Shri Poonaram Jitaji Choudhary, Panvel V. National Faceless Apeeal Centre (NFAC), Delhi, Delhi

ITA 303/PUN/2023

AI Insights

The case involves an appeal by Shri Poonaram Jitaji Choudhary against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the ex parte assessment made by the AO under section 144 of the Income-tax Act, 1961. The AO had added Rs.31.5 lakh to the appellant's income, treating it as unexplained, under section 69A of the Act, following information that the appellant had repaid a substantial loan in cash. The appellant contested the ex parte nature of the assessment, claiming a lack of reasonable opportunity to be heard, which was initially rejected by the CIT(A). However, the Tribunal found merit in the appellant's plea regarding the inadequate time provided for compliance with the notices, leading to the restoration of the matter to the AO for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301455 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-05-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 16-03-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: H.G. SHARMA
• Keywords: Opportunity of being heard
• Section: 148; 144; 250; 143(2); 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपीऱ सं. / ITA No.303/PUN/2023 ननधधारण वषा / Assessment Year : 2013-14 Shri Poonaram Jitaji Choudhary 002, Kusumanant, Plot No.12, Middle Class Hsg. Society, Panvel – 410206 PAN: AEHPC9444D .......अऩीऱधथी / Appellant बनाम / V/s. The National Faceless Assessment Centre, Delhi ......प्रत्यथी / Respondent Assessee by : Shri H.G. Sharma Revenue by : Shri Ganesh Rath, JCIT स ु नवधई की तधरीख / Date of Hearing : 30-05-2023 घोषणध की तधरीख / Date of Pronouncement : 30-05-2023 आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 20.01.2023 passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Briefly, the facts of the case are as under: The appellant is an individual. The return of income for the assessment year 2013-14 was filed by the assessee on 29.03.2014 declaring income of Rs.4,10,590/-. Subsequently, the Assessing Officer on 2 ITA No.922/PUN/2022 Shri Poonaram Jitaji Choudhary receipt of the information that the appellant had taken loan of Rs.3.5 crore from Aasharamji Ashram, Motera, Sabarmati, Ahmedabad, out of which a sum of Rs.31.5 lakh was repaid in cash during the previous year relevant to the year under consideration, had issued notice u/s 148 of the Act. Against the same, the AO completed the assessment ex parte u/s 144 of the Act after making addition of Rs.31.5 lakh treating the said sum as unexplained income of the assessee u/s 69A of the Act. 3. Being aggrieved with the above order, an appeal was filed before the CIT(A) who vide impugned order confirmed the action of the AO. Before the CIT(A), the assessee took a plea that the AO passed the ex parte order without giving reasonable opportunity of being heard. However, the CIT(A) has rejected the plea of the assessee on the ground that despite giving numerous opportunities, the appellant chosen not to file any written submissions or details, accordingly confirmed the action of AO. 4. I had carefully gone through the assessment order as well as the order of CIT(A). In para 5 of the assessment order, the AO had set out the dates of hearing u/s 143(2) of the Act and the dates given for compliance of the said notices. On mere perusal of para 5 of the assessment order, it would clearly reveal that the AO had not given reasonable opportunity as in each hearing notice, the time granted to respond the notice was less than one week, which is unreasonable. Therefore, I am of the considered opinion that the AO had not granted a reasonable opportunity to represent the matter before the AO and therefore, the matter is restored to the file of 3 ITA No.922/PUN/2022 Shri Poonaram Jitaji Choudhary AO with a direction to frame the assessment de novo after affording the opportunity of being heard to the appellant. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 30 th May, 2023. Sd/- INTURI RAMA RAO ACCOUNTANT MEMBER ऩ ु णे / Pune; ददनधांक / Dated : 30 th May, 2023 GCVSR आदेश की प्रतिलऱपप अग्रेपिि/Copy of the Order is forwarded to : 1. अऩीऱधथी / The Appellant; 2. प्रत्यथी / The Respondent; 3. 4. The concerned Pr.CIT ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ऩ ु णे “SMC” / DR ‘SMC’, ITAT, Pune; 5. गधर्ा पधईऱ / Guard file. आदेशधन ु सधर / BY ORDER, //सत्यधवऩत प्रनत// True Copy// वररष्ठ ननजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण, ऩ ु णे / ITAT, Pune