ATTOONOORI VENKATA REDDY, KONDURU V. INCOME TAX OFFICER, WARD-3(1), VIJAYAWADA

ITA 32/VIZ/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1564 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-06-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 31-01-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Keywords: Opportunity of being heard; Condonation of delay
• Section: 144; 142(1); 69A; 72

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणमपीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAMBENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./I.T.A.No.32/Viz/2024 (ननधधारण वर्ा/ Assessment Year : 2017-18) Attoonoori Venkata Reddy 2-105/B A Konduru, NTR District [PAN : BROPA9686G] Vs. Income Tax Officer Ward-3(1) Vijayawada (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : Shri K.Siva Ram Kumar, AR प्रत्यधथी की ओर से/ Respondent by : Dr.Aparna Villuri, DR सुनवधई की तधरीख/ Date of Hearing : 04.06.2024 घोर्णध की तधरीख/Date of Pronouncement : 20.06.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : Condonation of Delay : This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi vide DIN & Order No.ITBA/NFAC/S/250/2023-24/1056424145(1) dated 22.09.2023 arising out of order passed u/s 144 r.w.s 142(1) of the Income Tax Act, 1961 (in short ‘Act’) dated 31.12.2019 with the delay of 72 days. The 2 I.T.A. No.32/Viz/2024, A.Y.2017-18 Attoonoori Venkata Reddy, Konduru assessee filed a petition for condonation of delay, submitting that the order of the Ld.CIT(A) dated 22.09.2023 was served on the assessee on the same day and the appeal against the order ought to have been filed on or before 21.11.2023, but the assessee could file the appeal only on 29.01.2024 i.e. with a delay of 72 days due to the fact that the appeal was filed by a chartered accountant, Mr.Karthikeyan(AR) who sought adjournment. By the time the NFAC sent a subsequent hearing notice dated 08.09.2023, after granting adjournment, the AR left for USA on 30.08.2023 and thus the assessee had no communication about the hearing notices sent after July 2023 and they remained unanswered. The assessee came to know of the NFAC order of dismissal of appeal for non- response only when the income tax department had asked the assessee to pay the taxes and without further delay, the assessee filed the appeal. The assessee submitted that the appeal could not be filed in time, in view of the above serious difficulty which was beyond the control of the assessee. The assessee, therefore, pleaded to condone the delay and admit the appeal for hearing. 2. We have gone through the condonation petition filed by the assessee and find that there is reasonable cause for the assessee to file 3 I.T.A. No.32/Viz/2024, A.Y.2017-18 Attoonoori Venkata Reddy, Konduru the appeal belatedly. Hence, we condone the delay and admit the appeal for hearing. 3. Brief facts of the case are that the assessee is an individual and assessment in the case of the assessee was completed by the Assessing Officer (AO) assessing the total income of the assessee at Rs.57,80,368/- u/s 69A of the Act as unexplained money. 4. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) upheld the addition made by the AO and dismissed the appeal of the assessee ex-parte. 5. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal and raised the following grounds of appeal: 1. In the facts and circumstances of the case, learned CIT(Appeals) ought to have considered the facts of the case and the Grounds of appeal before dismissal ex-parte. 2. In the facts and circumstances of case, learned CIT(Appeals) ought to have considered the material evidences on the assessment record (uploaded to the portal) to show that the appellant and his family owns Ac.24.11cts., i.e. a large extent of agricultural land and the cash deposits explained before the learned AO as sourced from the agricultural income were duly substantiated and the addition made was unjustified on the facts borne out by the assessment record. 3. The appellant’s appeal against before NFAC was filed by a Chartered Accountant (Mr.K.Karthikeyan, CA) and the hearing communications in that respect had been set by NFAC to the AR in July 2023, who requested for an adjournment. The adjournment was granted and later, when the subsequent notice dt.08.09.2023 was 4 I.T.A. No.32/Viz/2024, A.Y.2017-18 Attoonoori Venkata Reddy, Konduru sent to the AR, the AR left for studies in the USA on 30.08.23 and has been there even now and thus the appellant had no communication about the Hearing Notices sent after July 2023 and they remained unanswered, the appellant prays for re-consideration of his appeal by the first appellate authority in view of the aforesaid exceptional circumstances. 4. The appellant craves leave to add or amend any Ground of Appeal. 6. The only contention of the Ld.AR is that the assessee and his family owns Ac.24.11 cts agricultural land and the cash deposits were explained before the AO as sourced from the agricultural income. But the AO, made addition and even the Ld.CIT(A) without considering the material evidences substantiating the cash deposits made, as sourced from the agricultural income, upheld the addition made by the AO and dismissed the appeal of the assessee ex-parte for non response for the reasons beyond the control of the assessee, without giving sufficient opportunity of being heard. He, therefore, pleaded to afford an opportunity of being heard before the Ld.CIT(A) in the interest of justice. 7. Per contra, the Ld.DR submitted that the assessee was given sufficient opportunities, but the assessee did not avail the same to controvert the findings of the revenue authorities with cogent material evidences. The Ld.DR therefore submitted that the Ld.CIT(A) is justified 5 I.T.A. No.32/Viz/2024, A.Y.2017-18 Attoonoori Venkata Reddy, Konduru in upholding the addition made by the AO. She, therefore, pleaded to uphold the order of the Ld.CIT(A) and dismiss the appeal of the assessee. 8. Wehave heard both the parties and perused the material placed on record. It is evident that the assessment in the case of the assessee was completed u/s 144 of the Act and the income of the assessee was assessed at Rs.57,80,368/- which was confirmed by the Ld.CIT(A).The only contention of the Ld.AR is that the assessee was not given sufficient time to substantiate his claim with evidences and prayed for an opportunity of being heard before the Ld.CIT(A) in the interest of justice. Keeping in view the aforesaid facts and circumstances of the case and in order to meet the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to afford an opportunity of being heard to the assessee. The assessee is also directed to adhere to the notices issued and cooperate with the revenue authorities during the proceedings. 9. In the result, appeal of the assessee is allowed for statistical purpose. 6 I.T.A. No.32/Viz/2024, A.Y.2017-18 Attoonoori Venkata Reddy, Konduru Order pronounced in the open court on 20 th June,2024. Sd/- Sd/- (एस बालाकृ ष्णन) (द ु व्वूरुआर.एलरेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखासदस्य/ACCOUNTANT MEMBERन्याधयकसदस्य/JUDICIAL MEMBER Dated : 20.06.2024 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee–Attoonoori Venkata Reddy, 2-105/B, A Konduru, NTR District 2.रधजस्व/The Revenue –The Income Tax Officer, Ward-3(1), Vijayawada 3. The Principal Commissioner of Income Tax,Vijayawada 4.नवभधगीय प्रनतनननध, आयकरअपीलीयअनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam