Parthana Infra, Kolhapur, Kolhapur V. Assistant Commissioner of Income Tax, Central Circle, Kolhapur, Kolhapur

ITA 329/PUN/2023

AI Insights

The case involves Prarthana Infra, which appealed against the order of the CIT(A), Pune-11, concerning the assessment year 2017-18. The primary issue arose from the Income Tax Officer's (ITO) decision to capitalize administrative expenses and interest payments amounting to Rs.46,25,154/- as work-in-progress, which was initially assessed at Nil income. The CIT(A) dismissed the appeal ex-parte due to non-response from the assessee to multiple notices. The Income Tax Appellate Tribunal (ITAT) found that the CIT(A) did not provide adequate opportunity for the assessee to present their case and thus remitted the matter back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124119 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 25-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 19-03-2023
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.329/PUN/2023 नधा रण वष / Assessment Year : 2017-18 Prarthana Infra, Punya Pravah, 180E Ward, Nagala Park, Kolhapur Maharashtra – 416 003 PAN : AAPFP2872A Vs. ACIT, Central Circle, Kolhapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 10-02-2023 passed by the CIT(A), Pune-11 in relation to the assessment year 2017-18. 2. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of the assessee despite notice. I am, therefore, proceeding to dispose of the appeal ex parte qua the assessee. 3. It is seen that the assessment order in this case was passed u/s.143(3) of the Act assessing total income at Nil which was returned by the assesseee. The case was selected for scrutiny. During the assessment proceedings, the AO noticed that the assessee Assessee by Shri None Revenue by Smt. Shraddha Nichal Date of hearing 26-04-2023 Date of pronouncement 26-04-2023 ITA No. 329/PUN/2023 Prarthana Infra 2 was following project completion method of accounting and the expenses incurred were capitalised as work-in-progress (WIP). The explanation of the assessee that it was undertaking only one project and all expenses related to said project, did not find favour with the assessee. Eventually, the capitalisation of administrative expenses as well as interest payment amounting to Rs.46,25,154/- was reduced from the work-in-progress determining Nil income. This led the assessee to file an appeal before the CIT(A). The ld. CIT(A), in para 4 of the impugned order, noted that various notices were issued to the appellant to which he did not respond to any of the notices delivered on the e-mail available on ITBA. He, therefore decided the appeal based on the documents that were submitted by the assessee as part of appeal memo, which resulted into passing of the ex-parte order qua the assessee dismissing the appeal. Considering the entirety of facts and circumstances, I am of the opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the ld. CIT(A) with a direction to decide the appeal afresh as per law after allowing a reasonable opportunity of hearing to the assessee. I order accordingly. Needless to say, the assessee will be at liberty to lead any fresh evidence in support of his point of view in the fresh assessment. ITA No. 329/PUN/2023 Prarthana Infra 3 4. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 26 th April, 2023. Sd/- ( R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 26 th April, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT (Central), Pune DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 329/PUN/2023 Prarthana Infra 4 Date 1. Draft dictated on 26-04-2023 Sr.PS 2. Draft placed before author 26-04-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *