RAJENDRA VISHWAMBHAR SHETE,KOLHAPUR V. ACIT CIRCLE 2 KOLHAPUR, KOLHAPUR

ITA 1241/PUN/2024

AI Insights

The case involves Rajendra Vishwambhar Shete, the appellant, who challenged the order passed by the National Faceless Appeal Centre (NFAC) under section 250 of the Income-tax Act, 1961. The NFAC had confirmed the assessment order passed by the Assistant Commissioner of Income Tax, Circle-2, Kolhapur, which disallowed a portion of the agricultural income and the entire amount of a gift received, adding these to the appellant's income for the assessment year 2017-18. The appellant's appeal to the NFAC was dismissed ex-parte due to non-appearance, attributed to the COVID-19 pandemic. The ITAT, considering the circumstances and precedents, decided to set aside the NFAC's order and remand the case for a fresh hearing, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473486 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 29-05-2024
• Other Referred Cases: Vijay Vishin Meghani Vs. DCIT & Anr, Collector, Land Acquisition, Anantnag and Anr. Vs Ms Katiji and Others, St. Paul’s Anglo Indian Education Society (2003) 262 ITR 377 (Pat)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BS RAJPUROHIT LD.
• Keywords: Gift
• Section: 143(3); 250; 56; 139(1); 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE ‘SMC’ BENCH, PUNE ITAT-Pune Page 1 of 4 BEFORE HON’BLE SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER AND HON’BLE SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No.1241/PUN/2024 Assessment Year : 2017-18 Rajendra Vishwambhar Shete 1320/2, C-Ward, Laxmipuri, Kolhapur0416002. PAN: ACCPS9419F .......अपीलार्थी / Appellant V/s Asstt. Commissioner of Income Tax Circle-2, Kolhapur. ....... प्रत्यर्थी / Respondent Appearances Assessee by : None for the Assessee Revenue by : Mr BS Rajpurohit [‘Ld. DR’] Date of conclusive Hearing : 11/09/2024 Date of Pronouncement : 01/10/2024 ORDER PER G. D.PADMAHSHALI, AM; By present appeal, the assessee challenges DIN & order No. ITBA/NFAC/S/250/2022-23/1050800635(1) dt. 15/03/2023 passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ hereinafter] by the National Faceless Appeal Centre [‘Ld. CIT(A)/NFAC’ hereinafter] which in turn confirmed the order of assessment passed u/s 143(3) of the Act by the Asstt. Commissioner of Income Tax Circle-2, Kolhapur [‘AO’ hereinafter] for assessment year 2017-18 [‘AY’ hereinafter]; Rajendra Vishwambhar Shete Vs ACIT ITA No.1241/PUN/2024 AY: 2017-18 ITAT-Pune Page 2 of 4 2. This case was called twice; none appeared at the behest of the appellant, on the primary briefing from the Revenue and having regard to order-sheet entries we deem it to advance ex-parte u/r 24 of ITAT-Rules, 1963 and adjudicate the limited issue. 3. At the outset, after vouching sufficiency of reasons beyond undeliberate delay occurred in instituting the present appeal, in the larger interest of justice and after placing reliance on ‘Vijay Vishin Meghani Vs. DCIT & Anr’ reported 398 ITR 250 (Bom) and ‘Collector, Land Acquisition, Anantnag and Anr. Vs Ms Katiji and Others’ reported at 167 ITR 5 (SC), we deem it fit to condone the same and advanced accordingly. 4. We have heard the Ld. DR on the limited issue ex-parte dismissal of appeal by the first appellate authority; and subject to provisions of rule 18 of ‘ITAT Rules’ perused material placed on record. We note that, the assessee is an individual who filed his return of income u/s 139(1) of the Act declaring total income ₹30,73,000/- and agricultural income ₹1,00,000/- . The case of the assessee was selected for scrutiny to verify the limited issue of ‘increase in capital account.’ During the year under consideration amongst the other amount credited to capital account, the assessee’s Rajendra Vishwambhar Shete Vs ACIT ITA No.1241/PUN/2024 AY: 2017-18 ITAT-Pune Page 3 of 4 explanation towards (a) agricultural income of ₹1,60,000/- earned and (b) ₹7,00,000/- gift received from mother were turned down and 50% of such agricultural income u/s 56 disallowed and entire amount of gift u/s 68 were added to income vide assessment order dt. 29/11/2019 framed u/s 143(3) of the Act. 5. Aggrieved assessee instituted an appeal against such assessment before Ld. NFAC on 22/12/2019 wherein the first appellate authority provided as many as seven opportunities of hearing to the assessee right from March, 2021 till February, 2023, most of which fell during the subsistence of COVID-19 pandemic hence unattended, which resulted into ex-parte dismissal of appeal by the Ld. NFAC. 6. However, the affiliate dt. 18/05/2024 executed & filed by the assessee explaining the reasons of delay occurred in instituting the present appeal and reasons behind his non-compliance before first appellate authority capable of suggesting that such non-compliance was accidental & undeliberate. After vouching the reasons behind such accidental & undeliberate non-compliance, in the larger interest of justice we are of the view that the assessee for sufficient reasons prevented from representing himself before Ld. NFAC. Rajendra Vishwambhar Shete Vs ACIT ITA No.1241/PUN/2024 AY: 2017-18 ITAT-Pune Page 4 of 4 7. Relying on Hon’ble High court of Patna judgement in ‘St. Paul’s Anglo Indian Education Society’ (2003) 262 ITR 377 (Pat)’, we are mindful to hold that the appellant assessee was deprived of reasonable opportunity and time to produce all relevant documents to substantiate his claims therefore any adjudication without such evidential documents would be violative of principle of natural justice and rendered itself irregular, thus deserving to be set-aside. In the event and in view of the aforestated discussion we deem it proper to accord one more opportunity to the assessee to place evidential material before the Ld. NFAC. In view hereof, without commenting on merits, we set-aside the impugned order and remit the matters back to the file of Ld. NFAC with a direction to adjudicate the subject matter a fresh in accordance with law after providing three effective opportunities to the appellant assessee. 8. The appeal in result is ALLOWED FOR STATISTCIAL PURPOSES. U/r 34 of ITAT Rules, order pronounced in open court on this Tuesday 01st day of October, 2024. -S/d- -S/d- VINAY BHAMORE G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE; दिन ांक / Dated : 01st day of October, 2024. आदेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr.CIT Concerned. 4. The CIT-Concerned(MH-India) 5. DR, ITAT, Bench ‘SMC’, Pune 6.ग र्डफ़ इल / Guard File. आिेश नुस र / By Order वररष्ठदनजीसदिव / Sr. Private Secretary आयकरअपीलीयन्य य दिकरण, पुणे / ITAT, Pune. "