ARUN SIDDU NAIK,KARWAR V. ASSESSMENT UNIT, NFAC, DELHI

ITA 214/PAN/2024

AI Insights

The case involves Arun Siddu Naik, the appellant, who contested the order of the National Faceless Appeal Centre (NFAC) / CIT(A) regarding the addition made by the Assessing Officer (A.O) under sections 147 and 144B of the Income Tax Act. The A.O. had denied the claim of exemption on additional compensation received, which was assessed under long-term capital gains, increasing the total income assessed. The CIT(A) dismissed the appeal ex-parte due to non-compliance and non-appearance of the assessee. The Tribunal, considering the circumstances and principles of natural justice, decided to remit the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32335 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Next Hearing Date: 27-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 29-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAZEERA MOHAMMED.
• Keywords: Capital Gains; Principle of natural justice
• Section: 147; 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 214/PAN/2024 (A.Y. 2018-19) Arun Siddu Naik, 45/A, Village AmadalliMajare,I Hunachemakki Amdalli, Karwar-581324. Karnataka. Vs . NFAC, New Delhi. . PAN .No. AOGPN3554G (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None Revenue by Ms.Nazeera Mohammed.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 27.11.2024 घोषणा कȧ तारȣख/Date of Pronouncement 28.11.2024 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 147 r.w.s144 and u/sec 250 of the Act. 2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and the Ld. DR has no specific objections. Accordingly, we condone the 2 ITA. No. 214/PAN/2024 Arun Siddu Naik. Karwar delay and admit the appeal. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition made by the Assessing Officer. 3. The brief facts of the case are that, the assesse is an individual and has filed the return of income in response to notice u/sec148 of the Act on 28.04.2022 disclosing a total income of Rs.14,99,200/- The Assessing Officer(A.O) based on the information as per insight portal of the department has issued notice u/sec142(1) of the Act calling for the details and explanations on the interest income earned from deposits with the Federal Bank Ltd and compensation from the office of special land acquisition. Whereas the assesse has filed the details on the various dates in the assessment proceedings. The A.O. has dealt on the information and details and finally observed that the assessee has not complied with the conditions laid down u/sec10(37) of the Act and hence the claim of exemption on the additional compensation of Rs.9,17,906/- is denied and was made chargeable to tax under head long term capital gains and assessed the total income of Rs.24,17,100/-and passed the order u/sec 147 r.w.s144B of the Act dated 29.03.2023. 4. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was 3 ITA. No. 214/PAN/2024 Arun Siddu Naik. Karwar no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at Para 4 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the 4 ITA. No. 214/PAN/2024 Arun Siddu Naik. Karwar assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 28.11.2024. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 28/11/2024 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No. 214/PAN/2024 Arun Siddu Naik. Karwar Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "