Shri. Bylapanapallya Chandrappa, Bangalore V. Income-Tax Officer, Ward-1(2)(1)(1), Bangalore

ITA 311/BANG/2023

AI Insights

This case involves an appeal by Bylapanapallya Chandrappa against the order of the National Faceless Appeals Centre (NFAC) for the assessment year 2018-19, which confirmed an assessed income significantly higher than the returned income. The NFAC also denied certain deductions and taxed additional income sources, which the assessee contested. The Tribunal noted that the NFAC had passed the order ex-parte due to the absence of submissions from the assessee, despite multiple hearing dates. Considering these circumstances, the Tribunal decided to remit the case back to the NFAC for a thorough re-examination, allowing the assessee a fair opportunity to present his case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129362 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 11-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 16-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Tax effect; TDS
• Section: 40A(3)

Judgement Text

ITA No.311/Bang/2023 Bylapanapallya Chandrappa, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” “C’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA No.311/Bang/2023 Assessment Year: 2018-19 Bylapanapallya Chandrappa 58, Bylapanapalya, Madavara Post Dasanapura, Hobli Bangalore 562 123 Karnataka PAN NO : AFSPB3915J Vs. ITO Ward-1(2)(1) Bangalore APPELLANT RESPONDENT Assessee by : Shri K. Sheshadri, A.R. Respondent by : Shri Ganesh R. Ghale, Standing Counsel for Revenue Date of Hearing : 12.06.2023 Date of Pronouncement : 12.06.2023 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of NFAC for the assessment year 2018-19 dated 20.2.2023. The assessee has raised following grounds: ITA No.311/Bang/2023 Bylapanapallya Chandrappa, Bangalore Page 2 of 3 No. Ground Tax effect relating to each Ground of appeal 1 The National Faceless Appeals Centre (NFAC) was wrong on facts and in law in confirming the assessed income of Rs. 38,30,823 as against the returned income of Rs. 19,43,088. 583311 2 The NFAC erred in confirming the denial of the deduction of thirty per cent and further taxing the entire annual rent of Rs 345000 as income from other sources. 31982 3 The NFAC erred in confirming the disallowance of salary of Rs. 13,97,000 - 431673 4 The NFAC erred in confirming the disallowance of one sixth of the expenses and depreciation of Rs. 279238 with respect to vehicle maintenance. 86285 5 The NFAC erred in sustaining the addition made by invoking section 40A(3) when the ingredients of the section were not met 25955 6 The NFAC erred in confirming the disallowance of Rs. 24000 for non- deduction of TDS . 7416 7 The NFAC ought to have decided the appeal on merits 583311 8 All grounds taken are without prejudice to each other. The Appellant craves leave to add to, amend, vary, withdraw or alter any or all of the above grounds of appeal. The Appellant prays that the appeal be allowed in the interests of justice. Total tax effect 583311 2. At the time of hearing, ld. A.R. submitted that the order was passed ex-parte by NFAC and the issue may be remitted to the file of NFAC for fresh consideration. 3. The ld. D.R. submitted that the NFAC fixed the case for hearing on 26.10.2021, 13.1.2023 & 9.2.2023. The assessee did not file any submissions before NFAC and hence, the order was passed ex-parte. ITA No.311/Bang/2023 Bylapanapallya Chandrappa, Bangalore Page 3 of 3 Hence, he requested that the issue may be decided by this Tribunal on merit. 4. I heard the rival submissions and perused the materials available on record. Admittedly, there was no submissions filed by the assessee before NFAC. The NFAC confirmed the order of the AO ex-parte. In my opinion, it is just and fair to remit the issue in dispute to the file of NFAC for giving an opportunity of hearing to the assessee. Accordingly, issue in dispute is remitted to the file of NFAC for fresh consideration. 5. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court on 12 th June, 2023 Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 12 th June, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.