VISHAL VASANT BANDEWAR, PUNE V. ACIT, CIRCLE-3, PUNE

ITA 177/PUN/2023

AI Insights

The case involves Vishal Vasant Bandewar, who appealed against the order of the National Faceless Appeal Centre (NFAC), which upheld the assessment order passed by the AO under section 144 of the Income-tax Act, 1961 for the assessment year 2017-18. The primary contention was the alleged violation of the principle of natural justice by the tax authorities. The appellant had initially filed a return declaring a taxable income which was later revised. The AO, after the appellant failed to respond to notices, made an assessment to the best of his judgment, reversing a deduction claim. The NFAC upheld this decision ex-parte as the appellant did not respond to the notices or submissions. The ITAT, noting the lack of conclusive determination in the tax proceedings, decided to remand the case for de-nova adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136275 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 12-02-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144; 250

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 177/PUN/2023 निर्धारण वर्ा / Assessment Year : 2017-18 Vishal Vasant Bandewar, S.No.235/1, Flat No.502,Tritonia Nyati Equatorial, Bavdhan Bd. – 411 021 PAN: AFQPB1269 . . . . . . . अपऩलधथी / Appellant बनाम / V/s Asstt. Commissioner of Income Tax Circle-3, Pune. . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Suhas Bora Revenue by : Shri M. G. Jasnani सपिवधई की तधरऩख / Date of conclusive Hearing : 03/04/2023 घोर्णध की तधरऩख / Date of Pronouncement : 03/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The order dt. 18/01/2023 of National Faceless Appeal Centre, Delhi [’NFAC’ in short] passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ in short] upholding the assessment order passed u/s 144 of the Act dt. 01/12/2019 by the respondent [‘AO’ in short] for the assessment year [‘AY’ in short] 2017-18 is under challenge alleging the violation of principle of natural justice by both the lower tax authorities. Vishal Vasant Bandewar ITA No. 177/PUN/2023 A.Y. 2017-18 ITAT-Pune Page 2 of 3 2. After hearing to both the parties to dispute; and subject to the provisions of rule 18 of ITAT, Rules 1963 perused the material placed on record; and without going into the merits of the case, we note that, in the first instance the appellant had filed his original return of income [‘ITR’ in short] on 07/11/2017 declaring taxable income of ₹1,20,97,520/- which subsequently axed to ₹62,23,560/- by filing revised ITR on 31/03/2018. For the very reason the case of the appellant was subjected to limited scrutiny to vouch the claim of deduction newly made u/s 57 of the Act. Upon assessee’s failure to attend all such notices including the notice issued u/s 144 of the Act, the Ld. AO culminated the assessment to the best of his judgment reversing the fresh claim of deduction of ₹57,30,557/- made u/s 57 of the Act. The assessee having challenged the action of Ld. AO before the first appellate authority did neither respond to any notices issued to him nor represented by written submission, faced with the situation; the Ld. NFAC upheld the action of Ld. AO ex-parte. Vishal Vasant Bandewar ITA No. 177/PUN/2023 A.Y. 2017-18 ITAT-Pune Page 3 of 3 3. In the light of aforestated observations, since the tax proceedings has not been conclusively dealt and determined, in our view the matter deserves to be remanded for de-nova adjudication on the subject matter. For the reason without going into the merits of the case and in the interest of justice, we set-aside the impugned order of first appellate authority and restore the matter back to the file of Ld. AO for fresh adjudication in conformity with the principle of natural justice and preferably in three hearings. 4. In result, the appeal of the assessee is ALLOWED FOR STATISTCIAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Monday 03 rd day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 20 th day of April, 2023. Ashwini आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT -2, Pune (MH-India) 4. The CIT(A)-NFAC, Delhi (India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.