NARESH LAXMINARAYAN GROVER, NAGPUR V. NATION FACELESS ASSESSEMENT CENTRE, NEW DELHI

ITA 63/NAG/2023

AI Insights

The case involves an appeal by Naresh Laxminarayan Grover against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the AO's assessment for the year 2019-20. The AO had made additions to the assessee's income on account of unexplained cash credits and denied certain claims due to non-submission of evidence. The assessee contended that he did not receive the statutory notices under sections 143(2) and 142(1) of the Act, which was crucial for his defense. The Tribunal noted the absence of any response from the assessee to the notices and remanded the case back to the AO to verify the issuance of these notices and allow the assessee an opportunity to present his case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128853 (ITAT-NAGPUR)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-07-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 09-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68; 144; 142(1); 143(2)

Judgement Text

आयकर अपीलीय अधिकरण न्यायपीठ नागपूर में । IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR (Through Virtual Court) BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.63/NAG/2023 धनिाारण वर्ा / Assessment Year : 2019-20 Naresh Laxminarayan Grover, 245 H, Rajlaxmi Marg, Near GOP Civil Lines, Nagpur – 440001 PAN : ADNPG0426G .......अपीलार्थी / Appellant बनाम / V/s. ADIT/JCIT/DCIT/ACIT/ITO, NFAC, Delhi ......प्रत्यर्थी / Respondent Assessee by : Shri Naresh Jakhotai Revenue by : Shri Maurya Pratap सुनवाई की तारीख / Date of Hearing : 20-07-2023 घोषणा की तारीख / Date of Pronouncement : 07-08-2023 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 08-02-2023 passed by the National Faceless Appeal Centre, Dlehi (“NFAC”) for assessment year 2019-20. 2. Ground No. 1 raised by the assessee challenging the action of NFAC, Delhi in confirming the order of AO without following the principles of natural justice in the facts and circumstances of the case. 2 ITA No. 63/NAG/2023, A.Y. 2019-20 3. We note that the assessee is an individual derives income from business and profession and other sources. The assessee filed return of income declaring a total income of Rs.18,82,500/-. Under scrutiny, notices u/s. 143(2) and 142(1) of the Act were issued. According to the AO, as evident from para Nos. 4 and 5 of the assessment order, there was no response from the assessee in pursuance of notices u/s. 143(2) and 142(1) of the Act. Further, it is evident that the AO issued six notices which are reproduced in para 6 of the assessment order which clearly supports the view of AO. The AO proceeded to decide the claim of the assessee to his best judgment u/s. 144 of the Act. Accordingly, he made addition on account of unexplained cash credit u/s. 68 of the Act, denied claim u/s. 57 of the Act and also disallowance for non-submission of evidences regarding payment of credit card bills vide its order dated 09-09- 2021 u/s. 144 r.w.s. 144B of the Act. 4. Having aggrieved by the order of AO, the assessee challenged the same before the CIT(A), as it is evident from the impugned order a contention was raised that no notices u/s. 143(2) and 142(1) of the Act were ever received by the assessee. The vehement contention made before the NFAC, Delhi that no notice was received by the assessee to his registered e-mail which is evident from page 5 of the impugned order, but however, no steps were taken by the assessee to show no notices u/s. 143(2) and 142(1) of the Act were issued to his registered e-mail. In view of the same, we have no alternative except to remand the matter to the file of AO for giving an opportunity to the assessee to pursue his remedy whether the AO issued statutory notices u/s. 143(2) and 142(1) of the Act or not. As noted above, the AO conducted the assessment proceedings to his best judgment u/s. 144 r.w.s. 144B of the Act which clearly suggests no assistance from the assessee in the assessment proceedings. Therefore, 3 ITA No. 63/NAG/2023, A.Y. 2019-20 taking into consideration the facts and circumstances of the case, we deem it proper to remand the matter to the file of AO for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. Thus, ground No. 1 raised by the assessee is allowed for statistical purpose. 5. In view of our decision in ground No. 1 in allowing the issue raised by the assessee, the remaining grounds i.e. ground Nos. 2 to 7 raised by the assessee are allowed for statistical purpose. 6. In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 07 th August, 2023. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 07 th August, 2023. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The concerned CIT, Pune. 4. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, नागपूर, / DR, ITAT, Nagpur. 5. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune