FAIZ AHAMAD,SIWAN V. ITO, WARD-2(3), SIWAN, SIWAN

ITA 692/PAT/2024

AI Insights

The case involves two appeals by the assessee, Faiz Ahamad, against the orders of the Commissioner of Income Tax (Appeals), NFAC, Delhi. The first appeal (ITA No. 691/Pat/2024) was against the quantum appeal for the assessment year 2017-18, and the second appeal (ITA No. 692/Pat/2024) was against a penalty levied under section 271AAC(1) of the Income Tax Act. The tribunal found that the explanations and evidence provided by the assessee were not considered by the CIT(A) and thus restored the matter to the Assessing Officer for a fresh examination. The penalty appeal was dismissed following the restoration of the quantum appeal, with a provision for re-initiation of penalty proceedings if necessary.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 36754 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: SANJEEV KUMAR
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 250

Judgement Text

"sIN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA VIRTUAL HEARING AT KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No. 691 & 692/PAT/2024 Assessment Year: 2017-18 Faiz Ahamad 28/292, East Makhdoom Saray, Siwan, Bihar-841226. (PAN: APQPA6644B) Vs ITO, Ward-2(3), Siwan (Appellant) (Respondent) Present for: Appellant by : Shri Sanjeev Kumar, Advocate Respondent by : Shri Ashwani Kr. Singal, JCIT Date of Hearing : 03.04.2025 Date of Pronouncement : 03.04.2025 O R D E R Per Bench : ITA No. 691/Pat/2024 filed by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeal), NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 vide order dated 08.10.2024 passed against the quantum appeal and ITA No. 692/Pat/2024 of the assessee is against the order of the Ld. CIT(A) dated 23.10.2024 is against the penalty levied u/s. 271AAC(1) of the Act. 2. Shri Sanjeev Kumar, Advocate represented on behalf of the assessee and Shri Ashwani Kr. Singal, JCIT, DR appeared on behalf of the revenue. 2 ITA Nos.691 & 692/Pat/2024 Faiz Ahamad, AY 2017-18 3. It was submitted by the Ld. AR that the assessee had responded to the notice issued by the Ld. CIT(A), however, the Ld. CIT(A) has not considered the explanations given by the assessee. The proof of filing the confirmations is as follows: 3 ITA Nos.691 & 692/Pat/2024 Faiz Ahamad, AY 2017-18 4. It was the submission by the Ld. AR that the issue may be restored to the file of the Assessing Officer as all these evidences can be considered by the Assessing Officer. The Ld. Sr. DR has not raised any serious objection to this prayer of the Ld. AR of the assessee. 5. We have heard the rival submissions. As it is noticed that the assessee has not produced these evidences before the Assessing Officer although the same has produced before the Ld. CIT(A) and the Ld. CIT(A) has failed to take into consideration the submission of the assessee. In the interest of natural justice, the issues in this appeal are restored to the file of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity of being heard. Therefore, the ITA No. 691/Pat/2024 filed by the assessee is partly allowed for statistical purposes. 6. ITA No. 692/Pat/2024 is against the penalty levied u/s. 271AAC(1) of the Act. As the quantum appeal has already been restored to the file of the Assessing Officer for re-adjudication afresh and this being a penalty 4 ITA Nos.691 & 692/Pat/2024 Faiz Ahamad, AY 2017-18 levied in respect of the said set aside assessment, the same shall also stand quashed. However, liberty is given to the Assessing Officer to initiate penalty proceedings in the event it is found necessary in the said set aside assessment proceedings. 7. In the result, the appeal of the assessee in ITA No. 691/Pat/2024 is partly allowed for statistical purposes and ITA No. 692/Pat/2024 is dismissed. Order dictated and pronounced in the open court. Sd/- Sd/- (Rakesh Mishra) (George Mathan) Accountant Member Judicial Member Dated: 3rd April, 2025 JD, Sr. P.S. Copy to: 1. The Appellant: Shri Faiz Ahamad, Siwan 2. Respondent – ITO, Ward-2(3), Siwan 3. CIT(A), NFAC, Delhi 4. Pr. CIT 5. DR, ITAT, Patna 6. Guard file. True Copy By Order Assistant Registrar ITAT, Patna "