Ashishkumar Shashikant Doshi, Palanpur V. The DCIT, Circle Gandhinagar, Gandhinagar

ITA 535/AHD/2023

AI Insights

The case involves Ashishkumar Shashikant Doshi, the assessee, who appealed against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2016-17. The initial appeal was dismissed by the CIT(A) based on a mistakenly recorded withdrawal request, which actually pertained to a different assessment year (2020-21). The ITAT, upon realizing the error, allowed the appeal for statistical purposes and remanded the case back to the CIT(A) for a decision on the merits, emphasizing that the withdrawal was not intended for the 2016-17 assessment year.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133662 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-09-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 02-07-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE REPRESENTED BY
• Section: 154; 143(1)

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ ‘SMC’ अहमदाबाद। अहमदाबाद।अहमदाबाद। अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.535/Ahd/2023 Asstt.Year : 2016-17 Ashishkumar Shashikant Doshi Swastik Building, Main Road Nr.City Police Station, Palanpur. PAN : AFQPS 1238 F Vs DCIT, Circle Gandhinagar. (Applicant) (Responent) Assessee by : Shri Parin Shah, AR Revenue by : Shri Santosh Kumar, Sr.DR स ु नवाई क तार ख/D a t e o f H e a r i n g : 0 4 / 0 9 / 2 0 2 2 घोषणा क तार ख /D a t e o f P r o n o u n c e m e n t : 1 3 / 0 9 / 2 0 2 3 आदेश/O R D E R The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre, Delhi [in short referred to as ld.CIT(A)] under section 250(6) of the Income Tax Act, 1961 ("the Act" for short), dated 6.6.2023 pertaining to Asst.Year2016-17. 2. Before the matter was taken up for a substantive hearing, the ld.counsel representing the assessee brought to our attention that the present appeal by the assessee was erroneously dismissed by the ld.CIT(A) due to a letter from the assessee requesting the withdrawal of his appeal. It was contended that this withdrawal request actually pertained to the assessment year 2020-21, appellate proceedings in which were going on simultaneously with that for A.Y 16-17, the assessment year before us. The assessee, it was stated, inadvertently uploaded this submission in the e-proceedings for the ITA No.535/Ahd/2023 2 Asst.Year 2016-17. Consequently, the present appeal for the Asst.Year 2016-17 was dismissed by the Ld.CIT(A) based on an erroneous assumption of a ‘request for withdrawal’ which otherwise pertained to the Asst.Year 2020-21. 3. This fact was first notified to the Bench on 24-8-2023, and accordingly the Bench made the following entry in the order sheet seeking clarification from the ld.DR as to the averment made by the ld.counsel for the assessee as above, and submit a report thereof: “Assessee represented by: Shri Parin Shah, A R. Department represented by: Shri Santosh Kumar, Sr. D. R. The case of the Id. Counsel for the assessee before us was that Id. CIT(A) had wrongly dismissed the assessee's appeal as stated to be withdrawn. His contention was that the application withdrawing the appeal pertained to the proceedings before the Id. CIT(A) for AY 2020-21. He filed before us the copy of the letter so filed before the ld. CIT(A) in the impugned year pointing out clearly therefrom that the withdrawal pertained to appeal for AY 2020-21. Since this letter was filed in the faceless proceedings before the Id. CIT (A) , the Id. DR is directed to verify the aforesaid facts as stated by the Id. Counsel for the assessee and submit a report in this regard before us. Adjourned to 4th September, 2023. Kept as part-heard.” 4. In the light of the above order-sheet, the ld.DR filed a report dated 28.8.2023 enclosing therewith copy of e-proceedings response acknowledgement mentioning the fact of withdrawal of appeal and requested to pass necessary order. Copy of the letter filed to the Ld.CIT(A) mentioning clearly the withdrawal of appeal pertaining to A.Y 20-21 was also filed. The ld.DR also filed a copy of rectification order passed under section 154 vide which the Department has deleted the adjustment made under section 143(1) for Asst.Year 2020-21. In effect, the Ld.DR affirmed the pleadings of the Ld.Counsel for the assessee that the withdrawal application was inadvertently uploaded in appeal proceedings for the impugned year, A.Y 16-17 , though it pertained to A.Y 20-21 ITA No.535/Ahd/2023 3 The ld.counsel for the assessee further submitted that in fact the assessee intended to pursue and argue his appeal before the ld.CIT(A) for the Asst.Year 2016-17 and to decide its case based on its merits. To bolster his contentions, he drew our attention to the following documents filed to the Ld.CIT(A) contained in a paper book viz. i) Return of income with statement of total income at page no.01 to 05; ii) Tax Audit Report & Annual Accounts Page No.06-22 iii) Details of loans from whom interest received Pg.No.23 iv) Details of unsecured loans on whom interest paid Pg.No.24- 27; v) Written Submissions to CIT(A) along with case laws from page no.s28 to 75; vi) Copy of order of the ld.CIT(A) for earlier Asst.Year 2014-15, Page no.76to 113; Online response to notice (Page No.118; vii) Notice u/s.250 of the Act dated 24.12.2021 page no.119-122; viii) Online submission to the notice Page No.123 ix) Submission for Asst.Year 2020-21 wrongly uploaded in e- proceedings tab of Asst.Year 2016-17 (page No.124) 5. All the above, he stated, demonstrate that the assessee wanted to pursue his appeal before the ld.CIT(A) on merits, and in such circumstance there can be no room for doubting the assessee’s submissions that the impugned letter of request for withdrawal appeal before the ld.CIT(A) was inadvertently uploaded in the proceeding pertained to Asst.Year 2020-21, which deserves to be condoned and appeal of the assessee may be sent back to the ld.CIT(A) for deciding the issue afresh on the basis of material already available on record. On the other hand, the ld.DR has expressed no objection if the matter is being sent back to the ld.CIT(A) for fresh consideration. 6. I have considered submissions of both the parties; gone through orders of the Revenue authorities. I have also perused the various documents contained in the paper book filed by the assessee ITA No.535/Ahd/2023 4 to defend his case. I see that the only reason for the ld.CIT(A) to dismiss the appeal of the assessee was the so-called letter of request for withdrawal of his appeal, which though pertained to A.Y 20-21, was inadvertently filed in the proceedings related to the impugned year, i.e A.Y 16-17. The inadvertent mistake in uploading the letter of withdrawal has been admitted by the assessee with full justification and confirmed by the documents submitted by the Ld.DR which clearly show that the withdrawal application pertained to A.Y 20-21 and not the impugned year before us, A.Y 16-17. Also it is clear from the documents filed in the paper book before us which include written submissions filed to the Ld.CIT(A) alongwith certain documents, that he, in reality, intended to pursue the appeal before the ld.CIT(A) on merit. The submissions of the assessee, in the light of report submitted by the Revenue, clearly make the case of the assessee. Therefore, in all fairness and justice, the matter requires to be sent back to the file of the ld.CIT(A)/NFAC, Delhi for adjudication on merits. I do so, and allow the appeal of the assessee on this very preliminary issue, without touching the merits of the case, for statistical purpose. 7. In the result, the appeal of the assessee is allowed for statistical purpose, as indicated above. Order pronounced in the Court on 13 th September, 2023 at Ahmedabad. Sd/- (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 13/9/2023 vk*