HEENA DINESHKUMAR SUKHANANDI, MUMBAI V. INCOME TAX OFFICER, WARD-20(1)(1), MUMBAI

ITA 1018/MUM/2023

AI Insights

The case involves two appeals by the assessee, Heena Dineshkumar Sukhanandi, against the orders of the CIT(A)/National Faceless Appeal Centre (NFAC), Delhi, which were passed under section 250 of the Income Tax Act. The appeals pertain to the assessment years 2013-14 and 2015-16. The primary issue was the non-filing of income tax returns by the assessee, despite having received rental income and interest income, which were not reported for tax. The Assessing Officer (A.O.) issued notices under sections 148, 143(2), and 142(1) of the Act, leading to an assessment of additional income. The CIT(A) upheld the A.O.'s decision due to the assessee's non-compliance with hearing notices. The Tribunal, emphasizing the principles of natural justice, decided to provide another opportunity for the assessee to present her case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299890 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-06-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 29-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 148; 44AD; 143(3); 142(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 1018 & 1019/Mum/2023 (Assessment Year: 2015-16 & 2013-14) Heena Dineshkumar Sukhanandi A-2404, 24 th Floor, Omkar Veda CHSL, GD Ambedkar Marg, Parel, Mumbai-400012. बनाम/ Vs. ITO – 20(1)(5) Room No. 124, Piramal Chambers, Lalbaug Parel, Mumbai-400012. ा लेखा सं./ज आइआर सं./PAN/ GIR No. : ASSPS0021 R ( /Appellant) ( / Respondent) / Appellant by : Mr.Kumar Kale.AR /Respondent by : Ms.Kavita Kaushik.DR ुनव ई त ख / D a t e o f H e a r i n g 14/06/2023 घोषण त ख /D a t e o f P r o n o u n c e m e n t 15/06/2023 आद श / ORDER PER PAVAN KUMAR GADALE - JM: These are the two appeals filed the assessee against the separate Ex-Parte orders of the CIT(A)/ National Faceless Appeal Centre (NFAC)Delhi passed u/s 250 of the Act. Since the issues in these appeals are interlinked and identical, hence are clubbed, heard and a consolidated order is passed. For the sake of convenience, shall take up the ITA No. 1019/Mum/2023 for the A.Y. 2013-14 as a lead case and the facts narrated 2 ITA No. 1018 & 1019/Mum/2023 Heena Dineshkumar Sukhanandi, Mumbai 2. The brief facts of the case are that the assessee has not filed the return of income for the A.Y 2013-14. The Assessing officer(A.O.) has obtained the information that the assessee has received rental income of Rs. 27,20,900/- and interest of Rs. 10,425/- and was not offered to Tax. Therefore the AO has reason to believe that the income has escaped the assessment and issued notice u/s 148 of the Act. In compliance to the notice, the assessee has filed the return of income for A.Y 2013-14 on 24.08.2018 disclosing a total income of Rs.12,28,690/- and the AO has issued notice U/sec143(2) and u/s 142(1) of the Act and the Ld. AR of the assessee appeared from time to time and furnished the details. The AO dealt on the facts and information with respect to the Income from house property and interest income and has rejected the claim of offering the business income u/s 44AD of the Act and made an addition of Rs. 12,88,000/- under income from house property and assessed the total income of Rs.18,03,090/- and passed the order u/s 143(3) r.w.s 147 of the Act dated 11.12.2018. 3. 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 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 3 ITA No. 1018 & 1019/Mum/2023 Heena Dineshkumar Sukhanandi, Mumbai order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the submissions made in the assessment proceedings. Further the assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Contra, the Ld. DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 4 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 assessee has raised grounds of appeal challenging the additions of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide one 4 ITA No. 1018 & 1019/Mum/2023 Heena Dineshkumar Sukhanandi, Mumbai 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 assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. Accordingly, we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. ITA No. 1018/Mum/2023, A.Y 2015-16. 7.As the facts and circumstances in this appeal is identical to ITA No 1019/Mum/2023, A.Y 2013-14 on the disputed issues and the decision rendered in the above paragraphs will apply mutatis mutandis to this appeal also. Accordingly, the grounds of appeal of the assessee are allowed for statistical purpose.. 8. In the result, the two appeals filed by the assesee are allowed for statistical purpose. Order pronounced in the open court on 15.06.2023. Sd/- Sd/- (S RIFAUR RAHMAN) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 15/06/2023 KRK, PS 5 ITA No. 1018 & 1019/Mum/2023 Heena Dineshkumar Sukhanandi, Mumbai आदेश की ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. ! ! " / The CIT(A) 4. ! ! "( ) / Concerned CIT 5. # $ ! , ! ! ण, मु瀓बई / DR, ITAT, Mumbai 6. $ %& ' / Guard file. आदेशानुसार/ BY ORDER, //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु瀓बई मु瀓बईमु瀓बई मु瀓बई / ITAT, Mumbai