UMESH MAHIPATRAI ADHIYA,MUMBAI V. ITO 42(1)(4), MUMBAI

ITA 643/MUM/2024

AI Insights

The case involves Umesh Mahipatrai Adhiya, the appellant, contesting the orders of the Learned Commissioner of Income-tax (Appeals), which were passed under section 250 of the Income-tax Act, 1961. The appeal was initially dismissed by the CIT(A) due to non-compliance with notices, but the Income-Tax Appellate Tribunal (ITAT) found the reasons for the delay in filing the appeal to be genuine and thus condoned the delay. The ITAT decided to restore the case to the CIT(A) for a decision on the merits, addressing issues such as the addition of deemed rent income, disallowance of agricultural income, and penalties under various sections of the Income Tax Act.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26721 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-10-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 12-02-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: DHARAMVEER D. YADAV
• Assessee Lawyers: SAMRUDHI TAWDE
• Section: 143(3); 271(1)(c); 234B

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SMT BEENA PILLAI, JUDICIAL MEMBER & SMT RENU JAUHRI, ACCOUNTANT MEMBER ITA No.643/MUM/2024 (A.Y. 2016-17) Umesh Mahipatrai Adhiya 604, Shanti Apartment, New Link Road, Dahanukar Wadi, Kandivali (W.) Mumbai- 400067. v/s. बनाम ITO 42(1)(4) Kautilya Bhavan, Mumbai. स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: ACUPA0044J Appellant/अपीलाथी .. Respondent/प्रतिवादी Appellant by : Ms. Samrudhi Tawde Respondent by : Shri Dharamveer D. Yadav- SR. D.R. Date of Hearing 10.10.2024 Date of Pronouncement 14.10.2024 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- The present appeal has filed against the orders of the Learned Commissioner of Income-tax (Appeals), Mumbai-32/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 13.03.2023 for Assessment Years [A.Y.] 2016-17. ITA No.643/MUM/2024 (A.Y. 2016-17) Umesh Mahipatrai Adhiya Page 2 of 4 2. The assessee has raised following grounds of appeal: 1. “On the facts & in the circumstances of the case and in law the Hon'ble CIT (A) erred in dismissing the appeal in limine without considering the subject issues on merit and passing an ex parte order and confirming the addition made by the Ld. AO to the returned income and the reasons assigned for doing so are wrong and contrary to the provisions of Income Tax and rules made thereunder. Therefore, the appeal may be restored back to Hon'ble CIT(A) for fresh adjudication. 2. On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in upholding the addition made by the Ld AO of Rs.1,87,000/- to the returned income by disallowing genuine claim of exempt agricultural income made u/s 2(1A) of the IT Act, 1961 by holding the same as non-agricultural income and the reason assigned for doing so are wrong and contrary to the Provisions of Income Tax Act and rules made there under. 3. On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in upholding the addition made by the Ld AO of Rs.50,825/- to the returned income being the deemed rent income from vacant house property by applying deeming provisions and the reason assigned for doing so are wrong and contrary to the Provisions of Income Tax Act and rules made there under. 4. On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in upholding the penalty initiated by the Ld AO u/s. 271(1)(c) of the IT Act 1961 and the reason assigned for doing so are wrong and contrary to the provision of Income Tax Act and rules made there under. 5. On the facts and in the circumstances of the case and in law, the Ld AO erred in charging interest u/s 234B & 234C of the IT Act and the reason assigned for doing so are wrong and contrary to the provision of Income Tax Act and rules made there under. 6. Your Appellant crave, leave to add, alter, amend or modify any or all grounds of appeal on or before the date of hearing.” 3. The appeal has been filed after a delay of 276 days. The assessee has filed an application for condonation alongwith an affidavit explaining reasons for delay. It has been submitted that the appeal papers were prepared and signed by the assessee in the first week of May, 2023 and were sent to the C.A.. However, the C.A.’s father was diagnosed with cancer and hence appeal could not be filed by him in time. Subsequently, he left the firm and forgot to inform about the non-filing ITA No.643/MUM/2024 (A.Y. 2016-17) Umesh Mahipatrai Adhiya Page 3 of 4 of appeal. Thereafter, the appeal could be filed only in the month of February after the inadvertent omission by the C.A. came to notice. As the reasons given by the assessee appear to be genuine, we hereby condone the unintentional delay of 276 days. 4. The brief facts of the case are that the assessee filed return declaring income of Rs.5,77,950/- on 03.10.2016. The adjustment was completed u/s. 143(3) of the Act at an income of Rs.8,27,850/- after making additions on account of deemed rent, disallowance of claim of agricultural income and interest on refund. The assessee filed an appeal before the Ld. CIT(A) against this order. Several notices were issued by the Ld. CIT(A), however, no compliance was made. Accordingly, the assessee’s appeal was dismissed. 5. We have heard the rival submissions and the Ld. A.R. has requested that the assessee’s appeal was not decided on merits by the Ld. CIT(A) and requested for restoring the same to Ld. CIT(A). We, accordingly, restore the matter to the Ld. CIT(A) for fresh adjudication on merits after giving due opportunity to the assessee. 6. In the result, the appeal is allowed for statistical purpose. Order pronounced in the open court on 14.10.2024. Sd/- Sd/- BEENA PILLAI RENU JAUHRI (न्यातयक सदस्य/JUDICIAL MEMBER) (लेखाकार सदस्य/ACCOUNTANT MEMBER) ITA No.643/MUM/2024 (A.Y. 2016-17) Umesh Mahipatrai Adhiya Page 4 of 4 Place: म ुंबई/Mumbai दिनाुंक/Date. 14.10.2024 snehal c. ayare, stenographer आदेश की प्रतितलतप अग्रेतिि/Copy of the Order forwarded to : 1. अपीलार्थी/ The Appellant 2. प्रत्यर्थी/ The Respondent. 3. आयकर आय क्त / CIT 4. दिभागीय प्रदिदनदि, आयकर अपीलीय अदिकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यादपि प्रदि //True Copy// आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अतिकरण/ ITAT, Bench, Mumbai "