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Facts
The assessee filed an ITR, which was subsequently subjected to reassessment under Section 147 read with Section 144B, resulting in an addition of Rs. 6,07,700/- by the AO. The assessee claimed this amount was already offered to tax under 'Income from Other Sources'. The CIT(A) dismissed the appeal ex-parte due to non-response from the assessee.
Held
The Tribunal found that the assessee had indeed disclosed the disputed amount in her ITR. Recognizing this as a factual matter requiring verification, the Tribunal set aside the assessment order and remanded the case back to the AO for fresh verification of the assessee's claim, ensuring a reasonable opportunity of being heard.
Key Issues
Whether the addition of Rs. 6,07,700/- by the AO constituted a double addition as the amount was already declared in the ITR; and whether the CIT(A) erred in dismissing the appeal ex-parte without properly considering the facts of the case.
Sections Cited
250, 148, 147, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘B’ Bench, Hyderabad
Before: SHRI VIJAY PAL RAO & SHRI MADHUSUDAN SAWDIA
आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by Ms. Vijaya Gowri Kakani (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 28.01.2025 for the A.Y. 2013-14.
The assessee has raised the following grounds of appeal:
Brief facts of the case are that, the assessee is an individual, filed her return of income on 28.03.2014 declaring a total income of Rs.15,03,770/-.
Subsequently, notice under section 148 of the Income Tax Act, 1961 (“the Act”) was issued to the assessee on 20.03.2020. In response to the said notice, the assessee filed return and participated in reassessment proceedings. The learned Assessing Officer (“Ld. AO”) completed the reassessment under section 147 read with section 144B of the Act on 16.09.2021, determining the total income at Rs. 21,11,470/- by making an addition of Rs.6,07,700/-.
Aggrieved by the said reassessment order of Ld. AO, the assessee filed appeal before the Ld. CIT(A). However, the assessee did not respond to the notices issued by the Ld. CIT(A). Consequently, the appeal was dismissed ex parte by the Ld. CIT(A).
Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. The learned Authorised Representative (“Ld. AR”) invited our attention to page no.8 of the paper book, which contains the Schedule of “Income from Other Sources” as filed in the return of income. It was submitted that the sum of Rs.6,07,700/- had already been offered to tax under the head “Income from Other Sources” by the assessee in the return itself. However, the Ld. AO, under a mistaken belief, again added the said amount, leading to double addition.
The Ld. AR further submitted that this factual mistake was not properly appreciated during the assessment proceedings and the appeal was dismissed by the Ld. CIT(A) for non-prosecution, without examining this vital claim.
Accordingly, the Ld. AR prayed before the bench for remand of the issue for factual verification.
Per contra, the learned Departmental Representative (“Ld. DR”) objected to the prayer of the assessee, submitting that the assessee did not respond to the notices of the Ld. CIT(A) and hence no further opportunity should be granted.
We have heard the rival contentions and perused the material on record. On going through page no.8 of the paper book, which contains the computation of income, we find that the assessee has indeed disclosed a sum of Rs.6,07,700/- under the head “Income from Other Sources” in the return of income filed. In our considered view, the addition of Rs. 6,07,700/- made by the Ld. AO appears to have been made without appreciating that the said amount was already offered to tax. However, since this is a factual matter which requires verification from the return and computation of income, we are of the considered opinion that the issue needs to be verified afresh by the Ld. AO. Accordingly, we deem it appropriate to set aside the impugned assessment order to the file of the Ld. AO with a direction to verify the claim of the assessee with reference to the return of income and adjudicate as per law. The Ld. AO shall grant a reasonable opportunity of being heard to the assessee before deciding the issue.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17th June, 2025.