Rajendra Ravindra Datar, Pune V. Income-Tax Officer, Ward -12(1), Pune

ITA 307/PUN/2022

AI Insights

The case involves Rajendra Ravindra Datar, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which upheld an addition of Rs 2,77,030 to his income for the Assessment Year 2017-18. This addition was categorized as income from other sources due to the maturity of an insurance policy. The appellant argued that the Commissioner did not consider relevant documentary evidence and background information regarding the insurance policy, which was submitted at the time of filing the appeal. The Income Tax Appellate Tribunal found that the Commissioner had not adequately addressed these documents or provided a proper opportunity for the appellant to be heard, leading to the decision to remand the case for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134311 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 04-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEES HAVING; KRANTI E. KHOBRAGADE
• Assessee Lawyers: C.V.DESHPANDE
• Keywords: Business income; Opportunity of being heard
• Section: 154

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.307/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 Rajendra Ravindra Datar, Flat No.301, D’ Building, Avaneesh Kare Road, Near Pinnac Memories, Kothrud, Pune – 411038. PAN: AAVPD 3087 H V s The Income Tax officer, Ward-12(1), Pune. Appellant/ Assessee Respondent /Revenue Assessee by Shri C.V.Deshpande – AR Revenue by Smt. Kranti E. Khobragade – DR Date of hearing 09/01/2023 Date of pronouncement 10/01/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], Delhi dated 31.03.2022 emanating from the order under section 154 of the I.T.Act, 1961 passed by ADIT(CPC) for the A.Y.2017-18. The Assessee has raised the following grounds of appeal: “1. On the facts and in the circumstances of the appellant’s case and in law, the learned Commissioner (Appeals) has erred in upholding the addition of Rs 2,77,030 to the returned income as income from other sources on account of maturity of insurance policy. 2. On the facts and in the circumstances of the appellant’s case and in law, the learned Commissioner (Appeals) has erred in ITA No.307/PUN/2022 Rajendra Ravindra Datar [A] 2 dismissing the appeal ex-parte ignoring the relevant documentary evidence and background of said insurance policy having been already furnished before him at the time of filing of appeal petition which is part of the appeal petition.” 2. At the outset of hearing, the ld.Authorised Representative(ld.AR) for the assessee submitted that the ld.CIT(A) has not given proper opportunity of hearing and has not considered the documents submitted by the assessee. Therefore, the ld.AR requested that the case may kindly be set-aside to the ld.CIT(A) for re- adjudication. 3. The ld.Departmental Representative(ld.DR) for the Revenue has not objected to it. 4. We have heard both the parties and perused the records. The rectification order passed under section 154 of the Act by Central Processing Centre dated 07.11.2020 has given the reasons as under: “Reasons for Rectification "As seen from the e-filed return of income and rectification filed by you, It is found that you have not correctly filled Sch. OS / Part B- TI / CVLA / BFLA. The system has computed the income from other sources, from the details entered by the assessee, in the above schedules. —(or)lf assessee has claimed loss under the head other sources, directly in Sch.Part B - TI. As can be seen form the form itr-4s and the instructions therein, the said form is only for assessees having certain types of business income but not having loss under other sources (as is evident from the fact that Sch.OS is not given in itr- 4s). hence, if the assessee has loss form other sources, along with business income then, the assessee has to file the return in form type-4 and claim the said loss after entering all the details in Sch.OS which is not available in itr-4s. The assessee may take ITA No.307/PUN/2022 Rajendra Ravindra Datar [A] 3 necessary remedial steps as per sec.139(5) of the it act. -The assessee should then tick the appropriate box therein, for selecting the rectification reason, and then upload the rectification XML, after making the necessary corrections in the requisite schedules -It is suggested that Asseessee may use Department Utility for filing corrected XML." 5. A perusal of the ld.CIT(A)’s order, it is observed that the ld.CIT(A) has not discussed the case on merits as assessee failed to file details called for. It is mandatory for the ld.CIT(A) to decide the case on merit. In the present case, the ld.CIT(A) has not discussed any facts of the case and not passed the speaking order. The ld.AR has also pleaded that the details were not considered by the ld.CIT(A). Therefore, in the interest of justice, we set-aside the case to ld.CIT(A) for denovo adjudication. 6. The ld.CIT(A) shall give opportunity of being heard to the assessee. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 7. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 10 th January, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10 th Jan, 2023/ SGR* ITA No.307/PUN/2022 Rajendra Ravindra Datar [A] 4 आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.