Urjafuture Systems India Private Limited, Pune V. Principal Commissioner of Income Tax - 4, Pune

ITA 114/PUN/2021

AI Insights

The case involves Urjafuture Systems (I) P. Ltd., which appealed against the order of the Pr. CIT Pune-4 under Section 263 of the Income-tax Act, 1961. The Pr. CIT had set aside the original assessment order, citing lack of proper verification and non-application of relevant provisions of the Act. The assessee contested that the original assessment had been conducted with due diligence and that the Pr. CIT's order was unjustified. The Tribunal acknowledged the procedural shortcomings during the pandemic and the lack of adequate representation for the assessee, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 124454 (ITAT-PUNE)
• Duration Of Justice: 17 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-11-2022
• Assessment Year: misc
• Appeal Filed On: 04-09-2005
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 114/PUN/2021 : A.Y. 2015-16 Urjafuture Systems (I) P. Ltd. 201, Kumar Padma, Behind Modern High School, Shivajinagar, Pune-411 005 PAN: AACCT 9182 D Appellant Vs. The Pr. C.I.T. Pune-4 Respondent Appellant by : Smt. Deepa Khare Respondent by : Shri Sardar Singh Meena Date of Hearing : 16-11-2022 Date of Pronouncement : 16-11-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This appeal preferred by the assessee emanates from the order of the Ld. Pr. C.I.T. 4, dated 31-03-2021 for A.Y. 2015-16 passed u/s 263 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) as per the following grounds of appeal. 1. Ld CIT erred in law and on facts in invoking jurisdiction under Section 263 and setting aside Assessment Order for fresh assessment on the ground that assessment has been framed without proper verification and without applying relevant provisions of the Act. 2. Ld CIT erred in law and on facts in not appreciating that during assessment proceedings, the ld AO has applied his mind after proper enquiries an adopted a course permissible in law. 3. The Ld CIT erred in law and on facts in disregarding the enquiries made by Id AO during Assessment proceedings and the submissions made by the assesse in connection with Genuineness of Share Application Money and also the applicability of See 56(2)(viia). 4. The Order of the Id CIT being unjustified in law and on facts may kindly be cancelled. 5. The appellant craves leave to add, alter, modify or substitute any ground of appeal at the time of hearing.” 2 ITA No. 114/PUN/2021 Urjafuture Systems (I) P.Ltd. A.Y. 2015-16 2. The solitary grievance of the assessee in this case is the assumption of revisionary jurisdiction and passing order by the ld. Pr. CIT u/s 263 of the Act. At the very outset, the ld. Counsel referring to the grounds of appeal submitted that the order u/s 263 has been passed without proper verification and without application of mind by the ld. Pr. C.I.T and that there has not been adequate queries conducted by the ld. Pr. C.I.T. The ld. Counsel further emphasized that it was the covid 19 period when the hearing was scheduled and though on the initial date of hearing, the Director of the Company Mr. Vikram Kothari had appeared along with Chartered Accountant of the assessee-company but due to the lockdown on account of Covid 19 pendemic subsequently, the assessee did not comply with the hearing notice because of the circumstances prevailing during that point of time. This fact is evident from para 3 of the order passed u/s 263 of the Act. The ld. D.R also conceded to these facts and submitted that he does not have any objection if the matter is remanded back to the file of the ld. Pr. CIT for re-adjudication as per law. 3. Having heard the parties and on perusal of the order passed by the ld. Pr. C.I.T. of the Act specifically para 3 of his order, it is clear that due to the lockdown and pandemic situation prevailing during that time the assessee was prevented from not appearing hearing before the ld. Pr. C.I.T. It is therefore, crystal clear that the ld. Pr. C.I.T did not get an opportunity to examine the point of view of the assessee vis-à-vis the assessment order. The assessee also could not represent their case on merits during the proceedings before the ld. Pr. C.I.T. In the interest of justice, we are of the considered view that one more opportunity is desirable in this matter and the case needs to be re-adjudicated after due verification by the ld. Pr. C.I.T. while assuming revisionary jurisdiction u/s 263 of the Act. In view thereof, we set aside the order of the ld. Pr. C.I.T. and remand the matter back to his file with directions hereinabove. In the result, the grounds of appeal are allowed for statistical purposes. 3 ITA No. 114/PUN/2021 Urjafuture Systems (I) P.Ltd. A.Y. 2015-16 4. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on this 16 th November 2022 Sd/- sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune; Dated, the 16 th day of November 2022 Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The Pr. C.I.T. Pune-4 4. D.R. ITAT „B‟ Bench 5. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 4 ITA No. 114/PUN/2021 Urjafuture Systems (I) P.Ltd. A.Y. 2015-16 1 Draft dictated on 15-11-2022 Sr.PS/PS 2 Draft placed before author 15-11-2022 Sr.PS/PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 16-11-2022 Sr.PS/PS 7 Date of uploading of order 16-11-2022 Sr.PS/PS 8 File sent to Bench Clerk 16-11-2022 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order