MR. SHRIJIT ARVINDRAO PAWAR, PUNE V. ITO WARD 14(5), PUNE

ITA 959/PUN/2022

AI Insights

The case involves Mr. Shrijit Arvindrao Pawar, a contractor, who appealed against the order of the National Faceless Appeal Centre (NFAC), which was based on an assessment made by the Assessing Officer under section 148 of the Income Tax Act, 1961. The assessment was triggered by information about a cash deposit of Rs.10,89,200 in Axis Bank. The Assessing Officer made additions to the appellant's income, which were contested. The NFAC partly allowed the appeal, leading to the current appeal before the Tribunal. The main contention was the violation of natural justice, as the appellant was not given a reasonable opportunity to respond to the notices before the assessment was completed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137661 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 10-04-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 27-12-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BHUVNESH KANKNI
• Keywords: Business income; Principle of natural justice
• Section: 148; 142(1); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.959/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2012-13 Mr. Shrijit Arvindrao Pawar, A/p. Katewadi, Tal- Baramati, Dist- Pune- 413102. PAN : ARNPP2597D Vs. ITO, Ward-14(5), Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 17.11.2022 for the assessment year 2012-13. 2. The brief facts of the case are that the appellant is a contractor. The Return of Income for the assessment year 2012-13 was filed on 07.10.2013 declaring total income of Rs.2,61,174/-. Subsequently, based on the receipt of information that the appellant had deposited cash in Axis Bank of Rs.10,89,200/-, the Assessing Officer issued a notice u/s 148 on 30.03.2019. The appellant neither filed the return of income nor complied with the notice u/s 142(1) of the Income Assessee by : Shri Bhuvnesh Kankni Revenue by : Smt. Sonal L. Sonkavde Date of hearing : 11.04.2023 Date of pronouncement : 11.04.2023 ITA No.959/PUN/2022 2 Tax Act, 1961 (‘the Act’). In the circumstances, the Assessing Officer had proceeded to make the assessment to best of his judgement by making addition of business income @ 10% of the contract receipts shown in the Profit & Loss Account of Rs.63,56,764/- and addition of cash deposit made in the Axis Bank of Rs.10,89,200/-. 3. Being aggrieved by the above additions, an appeal was filed before the NFAC, who vide impugned order partly allowed the appeal of the assessee. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. At the outset, ld. AR submitted that the notices u/s 143(2) issued by the Assessing Officer was received by the appellant on 21.11.2019 whereas the assessment was completed by the Assessing Officer on 22.11.2019. Thus, it was submitted that the assessment order was passed in gross violation of principles of natural justice, as the reasonable opportunity was not given to the appellant. 6. On the other hand, ld. Sr. DR has no serious objection to remand the matter to the file of the Assessing Officer for fresh assessment. 7. I heard the rival submissions and perused the material on record. From mere reading of the assessment order, it would reveal that the Assessing Officer had not given reasonable opportunity to ITA No.959/PUN/2022 3 the appellant. The Assessing Officer issued notice u/s 143(2) on 18.11.2019, which was served on the appellant on 21.11.2019. The appellant also filed copy of the record of the Postal Department to prove that the said notice was served on 21.11.2019 and the Assessing Officer had completed the assessment on 22.11.2019. This would clearly demonstrate that the Assessing Officer had not given reasonable opportunity to comply with the notices issued u/s 143(2) of the Act. Thus, the order passed by the Assessing Officer suffers from voice of violation of principles of natural justice. Therefore, I remand the matter to the file of the Assessing Officer for de novo assessment in accordance with law. 8. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced on this 11 th day of April, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 11 th April, 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.