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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI PAVAN KUMAR GADALE
Assessee by : Shri Veetrang Chhajed.AR Revenue by : Shri G.J. Ninawe, Sr. DR Date of Hearing 02.11.2023 Date of Pronouncement 06.11.2023 आदेश / O R D E R
PER PAVAN KUMAR GADALE JM:
The appeal is filed by the assessee against the order of the National Faceless Appeal Centre (NFAC) Delhi / CIT(A) passed u/sec 143(3) and U/sec250 of the Ac. The assessee has raised the following grounds of appeal:
1. On the facts and circumstances of the case and in law, the ld. AO erred in passing the order u/s 143(3) on the deceased person without appreciating the fact that the same was brought Gunvantgrai Dipchand Shah, Mumbai. - 2 - to the notice of Id. AO vide its letter dated 20.09.2017, 15.10.2018 & 17.12.2018.
2. On the facts and circumstances of the case and in law, the ld. AO erred in making the addition of Rs.14,00,000/- on account of the donations made Only based on the non-response to the notice issued u/s 133(6) without appreciating the fact that the appellant has submitted the complete details and documents of the Donation made. 3 On the facts and circumstances of the case, the ld. AO erred in making the addition of Rs.14,00,000/- u/s 68 of the Income Tax Act, 1961 on account of donations made 4. On the facts and circumstances of the case and in law, the ld. AO erred in passing the order without providing any documents or material, if any, available with the ld. AO based on which the adverse inference has been drawn and hence the process of natural justice was devoid.
2. The brief facts of the case that, the assessee has filed the return of income for the A.Y 2016-17 on 07.03.2017 disclosing a total income of Rs.13,97,960/-. Subsequently the case was selected for limited scrutiny under CASS and issued notice u/sec 143(2) and u/sec142(1) of the Act are issued. In compliance to the notice, the assessee has filed the details through e filing portal. The Assessing Officer(AO) on perusal of the details found that the assessee has claimed deduction u/sec 35 of the Act of Rs. 22,75,000/-. The assessee was asked to produce the copies of receipts of the donations of (i) Bioved Research Society of Gunvantgrai Dipchand Shah, Mumbai. - 3 - Rs.5 lakhs and (ii) Rural Development Society of Rs. 8 lakhs. In compliance the assessee has filed the details and to cross verify, the AO has issued notice u/s 133(6) of the Act on Bioved Research Society and Rural Development society, but there was no reply. The A.O dealt on the facts and information and was not satisfied with transactions and has doubted the genuineness of the claim of the assesee and made addition of Rs. 14 lakhs u/s 68 of the Act and assessed the total income of Rs. 27,97,960/- and passed the order u/s 143(3) of the Act dated 26.12.2018.
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 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.
5. 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 submissions made in the assessment Gunvantgrai Dipchand Shah, Mumbai. - 4 - proceedings. Further the assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Contra, the Ld. DR supported the order of the CIT(A).
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 appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing on 13-01-2021,13-04-2023 & 25-05-2023 referred at Page 5 Para 5 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 u/sec68 of the Act by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the Gunvantgrai Dipchand Shah, Mumbai. - 5 - assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. Accordingly, allow the grounds of appeal of the assessee for statistical purposes.
In the result, the appeal filed by assessee is allowed for statistical purposes.
Order pronounced in the open court on 06.11.2023.