VINAYKUMAR RAM KAMAL PANDEY,BHARUCH GUJARAT V. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU

ITA 1482/AHD/2024

AI Insights

The case involves an appeal by Vinaykumar Ram Kamal Pandey against the order of the Commissioner of Income Tax Appeals, which dismissed his appeal concerning the assessment year 2020-21. The primary contention was the adjustment made to the assessee's income by disallowing an exemption claimed on leave encashment under section 10(10AA)(ii) of the Income Tax Act, 1961. The assessee argued that the adjustment was made without issuing and serving a notice as required under section 143(1)(a) of the Act, and without providing an opportunity of hearing. The Tribunal found merit in the assessee's contention regarding the lack of procedural compliance and thus restored the matter to the AO for a proper hearing and reassessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472279 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B. P. SRIVASTAV
• Assessee Lawyers: KRUTARTH DESAI
• Keywords: Non passing of speaking order
• Section: 143(1); 10; 10AA

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “ए“, अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “A ” BENCH, AHMEDABAD BEFORE SHRI KUL BHARAT, VICE PRESIDENT & SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.1482/Ahd/2024 Assessment Year : 2020-21 Vinaykumar Ram Kamal Pandey C/o. Bhupendra C. Mehta Advocate 313, Silver Shrusi Aptt Above SBI Link Road Branch Bharuch – 392 001 (Gujarat) Vs The Asst.Director of Income Tax, CPC Bengaluru – 560 100 (Karnataka) PAN: ADKPP 1308 H अपीलाथ\u0017/ (Appellant) \u0018\u0019 यथ\u0017/ (Respondent) Assessee by : Shri Krutarth Desai, AR Revenue by : Shri B.P. Srivastav, Sr.DR सुनवाई की तारीख/Date of Hearing : 30/01/2025 घोषणा की तारीख /Date of Pronouncement: 30/01/2025 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal filed by the Assessee is directed against the order dated 19/06/2024 passed by the office of the Commissioner of Income Tax Appeal, Addl/JCIT(A)-2, Nagpur [hereinafter referred to as “CIT(A)”], for the Assessment Year (AY) 2020-21. 2. Grounds of appeal raised by the assessee are as under: 1 The Learned CIT (Appeals) has grossly erred on facts and in law in dismissing the appeal without adjudicating the preliminary issue raised regarding violation of statutory provision of See 143(1)(a) of the Income tax Act 1961 the Act in the form of non-issue and service of the notice by the AO us 143(1)(a) of the Act before making the adjustment of Rs. 915720/-. ITA No.1482/Ahd/2024 Vinaykumar Ram Kamal Pandey vs. Asst.DIT, CPC AY 2020-21 2 2. The Learned CIT (Appeals) has grossly erred on facts and in law in dismissing the appeal without adjudicating the preliminary issue raised regarding jurisdiction and authority of law. 3. The Learned CIT (Appeals) grossly erred on facts and in law in dismissing the appeal without adjudicating the ground regarding non speaking order of the Learned AO passed us 143(1). 4 Section 10 10AA (ii) wrongly disallowed, The Learned CIT(A) has grossly erred in law and is not justified in confirming the addition made by the Learned AD and not allowing the exemption exceeding Rs.300000 u/s. 10 10 AA(ii) of the Act considering the invalid Gazette Notification No 50588 E dated 31.05.2002 issued by CBDT effective 01.04.1998. 5. Alternatively, the Learned CIT (A) erred in not allowing the admissible amount of relief under the Section 89(1) on the taxed amount exceeding Rs.300000/-. 6. Section 250(5) Addition alteration of ground of appeal, your appellant craves leave to add amend alter any ground of appeal. 2. The solitary issue arising in the present appeal relates to adjustment made to the income of the assessee in the intimation made u/s.143(1) of the Act by disallowing the exemption claimed by the assessee of leave encashment of Rs.9,15,720/- which the assessee has claimed u/s.10 (10AA)(ii) of the Act. 3. The Ld.Counsel for the assessee, at the outset, stated that the intimation u/s.143(1) of the Act had been made without giving any opportunity of hearing to the assessee. He pointed out that in terms of the provisions of section 143(1) of the Act, the assessee needed to be provided an opportunity of hearing before making any adjustment towards his income. 4. On account of above, in the interest of justice, it is considered fit to restore the issue back to the file of the AO to provide an opportunity of being ITA No.1482/Ahd/2024 Vinaykumar Ram Kamal Pandey vs. Asst.DIT, CPC AY 2020-21 3 heard to the assessee and, thereafter, make the intimation u/s.143(1) of the Act. 5. Accordingly, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 30th January, 2025 at Ahmedabad. Sd/- Sd/- ( KUL BHARAT ) VICE PRESIDENT ( ANNAPURNA GUPTA ) ACCOUNTANT MEMBER Ahmedabad, Dated 30/01/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \u0018ितिलिप अ\u001cेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001e / The Appellant 2. \u0018\u001fथ\u001e / The Respondent. 3. संबंिधत आयकर आयु# / Concerned CIT 4. आयकर आयु# ) अपील ( / The CIT(A- 5. िवभागीय \u0018ितिनिध , आयकर अपीलीय अिधकरण , राजोकट/DR,ITAT, Ahmedabad, 6. गाड( फाईल / Guard file. आदेशानुसार/ BY ORDER, //True Copy//स\u001fािपत \u0018ित // सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation pad attached with the file : 30 .1.2025 2. Date on which the typed draft is placed before the Dictating Member. : 30 .1.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 31.1.2025 7. Date on which the file goes to the Bench Clerk. : 31.1.2025 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "