Ajit Vasant Deshpande, Pune V. Income-Tax Officer, Ward 2 (2), Pune

ITA 639/PUN/2021

AI Insights

The case involves Ajit Vasant Deshpande, the appellant, contesting an addition of Rs. 10,24,962 to his income under 'income from other sources' for the assessment year 2017-18. This addition was initially made by the Central Processing Centre (CPC), Bengaluru, due to discrepancies between the income reported by the assessee and the income reflected in Form No 26AS. The First Appellate Authority (CIT(A)/NFAC) upheld this addition. The appellant argued that he was not given sufficient opportunity to present his case. The Income Tax Appellate Tribunal (ITAT), Pune, after hearing both parties, decided to remand the case back to the AO for a detailed examination and reconciliation of the reported income with Form No 26AS.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 136233 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-11-2022
• Assessment Year: misc
• Appeal Filed On: 23-01-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUHAS P BORA DHARAN V GANDHI
• Keywords: Opportunity of being heard; TDS
• Section: 143(1); 250

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “ए” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “A” BENCH, PUNE BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No. 639/PUN/2021 धििाारण वर्ा / Assessment Year : 2017-18 Ajit Vasant Deshpande, 701, Aquila Life Style, Ramnagar Colony, Bavdhan, Pune – 411 021 PAN :AMCPD9015G . . . . . . . अपीलार्थी / Appellant बिाम / V/s. Central Processing Centre, Bengaluru. [ITO, Ward-2(3), Pune] . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee by : Shri Suhas P Bora (For Dharan V Gandhi) Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of conclusive Hearing : 01/12/2022 घोषणा की तारीख / Date of Pronouncement : 01/12/2022 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present appeal of the assessee for the assessment year [for short “AY”] 2017-18 is assailed against the first appellate order i.e. National Faceless Appeal Centre, Delhi [for short “CIT(A) /NFAC”] dt. 13/10/2021 passed u/s 250 of the Income-tax Act,1961 [for short “the Act”] which emanated out of assessment order dt.15/12/2019 passed u/s 143(1) of the Act by CPC, Bengaluru [for short “AO”] vide DIN CPC/1718/V2/1903605865. Ajit Vasant Deshpande ITA No. 639/PUN/2021 AY: 2017-18 ITAT-Pune Page 2 of 4 2. The grounds of appeal raised for adjudication are; “1. The Ld. CIT(A) erred in confirming the action of Ld.AO (CPC) of adding Rs. 10,24,962/- under income from other sources. 2. The Ld. CIT(A) erred in not giving the sufficient opportunity of being heard to the appellant.” 3. Facts of the case borne out of the records are; 3.1 The assessee is a resident individual for the year under consideration filed his return of income [for short “ITR”] on 01/07/2017 and revised on 30/03/2019 declaring total income of ₹5,71,150/- which was summarily processed determining total income at ₹15,96,110/- on account of inconsistency between income reported by the assessee and income reflected in Form No 26AS. 3.2 The impugned addition of ₹10,24,962/- was challenged before the Ld. FAA with the contention that, all the income reflected in Form No 26AS has been considered while computing the income and declared while filing ITR, however finding no force in the submission, the addition was confirmed for the reasons that, the assessee failed to incorporate the Ajit Vasant Deshpande ITA No. 639/PUN/2021 AY: 2017-18 ITAT-Pune Page 3 of 4 income arising out of receipt of ₹15,94,480/-from ICICI Prudential Life whereupon a TDS u/s 194DA was apparently deducted and reflected in Form No 26AS. 3.3 Aggrieved by the action of both the tax authorities below [for short “TAB”], the assessee brought up the matter before the Tribunal with the grounds of appeal laid hereinbefore at para 2, alleging insufficient opportunity accorded to prove his case. 4. During the course of physical hearing, the learned counsel for the assessee [for short “AR”] adverting to insufficiency of opportunity during the proceedings, has requested that, in the interest of justice, the case may be remanded back to the file of jurisdictional assessing officer to verify the claim of the assessee that, all the transactions reflected in Form No 26AS indeed taken into consideration while computing the total income for the purpose of ITR. The learned departmental representative without controverting the facts of the case, favoured the request of the Ld. AR in remanding the file back for verification. Ajit Vasant Deshpande ITA No. 639/PUN/2021 AY: 2017-18 ITAT-Pune Page 4 of 4 5. After hearing to rival contentions of both the parties; and subject to the provisions of rule 18 ITAT, Rules,1963 perused case records, and in all its fairness, without commenting on the merits of the case, we deem fit to remand the file back to the jurisdictional AO for a limited purpose to determine total income after considering the reconciliation of income reported with that of Form No 26AS and after according reasonable opportunity to the assessee. 6. Resultantly, the appeal of the appellant assessee is ALLOWED FOR STATISTICAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Thursday 01 st day of December, 2022. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/ PUNE ; ददनाांक / Dated : 01 st day of December, 2022. आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1.अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The NFAC, Delhi (India) 4. The Pr.CIT (CPC) Bengaluru (Ka-India) 5. दवभागीय प्रदतदनदध,आयकर अपीलीय न्यायादधकरण, पुणे“ए”बेंच/ DR, ITAT, Pune“A”Bench, 6. गार्ड फ़ाइल / Guard File. आदेशानुसार / By Order, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय न्यायादधकरण, पुणे / ITAT, Pune.