GHATKOPAR SAHAJIVAN CO-OP HOUSING SOCIETY LIMITED , MUMBAI V. COMMISSIONER OF INCOME TAX(APPEAL) , MUMBAI

ITA 825/MUM/2023

AI Insights

The case involves the Ghatkopar Sahajivan Co-operative Housing Society Ltd., which appealed against the order of the Commissioner of Income-tax (Appeals) - National Faceless Appeal Centre, Delhi. The appeal was concerning an adhoc disallowance of Rs. 470,220 made during the processing of their income tax return for the Assessment Year 2016-17 under section 143(1) of the Income Tax Act, 1961. The society argued that the disallowance was due to faulty computerized processing and that their rights to natural justice were violated as they were not adequately heard or provided a show cause notice. The CIT(A) had dismissed their appeal ex-parte due to non-compliance with notices, which the Tribunal found to be potentially unjust, leading to the decision to remit the case back for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299886 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-05-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 15-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Set aside
• Section: 154; 143(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & MS. PADMAVATHY S, ACCOUNTANT MEMBER ITA No.825/Mum/2023 (Assessment Year: 2016-17) Ghatkopar Sahajivan Co-op.Housing Society Ltd., Sulsa House Plot No.26, Nath Pai Nagar, Gahtkopar East, Mumbai-400077. बनाम/ Vs. NFAC Mumbai-400020. ̾थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACAG6938Q (अपीलाथŎ /Appellant) (ŮȑथŎ / Respondent) अपीलाथŎ ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri Anil Gupta.DR सुनवाई की तारीख / Date of Hearing 23/05/2023 घोषणा की तारीख /Date of Pronouncement 24/05/2023 आदेश / ORDER PER PAVAN KUMAR GADALE - JM: The assessee has filed an appeal against the order of Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre, Delhi [“Ld. CIT(A)”] passed under section 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year (“AY”) 2016-17. The assessee has raised following grounds of appeal:- 1. " CPC/ACIT 27(1), Mumbai has erred while making adhoc disallowance of Rs.470220/-in intimation u/s.143(1) and also in Rectification u/s.154. 2 ITA No. 825/Mum/2023 Ghatkopar Sahajivan Co-operative Housing Society Ltd. 2. The above impugned disallowance is made due to faulty computerized processing of Income tax Return without appreciating the entire facts. 3. The Ld. CIT (A), NFAC erred in dismissing appeal without giving adequate opportunity of hearing and submissions. The earlier two notices dated 5/2/21 and 24/6/21 were served during pandemic of covid and Hon'ble Supreme Court in Misc.application No.21of 2022 extended the time limit for all proceedings. 4. The Ld. CIT (A), NFAC also erred in fact that the natural justice has been violated as the appellant was not provided with the show cause notice. 5. The Ld. CIT (A) ought to have passed speaking order on merits and sufficient opportunity of hearings/submissions ought to have been granted to the appellant.” 2. The Brief facts of the case are that, the assessee is a co- operative housing society and works on principles of mutuality. The assessee has filed return of income for AY 2016-17 on 03.02.2018 disclosing a total income of Rs.NIL. The return of income was processed u/s 143(1) of the Act on 14.06.2018 and the assessed income was determined at Rs.4,70,220/-. Against the intimation U/sec143 (1) of the Act, the assessee has filed a rectification petition and it was rejected vide order u/s 154 of the Act dated 5-06-2020. 3. Aggrieved by the rectification order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the 3 ITA No. 825/Mum/2023 Ghatkopar Sahajivan Co-operative Housing Society Ltd. grounds of appeal, statement of facts and findings of the Assessing Officer (“AO”) and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore, the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. None appeared on behalf of the Assessee. 4. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 2 Para 4 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and 4 ITA No. 825/Mum/2023 Ghatkopar Sahajivan Co-operative Housing Society Ltd. shall cooperate in submitting the information for early disposal of the appeal. Accordingly, allow the grounds of appeal of the assessee for statistical purposes. 5. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 24.05.2023. Sd/- Sd/- Sd Sd/- Sd/- (PADMAVATHY S) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 24/05/2023 *Amit Kumar, Sr. PS* आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / The CIT(A) 4. आयकर आयुƅ(अपील) / Concerned CIT 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, मु᭥बई / DR, ITAT, Mumbai 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, सȑािपत Ůित //True Copy// 1. उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु᭥बई / ITAT, Mumbai