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Facts
The assessee, an agriculturist, failed to appear before the CIT(A) despite notices, leading to an ex-parte order. The assessee's counsel argued that due to illiteracy and lack of familiarity with the e-system, notices were not received, and evidence of land ownership and agricultural operations was submitted.
Held
The Tribunal acknowledged the assessee's illiteracy and failure to avail opportunities. While the Revenue argued the assessee was diverting undisclosed income, the Tribunal, considering the circumstances, decided to grant another opportunity.
Key Issues
Whether the assessee, being an illiterate agriculturist, was sufficiently given an opportunity to represent their case before the CIT(A) and whether the agricultural income claims are genuine.
Sections Cited
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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K & SHRI WASEEM AHMED
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the NFAC, New Delhi dated 12/01/2024 in DIN No. ITBA/ NFAC/ S/ 250/ 2023-24/1059657932(1) for the assessment year 2015-16.
At the outset, the ld. Counsel for the assessee submitted that the assessee could not respond to the notices issued by the ld. CIT(A) for hearing. It was pointed out that the assessee was an agriculturist and illiterate person, therefore, he was not well-versed with IT e-system. Hence, he did not come to know about the notices of hearing issued by the ld. CIT(A) and, therefore, ex-parte order was passed by the ld. CIT(A) confirming the order of the AO.
Without prejudice to the above, the ld. AR also submitted that there were many details filed before the ld. CIT(A) but the ld. CIT(A) without considering the same has dismissed the appeal of the assessee. The ld. AR in support of his contention drawn our attention to page 3 of his synopsis available in the paper book demonstrating the details furnished by the assessee during the appellate proceedings.
The ld. AR also submitted that the assessee during the assessment proceedings has furnished the land reference of rights, tenancy and crop as well as certificate of registration of registered owner, which evidences that the assessee was the owner of agricultural land admeasuring area of 59.49 acres, which was sufficient to generate agricultural income disclosed in the return of income. The ld. AR regarding expenses claimed against agricultural receipt submitted that all these expenses were incurred for carrying out the agricultural operations and, therefore, the same are eligible for deduction. The ld. AR further assured to furnish the necessary details in support of agricultural expenses. Thus, the ld. AR prayed to restore the issue to the file of the AO for fresh adjudication.
On the contrary, the ld. DR submitted that the assessee has not filed any return of income other than the year in dispute disclosing agricultural income. As per the ld. DR, the assessee is diverting its undisclosed income under the garb of agricultural operations. The ld. DR vehemently supported the order of the authorities below.
We have heard the rival contentions of both the parties and perused the materials available on record. Considering the fact that the . assessee is an agriculturist and illiterate person and, therefore, he failed to avail opportunities before the ld. CIT(A), We are inclined to give one more opportunity to the assessee to represent his case before the Revenue authorities. The ld. AR has also given assurance to furnish the details of the agricultural expenses and the assessee shall also not seek unnecessary adjournments. Hence, we set aside the issue to the file of the AO for fresh adjudication as per the provisions of law. Thus, the ground of appeal raised by the assessee is hereby allowed for the statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.