VINAYKUMAR RAM KAMAL PANDEY,BHARUCH GUJARAT vs. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU

ITA 1482/AHD/2024Status: DisposedITAT Ahmedabad30 January 2025AY 2020-213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's primary contention was that the intimation under Section 143(1) of the Act was made without providing an opportunity of hearing. The assessee argued that Section 143(1) necessitates providing an opportunity of hearing before making any adjustment to income. In the interest of justice, the Tribunal considered it fit to restore the issue back to the file of the Assessing Officer (AO). The AO is directed to provide an opportunity of being heard to the assessee and thereafter make the intimation under Section 143(1) of the Act. Consequently, the appeal of the assessee is allowed for statistical purposes. The specific findings on grounds 2, 3, 4, and 5 are not adjudicated as the matter is remanded.

What were the facts?

The assessee, Vinaykumar Ram Kamal Pandey, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, against the order dated 19/06/2024 passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2020-21. The appeal challenges the CIT(A)'s dismissal of the assessee's appeal without adjudicating preliminary issues concerning the violation of Section 143(1)(a) of the Income Tax Act, 1961 (the Act), regarding the non-issue of notice before adjustment, jurisdiction, and the non-speaking nature of the Assessing Officer's (AO) order. A significant dispute pertains to the disallowance of exemption claimed under Section 10(10AA)(ii) for leave encashment amounting to Rs. 9,15,720.

What were the issues?

1. Whether the CIT(A) erred in dismissing the appeal without adjudicating the preliminary issue of violation of Section 143(1)(a) of the Act, specifically the non-issue and service of notice by the AO before making an adjustment of Rs. 9,15,720? The assessee contended that an opportunity of hearing was required before such an adjustment. The revenue's arguments are not recorded. 2. Whether the CIT(A) erred in dismissing the appeal without adjudicating the preliminary issue regarding jurisdiction and authority of law? The assessee raised this as a ground of appeal. The revenue's arguments are not recorded. 3. Whether the CIT(A) erred in dismissing the appeal without adjudicating the ground regarding the non-speaking order of the AO passed under Section 143(1)? The assessee raised this as a ground of appeal. The revenue's arguments are not recorded. 4. Whether the CIT(A) erred in confirming the addition made by the AO and disallowing the exemption exceeding Rs. 3,00,000 under Section 10(10AA)(ii) of the Act, considering an invalid Gazette Notification? The assessee argued for the allowance of exemption. The revenue's arguments are not recorded. 5. Alternatively, whether the CIT(A) erred in not allowing admissible relief under Section 89(1) on the taxed amount exceeding Rs. 3,00,000? The assessee raised this as an alternative ground. The revenue's arguments are not recorded.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 10(10AA)(ii),Section 89(1),Section 250(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI KUL BHARAT & SMT. ANNAPURNA GUPTA

For Appellant: Shri Krutarth Desai, AR
For Respondent: Shri B.P. Srivastav, Sr.DR
Hearing: 30/01/2025Pronounced: 30/01/2025

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER This appeal filed by the Assessee is directed against the order dated 19/06/2024 passed by the office of the Commissioner of Income Tax Appeal, Addl/JCIT(A)-2, Nagpur [hereinafter referred to as “CIT(A)"], for the Assessment Year (AY) 2020-21. 2. Grounds of appeal raised by the assessee are as under: 1 The Learned CIT (Appeals) has grossly erred on facts and in law in dismissing the appeal without adjudicating the preliminary issue raised regarding

The order continues below.

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