Mallikarjun Gurushidhappa Gadvi, Kolhapur V. Assistant Commissioner of Income Tax, Circle-1, Kolhapur, Kolhapur

ITA 557/PUN/2023

AI Insights

The case involves Malikarjun Gurushidhappa Gadvi, an individual engaged in business, who appealed against the order of the NFAC which confirmed a rectification made by the Central Processing Centre (CPC), Bengaluru. The rectification disallowed a sum of Rs.1,73,870, which was 30% of an amount paid to Bhavani Industries, on the grounds of non-deduction of tax at source. The assessee contested the rectification and the subsequent NFAC order, primarily on the grounds that the rectification was made without an opportunity for him to be heard, which he argued rendered the order invalid.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137641 (ITAT-PUNE)
• Duration Of Justice: 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 24-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 08-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Opportunity of being heard
• Section: 154; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.557/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Malikarjun Gurushidhappa Gadvi, R.R. Industries, B-31, MIDC, Gokul Shirgaon, Kolhapur- 416234. PAN : ABFPG5385A Vs. ACIT, Circle-1, Kolhapur. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 10.02.2023 for the assessment year 2018-19. 2. Briefly, the facts of the case are that the appellant is an individual deriving income under the head “business”. The Return Assessee by : None Revenue by : Shri Piyush Kumar Singh Yadav Date of hearing : 25.05.2023 Date of pronouncement : 26.05.2023 ITA No.557/PUN/2023 2 of Income for the assessment year 2018-19 was filed on 29.12.2018 disclosing total income of Rs.10,41,120/-. The said return of income was processed u/s 143(1) of the Income Tax Act, 1961 (‘the Act’) by the CPC, Bengaluru vide intimation dated 13.04.2019 accepting the retuned income. Subsequently, the said intimation was rectified by the CPC, Bengaluru vide intimation dated 14.05.2019 u/s 154 of the Act after disallowing a sum of Rs.1,73,870 being 30% of the amount of Rs.5,79,565/- paid to Bhavani Industries without deducting tax at source. 3. Being aggrieved by the rectification order u/s 154, an appeal was filed before the NFAC contending that the CPC had enhanced the returned income by rectifying the original intimation u/s 143(1) without giving an opportunity of being heard to the assessee and also challenged the addition on merits. The NFAC vide impugned order confirmed the action of the CPC, Bengaluru on merits. However, the NFAC had not dealt with the ground of appeal no.1 raised before him, which reads as under :- “1. The A.O. has erred in passing order u/s 154 enhancing the income of the assessee without giving the assessee an opportunity of being head and hence the order is invalid and should be quashed.” ITA No.557/PUN/2023 3 4. Since the above ground of appeal no.1 goes to very root of the matter, I am of the considered opinion that the matter requires remission to the file of the file of the NFAC for de novo consideration in accordance with law. I order accordingly. 5. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 26 th day of May, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 26 th May, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.