JITRAM KHAKHA, RANCHI V. ITO Ward 1(1), RANCHI

ITA 163/RAN/2023

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 4612 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 26-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRANOB KUMAR KOLEY
• Assessee Lawyers: DEVESH PODDAR; AUTHORISED
• Keywords: Reason to believe
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, RANCHI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM AND SHRI PRABHASH SHANKAR, AM ITA No. 163/RAN/2023 (Assessment Year: 2011-12) Jit r am Khak ha, R anc hi C/ o S uni l K hak ha, Sar ai T and, N ear B ir s a Munda Stadi um , Mor abadi, R anc hi -834008 Jhark hand Vs. ITO Ward 1(1) Central Revenue Building, Main Road, Ranchi-834001 Jharkhand (Appellant) (Respondent) PAN No. APZPK1090G Assessee by : Shri Devesh Poddar, Authorised Representative Revenue by : Shri Pranob Kumar Koley, DR Date of hearing: 05.09.2024 Date of pronouncement : 05.09.2024 O R D E R PER PARTHA SARATHI CHAUDHURY, JM: 01. This appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre, Delhi [the learned CIT (A)] dated 21 st June, 2023 for A.Y. 2011-12, as per the grounds of appeal on record. 02. At the outset, it is observed from Para 6 of the order that as many as four opportunities of hearing was provided to the assessee. The assessee has not furnished any Page | 2 ITA No.163/RAN/2023 Jitram Khakha; A.Y. 2011-12 submission/ documentary evidences in respect of the hearing notices issued to him. Resultantly, an ex-parte order was passed by the NFAC, considering the documents on record i.e. essentially form 35 along with the statements of facts and grounds of appeal. The substantive adjudication of the rights and liabilities of the parties herein remains incomplete, since, the assessee has not complied with the notices and have not filed any documentary evidences and therefore, it was not possible for the NFAC to consider all such documentary evidences and pass an order. 03. At the time of hearing, the learned Authorized Representative conceded that there was no representation by the assessee before the First Appellate Authority. He prayed for one final opportunity to represent the matter on merits before the NFAC. Further, it was contended by the learned Authorized Representative that the very basis of the proceedings in this case is the action taken by the learned Assessing Officer u/s 147/148 of the Act and that the reason to believe that whether any income has escaped assessment, that belief itself was founded on wrong factual premises as evident from the reasons recorded. The learned Authorized Representative demonstrated by filing the paper book, wherein at page 3, the copy of the reasons recorded by the learned Assessing Officer has been placed which is made part of this order and scanned as follows:- Page | 3 ITA No.163/RAN/2023 Jitram Khakha; A.Y. 2011-12 04. The learned Authorized Representative referring to the above submitted that the reasons to believe for proceedings u/s 147/148 of the Act was that sale of immovable property totaling to ₹21,22,500/- had been done by the assessee, whereas in reality there was no sale of immovable property by the assessee and rather, the assessee had purchased an immovable property for ₹7,07,500/-. Therefore, the very premise / basis for the proceedings initiated by the learned Assessing Officer u/s 147/148 of the Act is itself incorrect thus making his order void ab-initio. Page | 4 ITA No.163/RAN/2023 Jitram Khakha; A.Y. 2011-12 05. The learned Departmental Representative conceded that since there was no representation by the assessee before the First Appellate Authority, there was no occasion for the assessee therefore, to take this ground before the NFAC and accordingly, he conceded that an opportunity be provided to assessee so that these facts would also be brought before the NFAC and after detailed factual verification, the adjudication may be done by NFAC as per law. The learned Departmental Representative fairly conceded to the prayer made by the assessee, though, he supported the orders of the subordinate authorities. 06. We are of the considered view considering the entire facts and circumstances in this case that since an ex-parte order was passed by NFAC and as evident there was no compliance by the assessee, therefore, the contention raised by the learned Authorized Representative before us was also not taken up by the NFAC which infact needs factual verification. That per se, as per the submissions of the learned Authorized Representative, the issue needs detailed factual verification and examination on record. That at the same time this bench has been consistent in view that in such ex-parte order being passed by the NFAC/ CIT (A), one final opportunity is provided to the assessee to represent his case on merits before the said authority. In view thereof, we set aside the order of the NFAC and remand the matter back to its file for denovo adjudication as per law while complying with the principles Page | 5 ITA No.163/RAN/2023 Jitram Khakha; A.Y. 2011-12 of natural justice and at the same time the assessee is also directed to represent the matter on merits through filing of relevant documentary evidences and the NFAC shall consider all the submissions and the documents placed on record and come out with a speaking order in terms of Section 250 cl's 4 and 6 of the Act. 07. As per the above terms, the grounds of appeal stands allowed statistical purposes. 08. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in open court on 05. 09.2024. Sd/- Sd/- (PRABHASH SHANKAR) (PARTHA SARATHI CHAUDHURY) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Ranchi, Dated: 05.09.2024 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, Ranchi 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Ranchi