Sh. Sanjeev Kumar Kathuria, Yamuna Nagar V. ITO Ward 1, Yamuna Nagar

ITA 345/CHANDI/2021

AI Insights

The case involves an appeal by Shri Sanjeev Kathuria against the order of the Commissioner of Income Tax (Appeals), which was dismissed as barred by limitation. The appellant had claimed a tax-exempt income of Rs.6,82,379 in his return, which was added by the Central Processing Centre (CPC) without any intimation or opportunity for the assessee to rebut the addition. The Tribunal found that the assessee was not given a fair opportunity to present his case at the CPC or CIT(A) levels, leading to the decision to set aside the CIT(A)'s order and remand the case for a fresh hearing on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127867 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 20-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 09-11-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 143(1)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, “B” CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ITA No 345/CHD/2021 नधा रण वष / Assessment Year : 2018-19 Shri Sanjeev Kathuria, C/o C.A. Shri Ajay Kumar Jain, SCO 80-81, 4 th Floor, Sector 17C, Chandigarh. Vs The ITO, Ward -1, Yamuna Nagar. थायीलेखासं./PAN NO: ACZPK4672P अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by: Shri Ajay Jain, CA राज व क ओर से/ Revenue by : Shri Dharam Vir, JCIT, Sr.DR स ु नवाई क तार"ख/Date of Hearing : 21.08.2023 उदघोषणा क तार"ख/Date of Pronouncement : 23.08.2023 आदेश/Order Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [hereinafter referred to as ‘ld.CIT(A)’] dated 16.09.2021. 2. At the outset, the ld. Counsel for the assessee has submitted that in this case, the assessee in his return of income had claimed tax exempt income of Rs.6,82,379/-. However, the Central Processing Centre/CPC while processing ITA No.345/CHD/2021 A.Y. 2018-19 Page 2 of 3 the return of income u/s 143(1) of the Income Tax Act, 1961 (in short ‘the Act’) has added the said exempt income without any intimation to the assessee and without giving any opportunity to the assessee to rebut the impugned addition. The ld. Counsel for the assessee has further submitted that since the assessee was not served with any order/intimation making the impugned additions, therefore, the assessee was not aware of the passing of the said order u/s 143(1) of the Act. That when it came to the notice of the assessee that there was a difference between the returned income and the assessed income by the CPC, the assessee, immediately took copy of the order and filed appeal before the ld. CIT(A). That a separate application for condonation of delay was also filed before the ld. CIT(A). However, the ld. CIT(A) dismissed the appeal of the assessee holding the same as barred by limitation. The ld. counsel has, therefore, submitted that the assessee has not been given opportunity to present its case, either before the CPC/AO or before the ld. CIT(A). 3. The ld. DR could not rebut the aforesaid facts on the file. 4. In our view, interest of justice will be well served if the assessee is given an opportunity to present his case before the ld. CIT(A) to rebut the impugned additions made by the AO. The impugned order of the ld. CIT(A) is accordingly, set aside ITA No.345/CHD/2021 A.Y. 2018-19 Page 3 of 3 and the delay in filing the appeal before the ld. CIT(A), if any, is hereby condoned. 5. The ld. CIT(A) is directed to decide the appeal of the assessee on merits after giving proper opportunity of hearing to the assessee in this respect. The ld. CIT(A) will serve the notice of hearing both by physical mode and electronic mode to the assessee. 6. The appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 23 rd August,2023. Sd/- Sd/- (VIKRAM SINGH YADAV) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER “Poonam” आदेशक त(ल)पअ*े)षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकरआय ु +त/ CIT 4. )वभागीय त न.ध, आयकर अपील"य आ.धकरण, च0डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायकपंजीकार/ Assistant Registrar