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Income Tax Appellate Tribunal, MUMBAI BENCH “D” MUMBAI
Before: SHRI KULDIP SINGH & SHRI S RIFAUR RAHMAN
This appeal has been preferred by the assessee against order dated 22.03.2023 passed by the Ld. Commissioner of Income-tax (Appeals) - National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2013-14, raising following grounds:
The learned assessing officer has erred in making addition of deemed rental income of Rs. 1,34,704 to income from house property and the learned Commissioner of Income Tax (A) NFAC has erred in confirming the same.
The addition of deemed rental income of Rs. 1,34,704 is incorrect and constitutes double addition.
Mr. Murtuza Kayamali Pardawala Mr. Murtuza Kayamali Pardawala 2 ITA No. 1944/M/2023
3. The assessee prays to allow standard deduction in respect of 3. The assessee prays to allow standard deduction in respect of 3. The assessee prays to allow standard deduction in respect of income added as deemed rental income while assessing income from income added as deemed rental income while assessing income from income added as deemed rental income while assessing income from house property. house property.
4. The addition of deemed rental income agreed by the assessee / The addition of deemed rental income agreed by the assessee / The addition of deemed rental income agreed by the assessee / his AR before the AO was incorrect and was not his AR before the AO was incorrect and was not in keeping with in keeping with facts of the case and provisions of law. facts of the case and provisions of law. 5. The learned assessing officer has erred in making addition of Rs. 5. The learned assessing officer has erred in making addition of Rs. 5. The learned assessing officer has erred in making addition of Rs. 80,00,000 as unexplained cash credit under section 68 of the Act 80,00,000 as unexplained cash credit under section 68 of the Act 80,00,000 as unexplained cash credit under section 68 of the Act and the learned Commissioner of Income Tax (A) NFAC has erred in and the learned Commissioner of Income Tax (A) NFAC has erred in and the learned Commissioner of Income Tax (A) NFAC has erred in confirming the same. confirming the same. 6. The learned assessing officer has erred in treating and taxing the 6. The learned assessing officer has erred in treating and taxing the 6. The learned assessing officer has erred in treating and taxing the advance received from developer of Rs. 80,00,000 as unexplained advance received from developer of Rs. 80,00,000 as unexplained advance received from developer of Rs. 80,00,000 as unexplained cash credit under section 68 of the Act and the learned cash credit under section 68 of the Act and the learned cash credit under section 68 of the Act and the learned Commissioner of Income Tax (A) NFAC has erre Commissioner of Income Tax (A) NFAC has erred in confirming the d in confirming the same. 7. The learned CIT Appeals has erred in dismissing assessee's 7. The learned CIT Appeals has erred in dismissing assessee's 7. The learned CIT Appeals has erred in dismissing assessee's appeal by rejecting request made for adjournment of case and not appeal by rejecting request made for adjournment of case and not appeal by rejecting request made for adjournment of case and not hearing / deciding the appeal on merits. hearing / deciding the appeal on merits. 8. The learned CIT Appeals erred in dismissing the appeal with 8. The learned CIT Appeals erred in dismissing the appeal with 8. The learned CIT Appeals erred in dismissing the appeal without affording adequate opportunity of being heard. The appellate affording adequate opportunity of being heard. The appellate affording adequate opportunity of being heard. The appellate proceedings, thus, suffer from principles of natural justice and needs proceedings, thus, suffer from principles of natural justice and needs proceedings, thus, suffer from principles of natural justice and needs to be set aside. to be set aside. 9. The assessee prays before your honour to afford and allow him an 9. The assessee prays before your honour to afford and allow him an 9. The assessee prays before your honour to afford and allow him an opportunity of being heard on merit opportunity of being heard on merits of the case. 2. Brief facts of the case are that the assessee filed its return of Brief facts of the case are that the assessee filed its return of Brief facts of the case are that the assessee filed its return of income for assessment year 2013 income for assessment year 2013-14 on 30.09.2013 declaring total 14 on 30.09.2013 declaring total income of Rs.8,13,780/ income of Rs.8,13,780/-. The return of income was processed u/s . The return of income was processed u/s 143(1) of the Income- -tax Act, 1961 (in short ‘the Act’). The case was t ‘the Act’). The case was selected for scrutiny under CASS and accordingly notices u/s selected for scrutiny under CASS and accordingly notices u/s selected for scrutiny under CASS and accordingly notices u/s 143(2) and 142(1) of the Act were issued and served on assessee (1) of the Act were issued and served on assessee (1) of the Act were issued and served on assessee along with questionnaire. In response along with questionnaire. In response, Ld. AR of the assessee Ld. AR of the assessee attended and submitted the relevant inform attended and submitted the relevant information as called for. The ation as called for. The assessee is engaged in the business of trading in automobile assessee is engaged in the business of trading in automobile assessee is engaged in the business of trading in automobile spares-parts.
