What did the Tribunal hold?

The Tribunal restored the issue to the CIT(A) for fresh adjudication on merits after admitting the appeal. This was done in the interest of justice, acknowledging the discrepancy between Form 35 and the assessment order.

The assessee's appeal before the CIT(A) was dismissed due to a defect in Form 35, where the assessee indicated tax payment on returned income despite declaring Nil income. The assessee claimed this was due to agricultural income being exempt from tax.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal on a technical defect in Form 35 without considering the merits, especially when the assessee declared Nil income.

Pravin Ratilal Boda, Paddhari… vs ITO | ITAT Rajkot 2023

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: Ms SUCHITRA KAMBLE & SHRI WASEEM AHMED

For Appellant: Shri Mehul Ranpura, A.R

Hearing: 26/09/2023Pronounced: 06/12/2023

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The captioned appeal has been filed at the instance of the assessee against the order of the Ld. Commissioner of Income Tax, (Appeals) Rajkot, arising in the matter of order passed under Section 143(3) of the Income Tax Act, 1961 (here- in-after referred to as "the Act") relevant to the Assessment Year 2014-15.

2 2. At the outset, it was noticed that ld. CIT-A did not accept the appeal filed by the assessee on account of a defect appearing in form 35 which was duly communicated to the assessee but there was no response. As per the Ld. CIT(A), the assessee in column No. 8 of form 35 has specified that the tax has been paid on the income shown in the income tax return whereas there was no evidence provided by the assessee about payment of tax. On this reasoning, the Ld. CIT(A), dismissed the appeal filed by the assessee.

At the time of hearing the Ld. Counsel submitted that the assessee has shown agricultural income in the income tax return which is exempted from tax. Thus, there was no question of showing any payment of tax. As per the Ld. AR, this fact was very much appearing in the assessment order. Accordingly, the Ld. AR prayed before us to set-aside the issue to the Ld. CIT(A) for fresh adjudication as per the provision of law on merit with the direction to admit the appeal.

On the contrary, the Ld. DR could not controvert the argument advanced by the Ld. AR for the assessee.

We have heard the rival contentions of both the parties and perused the materials available on record. On perusal of the column 8 of form 35, containing the information whether tax payment made on the returned income, we find that the assessee has mentioned “Yes” from which it is transpired that there was a tax liability on the part of the assessee whereas the AO in his assessment order has clearly recorded that the assessee has filed his return of income declaring at Rs. Nil from which it becomes evident that there was no tax liability on the part of the assessee.

Be that, as it may be, in the interest of justice and fair play, we are inclined to restore the issue to the file of the Ld. CIT(A) for fresh adjudication as per the provision of law after admitting the appeal filed by the assessee. Hence, the ground of appeal of the assessee is hereby allowed for the statistical purposes.

In the result, the appeal filed by the assessee is hereby allowed for the statistical purposes. Order pronounced in the Court on 06/12/2023 at Ahmedabad.

PRAVIN RATILAL BODA,PADDHARI, DIST. RAJKOT vs. ITO, WARD-2(1)(4), RAJKOT, RAJKOT

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