ANITA VINOD MISHRA,VIVEK KHAND ,GOMTI NAGAR V. ACIT- 1, LUCKNOW-NEW, PRATYAKSH KAR BHAWAN, LUCKNOW

ITA 247/LKW/2024

AI Insights

The case involves an appeal by Anita Vinod Mishra against the order of the CIT(A), Lucknow, which confirmed an addition of Rs.8,00,000 under section 68 of the Income Tax Act, 1961, for the assessment year 2017-18. The Assessing Officer had initially made this addition and also restricted the agricultural income claimed by the assessee. The CIT(A) dismissed the appeal due to non-compliance by the assessee in responding to notices. However, the ITAT found that the CIT(A) had a statutory duty to pass a speaking order on the merits of the case, regardless of the assessee's non-compliance, and noted a violation of the principle of natural justice as the assessee was not given an opportunity to respond to the report used by the AO to determine agricultural income.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 23974 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 16-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “SMC”, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA No.247/LKW/2024 Assessment Year: 2017-18 Anita Vinod Mishra 4/15, Vivek Khand, Gomti Nagar, Lucknow-226010. v. ACIT-1 Lucknow New, Pratyaksh Kar Bhawan, 226001. PAN:AIPPM9730J (Appellant) (Respondent) Appellant by: None (Adj application filed) Respondent by: Shri Sanjeev Krishna Sharma, Addl. CIT(DR) Date of hearing: 19 11 2024 O R D E R PER ANADEE NATH MISSHRA, A.M.: This appeal has been filed by the assessee against the order of the Ld. CIT(A), Lucknow dated 15.02.2024 for the assessment year 2017-18. The grounds of appeal of the assessee are as under: - “1 That, in law and in the facts and circumstances of the appellant’s case, the learned CIT(A) erred in confirming the addition of Rs.8,00,000/- u/s 68. The addition may kindly be deleted. 2. That the addition made by AO & sustained by the Ld. CIT(A) is arbitrary, unwarranted, unjustified and unsustainable in law and on facts therefore, addition to be deleted. 3. That the appellant seeks permission to modify and/or add any other ground or grounds of appeal as the circumstances of the case might required or justify.” 2. In this case, the assessment order dated 18.12.2019 was passed by the Assessing Officer (“AO”) u/s 143 of the Income Tax Act, 1961 (hereinafter “the Act”) as against the total income of Rs.18,40,000/- and agricultural income of Rs.11,00,000/- ITA No.247/LKW/2024 Page 2 of 4 showing by the assessee in the return of income. The Assessing Officer, in the aforesaid assessment order dated 18.12.2019, restricted the agricultural income to Rs.3,00,000/- and made an addition of Rs.8,00,000/-. Aggrieved, the assessee filed appeal in the office of the Ld. CIT(A). Vide impugned appellate order dated 15.02.2024, the Ld. CIT(A) dismissed the assessee’s appeal. The present appeal has been filed by the assessee in Income Tax Appellate Tribunal (ITAT) against the aforesaid impugned appellate order dated 15/02/2024 of the Ld. CIT(A). 3. At the time of hearing before us, the Assessee was represented by none. In the absence of any representation from the assessee’s side, I have heard the Ld. Sr. Departmental Representative (“DR”). He relied on the orders passed by the aforesaid order dated 18.12.2019 of the Assessing Officer as well as order dated 15.02.2024 of the Ld. CIT(A) respectively. 4. On perusal of the impugned appellate order dated 15.02.2024 of the Ld. CIT(A), we find that the Ld. CIT(A) had issued notices, which however, were not complied with by the assessee. Taking adverse view of non-compliance from assessee’s side the Ld. CIT(A) dismissed the assessee’s appeal for want of prosecution. However, the Ld. CIT(A) has statutory duty, prescribed u/s 250(4) & 250(6) of the Act to pass a speaking order on the merits of the case whether or not there was any representation from the assessee’s side. The order of the Ld. CIT(A) in disposing of the assessee’s appeal, is required to be in writing, and the order is further required to contain the point for determination, the decision thereon and the reason for the decision. Thus, it is the statutory duty of the Ld. CIT(A) to pass a speaking order on merits of the case. Thus, dismissing the assessee’s appeal in limine, for want of prosecution, without going ITA No.247/LKW/2024 Page 3 of 4 into the merits of the case was erroneous on the part of the Ld. CIT(A). Further, on perusal of the assessment order dated 18.12.2019, it is found that the Assessing Officer used report of Department of Agriculture, Government of Uttar Pradesh to determine the yield of menthe oil per hectare. Furthermore, on perusal of the assessment order, it is obvious that this report was not shared with assessee, in the assessee’s response to it has not been obtained. This is clear violation of principle of natural justice. 5. In view of the foregoing and in the specific facts and circumstances of the present case before us; the impugned order dated 15/02/2024 of the Ld. CIT(A) is set aside and the issue in dispute regarding the aforesaid addition of Rs.8,00,000/- is restored back to the file of the Ld. CIT(A), with direction to pass denovo order in accordance with law, after providing reasonable opportunity to the assessee. All grounds of appeal are treated as disposed of in accordance with the aforesaid direction. 6. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 26/11/2024. Sd/- [ANADEE NATH MISSHRA] ACCOUNTANT MEMBER DATED: 26/11/2024 Vijay Pal Singh, (Sr. PS) ITA No.247/LKW/2024 Page 4 of 4 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "