SANTOKH SINGH,AMRITSAR V. ITO WARD 2(1), AMRITSAR

ITA 28/ASR/2024

AI Insights

The case involves Santokh Singh, an agriculturist, who appealed against the order of the ld. CIT (A), NFAC, Delhi, which was based on the order of AO, NEAC, Delhi. The primary contention was the improper handling of the appeal by the first appellate authority, which allegedly disposed of the appeal without examining the merits or allowing a proper opportunity of hearing. The assessee had disclosed agricultural income which was not adequately considered, leading to an assessment under income from other sources. The tribunal found merit in the assessee's grievances regarding the procedural lapses and remanded the case for a thorough examination of the merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784357 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 23-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS
• Assessee Lawyers: ROHIT KAPOOR; V. S
• Keywords: Opportunity of being heard
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR. BEFORE SH. MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SH. UDAYAN DASGUPTA, JUDICIAL MEMBER (Hybrid Hearing) I.T.A. No. 28/Asr/2024 Assessment Year: 2018-19 Santokh Singh, H. No. 201, Village Kot Kotgurbaksh, Amritsar, Punjab [PAN:-EMXPS0241A] (Appellant) Vs. ITO, Ward 2(1), Amritsar. (Respondent) Appellant by Sh. Rohit Kapoor, Adv & Sh. V.S. Aggarwal, ITP Respondent by Sh. Charan Dass, Sr. DR Date of Hearing 13.10.2025 Date of Pronouncement 14.11.2025 ORDER Per: Udayan Dasgupta, J.M.: This appeal is filed by the assessee against the order of ld. CIT (A), NFAC, Delhi, passed u/s 250 of the Act, 1961 vide order dated 28.12.2023 which has emanated from the order of AO, NEAC, Delhi, passed u/s 144 of the Act, vide order dated 15.04.2021. 2. The assessee has taken six grounds of appeal in Form No. 36 and has raised an objection that the ld. First appellate authority has disposed of the appeal without examining the merits of the case and without allowing proper opportunity of hearing. Printed from counselvise.com I.T.A. No. 28/Asr/2024 Assessment Year: 2018-19 2 3. Brief facts emerging from records are that the assessee is an agriculturist and has filed his return of income disclosing agricultural income of Rs.34.34 lakhs and the case was selected for limited scrutiny for verification of agricultural income. However, in course of assessment proceedings, in absence of any response or any compliance to various notices issued by the department, the assessment has been completed u/s 144 r.w.s. 144B of the Act on a total income of Rs.45.80 lakhs as income from other sources. 4. The matter carried in appeal before the ld. First appellate authority has been dismissed without adjudication on the grounds contained in Form No. 35, in absence of any submission or any response to notices on four separate occasions. 5. Now, the assessee is in appeal before the tribunal and the ld. AR of the assesse was aggrieved on the ground that no proper opportunity was allowed by the ld. First appellate authority and the grounds of appeal contained in the memorandum of appeal has not been adjudicated on merits. 6. He further submitted that the assessee is an agriculturist and has been earning and disclosing agricultural income in all his previous years and the appellate authority as well as the AO before passing an order should have made proper examination and verification from the office of the Tehsildar Ajnala regarding the agriculture activities carried out by the assessee and it was further submitted that the assessee is the owner of 96 Kila of agriculture land on which agricultural activities Printed from counselvise.com I.T.A. No. 28/Asr/2024 Assessment Year: 2018-19 3 is carried out and also carried out agricultural activities on lease hold land on contract which is measuring about 398 Kila. 6.1 He further submitted that the bank statement of the assessee is indicative of the fact that payments are received from one Ajnala Cooperative Sugar Mills Ltd. on account of sale proceeds of sugarcane and he submitted that the total agricultural income has been disclosed by the assessee at Rs.45.80 lakhs, against which agricultural expenditure has been claimed at 11.45 lakhs resulting in net agricultural income of Rs.34.34 lakhs. 6.2 He further drew our attention to the computation sheets issued by the department to point out that the AO has considered the returned income as income from other sources and has taxed the same accordingly, and at the same time he has also considered net agriculture income of Rs.34.34 lakhs for rate purpose, and this very action of the AO is contradictory. 6.3 Before concluding, the ld. AR submitted that it is also not ascertainable as to which e-mail id the notice has been issued by the ld. First appellate authority because notice has not been received in the e-mail id provide in Form No. 35 as [e-mail]. 7. The ld. DR relied on the order of the ld. CIT(A) but has no objection if the matter is remanded back to the file of the ld. CIT(A) for adjudication on merits. 8. We have heard the rival submission and considered the material on record and we are of the opinion that in the instant case, interest of justice will be served if the Printed from counselvise.com I.T.A. No. 28/Asr/2024 Assessment Year: 2018-19 4 matter is remanded back to the file of the ld. First appellate authority for adjudication on all the grounds contained in Form No. 35 on merits and the assessee is also directed to file all documentary evidences in support of his contention of agricultural income and to fully cooperate in appellate proceedings. 8.1 The assessee will be allowed reasonable opportunity of being heard and notice to be issued as per provisions of section 282 of the Act 61 and also in the e-mail id stated in Form 35. 9. We have not expressed any opinion on merits of the case and all legal issues are left open. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 14.11.2025 under Rule 34(4) of the Income Tax Appellate Tribunal Rules 1963. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (UDAYAN DASGUPTA) Accountant Member Judicial Member AKV Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By order Printed from counselvise.com "