ROHIT KUMAR JHUNJHUNWALA,PATNA V. ITO, WARD-5(1), PATNA

ITA 73/PAT/2025

AI Insights

The case involves Rohit Kumar Jhunjhunwala, the appellant, who contested the order of the ld. Addl./JCIT(Appeals), Panchkula, which was dated 23rd December 2024, concerning the Assessment Year 2016-17. The primary issue was the disallowance of a depreciation claim amounting to Rs.19,13,907/-, which the Assessing Officer disallowed due to non-compliance by the assessee in providing necessary documents and details as requested under sections 143(2) and 142(1) of the Income Tax Act. The CIT(Appeals) also found the appellant non-compliant, leading to an ex-parte dismissal of the appeal. The ITAT, considering the principles of natural justice, decided to remit the case back to the CIT(Appeals) for a fresh decision, providing the appellant another opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396533 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Capital asset; Opportunity of being heard; Depreciation; Principle of natural justice
• Section: 144; 143(3); 142(1)

Judgement Text

" ITA No. 73/PAT/2025 (A.Y. 2016-2017) Rohit Kumar Jhunjhunwala 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA-PATNA ‘e-COURT’, KOLKATA [Hybrid Court Hearing] Before Shri Duvvuru RL Reddy, Vice-President (KZ) I.T.A. No. 73/PAT/2025 Assessment Year: 2016-2017 Rohit Kumar Jhunjhunwala,……………….…Appellant Keshev Rai Lane Chowk, Patna City-800008, Bihar [PAN:AAQPJ7024F] -Vs.- Income Tax Officer,………………………….....Respondent Ward-5(1), Patna Appearances by: Shri Alok Kumar, Advocate, appeared on behalf of the assessee Shri Ashwani Kr. Singal, JCIT, appeared on behalf of the Revenue Date of concluding the hearing: May 22, 2025 Date of pronouncing the order: May 30, 2025 O R D E R The present appeal is directed at the instance of assessee against the order of ld. Addl./JCIT(Appeals), Panchkula, dated 23rd December, 2024 passed for Assessment Year 2016-17. 2. Brief facts of the case are that the assessee filed its return of income electronically on 16.09.2016 showing aggregate income of Rs.4,65,400/-. The case was selected under CASS for limited ITA No. 73/PAT/2025 (A.Y. 2016-2017) Rohit Kumar Jhunjhunwala 2 scrutiny under section 143(3) of the Act with the reason that whether deduction claimed on account of depreciation is admissible. Subsequently notice under section 143(2) was generated and served on the assesese’s e-mail on 26.07.2017 to start e-proceeding. A notice under section 142(1) was generated and served on the assessee on 22.05.2018 requesting him to furnish the calculation of depreciation along with details of capital assets, date of acquisition with supporting documents. No compliance was made by the assessee on the statutory notice issued under section 142(1) of the Act. In absence of furnishing of any information by the assessee regarding admissibility of depreciation, ld. Assessing Officer left no other option, but to complete the time barring scrutiny assessment under section 144 of the Income Tax Act by disallowing the claim of Rs.19,13,907/- claimed by the assessee and assessed income of the assessee at Rs.23,79,307/-. On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). 3. The ld. CIT(Appeals) has given several opportunities to the assessee to substantiate its claim, but the appellant neither filed the written submission nor represented the case before the ld. CIT(Appeals). Thereafter the ld. Addl./JCIT(Appeals) dismissed the appeal ex-parte on 23rd December, 2024. 4. On being aggrieved, the assessee preferred an appeal before the ITAT. ITA No. 73/PAT/2025 (A.Y. 2016-2017) Rohit Kumar Jhunjhunwala 3 5. At the time of hearing, ld. Counsel for the assessee prayed before the Bench that the impugned order be set aside and remitted back to the file of ld. CIT(Appeals) for deciding it afresh. 6. At the outset, ld. D.R. brought to my notice that the assessee did not produce the relevant documents as asked by the ld. Assessing Officer during the assessment proceedings. Therefore, the ld. Assessing Officer passed the assessment order completed the assessment by disallowing the claim of Rs.19,13,907/- claimed by the assessee and assessed income of the assessee at Rs.23,79,307/-. Thereafter the assessee preferred an appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) has given many opportunities to the assessee and the assessee neither filed written submission nor any evidence before the ld. Addl./JCIT(Appeals). He further submitted that before the ITAT, the assessee did not substantiate its claim. Therefore, he pleaded to uphold the order passed by the ld. Addl./JCIT(Appeals). 7. I have heard the rival contentions and perused the material available on record. Considering the facts and circumstances of the case, I am inclined to set aside the order passed by the ld. Addl./JCIT(Appeals) in order to meet the principle of natural justice, and remit the matter back to the file of ld. CIT(Appeals) with a direction to provide one more opportunity of being heard to the assessee. At the same breath, I also hereby caution the assessee to promptly co-operate with the proceedings before the Ld. CIT(Appeals) failing which the Ld. CIT(Appeals) shall be at liberty to pass appropriate order in accordance with law and merits ITA No. 73/PAT/2025 (A.Y. 2016-2017) Rohit Kumar Jhunjhunwala 4 based on the materials available on the record. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 30/05/2025. Sd/- (Duvvuru RL Reddy) Vice-President (KZ) Kolkata, the 30th day of May, 2025 Copies to :(1) Rohit Kumar Jhunjhunwala, Keshev Rai Lane Chowk, Patna City-800008, Bihar (2) Income Tax Officer, Ward-5(1), Patna (3) Addl./JCIT(Appeals), Panchkula; (4) CIT - ; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S. "