Rajendra Prasad Verma, Gonda V. ITO, Ward, Gonda

ITA 229/LKW/2023

AI Insights

The case involves Shri Rajendra Prasad Verma, the appellant, who contested an ex-parte assessment order under section 144 of the Income Tax Act, 1961, which was passed by the Income Tax Officer, Ward-Gonda, determining his income for the assessment year 2013-14. The initial appeal to the CIT(A) was dismissed on technical grounds for not being e-filed. The Tribunal found that the assessment order lacked clarity and violated principles of natural justice as it did not provide a proper basis for the income addition made. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113246 (ITAT-LUCKNOW)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-09-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 16-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAJENDRA PRASAD VERMA
• Keywords: Principle of natural justice; Set aside
• Section: 144

Judgement Text

I.T.A. No.229/Lkw/2023 Assessment Year:2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘SMC’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.229/Lkw/2023 Assessment Year:2013-14 Shri Rajendra Prasad Verma S/o Ram Lautan Verma, Vill. Anura Tando, Post Maskanwa, GONDA. PAN:ACRPV2056L Vs. Income Tax Officer, Ward-Gonda (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.229/Lkw/2023 has been filed by the assessee for assessment year 2013-14 against impugned appellate order dated 18/05/2023 (DIN & Order No.ITBA/NFAC/S/250/2023- 24/1052940741(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (A.1) In this case, assessment order dated 04/02/2016 was passed by the Assessing Officer determining the assessee’s total income at Rs.13,88,478/- (rounded off to Rs.13,88,480/-). This was an order passed ex-parte u/s 144 of the Income Tax Act, 1961 (“IT Act” for short). The assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated Appellant by Shri Rajendra Prasad Verma (Assessee in person) Respondent by Shri Sanjeev Krishna Sharma, Addl. CIT (D.R.) I.T.A. No.229/Lkw/2023 Assessment Year:2013-14 2 18/05/2023, the learned CIT(A) dismissed the assessee’s appeal on the ground that the appeal was not e-filed and instead the appeal was filed manually. The present appeal has been filed by the appellant assessee against the aforesaid appellate order dated 18/05/2023 of learned CIT(A). In the course of appellate proceedings in the Income Tax Appellate Tribunal, a paper book containing the following particulars was filed from the assessee’s side: S.No. Brief description of the documents 1. Return of income (revised with ITR-V receipt) 2. Assessment order u/s 144 of Income Tax Officer, Gonda dated 04/02/2016 3. Notice of demand dated 04/02/2016 4. (A) Memorandum of first appeal in Form No. 35 (B) Statement of facts and grounds of appeal 5. Receipt of appeal filed in Form 35 6. Fixation notice in ITNS-37 7. Fixation notice in ITNS-37 8. Fixation notice in ITNS-37 9. Written submissions 10. Admissibility of written submissions u/s 46A 11. Remand order u/s 250(4) 12. Remand report 13. Appellant’s requests (three) for fixation etc. (online) 14. Appellant’s request for fixation etc. (online) 15. Appellant’s requests (two) for fixation etc. (online) 16. Appellant’s request for fixation etc. (online) 17. Impugned appeal order of the CIT(A), NFAC Delhi 18. A complete set of Memorandum of appeal in Form No. 36, statement of facts, grounds of appeal and challan 19. Grounds of appeal (expanded version for paper book) 20. Statement of facts (expanded version for paper book) 21. Events relating to case in chronological order (with paper book) (A.2) At the time of hearing, the appellant assessee was present in person. He relied on the aforesaid paper book. Learned Sr. Departmental Representative for Revenue submitted that the issues in dispute in the present appeal may be restored to the file of the Assessing Officer having regard to the fact that the assessment order passed by the Assessing Officer I.T.A. No.229/Lkw/2023 Assessment Year:2013-14 3 was an ex-parte assessment order u/s 144 of the Act and further, that the assessee’s appeal was not decided by learned CIT(A) on merit. (B) On perusal of the assessment order, it is found that the assessment order was passed on 04/02/2016 whereas the last hearing during assessment proceedings was held on 22/12/2015. Between aforesaid dates of 22/12/2015 and 04/02/2016 there was sufficient time for the Assessing Officer to provide another opportunity to the assessee for making compliance. Moreover, addition of Rs.14,88,478/- has been made by the Assessing Officer on account of commission received by the assessee in a summary manner on a vague ground, stating merely that “commission/receipt is not chargeable to income tax under any of the heads specified in section 14-item A to E.” The basis for this addition is unclear and hazy; and the reasoning of the Assessing Officer is quite blurred and foggy. It is a non-speaking order as it does not properly explain the basis for addition. This is in violation of principles of natural justice. (B.1) Moreover, the assessee’s appeal was not decided by learned CIT(A) on merits. He dismissed the assessee’s appeal merely on the technical ground that the assessee’s appeal was not e-filed, and was instead filed manually. (B.2) In view of the foregoing, it is concluded that the assessee did not get proper opportunity on merits, either during assessment proceedings or during the appellate proceedings in the office of learned CIT(A). Further, the assessment order was not a speaking order and it did not contain cogent reasons for making the addition. Therefore, in consonance with the submissions made by learned Senior Departmental Representative for Revenue; the impugned order of learned CIT(A) is set aside and the issues in dispute are restored to the file of the Assessing Officer with the direction I.T.A. No.229/Lkw/2023 Assessment Year:2013-14 4 to pass fresh assessment order in accordance with law after providing reasonable opportunity to the assessee. All the grounds of appeal are treated as disposed of in accordance with the aforesaid directions. (C) In the result, the appeal is partly allowed for statistical purposes. (Order pronounced in the open court on 22/09/2023) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:22/09/2023 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Assistant Registrar