Amit Bapuso Lothar, Kolhapur V. The Income Tax Officer, Ward1(1), Kolhapur

ITA 981/PUN/2023

AI Insights

The case involves Amit Bapuso Lohar, the appellant, against the ITO, Ward-1(1), Kolhapur, the respondent. The appeal originated from an order by the NFAC, which dismissed the assessee's appeal for non-prosecution, as the assessee failed to respond to multiple notices. The Tribunal noted that the NFAC did not adjudicate the issues on merits but dismissed the appeal solely due to the assessee's non-responsiveness. Recognizing the welfare nature of income tax legislation and the importance of protecting the rights of the taxpayer, the Tribunal decided to remand the case back to NFAC for a substantive adjudication.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 138077 (ITAT-PUNE)
• Duration Of Justice: 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 06-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMNATH P. KURKUNDE
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE „A‟ BENCHES :: PUNE BEFORE SHRI R.S. SYAL, HON. VICE PRESIDENT & SHRI PARTHA SARATHI CHAUDHURY, HON. JUDICIAL MEMBER ITA No.981/PUN/2023 (A.Y. 2017-18) Amit Bapuso Lohar, Akurde Village, Bhudargad Taluka, Kolhapur-416232. PAN: ACBPL 2933 L vs ITO, Ward-1(1), Kolhapur. Appellant Respondent Assessee by : None Revenue by : Shri Ramnath P. Kurkunde, DR Date of hearing : 22/09/2023 Date of pronouncement : 22/09/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 03.08.2023 for A.Y.2017-18 as per the grounds of appeal on record. 2. At the outset, it is seen from the order of the NFAC at para 3 that in spite of notice of hearing issued to the assessee, the assessee neither filed any response nor filed any submission. The assessee has not effectively pursued the appeal proceedings and failed to respond to various notices issued by the office of NFAC. The assessee even did not respond to the enablement communication notice dated 16/11/2022 issued by the NFAC. Thereafter, the NFAC had dismissed ITA No.981 /PUN/2023 Amit Bapuso Lohar 2 the appeal of the assessee upholding the order of the Assessing Officer (AO) for non-prosecution of the appeal. Therefore, it is evident that the ex-parte order passed by NFAC has not determined substantially the rights and liabilities of the parties on merits. The appeal has been dismissed for non-prosecution. It is correct that sufficient opportunity of hearing has been given to the assessee and he has failed to avail the benefit of such notice issued, however, the very fact that income tax is welfare legislation, the rights of the tax-paper/assessee needs to be protected as far as possible within the ambit of the statute. If the NFAC would have adjudicated the issues on merits of the case, the matter would have been different since then this Tribunal could have decided upon the correct applicability of law vis-a-vis decision taken in the impugned order. Since the matter has been disposed of for non- prosecution, we are of the considered view that in the interest of justice, the rights and liabilities of the parties needs to be determined substantially through adjudication at the NFAC level. We also direct the assessee that since one final opportunity is being given to him, he should submit all details/evidences as and when called for by NFAC and represent his case on merits. In view thereof, we set aside the order of the NFAC and remand the matter back to its file for adjudication as per law complying with the principles of natural justice. The grounds of appeal stands allowed for statistical purposes. ITA No.981 /PUN/2023 Amit Bapuso Lohar 3 3. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open Court on 22 nd September, 2023. Sd/- Sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE-PRESIDENT JUDICIAL MEMBER Dated : 22 nd September, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 4. The DR, ITAT, “A” Bench Pune. 5. Guard File. By Order // TRUE COPY // Senior Private Secretary ITAT, Pune.