Sangitaben Jasani, Surat V. Income Tax Officer, Ward (3)(3)(4), Aaykar Bhawan, Surat

ITA 497/SRT/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 0621 (ITAT-SURAT)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-07-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 28-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice; Corroborative evidences; Set aside
• Section: 271(1)(c); 144; 142(1); 250; 143(2)

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.497/SRT/2024 AY: (2016-17) (Physical court hearing) Sangitaben Jasani Plot No.97, Mamta park Society Vibhag-1, Kapodra Police Station, Varachha Road, S.O., Kapodara, Surat-395006 Vs. Income Tax Officer, Ward-3(3)(4), Surat, Aaykar Bhawan, Majura Gate, Surat-395001 èथायीलेखासं./जीआइआरसं./PAN/GIR No: AGLPJ 9979 J (अपीलाथŎ/Appellant) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Assessee by Shri Mehul Shah, CA राजˢ की ओर से /Revenue by Shri Vinod Kumar, Sr-DR अपील पंजीकरण/Appeals instituted on 29.04.2024 सुनवाई की तारीख/Date of Hearing 24.07.2024 उद्घोषणा की तारीख/Date of Pronouncement 30.07.2024 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by the assessee emanates from the order of the Learned Commissioner of Income-tax(Appeals) /National Faceless Appeal Centre, Delhi [in short, “CIT(A)]” under section 250 of the Income-tax Act, 1961 (in short, “the Act”) dated 18.04.2024 for assessment year 2016-17. Grounds of appeal raised by the assessee are as under:- “1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(A) has erred in passing ex-parte order without giving reasonable and sufficient opportunity of being heard. 2. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(A) has erred in dismissing the appeal without passing speaking order. 2 ITA No.497/SRT/2024 /AY 16-17 Sangitaben Jasani 3. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the actions of the Assessing Office in making an addition of Rs.1,25,66,400/- on account of alleged unexplained foreign remittance. 4. It is, therefore prayed that addition made by Assessing Officer and confirmed by the learned CIT(A) may please be deleted. 5. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 2. Facts in brief are that the assessee filed her return of income (in short, ‘ROI’) for the AY 2017-18 on 25.01.2017 declaring total income of Rs.4,76,580/-. The case was selected for limited scrutiny under CASS to verify “whether outward foreign remittance is from disclosed sources and appropriate withholding and reporting obligations have been complied with”. The AO issued notices u/s 143(2) of the Act on 18.09.2017 and subsequently, due to change of incumbent, notice u/s 142(1) r.w.s.129 of the Act was issued on 29.08.2018 through e-mail. In response thereto, assessee filed e-submission through her e-filing portal but AO was not satisfied with the explanation of the assessee regarding source of foreign remittance. The AO issued five notices but assessee failed to furnish any supporting evidence. Thereafter, AO issued final show-cause notice proposing assessment u/s 144 of the Act and requiring the assessee to furnish complete source of foreign remittance along with supporting evidence. Since there was no compliance, he added entire amount of foreign remittances of Rs.1,25,66,400/- in his order u/s 144 of the Act. He also initiated penalty proceedings u/s 271(1)(c) of the Act. Aggrieved by the order of AO, assessee preferred appeal before Ld.CIT(A). 3 ITA No.497/SRT/2024 /AY 16-17 Sangitaben Jasani 3. The Ld.CIT(A) found that assessee-firm made foreign remittance of Rs.1,25,66,400/- Thereafter, he observed that the assessee did not satisfactorily explain such foreign remittance. Accordingly, he upheld the addition made by the AO by passing very short order without any discussion on merit. Further aggrieved by the order of CIT(A), the assessee has filed present appeal before this Tribunal. 4. Before us, Ld.AR for the assessee submitted that no notice of hearing was issued by CIT(A). The AO has also passed assessment order without considering the submission of the assessee. Hence, principles of natural justice was not followed by both the AO and CIT(A) and, therefore, the matter may be remitted back to the file of AO for making de novo assessment after giving adequate opportunity of hearing to assessee. 5. On the other hand, Ld.Sr-DR for the Revenue relied on the order of lower authorities. He has, however, no objection if matter is remitted back to the AO. 6. We have heard rival submissions and perused the materials on record. We find that the CIT(A) has passed a cryptic order which is not as per mandate u/s 250(6) of the Act. The AO has also not considered the submission uploaded by assessee in the Income-tax ITBA portal. Hence, there is clear violation of the principles of natural justice. We are of the considered view that the assessee deserves one more opportunity to contest her case on merit. Considering all 4 ITA No.497/SRT/2024 /AY 16-17 Sangitaben Jasani the facts, in the interest of justice, we set aside the order of Ld. CIT(A) and remit the matter back to the file of AO with a direction to pass de novo assessment order in accordance with law after granting adequate opportunity of hearing to assessee. The assessee is directed to be more vigilant and to furnish all details and explanation as needed by AO by not seeking adjournment without valid reason. With this direction, the grounds of appeal raised by the assessee are treated as allowed for statistical purposes. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order is pronounced on 30/07/2024 in the open court. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER स ू रत /Surat Ǒदनांक/ Date: 30/07/2024 Dkp Outsourcing Sr.PS Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // True Copy // Assistant Registrar/Sr. PS/PS ITAT, Surat