Anandeshwar Infraventure Pvt.Ltd, Kanpur V. ITO Ward 2(3)(1), Kanpur

ITA 237/LKW/2023

AI Insights

The case involves M/s Anandeshwar Infraventure Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2018-19. The primary contention was regarding the classification of capital gains and agricultural income, which the Assessing Officer had treated as business income and undisclosed sources, respectively. The CIT(A) upheld these classifications, leading to the appeal. The Tribunal found that the CIT(A) had not provided a reasonable opportunity for the appellant to present their case, as the notice and compliance dates were too close, thus setting aside the CIT(A)'s order and remanding the case for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113247 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 20-09-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 24-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: REVENUE EXPRESSED NO OBJECTION
• Keywords: Set aside

Judgement Text

I.T.A. No.237/Lkw/2023 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘SMC’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.237/Lkw/2023 Assessment Year:2018-19 M/s Anandeshwar Infraventure Pvt. Ltd., 7/71A, Tilak Nagar, Kanpur. PAN:AAICA9081G Vs. Income Tax Officer, Ward-2(3)(1), Kanpur. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.237/Lkw/2023 has been filed by the assessee for assessment year 2018-19 against impugned appellate order dated 26/05/2023 (DIN & Order No.ITBA/NFAC/S/250/2023- 24/1053212715(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. The grounds of appeal are as under: “1. On the facts and circumstances of the case, the order passed by the learned CIT(Appeals) is bad, both in the eye of law and on the facts. 2. On the facts and circumstances of the case, learned CIT(Appeals) has erred both on facts and in law, confirming the action of AO in holding the capital gain arising on sale of Appellant by Shri P. K. Kapoor, C. A. Respondent by Shri Sanjeev Krishna Sharma, Addl. CIT (D.R.) I.T.A. No.237/Lkw/2023 Assessment Year:2018-19 2 investment by the assessee to be income assessable under the head business and profession. 3. The above said has been held despite the fact that the property which was sold, was being held by the assessee as investment and there was no intention to deal in this as its business. 4. Without prejudice to the above ld. CIT(A) has erred both on facts and in law in confirming the action of the AO in computing the gain on sale of property at Rs.15,95,161/- as against Rs.2,88,806/- declared by the assessee. 5. Without prejudice to the above ld. CIT(A) has erred both on facts and in law in confirming the action of the AO to treat agriculture income of Rs.2,62,257/- as income from undisclosed sources of assessee.” (A.1) In this case, vide assessment order dated 10/02/2021, assessee’s total income was assessed by the Assessing Officer at Rs.18,45,428/- as against loss of Rs.11,990/- declared by the assessee in the return of income. The assessee filed appeal against the aforesaid assessment order in the office of the learned CIT(A). In the appeal, filed by the assessee in the office of learned CIT(A), additions amounting to Rs.15,95,161/- (on account of business profit) and Rs.2,62,257/- (income from undisclosed sources) were disputed. Vide impugned appellate order dated 26/05/2023, the learned CIT(A) dismissed the assessee’s appeal. The present appeal has been filed by the assessee against the aforesaid impugned appellate order dated 26/05/2023 of learned CIT(A). (B) At the time of hearing, the learned Authorised Representative for the assessee submitted that the impugned appellate order was passed by learned CIT(A) without providing reasonable opportunity to the appellant assessee. He drew attention to the fact that notice of hearing was issued by the learned CIT(A) on 16/05/2023 and date of compliance was fixed for 23/05/2023. He submitted that there were only five days between the I.T.A. No.237/Lkw/2023 Assessment Year:2018-19 3 aforesaid dates of 16/05/2023 and 23/05/2023 and that period was not sufficient for the appellant assessee to make preparations for proper submissions before the learned CIT(A). He further submitted that the impugned appellate order of learned CIT(A) should be set aside and learned CIT(A) should be directed to pass a denovo appellate order after providing reasonable opportunity to the appellant assessee. Learned Sr. Departmental Representative for Revenue expressed no objection. (C) In view of the foregoing and having regard to the specific facts and circumstances of the present appeal before us, the impugned appellate order dated 26/05/2023 of learned CIT(A) is hereby set aside with the direction to the learned CIT(A) to pass denovo order in accordance with law after providing reasonable opportunity to the appellant assessee. All the grounds of appeal are treated as disposed of in accordance with the aforesaid direction. (D) In the result, the appeal is partly allowed for statistical purposes. (Order pronounced in the open court on 21/09/2023) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:21/09/2023 *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