DATTATRAY BHOSALE,PUNE vs. CIT APPEALS, NATIONAL FACELESS APPEAL CENTRE

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ITA 183/PUN/2024Status: DisposedITAT Pune30 May 2024AY 2015-16Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI GD PADMAHSHALI (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found that the NFAC's order lacked clarity regarding the advance tax liability and did not adjudicate the appeal on merits. Therefore, the appeal was restored to the NFAC for fresh adjudication.

What were the facts?

The assessee's appeal was dismissed by the NFAC for not filing a return and not paying advance tax. The assessee contended that their Form 26AS showed figures exceeding any potential advance tax liability.

What were the issues?

Whether the NFAC correctly dismissed the appeal without considering the merits, and if the assessee's advance tax liability was properly determined.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE “A” BENCH : PUNE :

Before: SHRI SATBEER SINGH GODARA & SHRI GD PADMAHSHALI,

Hearing: 30.05.2024Pronounced: 30.05.2024

Date of Hearing : 30.05.2024 Date of Pronouncement : 30.05.2024 ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal for assessment years 2015- 2016, arise against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/ 250/2023-24/1058144809(1), dated 22.11.2023, involving proceedings u/s.147 r.w.s 144 of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties at length. Case file perused.

2. The assessee pleads the following substantive grounds in the instant appeal :

2 ITA.No.183/PUN./2024

1.

“The learned assessing officer without following the principles of natural justice and without considering the relevant facts available on records added the total receipts

as appearing in the 26AS statement to the total income of the appellant.

2.

The overall tax liability of the appellant if the TDS as available in the records is considered would be NIL and thus the assessment should be quashed.

3. Without prejudice to the above and in furtherance to the above facts the learned assessing officer assessed the entire turnover as income without considering the corresponding profits earned by the appellant. This has resulted in an incorrect and inflated assessment of the taxable income.

4. The appellant, being aggrieved by the order passed by the learned AO, filed an appeal before CIT (A). Regrettably, the appeal was dismissed without due consideration of the factual and legal contentions raised.

5. The appellant craves the permission to add, amend, modify,

alter, revise, substitute, and delete any or all the grounds of appeal, if deemed necessary at the time of hearing of the appeal.”

3.

It emerges at the outset with the able assistance coming from both the parties as well as from perusal of the case file that the learned NFAC has declined to entertain the 3 ITA.No.183/PUN./2024 assessee’s lower appeal inter alia holding that neither he had filed his return nor paid the amount equal to the amount of advance tax payable at his behest. Learned counsel’s case in this factual backdrop is that the assessee’s Form-26AS duly indicated the deductor’s figures which in any case exceed the amount of advance tax payable; if any.

4.

Learned DR fails to dispute that there is no clarity in the NFAC’s lower appellate discussion in para 3.5 about the exact liability of the assessee to pay the foregoing advance tax.

Be that at it may, the fact also remains that there is no adjudication of the assessee’s lower appeal on merits in tune with sec.250(6) of the Act once the NFAC has rejected the same in limine.

5.

Faced with this situation, we deem it appropriate in the larger interest of justice to restore the assessee’s instant appeal back to the NFAC for it’s afresh appropriate adjudication preferably within three effective opportunities of hearing. It is made clear that the NFAC shall first of all ascertain the assessee’s actual advance tax liability followed by the rider that the taxpayer herein shall plead and prove all the relevant facts consequential proceedings at his own risk and responsibility.

Ordered accordingly.

6.

This assessee’s appeal is allowed for statistical purposes in above terms.

4 ITA.No.183/PUN./2024

Order pronounced in the open Court on 30.05.2024.

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