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Income Tax Appellate Tribunal, “SMC” “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal by assessee is directed against order of NFAC for the assessment year 2018-19 dated 20.2.2023. The assessee has raised following grounds:
Bylapanapallya Chandrappa, Bangalore
Tax effect relating to each Ground of Ground appeal No. 1 The National Faceless Appeals Centre (NFAC) was wrong on facts and in law in confirming the assessed income of Rs. 38,30,823 as against the returned income of Rs. 19,43,088. 583311 2 The NFAC erred in confirming the denial of the deduction of thirty per cent and further taxing the entire annual rent of Rs 345000 as income from other sources. 31982 3 The NFAC erred in confirming the disallowance of salary of - Rs. 13,97,000 431673 4 The NFAC erred in confirming the disallowance of one sixth of the expenses and depreciation of Rs. 279238 with respect to vehicle maintenance. 86285 5 The NFAC erred in sustaining the addition made by invoking section 40A(3) when the ingredients of the section were not 25955 met 6 The NFAC erred in confirming the disallowance of Rs. 24000 for non- deduction of TDS . 7416 7 The NFAC ought to have decided the appeal on merits 583311 8 All grounds taken are without prejudice to each other. The Appellant craves leave to add to, amend, vary, withdraw or alter any or all of the above grounds of appeal. The Appellant prays that the appeal be allowed in the interests of justice. Total tax effect 583311
At the time of hearing, ld. A.R. submitted that the order was passed ex-parte by NFAC and the issue may be remitted to the file of NFAC for fresh consideration.
The ld. D.R. submitted that the NFAC fixed the case for hearing on 26.10.2021, 13.1.2023 & 9.2.2023. The assessee did not file any submissions before NFAC and hence, the order was passed ex-parte.
Bylapanapallya Chandrappa, Bangalore
Page 3 of 3 Hence, he requested that the issue may be decided by this Tribunal on merit.
I heard the rival submissions and perused the materials available on record. Admittedly, there was no submissions filed by the assessee before NFAC. The NFAC confirmed the order of the AO ex-parte. In my opinion, it is just and fair to remit the issue in dispute to the file of NFAC for giving an opportunity of hearing to the assessee. Accordingly, issue in dispute is remitted to the file of NFAC for fresh consideration.
In the result, the appeal of the assessee is partly allowed.
Order pronounced in the open court on 12th June, 2023