SHRI SATYENDRA PRASAD,MAYURBHANJ V. ACIT, ROURKELA CIRCLE, ROURKELA

ITA 541/CTK/2024

AI Insights

This case involves an appeal by Shri Satyendra Prasad against the orders of the CIT(A), NFAC, Delhi, and the Assessing Officer, which pertained to the assessment year 2016-17. The primary contention was the dismissal of the assessee's appeal and the assessment order which included an addition of Rs. 35,00,000 under the head of short-term capital gain. The assessee argued that the orders were passed without adequate opportunity of hearing and were thus illegal and arbitrary. The Tribunal noted that multiple notices were issued to the assessee, who failed to respond, leading to the impugned orders. However, in the interest of justice, the Tribunal decided to provide one more opportunity to the assessee to present his case before the CIT(A), conditional upon the payment of a cost of Rs. 2,000.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26008 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: SOMNATH SAHOO
• Keywords: Set aside; Principle of natural justice
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Shri Satyendra Prasad, Kachery Road, Baripada. PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated 16/10301016 for the ass 2. Shri Somnath Sahoo S.C.Mohanty, Sr. 3. The assessee has IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.541/CTK/2024 Assessment Year :2016-17 Shri Satyendra Prasad, Kachery Road, Baripada. Vs. Asst. Commissioner of Income Tax, Circle, Rourkela. No.AELPP6065 K (Appellant) .. ( Respondent Assessee by : Shri Somnath Sahoo, Adv Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 31/12/20 Date of Pronouncement : 31/12/20 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 21.10.2024 in Appeal No.NFAC for the assessment year 2016-17. Somnath Sahoo, ld AR appeared for the assessee and Shri , Sr. DR appeared for the revenue. The assessee has raised the following grounds of appeal: P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER Asst. Commissioner of Income Tax, Circle, Respondent) , Adv S.C.Mohanty, Sr DR 2024 024 appeal filed by the assessee against the order of the ld 21.10.2024 in Appeal No.NFAC/2015- the assessee and Shri the following grounds of appeal: ITA No541/CTK/2024 Assessment Year :2016-17 P a g e 2 | 4 “1. That the order of the ld CIT(A), NFAC dated 21.10.2024 dismissing the appeal of the assessee is illegal, arbitrary, uncalled for and against the facts on record. 2) That the order of the CIT(Appeals) dated 21/10/2024 without providing adequate opportunity to the assessee is illegal, arbitrary, unjustified and against the principle of natural justice. 3) That the order passed by the learned Assessing Officer dated 12/05/2023 u/s.147/144 and dismissed by the learned CIT(Appeals) dated 21/10/2024 are bad in law, illegal, void-ab-initio and against the facts on record due to non-service of notice u/s. 148 to the assessee. 4) That the addition of Rs. 35,00,000/- under the head short term capital gain made by the learned AO and confirmed by the CIT(Appeals), NFAC is erroneous, illegal, arbitrary, bad in law and against the facts and circumstances of the case liable to be annulled.” 4. It was submitted by ld AR that the ld CIT(A), NFAC has dismissed the appeal of the assessee exparte without affording reasonable opportunity of hearing to the assessee. It was his submission that even the assessment order has been passed u/s.147 read with section 144B of the Act without giving reasonable opportunity to the assessee. Ld AR requested that if one opportunity is granted to the assessee, the assessee would be in a position to cooperate in the set aside proceedings. 5. Ld Sr DR opposed the prayer of the ld AR of the assessee. It was his submission that the assessee is not bothered to cooperate either in the assessment proceedings nor before the ld CIT(A). ITA No541/CTK/2024 Assessment Year :2016-17 P a g e 3 | 4 6. We have considered the rival submissions. A perusal of the order of the ld CIT(A) clearly shows that seven notice of hearings were issued to the assessee but the assessee failed to respond the notices. Therefore, ld CIT(A) was compelled to pass the impugned order. It is also observed that as the assessee has not furnished any details and documents to substantiate his claim with supporting documents and evidences. It is also observed that as the assessee has not cooperated in the assessment proceedings, the Assessing officer had no option but to pass the assessment order on the basis of materials before him. However, now before us, ld AR request one more opportunity to substantiate his claim before the ld CIT(A). Hence, in the interest of justice, the issues in this appeal are restored to the file of the CIT(A) for re-adjudication after providing adequate opportunity of hearing to the assessee subject to cost of Rs.2,000/- (Rupees two thousand only) to be deposited within 60 days from the date of this order under the head “others” in ITNS challan 280 in the Account No.500 and same is to be filed before the CIT(A). In the event the cost is not paid, the order passed by the ld CIT(A) and that of the AO would stand confirmed. In view of above, in order to render substantiate justices, the issues in this appeal are restored to the file of the CIT(A) for fresh adjudication as per law and after affording reasonable opportunity to the assessee. ITA No541/CTK/2024 Assessment Year :2016-17 P a g e 4 | 4 6.. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 31/12/2024. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 31/12/2024 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The appellant: Shri Satyendra Prasad, Kachery Road, Baripada. 2. The Respondent: Asst. Commissioner of Income Tax, Circle, Rourkela 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Cuttack DR, ITAT, 6. Guard file. //True Copy// "