VEERENDRA BASAVARAJ KOUJALAGI,BELAGAVI V. CIRCLE 1 BELAGAVI, BELAGAVI

ITA 289/PAN/2025

AI Insights

The case involves an appeal by Veerendra Basavaraj Koujalagi against the order of the CIT(A) which sustained the additions made by the Assessing Officer (A.O) under various sections of the Income Tax Act. The A.O had made several additions and disallowances to the assessee's declared income for the assessment year 2010-11, which included estimated agricultural expenditure, disallowances under section 43B, treatment of windmill charges as capital expenditure, and disallowances of operating expenses under section 40(a)(ia). The CIT(A) upheld these additions, leading to the current appeal before the ITAT. The ITAT found that the CIT(A) had not adequately addressed the assessee's submissions and evidence, and thus remanded the matter back to the CIT(A) for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791430 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 16-09-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: SHIVANANAD HALBHAVI
• Keywords: Opportunity of being heard; Capital expenditure; Principle of natural justice; TDS
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I T A. No.289/PAN/2025 (A.Y.2010-11) Veerendra BasavarajKoujalagi Shri. Laxmi Complex,1st Cross APMC Road,Sadashivnagar, Belagavi-590001, Karnataka. Vs . ITO-circle 1, ChessonRoad, Dr.Ambedkar Road, Belagavi-590001. Karnataka. PAN .No. AGRPK3086D (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Shivananad Halbhavi.AR Revenue by Smt.Rijula Uniyal. Sr.DR सुनवाई की तारीख/Date of Hearing 09.12.2025 घोषणा की तारीख/Date of Pronouncement 10.12.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the ADDL/JCIT(A)-2 Vishakhapatnam passed u/sec 143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the additions made by the Assessing Officer. 2. The brief facts of the case are that, the assesse has filed the return of income for A.Y.2010-11 on 6.09.2011 disclosing a total income of Rs.9,53,100/- and the case was selected for scrutiny under the CASS. The Assessing Officer (A.O) has issued the notice u/sec143(2) and u/sec142(1) of Printed from counselvise.com 2 ITA. No.289/PAN 2025. Veerendra Basavaraj Koujalagi.. the Act to furnish the details and explanations in support of claims made in the return of income filed. The assesse has filed the explanations and details of agriculture income, land holdings, sale bills, TDS deductions, operation and maintenance charges of wind mill and confirmations. Whereas the Assessing officer has dealt on facts at Para 3 & 6 of the order and was not satisfied with the explanations and made additions/ disallowances(i)Agriculture expenditure estimated @15% of agriculture income which works out to Rs.1,09,497/-(ii) disallowance u/sec43B of the Act of Rs.27,483/-(iii) operation and maintenance charges of wind mill of Rs.5,97,139/- treated as capital expenditure (iv) income under profit and gains of the business of Rs.1,78,900/- and (v) disallowance of operating expenses u/sec40(a)(ia) of the Act of Rs.11,82,934/-and finally the A.O assessed the total income of Rs.30,49,053/- and passed the order u/sec 143(3) of the Act dated 30.03.2013. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and findings of the AO but has sustained the action of the A.O and dismissed the assessee 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 Printed from counselvise.com 3 ITA. No.289/PAN 2025. Veerendra Basavaraj Koujalagi.. proceedings. The Ld.AR mentioned that the CIT(A) has not dealt on the details, documents, confirmation and evidences filed in the appellate proceedings to substantiate the claims and prayed for allowing the appeal. The Ld.AR supported the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A). 5. Heard the rival submissions and perused the material on record. The crux of the disputed issues envisaged by the Ld.AR that the CIT(A) has erred in sustaining the additions without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. Prima-facie, the CIT(A) has dealt on the findings of the AO and there are no findings on the submissions/evidences of the assesse filed in the proceedings referred and has not allowed the grounds of appeal. Therefore, considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issues to the file of the CIT(A) for afresh adjudication on merits and the CIT(A) shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purpose. Printed from counselvise.com 4 ITA. No.289/PAN 2025. Veerendra Basavaraj Koujalagi.. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 10/12/2025 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 10/12/2025 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 Printed from counselvise.com 5 ITA. No.289/PAN 2025. Veerendra Basavaraj Koujalagi.. 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 Printed from counselvise.com "