JAHNVIKABEN RAMESHCHANDRA UPADHYAYA TRUST,SURAT V. ITO, WARD 1(3)(1), SURAT

ITA 476/SRT/2024

AI Insights

The case involves Jahnvikaben Rameshchandra Upadhyaya Trust appealing against the order of the National Faceless Appeal Centre (NFAC)/Commissioner of Income Tax (Appeals) which dismissed their application under Section 154 of the Income Tax Act, 1961. The dismissal was based on the grounds that there was no mistake apparent on record regarding the charging of tax at the maximum marginal rate instead of the slab rate applicable to individuals, HUF, AOP, etc. The Tribunal found that the CIT(A) had not adjudicated the grounds of appeal on merit and had dismissed the appeal in limine, which was not in accordance with the mandate of Section 250(6) of the Act. The Tribunal decided to restore the appeal to the CIT(A) for a fresh decision, aligning it with the pending appeal for A.Y. 2015-16 to avoid conflicting decisions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470564 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Next Hearing Date: 10-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 23-04-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Maximum Marginal Rate
• Section: 154

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 476/Srt/2024 (Assessment Year 2016-17) (Physical hearing) Jahnvikaben Rameshchandra Upadhyaya Trust, G/11-12, Vighneshwar Estate, Nr. Gandhi Smruti Bhavan, Timaliyawad, Surat, Gujarat-395002. PAN No. AABTJ 4207 B Vs. I.T.O., Ward-1(3)(1), Surat. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Ketan Jagirdar, C.A. Department represented by Shri Mukesh Jain, Sr. DR Appeal instituted on 23/04/2024 Date of hearing 10/10/2024 Date of pronouncement 10/10/2024 Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC)/learned Commissioner of Income Tax (Appeals), [in short, the ld. CIT(A)] dated 26/03/2024 passed on the application under Section 154 of the Income Tax Act, 1961 (in short, the Act) for the Assessment Year (AY) 2016-17. The assessee has raised following grounds of appeal: “1. On the facts and circumstances of the matter, the ld. CIT(A) (HFAC) has erred by dismissing the application u/s 154 without judiciously considering the facts of the case and thereby effectively confirming intimation u/s 143(1)(a) charging tax at maximum marginal rate, which was erroneous and was passed without giving opportunity of being heard. 2. It is therefore prayed that the assessee may please be taxed at slab rate applicable to individuals, HUF, AOP etc. and not at Maximum Marginal Rate. 3. The assessee craves leave to add, alter, delete any ground(s) either before or in the course of hearing of the appeal.” ITA No. 476/Srt/2024 Jahnvikaben Rameshchandra Upadhyaya Trust Vs ITO 2 2. Rival submission of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that the appeal of assessee for A.Y. 2015-16 and 2016-17 was pending before the ld. CIT(A)-3, Surat. During the hearing of appeal, it was agreed by the ld. CIT(A) that appeal for A.Y. 2015-16 shall be treated as lead case, which will be followed in A.Y. 2016-17, however, the ld. CIT(A) dismissed the appeal for A.Y. 2016-17 by taking view that the assessee was given two opportunities and no compliance was made. The ld. CIT(A) rejected the grounds of appeal without discussing the merit of grounds of appeal. Order of ld. CIT(A) is not in accordance with mandate of Section 250(6) of the Act. The assessee filed application under Section 154 dated 20/08/2019 pointing out certain mistake in the order and also stated that no notice on e-mail ID was received by assessee. It was also pointed out that appeal for A.Y. 2015-16 and 2016-17 were pending and on 13/06/2019, there was a common date of hearing for both the appeals and the representative of assessee attended the hearing on 13/06/2019. There was no default on the part of assessee in not attending the hearing, thus, the observation of ld CIT(A) about non-appearance was mistake apparent on record. The ld. AR of the assessee submits that the application of assessee under Section 154 of the Act was dismissed by the ld. CIT(A)/NFAC by taking view that there is no mistake apparent on record. The ld. AR of the assessee submits that he has filed his affidavit on record stating on oath that appeal for A.Y. 2015-16 and 2016-17 were consolidated and for A.Y. 2015-16 was considered to be a lead case. The appeal for A.Y. 2015-16 is still pending before the ld. CIT(A) / NFAC and order is awaited. The ld. AR of the assessee submits that this appeal may also be ITA No. 476/Srt/2024 Jahnvikaben Rameshchandra Upadhyaya Trust Vs ITO 3 restored to the file of ld. CIT(A) with direction to decide the appeal for A.Y. 2015-16 and 2016-17 together to avoid the conflicting decision. 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue supported the orders of the lower authorities. However, on specific query, the ld. Sr. DR for the revenue submits that the matter may be restored back to the file of Assessing Officer to decide the matter on merit. 4. We have considered the rival submissions of both the parties and have also perused the order of ld. CIT(A) dated 23/07/2019 as well as order dated 26/03/2024 passed on application under Section 154 of the Act. Considering the facts and circumstances of the case that appeal for A.Y. 2015-16 and 2016-17 on similar facts were pending before the ld. CIT(A), out of which appeal for A.Y. 2015-16 is still stated to be pending for adjudication before the ld. CIT(A)/NFAC. Appeal for assessment year under consideration (A.Y. 2016-17) was dismissed in limine without adjudicating grounds of appeal on merit. The order of ld. CIT(A) in main appeal is not in accordance with mandate of Section 250(6) of the Act. Thus, considering the overall facts and circumstances of the case, this appeal is also restored back to the file of ld. CIT(A) to decide it afresh, as far as possible with appeal for A.Y. 2015-16. The Assessing Officer is also directed to take appropriate step for consolidating this appeal with the appeal for A.Y. 2015- 16 in ITBA Portal, if such procedure is available in the system. The ld. CIT(A) is also directed to adjudicate the appeal on merit. Needless to direct that before passing the order, the ld. CIT(A) shall grant opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future and not to cause further delay and seek adjournment without any valid reason and to ITA No. 476/Srt/2024 Jahnvikaben Rameshchandra Upadhyaya Trust Vs ITO 4 furnish all the details and his submissions and evidences on various grounds of appeal raised by it, as soon as possible, if so desired without any further delay. In the result, the grounds of appeal raised by the assessee are allowed for statistical purposes. 5. In the result, this appeal of assessee is allowed for statistical purposes only. Order announced in open court on 10th October, 2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 10/10/2024 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR 5. Guard File By order Sr. Private Secretary, ITAT, Surat // True Copy // "