SUNIL BABURAO TATE,BELGAUM V. COMMISSIONER OF INCOME TAX, DELHI NFAC

ITA 268/PAN/2024

AI Insights

The case involves an appeal by Sunil Baburao Tate against the order of the National Faceless Appeal Centre (NFAC)/CIT(A), which sustained an addition made by the Assessing Officer (AO) under sections 143(3) and 250 of the Income Tax Act. The assessee had initially filed a return disclosing an income of Rs.6,74,930 for the assessment year 2018-19, which was later scrutinized under the E-assessment scheme, leading to an additional assessment of Rs.4,99,481. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending the hearings, despite multiple notices. The Tribunal, upon hearing the appeal, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing, emphasizing the need for adherence to the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32341 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANIKANDAN.
• Assessee Lawyers: SUNIL B TATE
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 142(1); 143(2); 250

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 268/PAN/2024 (A.Y. 2018-19) Sunil Baburao Tate, Department of Hindi B K College, Club Road, Camp, Belgavi-590001, Karnataka. Vs . National e – Assessment Centre, Delhi-110001. . PAN .No. AHXPT0508L (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by Shri.Sunil B Tate.AR Revenue by Shri.Manikandan.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 03.03.2025 घोषणा कȧ तारȣख/Date of Pronouncement 04.03.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition made by the Assessing Officer. 2. The brief facts of the case are that, the assessee is an individual and has filed the return of income for the 2 ITA. No. 268/PAN/2024 Sunil Baburao Tate. Belagavi. A.Y.2018-19 on 30-06-2018 disclosing a total income of Rs.6,74,930/-.Subsequently the case was selected for complete scrutiny under the E-assessment scheme 2019..Further the notice U/sec 143(2) and u/sec 142(1) of the Act calling for the explanations and evidences to substantiate the claim made u/sec80C of the Act. Whereas the assessee has filed the partial details by letter dated 28.01.2021. The AO considering the information was not satisfied with the details and made the addition of Rs.4,99,481/- and assessed the total income of Rs.11,74,411/- and passed the order u/sec143(3) r.w.s143(3A)&132(3B) of the Act dated 09.02.2021. 3. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. Further the assesse has a good case on merits 3 ITA. No. 268/PAN/2024 Sunil Baburao Tate. Belagavi. and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at Page 3 Para3 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on the disputed issue and the assesse 4 ITA. No. 268/PAN/2024 Sunil Baburao Tate. Belagavi. should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 04.03.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 04/03/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No. 268/PAN/2024 Sunil Baburao Tate. Belagavi. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "