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Facts
The assessee's appeal was against the order of the ld.Commissioner of Income Tax(Appeals) concerning Assessment Year 2017-18. The grounds of appeal relate to the addition of Rs.32,00,000/- as income from other sources instead of agriculture income and an amount not actually received/earned.
Held
The tribunal held that the principles of natural justice were violated as the remand report was not confronted to the assessee. The tribunal deemed it appropriate to set aside the issue back to the CIT(A) with a direction to provide the remand report and an opportunity of being heard.
Key Issues
Whether principles of natural justice were violated due to non-confrontation of the remand report with the assessee, and whether the addition made by AO was justified.
Sections Cited
250
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
Assessment Year: 2017-18 Amol Prabhakar Bonde, V The Income Tax Officer, Near Bus Stand Pimpalevada, s Ward-2(1), Jalgaon. Bhalod, Tal Yawal, Jalgaon – 425304. Maharashtra. PAN: ASFPB8568F Appellant/ Assessee Respondent / Revenue Assessee by Shri Sharad Shah – AR Revenue by Shri Harish Bist – Addl.CIT(DR) Date of hearing 03/04/2025 Date of pronouncement 24/04/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This appeal filed by the assessee is against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], passed under section 250 of the Income Tax Act, 1961; dated 31.01.2025 for Assessment Year 2017-18. The assessee has raised the following grounds of appeal :
1. The Ld.AO erred in making addition (Ld.CIT-A erred in confirming the same) of Rs.32,00,000/- as Income from Other Sources instead of treating it as agriculture income not liable to tax.
The Ld.AO erred in making addition (Ld.CIT-A erred in confirming) of an amount which is not actually received/earned by me.
3. The Ld.AO and (CIT-A in conforming) ought to have appreciated the fact that there was inadvertent error on my part that I did not disclose agriculture expenses in Income Tax Return. However, mere such non-disclosure cannot be the basis to make the addition.
4. The appellant craves for to leave, add, alter, modify, delete above grounds of appeal before or at the time hearing, in the interest of natural justice.”
Findings & Analysis : 2. We have heard both the parties and perused the records. It is observed during hearing on a pointed query by the Bench, whether the copy of remand report was confronted to the assessee, the ld. DR answered in negative. Since the remand report is not confronted with the assessee, it was argued by the ld.Counsel for the assessee that the principles of natural justice have been violated. He further asserted the fact that the principles of natural justice are crucial to ensure a fair outcome in legal proceedings, and this includes providing the assessee with the opportunity to respond to the findings of a remand report.
In these facts and circumstances of the case, we deem it appropriate to set-aside the issue back to the file of ld.CIT(A) with a direction to provide the copy of Remand Report to assessee and sufficient opportunity of being heard. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 24th April, 2025.