JAYKUMAR JIVRAJ SHAH AND CO, Pune V. Income Tax Officer, Ward14(5), Pune, Pune

ITA 223/PUN/2023

AI Insights

The case involves Jaykumar Jivraj Shah And Co., a partnership firm engaged in trading and agricultural produce, which appealed against the order of the NFAC. The appeal was related to the assessment year 2013-14, where the Income Tax Officer had made several disallowances including miscellaneous expenditure, godown rent, and disallowances under section 40A(3) of the Income Tax Act, 1961. The NFAC dismissed the appeal for non-prosecution without addressing the substantive issues raised. The ITAT found that despite the appellant's failure to appear, the NFAC was required to decide the appeal on its merits based on the available records.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137624 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 23-03-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 23-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.223/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2013-14 Jaykumar Jivraj Shah And Co., At Post Baramati Market Yard, Indapur Road, Dist.- Pune- 413102. PAN : AADFJ4377Q Vs. ITO, Ward-14(5), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 10.02.2023 for the assessment year 2013-14. 2. Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of trading and agricultural produce, oil seeds, jaggary etc. The Return of Income for the assessment year 2013-14 was filed on 26.09.2013 declaring total Assessee by : Shri Pramod S. Shingte Revenue by : Shri Suhas Kulkarni Date of hearing : 24.03.2023 Date of pronouncement : 27.03.2023 ITA No.223/PUN/2023 2 income of Rs.6,15,814/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-14(5), Pune (‘the Assessing Officer’) vide order dated 29.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) after making disallowance of miscellaneous expenditure, disallowance of godown rent and disallowance u/s 40A(3) totalling to Rs.10,92,775/-. 3. Being aggrieved by the above disallowances, an appeal was preferred before the ld. CIT(A) and latter on the appeal was migrated to NFAC in terms of the notification issued by the CBDT. The appeal came to be dismissed by the NFAC for non-prosecution without going into the merits of the additions. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. I heard the rival submissions and perused the material on record. I find that although the NFAC was justified in passing the ex-parte order, since the appellant had not caused the appearance despite due service of notice of hearing. It is requirement of law that even while passing the ex-parte order, an appellate authority is expected to dispose of the appeal on merits based on the material available on record. Since the NFAC had not gone into the merits ITA No.223/PUN/2023 3 of the issue in appeal, I am of the considered opinion that to meet the interests of justice, the matter requires remission to the file of the NFAC for de novo adjudication in accordance with law. I order accordingly. 6. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced on this 27 th day of March, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 27 th March, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.