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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: SHRI P.M. JAGTAP, VICE-
आदेश / O R D E R
This appeal filed by the assessee is directed against the order of learned Commissioner of Income-Tax (Appeals)-3, Ahmedabad (“CIT(A)” in short) dated 30.09.2019 passed ex parte whereby he dismissed the appeal of the assessee.
2. The assessee, in the present case, is an individual who filed his return of income for the year under consideration on 02.01.2016 declaring total income of Rs.8,49,940/- and agricultural income of Rs.22,84,632/-. The said return was selected for limited scrutiny to examine the claim of the assessee for large agricultural income. During the course of assessment proceedings, the assessee was required by the Assessing Officer to furnish supporting evidence for his claim of agricultural income such as ledger of agricultural income and expenses, copy of 7/12 extract, bills/vouchers of agricultural produce sold and agricultural expenses etc. In reply, the assessee furnished
Shri Charansingh B Vaghela Vs. ITO AY : 2015-16 2 some of the details and documents required by the Assessing Officer and on perusal of the same, the Assessing Officer noted following discrepancies:- i. No Form 7/12 for the year under consideration i.e. for AY 2015-16 was furnished that could established that in the AY 2015-16 how much and which type of agriculture land owns by assessee. ii. Not any agriculture expenses / purchase bill furnished by assessee. iii. The bills of agriculture produce sale furnished were suspicious as bill of different concerns contained same contact nos.
The Assessing Officer also made direct enquiry with the concerned parties by issuing summons under Section 131 of the Act and from the compliance of the same, he found that the claim of the assessee of having sold the agricultural produce to the concerned parties to the extent of Rs.10,38,083/- had remained unconfirmed. He accordingly confronted the assessee with this adverse finding of the enquiry directly made by the Assessing Officer and since the assessee could not offer any satisfactory explanation, the Assessing Officer treated the claim of the assessee for agricultural income to the extent of Rs.10,71,732/- as unsubstantiated / bogus. He accordingly treated the same as undisclosed income of the assessee and added the same to the total income of the assessee in the assessment completed under Section 143(3) of the Act vide an order dated 12.12.2017.
4. Against the order passed by the Assessing Officer under Section 143(3) of the Act, an appeal was preferred by the assessee before the learned CIT(A); and since there was no compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the learned CIT(A) disposed of the appeal of the assessee ex parte on the basis of information available on record. In the appellate order passed ex
Shri Charansingh B Vaghela Vs. ITO AY : 2015-16 3 parte, he dismissed the appeal of the assessee and confirmed the addition of Rs.10,71,732/- made by the Assessing Officer by treating the agricultural income shown by the assessee as his income from undisclosed sources. Aggrieved by the order of the learned CIT(A), the assessee has preferred this appeal before the Tribunal.
5. I have heard the arguments of both the sides and also perused the relevant material available on record. In support of the preliminary issue raised by the assessee in this appeal challenging the impugned order passed by the learned CIT(A) ex parte, the assessee has filed an affidavit explaining the non-compliance to the notices issued by the learned CIT(A) as under:-
“1. That the deponent is an illiterate agriculturist carrying out agriculture activities on the inherited land at lyava village. The deponent is totally unaware of assessment proceedings, appeals etc. under the Income Tax Act,1961 and that the deponent is only aware of one fact and that is of filling income tax return every year which is done through his regular Chartered Accountant - Mr. Hemin Thakkar for past many years.
That, Mr. Hemin Thakkar, his regular chartered accountant also appeared before the Ld. Assessing officer for the said assessment year and represented the case of the deponent. However, since his regular Chartered Accountant does not carry out any work related to income tax appeals, he advised the deponent to find another person to represent his case before the Ld. Commissioner of income Tax (Appeals).
3. That the deponent is residing at village lyava and having no knowledge and contact details of the professionals carrying out the appeal related work, he approached his accountant to find a professional to look after the appeal matter of the deponent.
That the accountant of the deponent assured the deponent that he knows an Income Tax Practioner (ITP), Mr. Jayesh P. Raiya, address at 31/32, Shrinath complex. Nr. gadhiya cross roads, Sanand, Dist. Ahmedabad, who will look after the appeal matter of the deponent and represent his case. The deponent got convinced and handed over the case to his accountant.
Shri Charansingh B Vaghela Vs. ITO AY : 2015-16 4
That the deponent was under bonafide belief that the consultant would have represented the deponent before the relevant Authorities as and when required.
That only after the receipt of the Appeal order, the deponent through his regular Chartered Accountant came to know that the ex-parte order has been passed due to non-appearance of the deponent.
6. Keeping in view the averments made by the assessee in his affidavit on oath, I am satisfied that there was a sufficient cause for his non- compliance to the notices issued by the learned CIT(A) fixing the appeal of the assessee for hearing from time to time. I, therefore, consider it fair and proper and in the interest of justice to set aside the order passed by the learned CIT(A) ex parte and remit the matter back to him for disposing of the appeal of the assessee afresh on merit after giving proper and sufficient opportunity of being heard to the assessee. As undertaken by the learned Counsel for the assessee at the time of hearing before the Tribunal, the assessee shall make due compliance before the learned CIT(A) and shall extend all the possible co-operation in order to enable the learned CIT(A) to dispose of the appeal afresh on merit expeditiously.
In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the open Court on 26th May, 2022 at Ahmedabad.