Vijay Kumar Verma, Hardai V. Income Tax Officer-3(3), Hardoi-241001., Hardoi

ITA 193/LKW/2023

AI Insights

The case involves an appeal by the assessee, Vijay Kumar Verma, against the order of the National Faceless Appeal Centre (NFAC), which had dismissed his appeal concerning an addition of Rs. 18,00,000 to his income for the Assessment Year 2013-14. This addition was initially made by the Assessing Officer under Section 69C of the Income Tax Act, 1961, based on a voluntary contribution to Santosh Trust for his son's MBBS course, which the assessee denied. The NFAC dismissed the appeal due to the assessee's non-compliance with notices. The Tribunal, considering the circumstances and the assessee's commitment to comply with future notices, decided to restore the case to the NFAC for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123082 (ITAT-LUCKNOW)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 05-09-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 18-06-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 148; 69C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “SMC”, LUCKNOW BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA No.193/LKW/2023 A.Ys. 2013-14 Income Tax Oficer-3(3), Hardoi-241001 Vs. Vijay Kumar Verma, C/o Sanjay Saxena, 12, Pratap Enclave, Bisrat G. T. Road, Shahjahanpur-242001 PAN AAHPV 0874C (Respondent) (Appellant) Shri Sanjay Saxena, CA Appellant by Shri Sanjeev Krishna Sharma, Addl.CIT( DR) Respondent by 06/09/2023 Date of hearing 27/09/2023 Date of pronouncement O R D E R This appeal has been preferred by the assessee against the order dated 28.04.2023 passed by the National Faceless Appeal Centre (NFAC), Delhi for A.Y. 2013-14. 2. The brief facts of the case are that based on information received from the Office of the Deputy Director of Income Tax (Inv.) the Assessing Officer recorded reasons to believe that income chargeable to tax to the tune of Rs.25,18,000/- had escaped 2 ITA No. 193/Lkw/2023 assessment and, therefore, based on such information, notice u/s. 148 of the Income Tax Act, 1961 (hereinafter called ‘the Act’) was issued in the case of the assessee. In response to the said notice, the assessee filed his return of income declaring total income at Rs.3,11,600/-. Thereafter, the assessee was required to explain the source of voluntary contribution of Rs.18,00,000/-, which was given by the assessee to Santosh Trust, Ghaziabad. However, the assessee denied having paid any such amount. However, based on the confirmation letter received from Santosh Trust, the Assessing Officer concluded that the assessee had paid the amount of Rs.18,00,000/- as voluntary contribution for admission and studies of his son in the MBBS Course. The Assessing Officer proceeded to add the amount of Rs.18,00,000/- in terms of Section 69C of the Act and completed the assessment at Rs.21,11,600/-. 3. Aggrieved, the assessee approached the NFAC challenging the addition. However, the appeal of the assessee was dismissed as the assessee did not submit any response to the various notices issued by the NFAC. 3 ITA No. 193/Lkw/2023 4. Now, the assessee has approached this Tribunal challenging the dismissal of his appeal by the NFAC by raising the following grounds of appeal: “1. That the CIT (Appeals) passed ex-parte order ignoring the adjournment application and without giving proper opportunity of being heard, which is able to be cancelled. 2. That the basis of initiation of re-assessment proceeding by issue of notice u/s 148 of the Income Tax Act, 1961, its continuation and culmination vide order u/s 147/143(3) of the Income Tax Act, 1961 dated 21-12-2018 is bad in law and be cancelled. 3. That the ld. Commissioner of Income Tax (Appeal) erred on facts and in law in confirming the addition of Rs. 18,00,000/- which is contrary to the facts and circumstances of the case and also no cross verification opportunity was given. No figure of Rs 18,00,000/- had been found in papers provided by the ld. A.O. and moreover all the education expenses had been incurred by the wife of the appellant Smt. Anja Verma separately assessed to tax. 4. The appellant reserves a right to add here any ground of appeal at the time of its hearing.” 5. The ld. Authorized Representative submitted that the order of the NFAC was passed ex-parte qua the assessee and in the interest of justice, it was prayed that the appeal may be restored to the file of the NFAC for being heard on merits. The ld. A.R. gave undertaking before the Court that the assessee would comply with the notices to be issued by the NFAC if another opportunity is now afforded to the assessee. 4 ITA No. 193/Lkw/2023 6. Per contra, the ld. Senior Departmental Representative strongly opposed the prayer of the ld. A.R. and submitted that the assessee had not availed any of the numerous opportunities afforded to him by the assessee and, therefore, the assessee should not be allowed any further opportunity. 7. I have heard the rival submissions and have also perused the material on record. Admittedly and undisputedly, the assessee had failed to comply with the various notices issued by the NFAC and had failed to avail the opportunities granted to him. However, looking into the facts of the case and also keeping in mind the undertaking given by the ld. A.R. on behalf of the assessee regarding compliance to the various notices to be issued by the NFAC if another opportunity is given to the client, I deem it appropriate to restore this file to the Office of the NFAC with the direction to re- adjudicate the issue after giving proper opportunity to the assessee to present his case. I also caution the assessee to fully comply with notices to be issued by the NFAC in the set aside proceedings, failing which, the NFAC shall be at liberty to pass the order, in accordance with law, on merits of the case, even if it is ex-parte qua the assessee. 5 ITA No. 193/Lkw/2023 8. In the final result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 27/09/2023) Sd/- (SUDHANSHU SRIVASTAVA) JUDICIAL MEMBER Aks – Dtd. 27/09/2023 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) Departmental Representative (5) Guard File Assistant Registrar