Mr. Murtuza Kayamali Pardawala Mr. Murtuza Kayamali Pardawala 3 ITA No. 1944/M/2023 2.1 During During During assessment assessment assessment proceedings, proceedings, proceedings, the the the Assessing Assessing Assessing Officer Officer Officer observed that assessee has received Rs.88,00,000/ observed that assessee has received Rs.88,00,000/- against Dilshad Flat Tenancy Right and accordin Flat Tenancy Right and accordingly the asssessee has declared the gly the asssessee has declared the same as current liabilities. The assessee was asked to explain why same as current liabilities. The assessee was asked to explain why same as current liabilities. The assessee was asked to explain why the current liability in the name of KAS the current liability in the name of KAS Associate Associate is appearing in the balance sheet, when the property i.e. Dilshad Flat Tenancy the balance sheet, when the property i.e. Dilshad Flat Tenancy the balance sheet, when the property i.e. Dilshad Flat Tenancy Right has not been shown Right has not been shown in the asset side of the balance sheet. in the asset side of the balance sheet. Since, the AR of the assessee could not give any explanation for the Since, the AR of the assessee could not give any explanation for the Since, the AR of the assessee could not give any explanation for the above transaction, the Assessing Officer proceeded to make the the Assessing Officer proceeded to make the the Assessing Officer proceeded to make the above addition u/s 68 of the Act. Similarly, the Assessing Officer above addition u/s 68 of the Act. Similarly, the Assessing Officer above addition u/s 68 of the Act. Similarly, the Assessing Officer has disallowed donations, disallowance of shop rent and made onations, disallowance of shop rent and made onations, disallowance of shop rent and made addition of deemed rental income of Rs.1,34,704/ addition of deemed rental income of Rs.1,34,704/-.
Aggrieved with the above order, the assessee preferred an Aggrieved with the above order, the assessee preferred an Aggrieved with the above order, the assessee preferred an appeal before the Ld. CIT(A) and objected to the additions made by appeal before the Ld. CIT(A) and objected to the additions made by appeal before the Ld. CIT(A) and objected to the additions made by the Assessing Officer relating the Assessing Officer relating to deemed rental income and to deemed rental income and additions u/s 68 of the Act. additions u/s 68 of the Act.
At the time of hearing both the Ld. DR and Ld. AR agreed with At the time of hearing both the Ld. DR and Ld. AR agreed with At the time of hearing both the Ld. DR and Ld. AR agreed with the facts that assessee has not appeared before the Ld. CIT(A). Even the facts that assessee has not appeared before the Ld. CIT(A). Even the facts that assessee has not appeared before the Ld. CIT(A). Even though several opportunities were given and various dates were though several opportunities were given and various dates were though several opportunities were given and various dates were listed in the first appellate order at page 2. However, the Ld. CIT(A) isted in the first appellate order at page 2. However, the Ld. CIT(A) isted in the first appellate order at page 2. However, the Ld. CIT(A) has recorded the various opportunities extended to the assessee has recorded the various opportunities extended to the assessee has recorded the various opportunities extended to the assessee and decided the appeal under consideration ex and decided the appeal under consideration ex-parte based on the parte based on the material on record.
Mr. Murtuza Kayamali Pardawala Mr. Murtuza Kayamali Pardawala 4 ITA No. 1944/M/2023
He discussed the issue in his ord He discussed the issue in his order and dismissed the appeal er and dismissed the appeal filed by the assessee. Since, the appeal of the assessee is dismissed filed by the assessee. Since, the appeal of the assessee is dismissed filed by the assessee. Since, the appeal of the assessee is dismissed as ex-parte by the Ld. CIT(A) without there being any representation parte by the Ld. CIT(A) without there being any representation parte by the Ld. CIT(A) without there being any representation from the assessee. We deem it fit and proper to remit this issue from the assessee. We deem it fit and proper to remit this issue from the assessee. We deem it fit and proper to remit this issue back to the file of the back to the file of the Ld. CIT(A) to decide the issue afresh after Ld. CIT(A) to decide the issue afresh after giving proper opportunity of being heard to the assessee. At the giving proper opportunity of being heard to the assessee. At the giving proper opportunity of being heard to the assessee. At the same time, we also direct the assessee to make the proper same time, we also direct the assessee to make the proper same time, we also direct the assessee to make the proper representation before the Ld. CIT(A) to adjudicate the issue on representation before the Ld. CIT(A) to adjudicate the issue on representation before the Ld. CIT(A) to adjudicate the issue on merit. Accordingly, the g merit. Accordingly, the grounds raised by the assessee are allowed rounds raised by the assessee are allowed for statistical purposes. for statistical purposes.
In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for statistical purposes.