Rajendrakumar Chaturbhai Patel, Gandhinagar V. The ITO, Ward-3, Gandhinagar

ITA 214/AHD/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9688 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 29-11-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 04-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 147; 148; 144; 143(3); 54F

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I .T .A . N o . 2 1 4/ A h d /2 0 2 3 ( A s se ss m e nt Y e a r : 20 13- 14 ) R aj e n d r a k u m a r C h a tur b h ai P at e l, Pl o t No . 42 , R a j d ha ni So ci e t y, Pa r t- I I , A t: P os t K u nd a s a n , G a n d hin ag a r-3 82 4 2 1 Vs .I nc o me Ta x O f f ic er , War d - 3 , G a nd hin a g a r [ P A N N o. BQ ZP P2 4 54 F ] (Appellant) .. (Respondent) Appellant by : Shri S. N. Divatia & Shri Samir Vora, A.Rs. Respondent by : Shri Ravindra, Sr. D.R. D a t e of H ea r i ng 30.11.2023 D a t e of P r o no u n ce me nt 01.12.2023 O R D E R The appeal filed by the assessee is against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”), Delhi on 17.02.2023 for A.Y. 2013-14. 2. The grounds of appeal raised by the assessee are as under: “1.1 The order passed by U/s.250 passed on 17.02.2023 by NFAC[CIT(A)], Delhi (in short 'NFAC') upholding the disallowance of exemption claimed u/s 54F to the extent of Rs.28,38,395/- made by A.O. is wholly illegal, unlawful and against the principles of natural justice. 2.1 The ld. NFAC has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued on account of sufficient cause. 3.1 The ld. NFAC has grievously erred in law and or on facts in upholding disallowance of exemption claimed u/s 54F to the extent of Rs.28,38,395/-made by A.O. 3.2 That the in the facts and circumstances of the ld. NFAC ought not to have upheld disallowance of exemption claimed u/s 54F to the extent of Rs.28,38,395/- made by A.O.” ITA No. 214/Ahd/2023 Rajendrakumar Chaturbhai Patel vs. ITO Asst.Year–2013-14 - 2 - 4. The assessee is an individual and derive income from the partnership firm of M/s. Sanyam Infrastructure as well as interest income and capital gain. The return of income was filed on 20.03.2014 declaring income of Rs. 19,532/- and assessment was completed on 28.01.2016 under Section 143(3) of the Act. Thereafter, the case was reopened under Section 147 of the Act and a notice under Section 148 of the Act was issued on 30.03.2018 which was duly served upon the assessee. The assessee filed the details but the Assessing Officer passed the assessment order under Section 144 r.w.s. 147 of the Income Tax Act thereby making disallowance under Section 54F of the Act amounting to Rs. 28,38,395/-. 5. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismiss the appeal of the assessee. 6. The Ld. A.R. submitted that the Assessing Officer as well as the CIT(A) has not considered the submissions filed by the assessee before the Assessing Officer during the assessment proceedings. The Ld. A.R. further submitted that the details of agricultural land and the capital gain was given by the assessee during the assessment proceedings. The Ld. A.R. further submitted that the CIT(A) also passed ex-parte order without giving opportunity to the assessee to establish his case. 7. The Ld. D.R. submitted that the assessee did not appear before the CIT(A) and therefore, the CIT(A) has rightly confirm the assessment order and the addition. 8. Heard both the parties and perused the relevant material available on record. It is pertinent to note that the CIT(A) has passed ex-parte order without ITA No. 214/Ahd/2023 Rajendrakumar Chaturbhai Patel vs. ITO Asst.Year–2013-14 - 3 - mentioning the service of the notice of hearing to the assessee and has not adjudicated the issue contested by the assessee therein. Therefore, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issues contested by the assessee before the CIT(A). The CIT(A) also should consider all the legal aspect raised by the assessee during the hearing. The CIT(A) should adjudicate the appeal on merit and pass the reasoned order by following due process of law. Needless to say, the assessee be given opportunity of hearing by following principle of natural justice. 9. In result, the appeal of the assessee is partly allowed for statistical purpose. This Order pronounced in Open Court on 01/12/2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad; Dated 01/12/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/ Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad