Girirajsinh Mangalasinh Jhala, Surendranagar V. The Income Tax Officer, Ward-4(1)(3), Vadodara

ITA 242/AHD/2023

AI Insights

The case involves two appeals by the assessee, Girirajsinh Mangalasinh Jhala, against the orders of the CIT(A) for the assessment year 2012-13. The appeals were related to the dismissal of the assessee's appeal due to delay and the penalty imposed following the assessment. The assessee had not filed the income tax return on time due to his wife's health issues and sought condonation for the delay, which was pending before the authorities. The assessment was reopened under section 147 of the Income Tax Act, and the assessee was unable to comply with several statutory notices, leading to an ex parte assessment. The CIT(A) dismissed the appeal on grounds of delay, which the Tribunal found to be genuine and thus condoned, remanding the case back for a decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131570 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 15-10-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; FORM 26AS
• Section: 147; 148; 144; 143(3); 139(1)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH Before: Ms. Suchitra Kamble, Judicial Member Girirajsinh Mang alasinh Jhala, 12, Shakti So ciety, Station Road, Limdi-3634 21, Dist: Su rendran agar PAN: ADVPJ786 2R (Appellant) Vs The ITO, Ward-4(1)(3), Vadodara (Resp ondent) Asses see b y : Shri A. K. Khandelw al, Advoca te Revenue by : Shri N. J. Vy as, Sr. D. R. Date of hearing : 16-10 -2 023 Date of pronouncement : 18-10 -2 023 आदेश/ORDER These two appeals filed by the assessee are against the order dated 15- 02-2023 passed by ld. CIT(A) for assessment year 2012-13. 2. The grounds of appeals are as under:- ITA No. 241/Ahd/2023 “1. The learned CIT (A) has erred in dismissing appeal without taking into consideration all genuine reasons caused for not allowing to file appeal within prescribed period. ITA Nos. 241 & 242/Ahd/2023 Assessment Year 2012-13 I.T.A Nos. 241 & 242/Ahd/2023 A.Y. 2012-13 Page No. Girirajsinh Mangalasinh Jhala vs. ITO 2 2. The learned CIT (A) has hurriedly passed appellate order on 15/02/2023 without disposing of adjournment request filed on 14/02/2023 and waiting for submission called vide letter dated 07/02/2023 and also without Application of mind on wrongly recorded reasons for reopening the assessment. 3. The appellant may please be allowed to alter or add ground/s of appeal before or during the course of proceedings before the Hon'ble ITAT.” ITA No. 242/Ahd/2023 “1. On facts and in law and in circumstances of the case, the penalty order passed by the A.O. which is confirmed by the Appellate order passed by the learned CIT (A) is against natural justice and bad in law. Therefore, it deserves to be annulled. 2. The learned CIT (A) has grossly erred for not condoning delay in filing appeal while delay was on account of genuine compelling circumstances. He may be directed to condone the delay and to decide the appeal on merits. 3. The learned CIT (A) has not decided the issue of initiation of penalty U/s 271(l)(c) as to whether penalty was initiated by the Assessing officer for concealing the particulars of income or furnishing inaccurate particulars of income. 4. The appellant may please be allowed to alter, amend or add ground/s of appeal before or during the course of proceedings before the Hon'ble ITAT.” 3 The assessee is an individual and has not filed income tax return u/s. 139(1) for assessment year 2012-13 as the wife of the assessee was suffering from some sort of mental disorder. The assessee made an application to the Pr. CIT-1, Baroda for condonation of delay in filing of return which was pending before the authorities below I.T.A Nos. 241 & 242/Ahd/2023 A.Y. 2012-13 Page No. Girirajsinh Mangalasinh Jhala vs. ITO 3 till the decision of the CIT(A). The assessee’s case was reopened u/s. 147 of the Act by issuing notice dated 22-07-2014 u/s. 148 of the Act. Several statutory notices were issued but the assessee could not comply with the same and therefore assessment order was passed u/s. 144 r.w.s. 143(3) thereby determined the total income of Rs. 7,00,000 on account of unexplained investments and Rs. 4,33,905/- on account of payment made by employer as Form 26AS on 22-01-2016. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal on the ground of delay. 5. The ld. Authorized Representative submitted that due to the assessee’s wife health, the assessee could not comply with the statutory notices as well as was not able to file the appeal before the CIT(A) within time. Therefore the ld. Authorized Representative submitted that the delay in filing the appeal before the CIT(A) be condoned and the CIT(A) should decide the appeal on merit. 6. The ld. Departmental Representative relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant materials available on record. The delay in filing the appeal before the CIT(A) appears to be genuine and in the interest of justice, it will be appropriate to condone the delay. Hence, the delay in filing the appeal before the CIT(A) is condoned. The matter is remanded back to the file of the CIT(A) for the proper adjudication of the issues contested by the assessee therein and the CIT(A) will adjudicate the issues as per due process of law. Needless to say, the assessee be given proper opportunity of hearing by following the principles of natural justice. Thus, ITA 241/Ahd/2023 is partly allowed for statistical purposes. 8. As relates to ITA 242/Ahd/2023, the same is in respect of penalty on the quantum decided hereabove and therefore the same is also remanded back to the file of the CIT(A) I.T.A Nos. 241 & 242/Ahd/2023 A.Y. 2012-13 Page No. Girirajsinh Mangalasinh Jhala vs. ITO 4 for proper adjudication. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. 9. In the result, both the appeals of the assessee are partly allowed for statistical purposes. Order pronounced in the open court on 18-10-2023 Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad : Dated 18/10/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/ आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद