Gunjan Bipin Patel, Baroda V. The DCIT, Circle-3(1), Vadodara

ITA 9/AHD/2022

AI Insights

The case involves Gunjan Bipin Patel, the appellant, who contested the order of the CIT(A) at the National Faceless Appeal Centre (NFAC). The CIT(A) had dismissed the appellant's appeal due to non-response to notices, which were sent to an email ID of a relative, not directly to the appellant. The appellant argued that the CIT(A) should have considered the facts in the statement of facts provided, despite the non-response. The Tribunal noted that the CIT(A) had not addressed the substantive issues raised in the appeal and thus remanded the case for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135693 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 05-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-01-2022
• Other Referred Cases: CIT (Central), Nagpur vs. Premkumar Arjundas Luthra (HUF)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकरअपील यअ धकरण, अहमदाबाद यायपीठ IN THE INCOME TAX APPELLATE TRIBUNAL, ‘’ A’’ BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER आयकरअपीलसं./ITA No.09/AHD/2022 नधा रणवष /Asstt. Year: 2014-2015 Gunjan Bipin Patel ½, Vishranti, Darshan Park Society, VIP Road, Kareli Baug, Baroda-390018 PAN: AESPP6106Q Vs. DCIT Circle-3(1)(2), Baroda (Applicant) (Respondent) Assessee by : Shri Sanjay R. Shah, A.R. Revenue by : Shri Atul Pandey, Sr. D.R. स ु नवाईक तार ख/Date of Hearing :06/04/2023 घोषणाक तार ख/Date of Pronouncement:21/04/2023 आदेश/O R D E R PER WASEEM AHMED ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the assessee against the order of the Learned Commissioner of Income Tax-(Appeals) (in short “Ld. CIT(A)”), National Faceless Appeal Centre (in short “NFAC”),dated 06.11.2021 arising in the matter of assessment order dated 21.11.2016passed under s. 143(3)of the Income Tax Act, 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2014-2015. 2. The assessee has raised the following grounds of appeal: “1. The learned Commissioner of Income Tax (Appeals) grossly erred in law and on facts in dismissing the appeal of the Appellant on the ground that the notices issued by him under faceless appellate proceeding were not responded to. The learned CIT(Appeals) failed to appreciate that facts required for adjudication of appeal were available in the statement of facts and the learned C.I.T.(Appeals) should have considered those facts and not dismissed the appeal even if the notices issued by him were not responded to due to ITA no.09/AHD/2022 Asstt. Year 2014-15 2 some reason. It is submitted that it be so held now and the order passed by C.I.T.(Appeals) be cancelled. 2. The learned Assessing Officer as well as the learned C.I.T.(Appeals) failed to appreciate that the income of Rs.1,77,67,179/- being profit on sale of land offered by the Appellant under the head ‘Capital Gain’ cannot be considered as business income on account of the fact that the Appellant is never dealer in the land, as he always showed these amounts as investment and further in one of the family members’ case of the Appellant, the Hon’ble Tribunal, in identical facts, has also decided such issue in favour of the assessee. The learned C.I.T.(Appeals) should have considered these facts brought to his notice in the statement of facts and dealt with the same on the merits of the case and should not have dismissed the appeal at the threshold. It is submitted that it be also held now and the order passed by C.I.T.(Appeals) be cancelled. 3. Your appellant prays for leave to add, alter and/or amend all or any of the grounds of appeal.” 3. At the outset, the Ld. Counsel appearing on behalf of the assessee submitted that the assessee while filing the appeal before the CIT(A) has furnished the email ID of her relative. Thus, the notices issued by the Ld. Commissioner (Appeals), NFAC for the hearing were marked on that email ID. As such the assessee was not aware at allofthe notices issued by the Commissioner (Appeals), NFAC. Thus, the assessee failed to comply with the notices issued by the Commissioner (Appeals), NFAC which has resulted in the ex-parte order confirming the addition made by the Assessing Officer and by dismissing the appeal in limine. 4. In this regard, it was pointed out by the Ld. AR for the assessee that there was genuine cause for non-attendance of the assessee before the Commissioner (Appeals), NFAC. 4.1 Besides this above, it was also pointed out by the Ld. A.R. that the Ld. Commissioner (Appeals), NFAC has confirmed the order of the Assessing Officer in limine without considering the details furnished by the assessee in the statement of facts attached in Form 35 of the appeal memo before the ld. CIT(A). It was contended that the Ld. CIT(A) is supposed to pass the order with reasons and in speaking manner. As such he cannot dismiss the appeal in limine. The Ld. A.R. in support of his contention relied upon the judgment of Hon’ble Bombay High Court in the case of CIT (Central), Nagpur vs. Premkumar Arjundas Luthra (HUF) ITA no.09/AHD/2022 Asstt. Year 2014-15 3 reported in (2016) 69 taxmann.com 407 (Bombay). In view of the above, the Ld. A.R. prayed before us to restore the issue to the file of the CIT(A) for the fresh adjudication as per the provisions of law. 5. On the other hand, the Ld. D.R. did not raise any objection if the matter is set-aside to the file of the Ld. CIT(A) for the fresh adjudication as per the provision of law. 6. Heard the rival contention of both the parties and perused the materials available on record. The provisions of section 250(6) of the Act requires the Ld. CIT(A) to dispose of the matter in writing and with reasons on the point of dispute raised by the assessee. Considering the facts as highlighted by the Ld. A.R. for the assessee and concession given by the Ld. A.R., we are incline to set-aside the issue to the file of the Ld. CIT-A for fresh adjudication as per the provisions of law. Needless to mention that the assessee shall cooperate during the appellate proceedings and shall not seek any adjournment without just cause. Hence, ground of appeal of the assessee is allowed of the statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 21/04/2023 at Ahmedabad. Sd/- Sd/- (T.R SENTHIL KUMAR) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 21/04/2023 Tanmay TRUE COPY आदेशक त ल प े षत/Copy of the Order forwarded to : आदेशान ु सार/BY ORDER, उप/सहायकपंजीकार ( Dy./Asstt.Registrar) आयकरअपील यअ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धतआयकरआय ु त/ Concerned CIT 4. आयकरआय ु त(अपील) / The CIT(A) 5. !वभागीय $त$न ध, आयकरअपील यअ धकरण/ DR, ITAT, 6. गाड&फाईल / Guard file.