Primary Agriculture Credit Socity, Ghaterfa V. The ITO Vidisha, Vidisha

ITA 148/Ind/2023

AI Insights

The appeals by the Revenue were directed against the orders passed by the Ld. CIT(A), which were ex-parte and dismissed the appeals of the assessee for non-prosecution. The assessee, represented by Shri Ashish Goyal & Shri N.D. Patwa, ARs, argued that due to non-communication of notices from the CIT(A), they were unable to appear or represent before the Ld. CIT(A). The Tribunal noted the procedural lapses and the long delay since the original appeal was filed in 2015, leading to the decision to remand the case for a fresh hearing on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130720 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 11-09-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 17-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c); 143(3)

Judgement Text

Page 1 of 4 आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.148 & 149/Ind/2023 (Assessment Years:2012-13 ) Primary Agriculture Credit Society Ghatera, Vidisha Vs. ITO Vidhisha (Appellant / Assessee) (Revenue) PAN: AAAAP 4575G Assessee by Shri Ashish Goyal & Shri N.D. Patwa, ARs Revenue by None Date of Hearing 12.09.2023 Date of Pronouncement 14.09.2023 O R D E R PER BENCH: These appeals by the Revenue are directed against two separate orders dated 26.02.2023 & 21.02.2023 arising from penalty order passed u/s 271(1)(c) and assessment order passed u/s 143(3) of the Act respectively for A.Y.2012-13. 2. Ld. Sr. DR is not present due to his official tour to Ahmedabad and an application for adjournment of hearing has been filed by the ITO, office of CIT-DR. However, at the outset, we note that the impugned orders are passed by the Ld. CIT(A) ex-parte and dismissed the appeals of the assessee for non-prosecution. Therefore, the bench proposes to hearing and disposed of these appeals after hearing the Ld. AR of the assessee and going through the orders of the authorities below. ITA No.148 & 149/Ind/2023 Primary Agriculture Credit Society Page 2 of 4 Page 2 of 4 3. First we take up quantum appeal in ITANo.149/Ind/2023 wherein the assesse has raised following grounds of appeal: “1. That the Ld. AO was not justified in passing the assessment order, which is bad-in-law, void ab initio, barred by limitation, illegal, contrary to the facts and circumstances of the case, liable to be annulled. 2. That the Ld. CIT(A) was not justified in confirming the assessment order, which is bad-in-law, void ab initio, barred by limitation, illegal, contrary to the facts and circumstances of the case, liable to be annulled. 3. The Ld. CIT(A) was not justified in providing sufficient opportunity to the appellant to furnish documents or reply in support of the claim and confirming the addition; and Ld. CIT(A) did not decide the appeal on merits. 4. The Ld.CIT(A) erred in confirming the penalty of Rs. 1,15,000 u/s. 271(1)(c).” 4. Ld. AR of the assesse has submitted that the appeal before Ld. CIT(A) was filed by the assesse in 2015 and thereafter the matter was migrated to National Faceless Appeal, Centre vide CBDT notification No.76 dated 25 th September 2022. The ld. CIT(A) dismissed the appeal of the assessee for non-prosecution without deciding the same on merits. He has further submitted that since the appeal was filed in 2015 and there is a gap of about 7 to 8 years when the impugned order was passed by the Ld. CIT(A) therefore, due to non-communication of notices issued by the CIT(A) the assesse could not appear/represent before the Ld. CIT(A). Hence he has pleaded that the assessee may be given one more opportunity to present its case before the Ld. CIT(A). 5. Having considered the submissions of the Ld. AR and carefully perusal of the impugned order of the Ld. CIT(A) at the outset, we note that the assessee filed the appeal before the Ld. CIT(A) on 29.10.2015 which was pending before the Ld. CIT(A) till the same was migrated to National Faceless Appeal Centre vide CBDT Notification dated 25.09.2020. Though the Ld. CIT(A) has given the details of the various notices issued to the ITA No.148 & 149/Ind/2023 Primary Agriculture Credit Society Page 3 of 4 Page 3 of 4 assesse from the month of January 2021 to February 2023 however, there is no whisper about the status of the service of the notices issued by the Ld. CIT(A). Further the Ld. CIT(A) has not decided the appeal on merits but dismissed the appeal of the assesse for want of written submissions and evidence. Therefore, it is clear that the order passed by the Ld. CIT(A) is not in accordance with the provisions of section 250(6) of the Act. Accordingly in the facts and circumstances of the case and in the interest of justice the impugned order of the Ld. CIT(A) is set aside and matter is remanded to the record of the Ld. CIT(A) for fresh adjudication on merits by speaking order after giving one more opportunity of hearing to the assessee. ITANo.149/Ind/2023 6. The assesse has challenged the penalty levied u/s 271(1)(c) of the Act. Since this appeal is consequential to the addition made in the quantum proceedings and therefore, in view of the quantum appeal is set aside to the record of the Ld. CIT(A) for fresh adjudication the appeal arising from the penalty levied u/s 271(1)(c) is also set aside to the record of the Ld. CIT(A) for deciding the same fresh after giving one more opportunity of hearing to assessee and as per the outcome of the set aside quantum appeal. 7. In the result, both appeals filed by the assesse in ITANo.148 & 149/Ind/2023 are allowed for statistical purposes. Order pronounced in the open court on 14.09.2023 Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member Indore, 14.09.2023 Patel/Sr. PS ITA No.148 & 149/Ind/2023 Primary Agriculture Credit Society Page 4 of 4 Page 4 of 4 Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore