being heard to the appellant. 2. On the facts and circumstances of the case, the Learned CIT(A) has erred in confirming the order passed by the Learned Assessing Officer u/s.144. r.w.s 263 of the Income Tax Act, 1961 without appreciating the fact that impugned order was passed without providing adequate opportunity of being heard to the appellant and without following the principles of natural justice. 3. On the facts and circumstances of the case, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in disallowing the expenses claimed in profit and loss account on account of \"Extension of time\" amounting to Rs.33,68,518/- by treating the same as alleged penalty paid for non-completion of work within stipulated time. 4. The appellant craves leave to add, amend, alter or delete the said ground of appeal.” 2.1 Before us, the Ld. Authorised Representative prayed for one more opportunity to present his case before the authorities below so that he has a chance to prove his bonafides and ensure that the correct income is assessed to tax. 2.2 The Ld. DR did not have any objection in case the matter was to be remanded back to the Ld. CIT(A) for fresh adjudication. 3. We have considered the averment of the Ld. AR/DR and also gone through the records. It is clear that the assessee could not avail of I.T.A. No. 372/Pat/2023 Whale Blue Hi Tech Private Limited (Formerly known as Czar Constructions Pvt. Ltd.), Patna 3 opportunities to present his case before the authorities below. Accordingly, in the interest of substantive justice, we deem it fit to remand the matter back to the file of Ld. CIT(A) for fresh adjudication after giving an opportunity of being heard to the assessee. Needless to say, the assessee would do well to avail of opportunities provided and would be vigilant about pursuing his case diligently before the First Appellate Authority. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the court on 06.01.2025 Sd/- Sd/- [Duvvuru RL Reddy] [Sanjay Awasthi] Vice President Accountant Member Dated: 06.01.2025 AK, PS Copy of the order forwarded to: 1. Whale Blue Hi Tech Private Limited, (Formerly known as Czar Constructions Pvt. Ltd.), Patna 2. Assistant Commissioner of Income Tax, Circle-2, Patna 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "